Coronavirus Food items Help Method
I’m Tim Hammerich with your Southeast Regional Ag Report.
The U.S. Division of Agriculture recently launched facts for the Coronavirus Foodstuff Support Application or CFAP 2.. What does that necessarily mean for producers of specialty crops? American Farm Bureau Economist Michael Nepveux claims the plan is damaged down into 3 categories.
Nepveux… “They have rate drop commodities, which is commodities that experienced to knowledge 5% or better nationwide cost result in. Then they have a flat fee for each acre payment. So these to start with two most likely usually are not heading to seriously utilize to a whole lot of specialty crops. Your cost induce is predominantly your row crops as properly some livestock. I assume a lot of the specialty crops are likely to be included below the 3rd group, which is profits commodities. So for that, it would fundamentally acquire 2019 generation and then you would multiply it by a p.c payment charge, based on how, how huge your sales have been. So for that situation, as an case in point, if your income as a business enterprise were being around $1 million in 2019, you would multiply 8.8%, then that would be your payment level for that. So which is the way a specialty crops are treated below the new just one.”
Nepveux claims sales commodities as detailed in that final category of CFAP 2. include things like specialty crops, aquaculture, and nursery and floriculture. Seek the advice of the laws at the USDA web site for more information.