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WHIP+ and QLA Payments to Begin

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More than $1 billion in payments will be released over the next several weeks for agricultural producers with approved applications for the Quality Loss Adjustment (QLA) Program and for producers who have already received payments through the Wildfire and Hurricane Indemnity Program Plus (WHIP+). These USDA programs provide disaster assistance to producers who suffered losses to 2018 and 2019 natural disasters.

Supplemental CFAP Payments Paused

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USDA has suspended $2.3 billion in supplemental Coronavirus Food Assistance (CFAP) payments to farmers. Most of the money is going to contract hog and poultry growers and others who were left out of earlier programs. The Biden Administration put these payments on hold while it reviews the regulations taken during the final days of the Trump Administration. The Farm Service Agency will continue to accept applications during the review process.

Over $7 Billion Paid in CFAP 2 Payments

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During the first month of the signup period, USDA approved more than $7 billion in the second round of the Coronavirus Food Assistance Program. Through CFAP 2, USDA is making $14 billion of assistance available to farmers and ranchers. Iowa received more payments than any other states with $778 million. A total of $510 million has gone out to Minnesota farmers. A total of $352 million in CFAP 2 payments were made in the first month of enrollment in South Dakota. North Dakota farmers received $246 million. The Farm Service Agency is taking CFAP 2 applications through December 11.

Prevent Plant ‘Top Up’ Payments to be Paid in October

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Farmers who filed a prevent plant claim will automatically receive a ‘top-up’ payment. A ten percent payment will be made to farmers with Yield Protection and Revenue Protection with the Harvest Price Option. Those with Revenue Protection will receive 15 percent.

“This has been such a tremendously tough year for producers and frankly, insurance guarantees aren’t as high as we’d like them based on the low commodity prices,” said Martin Barbre, administrator, Risk Management Agency. Barbre says the crop insurance companies will begin making the ‘top-up’ payments in mid-October. “I applaud the companies for stepping up and signing this agreement to bring these important funds to their producers.

USDA RMA Press Release

Transparency for Trade Damage Calculations

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USDA has outlined how the rates were made for the new round of Market Facilitation Program payments. There is a countywide rate, but that was based on the estimated trade-related damages for various commodities. For dry edible beans, the commodity rate was at $8.22 per hundredweight. Soybeans were $2.05 per bushel, corn was at 14 cents and wheat was at 41 cents. Hogs and dairy rates were also announced, with hogs at $11 per head and milk production at 20 cents per hundredweight.

View the Trade Methodology Report.

First Round of MFP 2.0 Payments Being Processed

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Farmers should start receiving the first round of Market Facilitation Program payments very soon. According to USDA Farm Service Agency Administrator Richard Fordyce, the payment process began Wednesday for farmers with approved applications. “Over 200,000 applications have been received since sign up began on July 29,” says Fordyce.

Farmers should expect to see up to $14.5 billion in payments. The first tranche covers 50 percent of that amount. The second and third payments of 25 percent each will depend on conditions at the time. “We’ll look at if there has been movement in trade negotiations in late fall. If not, then we’ll look at it again in January.” The MFP 2.0 application deadline is December 6.