Agriculture Secretary Tom Vilsack announced Wednesday that USDA is establishing new programs and efforts to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions. The new initiative--USDA Pandemic Assistance for Producers--will reach a broader set of producers than in previous COVID-19 aid programs. USDA is dedicating at least $6 billion toward the new programs. The Department will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, as well as provide support for the food supply chain and producers of renewable fuel, among others. Existing programs like the Coronavirus Food Assistance Program (CFAP) will fall within the new initiative and, where statutory authority allows, will be refined to better address the needs of producers.
USDA Pandemic Assistance for Producers was needed, said Vilsack, after a review of previous COVID-19 assistance programs targeting farmers identified a number of gaps and disparities in how assistance was distributed as well as inadequate outreach to underserved producers and smaller and medium operations.
"The pandemic affected all of agriculture, but many farmers did not benefit from previous rounds of pandemic-related assistance. The Biden-Harris Administration is committed to helping as many producers as possible, as equitably as possible," said Vilsack. "Our new USDA Pandemic Assistance for Producers initiative will help get financial assistance to a broader set of producers, including to socially disadvantaged communities, small and medium sized producers, and farmers and producers of less traditional crops."
National Milk Producers Federations President and CEO Jim Mulhern said, "U.S. dairy farmers and their cooperatives thank USDA for its support for the Dairy Donation Program, a critical means for connecting nutritious dairy products with the consumers who need them, as well as its examination of additional payments for milk producers that will better reflect the losses they have experienced due to the COVID-19 pandemic. NMPF looks forward to working with the department on the swift and effective implementation of USDA Pandemic Assistance for Producers initiatives."
U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, said, "USDA's plan to support our farmers and producers includes many of the key priorities I advocated for during negotiations. Nebraska ag has felt the impact of economic disruptions from COVID-19. This much-needed relief will help get the heart of our state's economy back on track."
U.S. Senator John Hoeven (R-N.D.), ranking member of the Senate Agriculture Appropriations Committee and ranking member of the Senate Agriculture Committee Subcommittee on Commodities, Risk Management, and Trade, said, "Over the past several years, we've worked to secure strong funding to help our farmers and ranchers weather unprecedented challenges including unfair retaliatory trade practices, natural disasters and the COVID-19 pandemic. That includes the $13 billion in agriculture we secured as part of COVID relief in late December. We made the case to Secretary Vilsack to provide this assistance as quickly as possible, and we appreciate USDA working to get relief to our producers."
USDA will reopen sign-up for CFAP 2 for at least 60 days beginning on April 5. The USDA Farm Service Agency (FSA) has committed at least $2.5 million to improve outreach for CFAP 2 and will establish partnerships with organizations with strong connections to socially disadvantaged communities to ensure they are informed and aware of the application process.
The payments announced Wednesday will go out under the existing CFAP rules; however, future opportunities for USDA Pandemic Assistance will be reviewed for verified need and during the rulemaking process, USDA will look to make eligibility more consistent with the Farm Bill. Moving forward, USDA Pandemic Assistance for Producers will utilize existing programs, such as the Local Agricultural Marketing Program, Farming Opportunities Training and Outreach, and Specialty Crop Block Grant Program, and others to enhance educational and market opportunities for agricultural producers.
USDA Pandemic Assistance for Producers -- 4 Parts Announced Wednesday
- Part 1: Investing $6 Billion to Expand Help & Assistance to More Producers
- USDA will dedicate at least $6 billion to develop a number of new programs or modify existing proposals using discretionary funding from the Consolidated Appropriations Act and other coronavirus funding that went unspent by the previous administration. Where rulemaking is required, it will commence this spring.
- Part 2: Adding $500 Million of New Funding to Existing Programs
- USDA expects to begin investing approximately $500 million in expedited assistance through several existing programs this spring, with most by April 30.
- Part 3: Carrying Out Formula Payments under CFAP 1, CFAP 2, CFAP AA
The Consolidated Appropriations Act, 2021, enacted December 2020 requires FSA to make certain payments to producers according to a mandated formula. USDA is now expediting these provisions because there is no discretion involved in interpreting such directives.
FSA has committed at least $2.5 million to establish partnerships and direct outreach efforts intended to improve outreach for CFAP 2 and will cooperate with grassroots organizations with strong connections to socially disadvantaged communities to ensure they are informed and aware of the application process.
Categories: Michigan, Business, Crops