By Dennis Rudat, Michigan Farm News
September 29, 2020
In what might be considered one of the best-kept secrets, Michigan’s floriculture and nursery crop producers affected by the coronavirus pandemic are eligible for direct payments through the Coronavirus Food Assistance Program 2, or CFAP 2, recently announced by USDA.
Although those segments of agriculture were not part of CFAP 1, Michigan Farm Bureau Horticulture Specialist Audrey Sebolt says USDA made allowances in CFAP 2, based on industry feedback, to provide nursery and greenhouse operators financial assistance to absorb increased marketing costs associated with the COVID-19 pandemic.
“Payment calculations will use a sales-based approach, where producers of eligible commodities are paid based on five payment gradations associated with their 2019 sales,” Sebolt added. “Eligible sales only include sales of raw commodities grown by the producer.”
According to Sebolt, sales derived from adding value to the commodity, such as processing and packaging, or from sales of products purchased for resale are not eligible for CFAP 2 payment calculations.
Determining CFAP 2.0 eligibility and eligible sales:
- CFAP 2 payments are available for eligible producers of floriculture and nursery crops, including Christmas trees, which are categorized as sales commodities.
- Eligible sales only include sales of raw commodities grown by the producer.
- To complete the CFAP 2 application, producers will need to reference their sales, inventory, and other records. However, since CFAP 2 is a self-certification program, this documentation will not need to be submitted with the application.
- See table below for this payment gradation OR open the payment calculator Excel sheet – enter your 2019 Revenue in Row 35 and your Payment Quantity will be calculated.
1. The amount of the producer’s eligible sales in calendar year 2019, multiplied by
2. The payment rate for that range.
- Payments for producers who began farming in 2020 and had no sales in 2019 will be based on the producer’s actual 2020 sales as of the producer’s application date.
- The total CFAP 2 payment that a person or legal entity may receive directly through their application or indirectly through attribution of entity payments is $250,000.
- Applying for this program should not exempt you from any future programs.
- You will to have claim these funds on your income tax filing.
- USDA will accept CFAP 2 applications through Dec. 11, 2020.
- USDA has indicated that they do not anticipate funds will run out, so growers could apply right up until Dec. 10. Michigan Farm Bureau, however, advises applying sooner rather than later.
- Soon after your application has been accepted, you should see your funds — they can be direct deposited into your banking account.
- More specific nursery and floriculture information can be found here. For additional CFAP 2 information visit CFAP 2.0 FAQ.
Preparing to apply for CFAP 2
Sebolt says many nursery and floriculture operation may be a new customer to USDA and local Farm Service Agency staff. If so, local country FSA staff can assist with filling out the CFAP 2 application and will need the following information:
Name and address
Personal information, including your Tax Identification Number
Farm operating structure
Adjusted Gross Income compliance certification to ensure eligibility
Direct deposit information to enable payment
If you have never conducted business with FSA, you may be asked to fill out an AD-1026 form to prove compliance with highly erodible land and wetland conservation.