WASHINGTON, DC - Further government support for the ag industry was recently announced as the U.S. Department of Agriculture (USDA) approved up to $14 billion in funding to be distributed through the Coronavirus Food Assistance Program 2.0 (CFAP 2). The Produce Marketing Association (PMA) and United Fresh Produce Association each released member statements in response to this decision, explaining how the funding will shape the future of our industry.

“CFAP 2 provides financial assistance that gives producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. In a change from the previous program, payments will be based on revenue from 2019 crops,” PMA’s Legislative and Regulatory Affairs Team Lead Richard Owen said in the association’s statement. “CFAP 2 payments will be made for three categories of commodities: Price Trigger Commodities, Flat-rate Crops, and Sales Commodities. Specialty crops, floriculture, and nursery crops will only be eligible for the Sales Commodity portion.”

Owen went on to explain that producers will be paid based on five payment gradations associated with their 2019 sales. Additional commodities are eligible in CFAP 2 that weren’t eligible in the first iteration of the program. A complete list of eligible commodities, payment rates, and calculations can be found here.

“United Fresh and industry colleagues have been working with USDA since March to ensure that fruit and vegetable growers impacted by market losses related to the COVID-19 pandemic are provided appropriate resources that would help stabilize their operations,” United Fresh said in its statement. “CFAP combined with the Paycheck Protection Program and USDA’s Farmers to Families feeding program have provided well over $5 billion dollars in direct support to our industry members. These federal resources have been a historic investment by the federal government over the last seven months during the pandemic.”

To read the USDA’s full announcement, click here.

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Produce Marketing Association United Fresh Produce Association