USDA announces industry support during COVID-19

Apr 20, 2020

The Coronavirus Food Assistance Program earmarks US$19 billion to help farmers

By Diego Flammini
Staff Writer
Farms.com

The United States Department of Agriculture (USDA) has announced a new program to help farmers and ranchers manage the challenges brought on by the COVID-19 pandemic.

Agriculture Secretary Sonny Perdue unveiled the Coronavirus Food Assistance Program (CFAP) on Friday. The USDA will use US$19 billion from the Trump Administration’s US$2-trillion stimulus package and other funds to provide relief to U.S. producers.

The money will be distributed in two avenues.

The agriculture department has earmarked US$16 billion in direct payments to producers, and the remaining US$3 billion will be used to purchase fresh produce, dairy and meat for distribution to food banks and other community organizations.

“Having to dump milk or plow under vegetables ready to market is not only financially distressing but it’s heartbreaking as well to those who produce them,” Perdue said Friday.

U.S. producers are pleased to see the government come through with a support program.

These uncertain times require action, said Richard Preston, president of the Kentucky Corn Growers Association.

“Dramatic things need to be done and one thing that must be done is keeping the food supply functioning,” he told Farms.com. “We can’t let our farmers go under because it would cause a huge problem down the road.”

Preston likened the program to a bridge.

Like several industries, the ag sector is trying to manage the pandemic until it’s over and business can return to normal, he said.

“Until we come through this, it’s going to be hard to keep our businesses and economy going,” he said. “The idea right now is just to keep everything functioning so when we get to the other side, we can build our future.”

The USDA will release details on eligibility and payment rates at a later date.

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