LATEST NEWS
American Loggers Council Named to Team Recognized for Prestigious US Forest Service Chiefs Award
The Chief’s Award is meant to celebrate the accomplishments of Forest Service individuals and teams throughout the United States and their contributions to the agency mission and communities they serve.
The Pandemic Assistance for Timber Harvesters and Haulers (PATHH) program represents a unique public / private sector partnership that ensured the assistance was effectively disbursed to the targeted harvesters (loggers) and haulers (truckers). Recognizing and including the private sector within the “team” is uncommon but conveys the value of collaboration toward a common objective.
The American Loggers Council, along with a select group of timber industry organizations, worked collaboratively with the USDA (FSA and USFS) to develop and review the PATHH program, including American Loggers Council members from Oregon, Minnesota, Wisconsin, and Maine, who provided strategic input.
The Chief’s Award recognizes more than the American Loggers Council work with the Farm Service Agency and U.S. Forest Service to provide necessary assistance to preserve the timber industry infrastructure. More importantly, it recognizes the timber industry’s critical role and value in meeting the forest management objectives of public and private land managers. The logging and transportation infrastructure is vital to the forest management mission of maintaining healthy forests.
American Loggers Council Requests Additional PATHH Funding
The American Loggers Council, and the timber industry that we represent, is extremely appreciative of the PATHH program assistance. The program received bi-partisan support in Congress and has also been supported by the Administration. Unfortunately, the program application process has also revealed the extent of economic loss and need within the timber industry sector, with eligible requests ($385 million) exceeding available funding ($200 million) by nearly double. Therefore, the American Loggers Council respectfully requests a supplemental appropriation of $185 million to meet Congress’ full intended level of assistance to the timber harvesters and haulers sector.
This unmet need forced the United States Department of Agriculture, Farm Service Agency, to adjust the original formula to a point where in many cases the amount of financial assistance was reduced to less than half of what the applicant would have been eligible for. As an example, an applicant that would have been eligible, based on their gross income loss multiplied by 80% (original formula) for $180,000 would have been limited to a maximum award of $125,000. The new formula, due to the excess request for assistance, limited the maximum to $75,000 and then applies a multiplier of 70.5% to that figure resulting in a maximum limit of $52,875. This is 42% of the originally announced assistance level that timber harvesters and haulers expected would be provided to them in late 2021.
This level of need is evidence of the economic impact that the COVID-19 Pandemic has had on the American timber industry. Multiple economic analysis reports indicated that the loss to timber harvesters and haulers exceeded $1 billion. Congress recognized that timber harvesters and haulers had been left out of prior pandemic relief programs by appropriating $200 million. Now that the real economic need has been verified, and to meet the intent of Congress in providing adequate assistance to this vital industrial sector, a supplemental appropriation of $185 million (as per Farm Service Agency data) needs to be appropriated.
When other industry specific COVID relief programs had demand that exceeded resources, additional funding was provided. As an example, when the fishing industry received $300 million in 2020 from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) it turned out to be much less than needed. In 2021, an additional $225 million was allocated in the Consolidated Appropriations Act for the fishing industry. Currently Congress is considering an additional $68 billion for small businesses such as restaurants that received $28.6 billion through the Restaurant Revitalization Fund, which was quickly depleted before many restaurants received any assistance.
The objective of the PATHH program was to preserve the logging and trucking infrastructure until the effects of the pandemic were no longer a factor. This is a critical objective to avoid a collapse of the infrastructure which will otherwise prove difficult to rebuild.
The success of the PATHH program was the direct result of Congressional / Administration leadership, and the public / private sector partnership in developing the program. As the first time that the timber industry has been recognized within the agricultural sectors and provided assistance, the PATHH program was an historic and unprecedented success. Supplemental funding to match the eligible demand will ensure that the PATHH program accomplishes the objective and provides the level of support necessary to weather the ongoing challenges of the pandemic.
PATHH Program Demand Exceeds Funding Resources
The need and success of the Pandemic Assistance for Timber Harvesters and Haulers was demonstrated by over 5,600 applications representing eligibility for $385 million in aid. This figure is nearly double the $200 million appropriated for the program.
As a result, the Farm Service Agency had to implement an assistance formula modification which resulted in reduced financial assistance ranging 10%-57% compared to initial estimates. This adjustment was not an arbitrary decision by the Farm Service Agency but was a necessary action to ensure that all eligible applicants received some level of assistance.
The American Loggers Council anticipated that this might be the case based on multiple economic impact studies conducted by the American Loggers Council and the US Forest Service which indicated that the COVID-19 induced negative economic impact to the timber industry exceeded $1 billion.
Upon this final determination the American Loggers Council traveled to Washington DC and met with key Congressional Appropriations Committee Members and expressed a need for supplemental funding to ensure full assistance is provided to the timber industry as originally intended. This information and message was also conveyed to the White House.
PATHH Update: Letter From Tom Vilsack USDA
EXCERPT FROM LETTER: USDA’s Farm Service Agency and Forest Service worked together to ensure the program’s policies are equitable and will help as many as possible in the timber harvesting and hauling industry who have been affected by COVID-19. Initial payments of up to $2,000 per applicant have been made as applications have been made. Sign-up for the program closed last month and the remaining portion of the $200 million will be distributed among the eligible applicants in the coming weeks.
Application Package For PATHH Program
The majority of the applications being submitted are only including the Form FSA-1118. There are four other forms that need to be submitted along with FSA-1118.
To complete your application process you must complete the following forms and submit online or to your local FSA office.
FSA-1118 - This is the application and should be in the name of the business/individual this is who will get the payment
AD-1026 - Needs to be completed by all members of the entity; if it is an individual filing the app, then just one needs to be completed from that individual
AD-2047 - Also needs to be completed by all members of the entity; if it is an individual filing the app, then just one needs to be completed from that individual
Form-901 - Only needs to be completed if it is an entity, partnership, etc.
SF-3881 - Direct Deposit Form - This form must either be signed by the bank or submitted with a check copy showing the routing and account numbers.
PATHH Webinar Rescheduled: Pandemic Assistance to Timber Harvesters and Haulers Program
Due to technical difficulties today’s webinar on the Pandemic Assistance for Timber Harvesters and Haulers (PATHH) program has been rescheduled for tomorrow, Thursday, July 22, 2021 at 12:00 noon eastern.
PRE-REGISTRATION will again be required. Please click on this link https://globalmeetwebinar.webcasts.com/starthere.jsp?ei=1483657&tp_key=858211eeee
and complete the five registration fields and click submit. You will not be able to use today’s registration link.
After registering an email will be sent to you with the link and new password for tomorrow’s webinar.
After tomorrow’s webinar, a transcribed link to the webinar recording and the webinar slides will be posted here for your convenience. https://www.fsa.usda.gov/programs-and-services/outreach-and-education/webinars/index
Frequently Asked Questions: Pandemic Assistance for Timber Harvesters and Haulers Program
USDA’s Farm Service Agency will accept PATHH applications from July 22 through October 15, 2021. Learn more at farmers.gov/pathh.
About PATHH
Q: What is the Pandemic Assistance for Timber Harvesters and Haulers Program?
A: USDA’s Pandemic Assistance for Timber Harvesters and Haulers program (PATHH) is a new program that will provide up to $200 million in financial relief to timber harvesting and timber hauling businesses that experienced losses in 2020 due to COVID-19. PATHH is part of USDA’s Pandemic Assistance for Producers initiative.
Q: What USDA agency is administering PATHH?
A: PATHH is administered by USDA’s Farm Service Agency (FSA) in partnership with the U.S. Forest Service (USFS). FSA will be the principal agency charged with implementing PATHH with the USFS providing technical assistance. Applicants will work with FSA to submit their PATHH application and supporting documents.
Q: When does the signup period for PATHH open and close?
A: USDA’s Farm Service Agency will accept PATHH applications from July 22 through October 15, 2021.
Q: Are PATHH funds a loan that must be repaid? Is there a fee to apply?
A: No. PATHH is not a loan program and there is no fee to apply.
Q: I don’t participate in any USDA programs. Can I apply for PATHH?
A: Yes. Participation in other USDA programs is not a prerequisite to apply for PATHH.
Q: Is there an Adjusted Gross Income (AGI) limit to receive PATHH assistance?
A: No. Average adjusted gross income limitations will not apply to PATHH.
Q: What is the funding amount and funding source for PATHH?
A: The Consolidated Appropriations Act, 2021, allocated $200 million in funding for PATHH to provide financial relief to timber harvesting and timber hauling businesses impacted by COVID-19.
Eligibility
Q: How do I know if my timber harvesting or timber hauling business is eligible for PATHH?
A: PATHH will support timber harvesting and timber hauling businesses that experienced a loss of at least 10 percent gross revenue from January 1 through December 1, 2020, compared to the same period in 2019. You can calculate your loss in revenue using the following formula, where both years reflect gross revenue from January 1 through December 1:
Percent Revenue Loss = ((2019 Gross Revenue – 2020 Gross Revenue) / 2019 Gross Revenue) x 100
Additional eligibility requirements include deriving at least 50 percent of gross revenue from cutting timber, hauling timber, and/or producing wood chips on forest land during the above time periods and confirmation of North American Industry Classification System (NAICS) codes, among others. Visit farmers.gov/pathh for a full list of program eligibility requirements.
Q: My timber harvesting or timber hauling business was not in operation for the duration of January 1, 2019 through December 1, 2019 and/or January 1, 2020 through December 1, 2020. How will this impact my eligibility and the calculation of my gross revenue?
A: To be eligible for PATHH, applicants must have been in operation as a timber harvesting business or timber hauling business for at least part of the periods from January 1, 2019, through December 1, 2019, and January 1, 2020, through December 1, 2020. USDA will adjust your gross revenue proportionally if you did not operate during the entire period for one or both years.
Q: Are minors eligible for PATHH?
A: No. Minors under 18 years of age are not eligible for PATHH.
PATHH Payments
Q: How will PATHH payments be calculated for eligible truckers and loggers?
A: PATHH payments will be based on the applicant’s gross revenue received from January 1, 2019 through December 1, 2019, minus gross revenue received from January 1, 2020 through December 1, 2020, multiplied by 80 percent. The below equation represents this calculation:
Expected PATHH Payment = (2019 Gross Revenue – 2020 Gross Revenue) x 0.80
The Farm Service Agency will issue an initial payment equal to the lesser of the application calculated payment amount described above or $2,000. A final payment will be made after the signup period closes to applicants whose expected total payment exceeds $2,000. The sum of both payments will be no greater than $125,000, and USDA may prorate final payments and/or reduce this payment limitation if total calculated payments exceed the total funding allocated for the program.
Q: How will PATHH payments be distributed?
A: Eligible program applicants will receive up to two PATHH payments through direct deposit. The first payment up to $2,000 will be made after an application is approved. A second and final payment will be made after the application period closes on October 15, 2021. The sum of both payments will be no greater than $125,000, and USDA may prorate final payments and/or reduce this payment limitation if total calculated payments exceed the total funding allocated for the program.
Q. Is this a first-come, first-serve program? What if you run out of money?
A: To ensure there is adequate funding for all eligible loggers and truckers, the Farm Service Agency will make an initial payment of equal to the lesser of the application calculated payment amount or $2,000. A final payment will be made after the signup period closes to applicants whose expected total payment exceeds $2,000. The sum of both payments will be no greater than $125,000, and USDA may prorate final payments and/or reduce this payment limitation if total calculated payments exceed the total funding allocated for the program.
Q: When are PATHH payments expected to begin?
A: Farm Service Agency county offices will process applications as they receive them beginning July 22, 2021. Program approval is handled at the local level and the timeline for this approval process, including required internal controls and data validation, varies from county to county. Initial payments of up to $2,000 will be made shortly after applications are approved. A second and final payment will be made after the application period closes on October 15, 2021.
Q: What is the payment limitation for PATHH?
A: The sum of PATHH payments that a person or legal entity, including a joint venture or general partnership may directly receive, is $125,000. [KJ-FWD1] USDA may reduce this payment limitation if total calculated payments exceed the total $200 million in funding allocated for the program.
Like all other programs administered by FSA, payments made to a PATHH applicant that is a Indian Tribe or Tribal organization, as defined in section 4(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304), will not be subject to payment limitation.
Unlike other programs administered by FSA, applicants that are a joint venture or general partnership will be treated like a corporation and will be eligible to receive a single payment limitation per entity.
Q. Can PATHH payments be withheld to satisfy a debt?
A: No. These payments will not be subject to administrative offset. This means the payments will not be withheld to satisfy any USDA debts nor will they be offset by Treasury.
Q. Are PATHH payments going to be counted as taxable income?
A: The Farm Service Agency reports program payments to the Internal Revenue Service and program participants on a CCC-1099-G. This report is a service to help program participants report taxable income. Please consult with the IRS or your tax preparer for any additional questions on how this income impacts your business.
How to Apply
Q: How can I prepare to apply for PATHH in advance of the signup period?
A full list of program eligibility requirements and information on applying is available at farmers.gov/pathh. We recommend you review this list before initiating your application once the signup period opens on July 22.
Your local Farm Service Agency (FSA) staff will work with you to fill out the PATHH application. Visit farmers.gov/service-locator to find contact information for the FSA office at your local USDA Service Center. FSA staff are available to support you in preparing your application. You may also call 877-508-8364 to speak directly with a USDA employee ready to offer assistance or answer any questions.
Q: How do I apply for PATHH once the signup period opens on July 22?
You will apply for PATHH through the Farm Service Agency office at your local USDA Service Center. Visit farmers.gov/pathh for a full set of application requirements, including forms that will be needed to finalize your application. Please remember, USDA staff are available to assist with every step of your application process.
Q: Do I need to work with a third-party entity to complete my PATHH application.
A: No. USDA helps applicants complete program applications and other paperwork free of charge. USDA Service Center staff can guide you through the process of preparing and submitting required paperwork to apply for PATHH on your own, with no need to hire a paid preparer. Language translation services are available in all USDA Service Centers, so one-on-one assistance with a Service Center employee can be translated in real time for applicants requiring translations.
Q: What documents do I need to submit with my PATHH application?
The forms needed to complete your PATHH application are available for download at farmers.gov/pathh. These include the program application form – FSA-1118 – along with forms to confirm your personal information, enable your direct deposit payment, and certify compliance with USDA conservation compliance provisions. You may also be required to provide certain documentation from your tax records.
Q: My local USDA Service Center is not open for walk-in service. How does this impact how I’ll submit my application?
A: We are committed to delivering USDA services while taking safety measures in response to the pandemic. Some USDA offices are open to limited visitors by appointment only. Service Center staff also continue to work with agricultural producers via phone, email, and other digital tools. Please call the Farm Service Agency office at your local USDA Service Center to schedule an appointment if you’d like assistance or have questions about applying for PATHH.
A call center is available for applicants who would like additional one-on-one support with the PATHH application process over the phone. Please call 877-508-8364 to speak directly with a USDA employee ready to offer support. The call center can provide service to non-English speaking customers. Customers will select 1 for English and 2 for Spanish. For other languages, customers select 1 and indicate their language to the call center staff.
Q: I’ve never worked with USDA’s Farm Service Agency (FSA) previously. How do I connect with my local FSA office to get started with my application?
A: There is a Farm Service Agency (FSA) office located in nearly every county across the United States. Visit farmers.gov/service-locator to find the contact information for your local office. We recommend you call your office to connect directly with FSA staff who can talk with you about the program, eligibility requirements, and how to apply. You may also contact our call center at 877-508-8364 to speak directly with a USDA employee ready to offer support. At USDA, we are here to make your application process as easy as possible and will provide support every step of the way.
Q: Do the Farm Bill’s conservation compliance requirements apply to PATHH?
A: Yes. Producers participating in PATHH must be in compliance with the highly erodible land conservation and wetland conservation provisions at 7 CFR Part 12 to be eligible. Producers must agree, by certifying Form AD-1026, that they will not produce an agricultural commodity on highly erodible land without a conservation plan, plant an agricultural commodity on a converted wetland, or convert a wetland to make possible the production of an agricultural commodity. This form is available at farmers.gov/pathh.
We understand that many loggers and truckers participating in PATHH may not have a farming interest. In this case, applicants will be asked to check box 5A of form AD-1026, sign, and return the form to the FSA office at their local USDA Service Center.
Q: I do not have a farming interest. Do I still need to complete form AD-1026, Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification, with my application?
A: Yes. Applicants without a farming interest will be asked to check box 5A of form AD-1026. This confirms the applicant does not have interest in land devoted to agriculture and do not own or lease any agricultural lands themselves.
Q: What is the North American Industry Classification System (NAICS), and how do I find the NAICS code for my business?
A: NAICS is the 2017 North American Industry Classification System. It is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
The NAICS code for your business will be located on your federal tax return documents for 2019 and 2020.
Pandemic Assistance for Timber Harvesters and Haulers – PATHH Program
“We thank the American Loggers Council and its state association members for helping us better understand the impacts of the COVID-19 pandemic on the timber harvester and timber hauler sectors,” said Zach Ducheneaux, Administrator of USDA’s Farm Service Agency (FSA). “They provided insights on their industry that allowed us to develop an effective and efficient program that delivers the greatest benefits to businesses in need.”
The American Loggers Council is pleased to announce that the Pandemic Assistance for Timber Harvesters and Haulers (PATHH) financial assistance program has been developed and will open for applications in the immediate future.
This program is the culmination of the American Loggers Council leadership beginning last summer when Senator Collins (ME) and Senator Smith (MN) introduced legislation to provide financial assistance to the logging and log hauling businesses impacted by the COVID-19 pandemic. As a result, Senator Collins and Senator Smith, along with House members Representative Golden (ME) and Representative Rouzer (NC), in conjunction with the American Loggers Council state associations, were able to negotiate inclusion of $200 million in the 2020 Supplemental Appropriations Bill in December.
The PATHH program will be administered by the Farm Service Agency based on their experience with similar agricultural commodity programs and presence in nearly every county. The USDA, U.S. Forest Service, and the Farm Service Agency developed the PATHH program in record time at the direction of the Biden Administration. The Farm Service Agency will be conducting outreach programs to ensure that all eligible companies will be aware of the program and application process.
The financial and human capital invested by the American Loggers Council in securing this financial aid for American Timber Harvesters (Loggers) and Haulers (Truckers) is a demonstration of representation as the National Voice for Professional Loggers – Loggers Working for Loggers, that the American Loggers Council provides.
This is an historic accomplishment. For the first time ever in our long history of forest management, the timber industry will be recognized as an agricultural commodity like other agricultural sectors.
USDA’s Farm Service Agency will accept PATHH applications from July 22 through October 15, 2021.
To be eligible for payments, individuals or legal entities must be a timber harvesting or timber hauling business where 50% or more of its gross revenue is derived from one or more of the following:
Cutting timber
Transporting timber
Processing of wood on-site on the forest land (chipping, grinding, converting to biochar, cutting to smaller lengths, etc.).
Payments will be based on the applicant’s gross revenue received from Jan. 1, 2019, through Dec. 1, 2019, minus gross revenue received from Jan. 1, 2020, through Dec. 1, 2020, multiplied by 80%. FSA will issue an initial payment equal to the lesser of the calculated payment amount or $2,000 as applications are approved. A second payment will be made after the signup period has ended based upon remaining PATHH funds. The maximum amount that a person or legal entity may receive directly is $125,000.
Loggers and other stakeholders in the program are highly encouraged to participate in a Wednesday July 21 webinar at 3 p.m. Eastern. Interested participants must register for the webinar.
Senator Collins Urges Agriculture Secretary to Quickly Distribute Delayed COVID-19 Relief Funding for Loggers
Washington, D.C. – At a Senate Agriculture Appropriations Subcommittee hearing, U.S. Senator Susan Collins urged U.S. Department of Agriculture (USDA) Secretary Tom Vilsack to expedite the distribution of COVID-19 relief funding for logging and log hauling businesses.
Last year, Senator Collins and Representative Jared Golden introduced the Loggers Relief Act to establish a new USDA program to provide direct payments to loggers who have been seriously impacted by the pandemic. Senator Collins, a lead negotiator of the COVID-19 relief bill that was signed into law in December, successfully secured the inclusion of the Loggers Relief Act and $200 million in funding in the final package.
“I know that USDA announced this morning that this program and others would be implemented in the next 60 days. But I would point out that the program was signed into law on December 27. So it has taken nearly six months just for loggers to be told that it could take yet another two months before they actually receive relief,” said Senator Collins. “And given their losses during the pandemic, this is a problem. Is there any way for the USDA to speed up the implementation of this program so that it does not take another 60 days?”
“We will do it as quickly as we can within the resources that we have and within the legalities that we have to follow. Senator, I really appreciate the fact that you feel that this has been delayed, but I think you have to look at all of the other activities and work that we have had to do at USDA,” responded Secretary Vilsack. “And under the circumstances and given the staffing reductions that we faced coming into this administration, I think our people have done a pretty daggone good job of getting things out.”
“I understand and appreciate your folks are suffering, and we will try to get that relief,” continued Secretary Vilsack. “And I know the chair[man] is also interested in this issue. She has probably talked to me about a half a dozen times. So we will make sure that we'll do it as quickly as we possibly can.”
“Thank you for that commitment. The chair[man] and I worked very closely to get this assistance included,” replied Senator Collins.
In February, Senator Collins and Representative Golden led 19 of their colleagues in sending letters urging the USDA to quickly disburse the relief funding. Additionally, in April, Senator Collins led the Maine Delegation in sending a letter to the USDA to urge the quick distribution of the $200 million in COVID-19 relief funding for logging and log hauling.
The logging industry has experienced a steep decline in demand for wood fiber since the coronavirus pandemic began, leading to an estimated 20 percent or more drop in the timber harvest this year. The $200 million in relief funding will go to timber harvesting and hauling businesses that have, because of the COVID–19 pandemic, experienced a loss of 10 percent or more in gross revenue during the period beginning on January 1, 2020, and ending on December 1, 2020, compared to the same period last year. Maine’s logging industry is a linchpin of the state’s economy, generating an estimated $619 million in economic output and providing $342 million in income to around 9,000 Mainers, most of whom live in rural communities.
Logger Relief Update: After Identifying Gaps in Previous Aid, USDA Announces ‘Pandemic Assistance for Producers’ to Distribute Resources More Equitably
***Update March 29, 2021: The CFAP 2 application that will begin on April 5, 2021 will be for existing programs only. The funds for timber harvesters and haulers will not be available until the USDA sets up a program that could be subject to a rulemaking process that could take up to an additional 120 days to complete. We are doing everything possible to expedite the creation of the program, but are being throttled back by federal law. Stayed Tuned.
WASHINGTON, March 24, 2021—Agriculture Secretary Tom Vilsack announced today 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.”
USDA will reopen sign-up for CFAP 2 for at least 60 days beginning on April 5, 2021.
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 today (under Part 3, below) 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 Today
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. These efforts will include assistance for:
Dairy farmers through the Dairy Donation Program or other means:
Euthanized livestock and poultry;
Biofuels;
Specialty crops, beginning farmers, local, urban and organic farms;
Costs for organic certification or to continue or add conservation activities
Other possible expansion and corrections to CFAP that were not part of today’s announcement such as to support dairy or other livestock producers;
Timber harvesting and hauling;
Personal Protective Equipment (PPE) and other protective measures for food and farm workers and specialty crop and seafood producers, processors and distributors;
Improving the resilience of the food supply chain, including assistance to meat and poultry operations to facilitate interstate shipment;
Developing infrastructure to support donation and distribution of perishable commodities, including food donation and distribution through farm-to-school, restaurants or other community organizations; and
Reducing food waste.
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. This new assistance includes:
$100 million in additional funding for the Specialty Crop Block Grant Program, administered by the Agricultural Marketing Service (AMS), which enhances the competitiveness of fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops.
$75 million in additional funding for the Farmers Opportunities Training and Outreach program, administered by the National Institute of Food and Agriculture (NIFA) and the Office of Partnerships and Public Engagement, which encourages and assists socially disadvantaged, veteran, and beginning farmers and ranchers in the ownership and operation of farms and ranches.
$100 million in additional funding for the Local Agricultural Marketing Program, administered by the AMS and Rural Development, which supports the development, coordination and expansion of direct producer-to-consumer marketing, local and regional food markets and enterprises and value-added agricultural products.
$75 million in additional funding for the Gus Schumacher Nutrition Incentive Program, administered by the NIFA, which provides funding opportunities to conduct and evaluate projects providing incentives to increase the purchase of fruits and vegetables by low-income consumers
$20 million for the Animal and Plant Health Inspection Service to improve and maintain animal disease prevention and response capacity, including the National Animal Health Laboratory Network.
$20 million for the Agricultural Research Service to work collaboratively with Texas A&M on the critical intersection between responsive agriculture, food production, and human nutrition and health.
$28 million for NIFA to provide grants to state departments of agriculture to expand or sustain existing farm stress assistance programs.
Approximately $80 million in additional payments to domestic users of upland and extra-long staple cotton based on a formula set in the Consolidated Appropriations Act, 2021 that USDA plans to deliver through the Economic Adjustment Assistance for Textile Mills program.
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, they are self-enacting.
An increase in CFAP 1 payment rates for cattle. Cattle producers with approved CFAP 1 applications will automatically receive these payments beginning in April. Information on the additional payment rates for cattle can be found on farmers.gov/cfap. Eligible producers do not need to submit new applications, since payments are based on previously approved CFAP 1 applications. USDA estimates additional payments of more than $1.1 billion to more than 410,000 producers, according to the mandated formula.
Additional CFAP assistance of $20 per acre for producers of eligible crops identified as CFAP 2 flat-rate or price-trigger crops beginning in April. This includes alfalfa, corn, cotton, hemp, peanuts, rice, sorghum, soybeans, sugar beets and wheat, among other crops. FSA will automatically issue payments to eligible price trigger and flat-rate crop producers based on the eligible acres included on their CFAP 2 applications. Eligible producers do not need to submit a new CFAP 2 application. For a list of all eligible row-crops, visit farmers.gov/cfap. USDA estimates additional payments of more than $4.5 billion to more than 560,000 producers, according to the mandated formula.
USDA will finalize routine decisions and minor formula adjustments on applications and begin processing payments for certain applications filed as part of the CFAP Additional Assistance program in the following categories:
Applications filed for pullets and turfgrass sod;
A formula correction for row-crop producer applications to allow producers with a non-Actual Production History (APH) insurance policy to use 100% of the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield in the calculation;
Sales commodity applications revised to include insurance indemnities, Noninsured Crop Disaster Assistance Program payments, and Wildfire and Hurricane Indemnity Program Plus payments, as required by statute; and
Additional payments for swine producers and contract growers under CFAP Additional Assistance remain on hold and are likely to require modifications to the regulation as part of the broader evaluation and future assistance; however, FSA will continue to accept applications from interested producers.
Part 4: Reopening CFAP 2 Sign-Up to Improve Access & Outreach to Underserved Producers
As noted above, USDA will re-open sign-up for of CFAP 2 for at least 60 days beginning on April 5, 2021.
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.
Please stay tuned for additional information and announcements under the USDA Pandemic Assistance to Producers initiative, which will help to expand and more equitably distribute financial assistance to producers and farming operations during the COVID-19 national emergency. Please visit www.farmers.gov for more information on the details of today’s announcement.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean-energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
SOURCE: USDA