USDA Relief Package Announced, Official Details Pending

April 20, 2020

USDA late last week announced the Coronavirus Food Assistance Program (CFAP), which is a $19 billion relief package directed at agricultural producers impacted by the pandemic and funded through the Coronavirus Aid, Relief and Economic Security Act. According to USDA, the program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted, and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by the coronavirus. The remaining $3 billion will be used to purchase meat, beef is not included; dairy; and fresh produce to be provided to those in need through community foodbanks and other non-profit organizations.      

While there have been no official details released by USDA, reports circulated over the weekend regarding program totals, payment limits and qualification dates. The details being reported are extremely concerning to KLA. If accurate, the disaster program will not effectively address the market losses experienced by many cattle, dairy and swine operations. KLA staff are addressing these concerns through direct communication with our Congressmen and USDA before details are finalized.