CFAP Payments on the Fritz

Feb 2, 2021

Just like our readers in the northern U.S., new rules and regs have been frozen for the Biden administration to review. This freeze pauses $2.3 billion in supplemental Coronavirus Food Assistance Program [CFAP] payments for producers that were announced on January 15.

The deets: The leftover funds from CFAP 1 and 2 would loop in contract poultry and pork producers, among others, and true-up previous payments.

A temporary timeout: Senate Ag Chairwoman Debbie Stabenow (D-MI) was supportive of the pause, noting that CFAP funds were supposed to address supply chain issues, PPE for farm workers and processors, and assistance to smaller producers.

Bottom line:
 As things thaw out on determining how to appropriate the leftover funds, eyes are still on the $13 billion of ag aid in CFAP #3 that has yet to be doled out. Implementation of this next round of CFAP is still expected to take a hot minute.