Today is the first day of farmer signup for the Coronavirus Food Assistance Program (CFAP), the direct payments for producers funded by Congress and implemented by USDA. The National Milk Producers Federation is urging all dairy farmers to use the program, which will provide much-needed and much-appreciated aid in upcoming weeks and months.

Dairy farmers must contact their local USDA Farm Service Agency (FSA) office to enroll in CFAP.

“The sooner a farmer signs up, the sooner this welcome assistance will arrive,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “NMPF is ready to help dairy producers, answering questions and offering materials online even as we continue working with USDA and members of Congress to smooth out details and discuss additional aid.”

NMPF’s coronavirus resources page includes a special section on CFAP. A quick primer on dairy elements specific to the program the program is also available here. NMPF will be making additional materials available as more questions arise, and key documents will be communicated to stakeholders via e-mail as well as the Twitter hashtag, #dairyneverstops.

If you are a dairy farmer whose operation has been directly impacted by coronavirus, you are likely to be eligible for direct support through USDA’s Coronavirus Food Assistance Program (CFAP). CFAP provides support to producers who have suffered a five percent-or-greater price decline due to COVID-19.

USDA is accepting applications now through September 11, 2020. Call and set up an appointment with your local USDA Farm Service Agency (FSA) office to determine your eligibility and to apply for this assistance. Due in large part to the efforts of our staff, the USDA has raised the initial proposed payment limit for the program, and allowed farmers using other risk management tools this year, such as the DMC, to also receive payments through the CFAP.

 

AVAILABLE SUPPORT

For dairy, a single payment will be made derived from two funding formulas intended to calculate losses caused by the coronavirus in 2020.  The first and larger component is calculated from a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by $4.71 per hundredweight. The second component of the payment is based on a 1.014% increase in that first quarter production, multiplied by $1.47 per hundredweight. Overall, the payment amounts to $6.20/cwt. for a farm’s production in January through March of this year.

We have asked USDA to consider whether seasonal producers can divide their annual production by four to obtain their production base, as the winter months of the first quarter tend to feature lower production.

Dairy farmers are also eligible for payments on cull cows, steers, and feed crops. Click here for a full list of eligible commodities and payment rates. Cull dairy cows are eligible for payment under the category of “Slaughter Cattle: Mature Cattle”.

USDA will make an initial payment of 80 percent of an eligible participant’s benefit. By issuing initial payments, FSA can quickly provide assistance to eligible participants while ensuring that overall CFAP payments do not exceed the $16 billion funding limit. The remaining portion of a farmer’s payment will be paid at a later date as funds remain available.

 

ELIGIBILITY

All dairy operations with milk production in January, February, and/or March 2020 are eligible for CFAP payments. Any dumped milk production during those months is also eligible for assistance. Milk production enrolled in risk management programs, such as Livestock Gross Margin (LGM), Dairy Revenue Protection (DRP), Dairy Margin Coverage (DMC) or forward contracts, also qualifies for CFAP payments. Producers must complete all CFAP application forms and provide required documentation. Applications will be accepted through September 11, 2020.

 

PAYMENT LIMITATIONS

CFAP payments are subject to a per person and legal entity payment limitation of $250,000. This limitation applies to the total amount of CFAP payments made with respect to all eligible commodities.

• Corporate entities (including limited liability companies and limited partnerships) may receive up to $750,000 based upon the number of shareholders (not to exceed three shareholders) who are contributing substantial labor or management with respect to the operation of the corporate entity.
• A corporate entity may receive more than $250,000 in CFAP payments if the applicant, under penalty of perjury, self-certifies that two or three members of the corporation each provided at least 400 hours of active personal labor or active personal management or combination thereof with respect to the production of 2019 commodities for which an application or applications are made.
• A person or legal entity, other than a joint venture or general partnership, is ineligible for payments if the person’s or legal entity’s average adjusted gross income (AGI), using the average of the adjusted gross incomes for the 2016, 2017 and 2018 tax years, is more than $900,000, unless at least 75 percent of that person’s or legal entity’s average AGI is derived from farming, ranching, or forestry-related activities. With respect to joint ventures and general partnerships, this AGI provision will be applied to each member of the joint venture and general partnership.

 

CFAP AND SMALL BUSINESS ADMINISTRATION PROGRAMS

Participation in the Small Business Administration’s Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) program does not impact producer eligibility for CFAP or for any USDA farm program. The PPP duplicate benefit provision does not have an impact on FSA farm programs or farm loan programs.

 

HOW TO APPLY ONCE SIGNUP BEGINS

USDA Service Centers are open for business by phone appointment only. Once the application period opens on May 26, 2020, please call your FSA county office to schedule an appointment. FSA staff will work with producers to file applications. Applications will be submitted electronically either by scanning, emailing, or faxing.

Additional information and application forms can be found at farmers.gov/cfap. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.

 

ADDITIONAL RESOURCES

• USDA Coronavirus Food Assistance Program Webpage
• CFAP Payment Calculator 
• USDA’s Coronavirus Food Assistance Program: Frequently Asked Questions by Dairy Farmers
• Coronavirus Food Assistance Program FAQ
• CFAP Introductory Webinar
• CFAP Prepare Now Infographic
• USDA Announces Details of Direct Assistance to Farmers through the Coronavirus Food Assistance Program
• NMPF Appreciates USDA’s Aid Efforts, Encourages Further Assistance

Visit www.nmpf.org/coronavirus for a full list of coronavirus resources, including the Small Business Administration’s recently-released Paycheck Protection Program Loan Forgiveness Application and Instructions.

This week farmers received welcome relief from the Trump Administration through its Coronavirus Food Assistance Program, for which farmers can sign up starting May 26 – but that may not be Washington’s last work on farm aid this year. More assistance may be on the way, even though the details and timing remain unclear, according to Paul Bleiberg, vice president for government relations at the National Milk Producers Federation.

“It’s hard to tell exactly what will happen, but I think we will see some kind of a give-and-take between House Democrats, Senate Republicans and obviously the administration as well,” Bleiberg said in an NMPF podcast. To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts, Spotify,  SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

 

The National Milk Producers Federation thanked President Trump and Agriculture Secretary Sonny Perdue for supporting dairy in USDA’s $16 billion agriculture payments plan, details of which were released today. Still, current aid levels will be insufficient to meet the needs of milk producers and other agricultural sectors facing massive disruption from the coronavirus crisis. NMPF will continue to work with administration officials and members of Congress to achieve adequate aid for all dairy producers, whose projected losses of $8.2 billion, based on USDA data, place them among the hardest-hit U.S. agricultural commodities.

“We welcome this federal dairy assistance, which is critically needed as the nation’s dairy farmers face an unprecedented market collapse,” said Jim Mulhern, president and CEO of NMPF, the largest U.S. dairy-farmer organization. “USDA’s plan will provide relief to many farmers, and we appreciate the department’s adjustments to payment limits, an issue which we raised prior to the department finalizing this package.

“Even so, we believe more flexibility in payment limits and some changes to payment calculations will be needed in future rounds of funding to meet the unprecedented challenges faced by producers of all sizes, in dairy and throughout agriculture. We look forward to working with federal officials and lawmakers on additional assistance.”

NMPF is still reviewing details of the latest USDA plan.

The direct assistance to farmers follows USDA’s acceptance of an initial round of contracts last week to buy $317 million in dairy products as part of its Farmers to Families Food Box Program, which is bolstering both milk prices and dairy supply chains. Mulhern applauded USDA’s planned large purchase of milk and dairy products for distribution through food banks and other non-profit organizations. “All that USDA can do to buy and quickly distribute dairy products to those in need will immediately help lift depressed markets,” he said.

In addition to the White House and USDA, NMPF thanked the many members of Congress who have urged USDA to provide robust assistance to dairy and will be essential to achieving additional assistance. “A strong bipartisan, bicameral, nationwide push from members of Congress will be necessary to enact the significant dairy aid package needed for farmers to survive,” Mulhern said. “We thank our champions in Congress for their tireless advocacy and hope more will join as we work together to preserve dairy farms and support the U.S. economy.”

The HEROES Act, passed by the House of Representatives last week, includes important provisions to provide relief to dairy producers, and the Senate is slated to begin work on a measure in the coming weeks.

NMPF is activating its grassroots advocacy to assist in its efforts to meet dairy’s needs. More information on how to help can be found at www.nmpf.org. Additional resources to help the dairy community meet the coronavirus challenge can be found at www.nmpf.org/coronavirus.

The Consortium for Common Food Names (CCFN), U.S. Dairy Export Council (USDEC), National Milk Producers Federation (NMPF), North American Meat Institute (NAMI), National Association of State Departments of Agriculture (NASDA) and American Farm Bureau Federation (AFBF) commend the U.S. Patent and Trademark Office (USPTO) for a new examination guide published on Friday that will help ensure that generic terms are given adequate consideration and protection.

The new improvements are contained within an examination procedure that guides USPTO trademark examining attorneys to inform their review of applications. The revision significantly clarifies and improves review procedures for certain trademarks related to cheese or meat names, creating a more consistent process that will protect the interests of manufacturers, farmers and consumers of common food terms such as parmesan and bologna.

“The U.S. remains the preeminent leader on intellectual property (IP) rights and, given the critical importance of safeguarding the rights of consumers and other stakeholders in a balanced IP system, sets a global example for a system that fairly protects truly distinctive products and common name goods alike. This recent step further deepens U.S. leadership in this arena,” said CCFN Executive Director Jaime Castaneda.

The National Milk Producers Federation, U.S. Dairy Export Council and the International Dairy Foods Association jointly urged Agriculture Secretary Sonny Perdue to use all tools at his disposal to “ensure high-quality, nutritious U.S. dairy products are made available to our international neighbors in need.”

“As a nation, we are blessed to have an abundance of dairy available, even during this difficult time. Taking steps to share that abundance with the world will provide a lifeline for regions where food is needed while supplying an additional outlet for American farmers to share their abundance of dairy products,” wrote Jim Mulhern, Tom Vilsack and Michael Dykes – the respective presidents and CEO’s of the three leading U.S. dairy organizations, in the letter dated May 18. “We encourage a focus in particular on countries that have indicated a food or nutrition deficit in their country during these times and that lack the infrastructure or resources to reliably deliver dairy supplies through robust commercial channels.”

Dairy farmers are facing some of the steepest losses of all major U.S. agricultural producers – potentially $8.2 billion, based on a comparison of current USDA projections with pre-crisis estimates. U.S. dairy supplies available for international distribution remain ample, making targeted food-aid shipped worldwide a promising avenue for helping populations struggling with localized hunger and the coronavirus crisis.

Additional resources on how the dairy community is meeting the coronavirus challenge – and how it can be effectively assisted – can be found at www.nmpf.org/coronavirus.

As U.S. dairy farmers and their cooperatives continue to weather the unique storm of the COVID-19 pandemic, the National Milk Producers Federation today thanked the U.S. House of Representatives for supporting critical measures for dairy farmers and their industry partners in its HEROES Act slated for a vote later this week.

Dairy farmers continue to work around the clock to ensure a steady, healthy, and nutritious supply of milk. However, farmers have endured significant losses as the unprecedented collapse of foodservice markets has wiped out substantial dairy product demand. Dairy’s fortunes have been especially grim given milk’s perishability, and farmers of all sizes have suffered from these major losses.

NMPF appreciates that the HEROES Act includes multiple provisions to provide additional direct relief to dairy farmers based on the losses they face this year. The bill also includes NMPF-advocated provisions to strengthen opportunities for milk and dairy product donations to help farmers and consumers. Finally, the package provides important nutrition assistance to the millions of American families and households who are facing food insecurity during this difficult time.

“The dairy industry continues to grapple with difficulty and uncertainty on a scale we have not seen in our lifetimes. Dairy farmers are resilient and will continue to push through this challenge, but the help provided in the HEROES Act will make that burden less overwhelming. We thank the many members of Congress who have given voice to dairy’s urgent needs,” said NMPF president and CEO Jim Mulhern.

NMPF looks forward to continuing to work with Congress and the Trump Administration to provide important relief to all dairy farmers as this process continues.

The economic and health risks of coronavirus have many dairy producers on edge – but staying focused on the task at hand and remembering the value that dairy farming provides can help carry farmers through, says Emily Yeiser-Stepp, vice president at the National Milk Producers Federation and director of National Dairy Farmers Assuring Responsible Management, a.k.a. the FARM Program, in a new NMPF podcast.

“The noise that does exist in moments of crisis, like what we’re experiencing within the pandemic, does tend to heighten our stress and anxiety levels naturally,” said Yeiser-Stepp, author of a recent Hoard’s Dairyman article on helpful FARM resources and the value of establishing best-practice farm procedures.  “By defaulting to what we know, we inherently regain some control” over managing a crisis, she said. And that helps farms “stay focused on the task at hand to producing nature’s most nearly perfect product, milk.”

To listen to the full podcast, click here. You can also find this and other NMPFs podcasts on Apple Podcasts, Spotify,  SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

 

As the European Union (EU) is poised to begin government-financed intervention purchases of skim milk powder (SMP) and butter, dairy farmers and processors in key dairy-producing countries around the world are calling on the EU to avoid the market-distorting practices that have significantly harmed them and the broader global dairy market in the past.

A coalition of dairy organizations from Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay, Uruguay and the United States joined together in urging the EU not to repeat the inventory-building and extended market-price suppression it engaged in just a few short years ago.

Exporting large quantities of government-purchased SMP and butter at below-market rates onto the world market will prolong the deeply challenging environment under which dairy sectors are operating worldwide. The EU intervention program would artificially distort prices for an extended period and displace commercial competition just as the world begins to recover from the immediate impacts of the COVID-19 pandemic. The groups instead urge the EU to adopt measures that further spur consumption within the EU and encourage its producers to implement appropriate production practices to survive during this difficult time.

A coalition representing dairy industries from around the world issued the following joint statement:

“The European Commission must avoid dumping government-purchased SMP and butter on the world market and implementing policies that undermine global dairy markets under the guise of protecting its farmers. The EU’s market-distorting practices are harmful enough during normal operations. If used in the wake of the COVID-19 pandemic, which has dramatically eroded dairy prices, they would be disastrous to the world dairy market by prolonging the current crushing economic conditions. Global buyers of SMP and butter will have little incentive to bid up prices as long as the EU Government holds significant quantities in Intervention.

“It’s critical that the EU act now to put a long-term plan into place regarding how to handle its government-incentivized stockpiling given that the EU has a demonstrated history of dumping intervention purchases in a way that disrupts the world dairy market. The EU intervened in 2016-17 and held the equivalent of 16 percent of the global SMP market in government storage. It subsequently released the product on the world market over the next two years, unfairly undercutting international prices and harming the global dairy industry.”

“Farmers and dairy processors in our countries and many others around the globe are already in the fight of their lives, working hard every day to help keep the world well-nourished through this crisis. We are all dealing with great enough challenges already in our own markets. If the EU does not commit to avoid distorting global markets by dumping their excess intervention stocks onto the world market just as dairy sectors begin to recover, the more farmers and processors outside the EU could be forced to close their doors. We encourage the EU to implement policies that support greater utilization of dairy products with the goal to increase consumption, particularly with the consumers impacted most by the covid-19 outbreak.”

The groups issuing the statement include:

Argentina

Sociedad Rural Argentina (SRA)

Centro de la Industria Lechera Argentina (CIL)

 

Brazil

Sindicato da Indústria de Laticínios e Produtos Derivados no Estado São Paulo (SINDLEITE)

 

Central America

Federación Centroamericana de Productores Lácteos (FECALAC)

 

Chile

Federación de Productores de Leche (FEDELECHE)

 

Costa Rica

Cámara Nacional de Productores de Leche de Costa Rica (CNPL)

 

Ecuador

Centro de la Industria Láctea del Ecuador (CIL)

Asociación de Ganaderos (AGSO)

 

Guatemala

Cámara de Productores de Leche (CPL)

 

Mexico

Asociación Mexicana de Productores de Leche, A.C. (AMLAC)

Cámara Nacional de Industriales de la Leche de México (CANILEC)

Confederación Nacional de Organizaciones Ganaderas (CNOG)

 

Paraguay

Cámara Paraguaya de Industriales Lácteos (CAPAINLAC)

 

United States

International Dairy Foods Association (IDFA)

National Milk Producers Federation (NMPF)

U.S. Dairy Export Council (USDEC)

 

Uruguay

Cámara de la Industria Láctea del Uruguay (CILU)