What You Need to Know About Coronavirus Relief for Farmers

The COVID-19 pandemic has been exerting a severe strain on almost every sector of our society. Millions of small businesses have been forced to indefinitely close, and even entire industries may never recover. 

Thankfully, however, the vital systems of food supply and distribution which we all rely on remain unbroken. This is due, in large part, to the tireless efforts of farmers and agricultural workers across the country. Without their contributions, the stability of the American public’s food supply would be in much greater jeopardy.

In recognition of this, President Trump and the USDA recently unveiled the Coronavirus Food Assistance Program (CFAP).

In this article, we’ll outline the benefits and objectives of this program. We’ll also discuss agricultural farm loans and how they can be leveraged to protect your farm during COVID-19.

What Is the Coronavirus Food Assistance Program?

CFAP is a $19 billion package intended to help farmers, ranchers, and consumers who have been financially impacted by COVID-19. The aim of the package is to stimulate food production and distribution systems and to maintain the food supply chain.

Here’s how US Secretary of Agriculture Sonny Perdue recently summarized the program in an official statement: “The American food supply chain had to adapt, and it remains safe, secure, and strong, and we all know that starts with America’s farmers and ranchers. This program will not only provide immediate relief for our farmers and ranchers, but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.”

Who Will Be Eligible?

According to the USDA, $16 billion of the program’s total allotted funds will go directly to farmers and ranchers. Specifically, the financial aid will go to “agricultural producers where prices and market supply chains have been impacted.” In other words, farmers will have to demonstrate COVID-19-related profit losses in order to be eligible to receive financial assistance. 

You’ll also need to show that your agricultural products have decreased in sales by at least 5% since January 2020. Eligible recipients can expect to receive financial aid in the form of direct payments. The payment amount will correspond with output as well as with the degree of loss that’s been suffered during COVID-19.

The CFAP will undoubtedly provide a boost for the US agricultural industry. But in uncertain times like these, it pays to have a backup plan. Thankfully, securing an agricultural farm loan can help keep your property financially protected as the farming industry recovers from the pandemic. 

Start Shopping for Agricultural Farm Loans

At MSF Agriculture, we make it easy for independent farmers to find personalized agricultural farm loans. If you’re ready to start shopping for the perfect loan option, contact our office today!