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Rules and Regulations
Federal Register Vol. 86, No. 11
Tuesday, January 19, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF AGRICULTURE
Office of the Secretary 7 CFR Part 9
Docket ID: FSA20200006
RIN 0503AA65

Coronavirus Food Assistance Program; Additional Assistance Office of the Secretary, Department of Agriculture USDA.
ACTION: Final rule.
AGENCY:

The Coronavirus Food Assistance Program CFAP provides assistance to agricultural producers impacted by the effects of the COVID
19 outbreak. The Secretary of Agriculture implemented CFAP through two rounds of payments CFAP 1 and CFAP 2. This rule amends the CFAP 1
provisions to provide additional assistance for swine producers who previously applied for assistance during the CFAP 1 application period. This rule also amends the CFAP 2 provisions to provide assistance for certain swine and poultry contract producers, clarify eligible sales-based commodities, add additional commodities that are eligible for payment, change the payment calculation for sales-based commodities, and change the yield used to calculate payment for price-trigger crops for certain applicants. The change to the payment calculation for sales-based commodities is being made to implement a change required by the recently enacted Consolidated Appropriations Act, 2021. Other changes to CFAP in this rule are discretionary changes being made in response to ongoing evaluation of CFAP
and the need to provide additional assistance.
DATES: Effective January 19, 2021.
FOR FURTHER INFORMATION CONTACT:
Kimberly Graham; telephone: 202 720
6825; email: Kimberly.Graham@
usda.gov. Persons with disabilities who
khammond on DSKJM1Z7X2PROD with RULES

SUMMARY:

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require alternative means for communication should contact the USDA Target Center at 202 7202600
voice.
SUPPLEMENTARY INFORMATION:

and CFAP 2 applications from September 21, 2020, through December 11, 2020. This rule amends the provisions for CFAP 1 and CFAP 2 as described below.

Background USDA established CFAP to assist producers of agricultural commodities marketed in 2020 who face continuing market disruptions, reduced farm-level prices, and increased production and marketing costs due to COVID19 under authority provided by the Coronavirus Aid, Relief, and Economic Security Act CARES Act; Pub. L. 116136 and sections 5b, d, and e of the Commodity Credit Corporation Charter Act 15 U.S.C. 714cb, d, and e.
USDA implemented CFAP through two rounds of payments CFAP 1 and CFAP
2. CFAP 1 was implemented through a final rule published in the Federal Register on May 21, 2020 85 FR 30825
30835, with corrections published in the Federal Register on June 12, 2020
85 FR 3579935800, July 10, 2020 85
FR 4132841330, August 14, 2020 85
FR 4959349594, and September 21, 2020 85 FR 5917459175, and documents published in the Federal Register on May 22, 2020 85 FR 31062
31065, June 12, 2020 85 FR 35812, July 10, 2020 85 FR 4132141323, and August 14, 2020 85 FR 4958949593.
USDA implemented CFAP 2 through a final rule published in the Federal Register on September 22, 2020 85 FR
5938059388.
The Consolidated Appropriations Act, 2021 Pub. L. 116260, signed on December 27, 2020, provided additional funding and made several changes to CFAP. This rule implements a provision of the Consolidated Appropriations Act, 2021, to amend the payment calculation for sales commodities as described below.1 Other changes to CFAP in this rule are discretionary changes being made in response to ongoing evaluation of CFAP and the need to provide additional assistance.
CFAP is administered by USDAs Farm Service Agency FSA. FSA
accepted CFAP 1 applications from May 26, 2020, through September 11, 2020,2

CFAP 1

1 Other changes to CFAP included in the Consolidated Appropriations Act, 2021, not made in this final rule will be addressed in a subsequent rulemaking.
2 Certain producers in Louisiana, Oregon, and Texas had through October 9 to apply due to natural disasters.

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For eligible producers of hogs and pigs, CFAP 1 provided financial assistance in an amount equal to the sum of the following two calculations:
Unpriced livestock sold between January 15, 2020, to April 15, 2020, multiplied by the applicable Coronavirus Aid, Relief, and Economic Stability Act CARES Act payment rate in 7 CFR 9.102; and Livestock inventory owned between April 16, 2020, to May 14, 2020, multiplied by the applicable Commodity Credit Corporation CCC
payment rate in 9.102.
This rule provides additional CFAP 1
payments for hog and pig inventory owned between April 16, 2020, and May 14, 2020, based on a rate of $17 per head which results in a total CFAP 1
payment rate of $34 per head for that inventory including the prior $17 per head payment for CFAP 1. For the swine hog and pig sector, the inventory payment rates were determined to be insufficient to alleviate ongoing market price losses in the sector.
This additional assistance is also intended to help swine producers who face continuing market disruptions from changes in U.S. meat consumption due to the pandemic. These disruptions are reflected in futures prices. Generic lean hog futures prices at the end of November 2020 were 5.4 percent lower than on January 2, 2020. In contrast, futures prices for commodities such as soybeans and corn have been increasing in the second half of 2020 to levels above those in early January of 2020.
FSA is not reopening the CFAP 1
application period. Only producers who previously applied for CFAP 1 are eligible to receive this additional assistance. Eligible producers do not need to submit a new CFAP 1
application form or take any action to receive the additional payment.
Producers are subject to a payment limitation of $250,000 for all CFAP 1

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