The U.S. Department of Agriculture (USDA) announced on Friday a new program designed to assist the country's farmers, ranchers and consumers.
The Coronavirus Food Assistance Program (CFAP) was announced by Agriculture Secretary Sonny Perdue in a media release sent out Friday evening, and will see a $19 billion federal allotment used to "support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need."
The former Georgia governor said CFAP will draw from the funding and authorities already provided by the USDA, Coronavirus Aid, Relief, and Economic Security Act and the Families First Coronavirus Response Act.
“During this time of national crisis, President Trump and USDA are standing with our farmers, ranchers, and all citizens to make sure they are taken care of,” Secretary Perdue said. “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.”
Perdue said the program includes two major elements, which are summarized below:
Direct Support to Farmers and Ranchers
- $16 billion in direct support, based on actual losses for agricultural producers where prices and market supply chains have been impacted.
- Assisting producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
USDA Purchase and Distribution
- USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat.
- Initial procurement will involve an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products.
- Distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need.
USDA plans to supplement those efforts by utilizing other funding resources for additional purchasing and re-distributions.
$873.3 million of USDA funding will be used "to purchase a variety of agricultural products for distribution to food banks." At least $850 million in congressional funding has also been set aside for additional food purchases and food bank administrative costs, a majority of which has been dedicated to food purchases.
The meda release said that the specific use of these funds will be determined by USDA agricultural market analysis, industry requests and food bank needs.
More information regarding implementation will be released at a later time.
