USDA announces additional payments for pandemic assistance


On June 15, USDA announced additional assistance to farmers and other agricultural entities under the Pandemic Producer Assistance (PAP) program.

In March, the USDA authorized up to $ 12 billion for the PAP program under the comprehensive $ 900 billion consolidated credit law that was passed by Congress in late 2020. USDA used the last funding round of the PAP program to target in particular the farmers and pastoralists who have done so. were not previously eligible for assistance from other coronavirus assistance programs, as well as to assist entry-level, socially disadvantaged, and small to medium-sized farms.

Here is a brief summary of the USDA’s information regarding the latest round of PAP program payments:

Support for dairy producers and dairy processors

  • $ 400 million for the new Dairy Donation Program, designed to fight food insecurity and reduce food waste and loss
  • Additional pandemic payment to dairy farmers who have demonstrated losses that were not covered by previous pandemic assistance programs
  • About $ 580 million for “extra margin coverage” to small and medium dairy farms. No details have been released on how this will be administered by the USDA.

Aid to poultry and livestock farmers excluded from previous rounds of pandemic payments

  • Financial assistance to contract poultry farmers who have been affected by the coronavirus pandemic
    • Note: In the USDA announcement, there was no mention of additional assistance to contract hog producers or contract producers from any other breeding entity.
  • Assistance to poultry and livestock producers who were forced to euthanize animals during the pandemic from March 1, 2020 to December 26, 2020

Other provisions of the PAP program

  • $ 700 million to biofuel producers to compensate for market loss during the pandemic in 2020
  • $ 700 million for “Pandemic Safety Grants” targeting specialty crop growers, meat packers and processors, seafood industry workers and others for equipment, supplies and equipment. ” other PPE measures
  • $ 200 million for small family timber harvesting and transportation businesses
  • Up to $ 20 million for additional cost-shared support for organic products, including for producers switching to organic production

Earlier this year, growers of eligible crops received an additional PAP program payment of $ 20 per acre (referred to as “COFOG 3 payments”) as part of pandemic assistance authorized by Congress in 2020.

Payments for eligible crops were based on the same criteria used for PAFC 2 2020 payments. Some cattle producers also received an additional PAP payment earlier this year, based on cattle inventory numbers that were submitted for COFOG 1 eligibility in 2020. This COFOG top-up payment was essentially a doubling of the original COFOG 1 2020 payments, with payout rates depending on the size and type of livestock.

The additional top-up payment of $ 17 per head to hog producers who had already applied for and received a COFOG 1 payment in 2020 was significantly lacking in the latest PAP assistance program announced by the USDA

Hog producers initially received a COFOG 1 payment of $ 17 per head, so the additional payment would bring the total payment to $ 34 per head. The PAFC’s additional payments to pork producers are apparently still under review by the USDA, and there has been no update on the status of these payments.

For the latest details on many of these programs, farmers should contact their local Farm Service Agency (FSA) office or visit

2019 WHIP + and QLA Program Payments Update

The USDA also recently announced the authorization of more than $ 1 billion in additional payments in 2019 through the Wildfire and Hurricane Indemnity Program (WHIP +) and payments to qualified producers under the Quality Loss Adjustment (QLA) program. .

Many farmers in southern Minnesota and other areas of the Upper Midwest were eligible to receive additional WHIP + payments due to significant crop losses resulting from late planting and excessive rainfall in 2019. Most eligible growers who submitted a claim had already received their 2018 WHIP + payments and the first half of eligible WHIP + 2019 payments.

Funding for the second half of the 2019 WHIP + payments was authorized in the COVID relief bill passed by Congress in late 2020.

Here are the details of the latest WHIP + and QLA payments:

WHIP + 2019 Payments

  • Producers who were eligible for the WHIP + program for the 2019 crop year and who have already received 50% of the eligible payment now receive a second WHIP + payment on the 2019 crop losses. No additional WHIP + requests were necessary and no new requests were made. ‘has been accepted
  • The second payment is 40% of the total WHIP + eligible 2019 payment, bringing the total WHIP + 2019 payment to 90% of the eligible amount
    • Example: full eligibility for the 2019 WHIP + payment of $ 10,000; $ 5,000 paid earlier; $ 4,000 paid now and $ 1,000 remaining to be paid
  • The second WHIP + 2019 payment has been reduced by the USDA to ensure that adequate funding exists to make the payments. If sufficient funds are available, a third and final WHIP + payment can take place
  • Producers with eligible crop losses in 2018 have already received full payment from the 2018 WHIP + program
  • WHIP + payments for 2020 crop losses, including the devastating echo storm in Iowa and surrounding states, were not included in the latest USDA announcement

Quality Loss Adjustment Payments (QLA)

  • QLA payments are for crop and forage producers who suffered quality losses due to the natural disasters of 2018 and 2019. The application period for the QLA program ran from January 6 to April 9 of this year.
  • Producers eligible for QLA assistance will receive 100% of the eligible payment amount.
  • The maximum payment limit that a natural or legal person can receive under the QLA program in any given year is $ 125,000. Individuals or entities with an Adjusted Gross Income (AGI) exceeding $ 900,000 are not eligible for QLA benefits unless 75% or more of the AGI is derived from agriculture and ranching.
  • All producers receiving WHIP + or QLA benefits are required to purchase uninsured Federal Crop Insurance or Agricultural Disaster Assistance Program (NAP) coverage for the next two crop years available at the coverage level of 60 % or more. For most crops, this requirement can be met by purchasing Income Protection (RP) insurance policies from the USDA Risk Management Agency (RMA) that are offered by local crop insurance agents. .

For more information, see the USDA WHIP + website at:

End of PPP loan program

At the end of May, the Small Business Administration (SBA) of the United States announced that loan applications for the Paycheck Protection Program (PPP) were abandoned.

The SBA previously announced a PPP application deadline of May 31, 2020; however, all allocated PPP loan funds had been exhausted before the deadline. If the eligibility conditions are met, PPP loans can be canceled by the SBA.

Many PPP loans from the first round and some PPP loans from the second round have already been canceled. The request to cancel PPP loans for farmers and other small businesses is administered by the local banks and agricultural lenders who initially submitted the PPP loan to the SBA. More details on PPP loan applications are available from lenders or at

For more information, contact Kent Thiesse, Farm Management Analyst and Senior Vice President, MinnStar Bank, Lake Crystal, Minnesota, at (507) 381-7960 or [email protected], or visit www.minnstarbank. com.

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