Analyzing CFAP payment distributions

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Analyzing CFAP payment distributions

Image courtesy of AFBF

The USDA has handed out about one-third of allocated funds for direct farmer payments through the Coronavirus Food Assistance Program.

American Farm Bureau Federation Economist John Newton tells Brownfield as of Monday $5.4 billion in direct payments had been distributed with more than 50% of the funds going to livestock producers.

“In aggregate, a lot of that money flowed to the Midwest. The average livestock payment is about $10,000 per applicant and the rates are higher in portions of the west where you see some of the larger livestock operations.”

The top commodities receiving payments are cattle at $2.3 billion, milk at $1.1 billion, corn at $970 million, hogs at $343 million and soybeans at $268 million.  

“This is certainly going to help some folks, but I think the Secretary (Ag Secretary Sonny Perdue) put it very clearly when he said that this amount of support is not enough and we need more to help those producers that were negatively impacted by the coronavirus.”

Producers have until August 28th to apply for the program through the Farm Service Agency at their local USDA Service Center.

Newton did an analysis of UDSA’s CFAP data as of June 29th that includes the breakdown of payments by state and the average producer payment for those commodities. The following data is from that analysis:

South Dakota

  • More than $253 million in total payments.
  • Nearly $179 million to livestock for an average of $18,000 per producer.
  • More than $65 million to non-specialty crops for an average of $8,000 per producer.
  • More than $9 million to dairy for an average of $81,000 per producer.
  • No funds have been distributed for specialty crops in south Dakota.

Nebraska

  • More than $345 million in total payments.
  • Nearly $202 million to livestock for an average of $17,000 per producer.
  • Nearly $137 million to non-specialty crops for an average of $9,000 per producer
  • $6.6 million to dairy for an average of $61,000 per producer.
  • $2,000 to specialty crops.

Minnesota

  • Nearly $310 million in total payments.
  • Nearly $127 million to livestock for an average of $16,000 per producer.
  • More than $125 million to non-specialty crops for an average of $8,000 per producer
  • Nearly $60 million to dairy for an average of $34,000 per producer.
  • $249 thousand to specialty crops for an average of $28,000 per producer.

Iowa

  • Nearly $514 million in total payments.
  • $251 million to livestock for an average of $17,000 per producer.
  • More than $230 million to non-specialty crops for an average of $8,000 per producer
  • Nearly $32 million to dairy for an average of $45,000 per producer.
  • $6,000 to specialty crops for an average of $3,000 per producer.

Missouri

  • More than $182 million in total payments.
  • Nearly $128 million to livestock for an average of $7,000 per producer.
  • Nearly $49 million to non-specialty crops for an average of $6,000 per producer
  • Nearly $6 million to dairy for an average of $18,000 per producer.
  • $81 thousand to specialty crops for an average of $4,000 per producer.

Arkansas

  • More than $73 million in total payments.
  • Nearly $56 million to livestock for an average of $6,000 per producer.
  • $16 million to non-specialty crops for an average of $7,000 per producer
  • $700,000 to dairy for an average of $20,000 per producer.
  • More than $1 million to specialty crops for an average of $32,000 per producer.

Wisconsin

  • More than $324 million in total payments.
  • Nearly $50 million to livestock for an average of $6,000 per producer.
  • Nearly $50 million to non-specialty crops for an average of $5,000 per producer
  • Nearly $225 million to dairy for an average of $50,000 per producer.
  • $326 thousand to specialty crops for an average of $33,000 per producer.

Illinois

  • More than $230 million in total payments.
  • Nearly $68 million to livestock for an average of $11,000 per producer.
  • Nearly $149 million to non-specialty crops for an average of $7,000 per producer
  • Nearly $14 million to dairy for an average of $40,000 per producer.
  • $65 thousand to specialty crops for an average of $7,000 per producer.

Michigan

  • $98 million in total payments.
  • $23 million to livestock for an average of $11,000 per producer.
  • Nearly $19 million to non-specialty crops for an average of $6,000 per producer
  • Nearly $55 million to dairy for an average of $79,000 per producer.
  • More than $1.5 million to specialty crops for an average of $35,000 per producer.

Indiana

  • Nearly $125 million in total payments.
  • Nearly $41 million to livestock for an average of $11,000 per producer.
  • Nearly $69 million to non-specialty crops for an average of $8,000 per producer
  • Nearly $15 million to dairy for an average of $55,000 per producer.
  • $306 thousand to specialty crops for an average of $28,000 per producer.

Ohio

  • Nearly $92 million in total payments.
  • Nearly $31 million to livestock for an average of $9,000 per producer.
  • More than $31 million to non-specialty crops for an average of $6,000 per producer
  • More than $29 million to dairy for an average of $44,000 per producer.
  • $270 thousand to specialty crops for an average of $67,000 per producer.

Kentucky

  • Nearly $106 million in total payments.
  • Nearly $76 million to livestock for an average of $5,000 per producer.
  • Nearly $22 million to non-specialty crops for an average of $8,000 per producer
  • More than $8 million to dairy for an average of $34,000 per producer.
  • $91 thousand to specialty crops for an average of $5,000 per producer.

Tennessee

  • Nearly $69 million in total payments.
  • Nearly $45 million to livestock for an average of $5,000 per producer.
  • Nearly $19 million to non-specialty crops for an average of $10,000 per producer
  • Nearly $6 million to dairy for an average of $42,000 per producer.
  • $40 thousand to specialty crops for an average of $6,000 per producer.

Interview with John Newton

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