Specialists dive into CFAP2 payments for row crops


Specialists dive into CFAP2 payments for row crops

A recent analysis of the Coronavirus Food Assistance Program breaks down how row crop farmers benefit from direct payments in the second edition.

Ag policy specialist Jonathan Coppess at the University of Illinois tells Brownfield essentially rates have been set using previous price declines applied to the percentage of crops sold on average.

“For example, historically about 40 percent of the corn crop is sold between harvest and the end of the year, so the corn payment rate is factored by that 40 percent to get an effective payment rate of 23 cents per bushel.”  

He says the marketing percentages differ between row crops and when looking at rates per acre, payments seem more balanced the previous programs like the Market Facilitation Program.

“If we broke that down per acre using average yields, we see payments in the range of the $30-35 for most states in the Corn Belt and South.”

He’s estimating about $5.7 billion, or 43 percent, of CFAP2’s $14 billion will be spent on row crop payments, with the largest portion going to corn acres.