The U.S. Department of Agriculture is making available another $14 billion to eligible farmers and ranchers under the Coronavirus Food Assistance Program, or CFAP, and for the first time, rice, peanuts and soft red winter wheat are included.
The inclusion of rice is a key step for Arkansas, a state that produces about half of the nation’s output of the grain, according to a news release.
“This second round of CFAP expands the list of eligible commodities,” said Scott Stiles, extension economist with the University of Arkansas System Division of Agriculture.
Stiles said that under the CFAP2 payment mechanisms, rice and peanuts would fall under the “Flat-Rate Crops” category and qualify for a $15 per acre payment.
“Assuming we have 1.4 million acres of rice this year and just over 37,000 acres of peanuts, the addition of those crops to the CFAP program equates to roughly $22 million in additional payments to producers,” he said.
Independent reporting for Pine Bluff & Jefferson County since 1879.
“With many rice producers in the state dealing with added harvesting cost following Hurricane Laura, the addition of rice to the eligible commodity list is welcome,” Stiles said.
However, these payments are subject to payment limitations.
“All classes of wheat will be eligible for CFAP2 making soft red winter wheat eligible,” Stiles said. “Payments for cotton, wheat, corn, sorghum and soybeans are calculated using a ‘Price Trigger’ formula that incorporates a number of variables.”
Sign-up for the program began Sept. 21 and runs through Dec. 11. For other covid-related economic analyses, visit https://bit.ly/AR-Ag-Eco-Impacts2020.