Farmers and farm groups concerned about CFAP payment limits

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Farmers and farm groups concerned about CFAP payment limits

Payment limitations are among the biggest points of contention for farmers as USDA rolls out its Coronavirus Food Assistance Program.

Minnesota Association of Wheat Growers executive director Charlie Vogel says capping payments at $250,000 per person is a concern.

“Especially as farm consolidation has happened over the past couple decades, for farms to be viable under these incredibly tight margins you need volume. And those limits are an issue for those viable farms that are family farms.”

He tells Brownfield perception might be getting in the way of reality as farmers feel the economic impact of the pandemic.

“It is hard to convey to people who live in urban or suburban areas that see these large sums of money being paid out, to realize what equipment costs are, what land costs are. And there’s a large difference between gross income and net income.”

American Farm Bureau analysis of the CFAP formula shows the two wheat varieties that are eligible for payments have the second-highest inventory and production caps before reaching the payment limitation, behind oats.  It’s 1.3 million bushels for hard red spring wheat and 1.2 million for durum.  The threshold for corn is 746,000 bushels, and 526,000 for soybeans. 

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