Coronavirus Food Assistance Program Update: Cut Flowers and Microgreens In, Hemp Out
August 17, 2020 
Photo by Allan Armitage
On Aug. 11, following public comments, USDA announced additional commodities that are covered by the Coronavirus Food Assistance Program (CFAP). Additionally, USDA is extending the deadline for producers to apply for the program to September 11, and producers with approved applications will receive their final payment.
CFAO, funded through the CARES Act and the Commodity Credit Corporation, provides direct assistance payments to eligible commodities for which significant losses occurred due to COVID-19 pandemic-related market disruption.
The list of additional crops included in CFAP is a mixed bag. For floriculture crops, the news is great. Immediately following the announcement, AmericanHort issued a statement applauding the expanded eligibility for cut flowers and nursery crops.
“AmericanHort extends our sincere appreciation to USDA for working with us to provide meaningful nursery and floriculture grower relief,” says Craig Regelbrugge, Vice President of Advocacy and Government Relations at AmericanHort. “For countless horticulture producers, the effects of the coronavirus’ sudden closure of markets during our peak selling season risked destroying businesses across the supply chain. We are happy to report Secretary Sonny Perdue and Under Secretary Bill Northey responded with understanding to help the industry successfully navigate the pandemic by expanding eligibility to this program.”
AmericanHort is hosting a webinar on Monday, Aug. 17, that will feature Matthew Farrell of K·Coe Isom, the nation’s leading agricultural consulting and accounting firm, who will share his expertise on this program and discuss eligibility and the application process. Click here to register.
Microgreens Also Among Eligible Crops
For greenhouse vegetable producers, microgreens were among the updated list of new crops eligible for CFAP funding.
“CFAP has provided important relief to fresh produce growers across the country who produce a diverse range of produce that have been directly impacted by the COVID 19 pandemic”, says United Fresh Produce Association President and CEO Tom Stenzel. “We are grateful to USDA for expanding this program and look forward to continue working with them to support growers whose produce is not covered under this further expansion of covered specialty crops.”
Hemp Remains Out
Not all growers were thrilled with the announcement, however. Most notably, despite continued lobbying and comments from the industry, hemp is still not eligible.
The U.S. Hemp Growers Association has issued the following statement:
“U.S. Hemp Growers and its Board and members are very disappointed to learn USDA has not agreed to make hemp growers eligible for the Coronavirus Food Assistance Program (CFAP.) We believe our farmers did present evidence of losses to our growers that were 5% or more in the first quarter of 2020.
“Many of our members are confused as to how hemp is declared ineligible when other products have been granted standing when no price decrease was identified, but they were affected by market chain disruption. Hemp has been affected by market chain disruption, and measurable price decline, but mysteriously hemp has not received equal treatment from the USDA.
“Hemp is such a newly legal crop that it does not have the advantage of data to be gathered by the National Agricultural Statistics Service (NASS) or the Farm Service Agency (FSA) or the Risk Management Agency (RMA) – all at USDA. We do not know of any regional data collection as cited by the Department.
“Currently, the data available to understand the market is gathered privately by several reputable data companies. In this case, two of these companies released data publicly which USHGA believes showed a 5% pricing decrease and more in hemp and hemp products in the first quarter of 2020. We are grateful to these organizations for opening their data from behind their paid firewalls that serve private users.
Links to some of that data are here:
“While a number of hemp growers will suffer severe damage, many others are continuing to grow hemp and offer it for processing into many products, from CBD to food products such as hemp seed and hemp hearts to hemp flour, and textiles, building materials, plastics and paper. However, these growers are very concerned that USDA may not support the newly legal hemp crop as evidenced by the unequal treatment during the Coronavirus outbreak. There are family farmers who have been damaged by the downturn in the first quarter and who deserve fair treatment by USDA for CFAP coverage. All hemp farmers are now wondering what kind of treatment they will receive should there be future problems.
“USHGA will continue to work with private data companies and with USDA to encourage the collection of accurate and comprehensive data about hemp and it products. And we will expect to be treated fairly as this information grows.”
Application for CFAP funding is through local Farm Service Agency offices; details can be found here.
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