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USDA Announces Coronavirus Food Assistance Program

April 17, 2020   06:45 p.m.
    Press Release from U. S. Department of Agriculture:

    USDA Announces Coronavirus Food Assistance Program

    (Washington, D.C., April 17, 2020) – U.S. Secretary of Agriculture Sonny Perdue
    today announced the Coronavirus Food Assistance Program (CFAP). This new U.
    S. Department of Agriculture (USDA) program will take several actions to assist
    farmers, ranchers, and consumers in response to the COVID-19 national
    emergency. President Trump directed USDA to craft this $19 billion immediate
    relief program to provide critical support to our farmers and ranchers, maintain
    the integrity of our food supply chain, and ensure every American continues to
    receive and have access to the food they need.

    “During this time of national crisis, President Trump and USDA are standing with
    our farmers, ranchers, and all citizens to make sure they are taken care of,”
    Secretary Perdue said. “The American food supply chain had to adapt, and it
    remains safe, secure, and strong, and we all know that starts with America’s
    farmers and ranchers. This program will not only provide immediate relief for our
    farmers and ranchers, but it will also allow for the purchase and distribution of
    our agricultural abundance to help our fellow Americans in need.”

    CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief,
    and Economic Security Act (CARES), the Families First Coronavirus Response
    Act (FFCRA), and other USDA existing authorities. The program includes two
    major elements to achieve these goals.

  1. Direct Support to Farmers and Ranchers: The program will provide $16
    billion in direct support based on actual losses for agricultural producers
    where prices and market supply chains have been impacted and will assist
    producers with additional adjustment and marketing costs resulting from lost
    demand and short-term oversupply for the 2020 marketing year caused by
    COVID-19.  
  2. USDA Purchase and Distribution: USDA will partner with regional and
    local distributors, whose workforce has been significantly impacted by the
    closure of many restaurants, hotels, and other food service entities, to
    purchase $3 billion in fresh produce, dairy, and meat. We will begin with the
    procurement of an estimated $100 million per month in fresh fruits and
    vegetables, $100 million per month in a variety of dairy products, and $100
    million per month in meat products. The distributors and wholesalers will
    then provide a pre-approved box of fresh produce, dairy, and meat products
    to food banks, community and faith based organizations, and other non-
    profits serving Americans in need.

    On top of these targeted programs USDA will utilize other available funding
    sources to purchase and distribute food to those in need.
  • USDA has up to an additional $873.3 million available in Section 32 funding
    to purchase a variety of agricultural products for distribution to food banks.
    The use of these funds will be determined by industry requests, USDA
    agricultural market analysis, and food bank needs.
  • The FFCRA and CARES Act provided an at least $850 million for food bank
    administrative costs and USDA food purchases, of which a minimum of $600
    million will be designated for food purchases. The use of these funds will be
    determined by food bank need and product availability.

    Further details regarding eligibility, rates, and other implementation will be
    released at a later date.

    Additional Background:
    USDA has taken action during the COVID-19 national emergency to make sure
    children and families are fed during a time of school closures and job losses, as
    well as increase flexibilities and extensions in USDA’s farm programs to ensure
    the U.S. food supply chain remains safe and secure.

    Feeding Kids and Families
  • USDA expanded flexibilities and waivers in all 50 states and territories to
    ensure kids and families who need food can get it during this national
    emergency.
  • USDA is partnering with the Baylor Collaborative on Hunger and Poverty,
    McLane Global, PepsiCo, and others to deliver more than 1,000,000 meals
    a week to students in a limited number of rural schools closed due to COVID-
    19.
  • USDA authorized Pandemic EBT in Michigan and Rhode Island, a
    supplemental food purchasing benefit to current SNAP participants and as a
    new EBT benefit to other eligible households to offset the cost of meals that
    would have otherwise been consumed at school.
  • USDA expanded an innovative SNAP online grocery purchase pilot program
    in Arizona and California, Florida and Idaho, and DC and North Carolina, in
    addition to Alabama, Iowa, Nebraska, New York, Oregon and Washington.

    Actions to Ensure a Strong Food Supply Chain

    Whole of Government Response in Rural America
  • USDA released The COVID-19 Federal Rural Resource Guide, a first-of-its-
    kind resource for rural leaders looking for federal funding and partnership
    opportunities to help address this pandemic.
  • USDA opened a second application window (April 14, 2020 to July 13,
    2020) for $72 million of funding under the Distance Learning and
    Telemedicine (DLT) grant program.
  • USDA Rural Development lenders may offer 180-day loan payment
    deferrals without prior agency approval for Business and Industry Loan
    Guarantees, Rural Energy for America Program Loan Guarantees,
    Community Facilities Loan Guarantees, and Water and Waste Disposal
    Loan Guarantees.
  • USDA will use the $100 million provided for the ReConnect Program in the
    CARES Act to invest in qualified 100 percent grant projects.