Last week, the USDA opened up applications for the 2nd round of the Coronavirus Food Assistance Program (CFAP 2).
Eligible Christmas tree growers can apply and potentially receive cash payments to offset some of the increased marketing costs associated with the COVID-19 pandemic.
Who is Eligible?
To be eligible for a CFAP 2 payment, a Christmas tree grower (individual or legal entity) must either:
1) Have an average annual adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018; OR
2) Derive at least 75% of their adjusted gross income from farming, ranching, or forestry-related activities
Based on these eligibility requirements, most Christmas tree growers will be eligible for a CFAP 2 payment.
Also, growers who received a CFAP 1 payment may apply for an additional payment under CFAP 2.
How is the CFAP 2 Payment Calculated?
The CFAP 2 payment for Christmas tree growers is calculated by applying a grower’s 2019 sales of Christmas trees he produced to the following table:
| 2019 Sales Range | Payment Factor |
|---|---|
| Up to $49,999 | 10.6% |
| $50,000 – $99,999 | 9.9% |
| $100,000 – $499,999 | 9.7% |
| $500,000 – $999,999 | 9.0% |
| $1 million and over | 8.8% |
For example, a grower with $75,000 of 2019 eligible Christmas tree sales would receive a CFAP 2 payment of $7,775 (($49,999 x 10.6%) + ($25,001 x 9.9%)).
Eligible tree sales for the CFAP 2 calculation are Christmas trees a grower raises himself. Sales of pre-cut trees from another grower, merchandise, and wreath (even if self-made) are not eligible sales.
There is also a per-person/entity CFAP 2 payment limit of $250,000.
Payment percentages for other crops can be found using this online tool.
How to Apply for a CFAP 2 Payment
A Christmas tree grower can apply online for a CFAP 2 payment here if he already has an eAuthentication account. If a grower does not already have an eAuthentication account, a paper application can be downloaded here which will need to be returned to a grower’s local FSA office. Alternatively, a grower can reach out to his local FSA office for help completing a CFAP 2 application.
A grower should apply as soon as possible because applications will only be open until December 11, 2020.
Conclusion
A CFAP 2 payment is a great way to help with the additional expenses associated with preparing a Christmas tree farm for the holiday season. Most growers will likely be eligible for a payment and should apply as soon as possible!
