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All Your Dairy Aid Questions Answered in One Place

May 20, 2020

Anna-Lisa Laca

How much is the CFAP payment rate?

Payments using funding from the CARES Act will be determined by multiplying a producer’s milk production for the first quarter of calendar year 2020 by $4.71 per cwt.

How much is the CCC payment rate?

Payments under the CCC Charter Act will be determined by multiplying a producer’s milk production for the first quarter of calendar year 2020 by a factor of 1.014 —to account for increased production in the second quarter of calendar year 2020—by $1.47.

Will farmers receive both payments?

Payments under the CARES Act and CCC Charter Act will be issued as one payment to the producer if they are eligible to receive both parts.

How much of the total payment will farmers receive immediately?

USDA will only pay out 80% of the maximum direct payment initially, reserving the remaining 20% in case funding for the program runs out. 

Is dumped milk included?

Yes, dumped milk is eligible for the payment as it is based on total milk production in the first quarter of 2020.

Is milk covered by Dairy Margin Coverage, LGM-Dairy or Dairy Revenue Protection covered? Yes, according to USDA, there will be no punishment for producers using these risk management tools. 

Is forward contracted milk covered? 

Yes. The final rule makes no mention of forward contracted milk not being covered and because this payment is based on total production, not price, it’s safe to assume it is. 

What will I need to prove my first quarter milk production?

Producers will be asked to self-certify their milk production with FSA. They will need to have documentation to prove that production should an audit occur. 

What if I’m a seasonal milk producer and don’t have a normal amount of milk production for the first quarter?

The payment is based on first quarter production, if you had little or no production in the first quarter that’s what you’ll be paid on. Or not. 

Does corn silage qualify under the non-specialty crops section? 

While the rule is unclear here, we don't believe silage corn or forages qualify for payment. For most producers those would be intermediate products that they wouldn’t intend to sell but rather to feed. The final product—milk or meat animals are covered under the program so it would be double dipping to include silage and milk, says Mark Stephenson a University of Wisconsin economist.  

Do dairy cull cows qualify for a payment?

Yes. According to National Milk Producers Federation, dairy farmers are also eligible for payments on cull cows under the category of “Slaughter Cattle: Mature Cattle”.

What paperwork is required to sign up?

Look here for the full list of forms. If you received an MFP payment, you’ll likely just have one or two forms to fill out.

When will sign-ups begin?

The sign-up period will open May 26. Applications can only be processed by appointment at this time.

When will payments be issued?

USDA plans to begin issuing payments on June 1.


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