Amount of CFAP Payment For Cow/Calf Producers Dependent on Timing and Managment Practices

May 29, 2020

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Farmers and ranchers can now enroll in the Coronavirus Food Assistance Program (CFAP) and Radio Oklahoma Ag Network Farm Director Ron Hays talked with Dr. Amy Hagerman, Assistant Professor in Agriculture and Food Policy at Oklahoma State University about the impact on beef producers.

The USDA has earmarked $5.1 billion for the cattle industry.

Hagerman said the payments received by cow/calf producers will depend on how they treated their calf crop from last year.

Timing is critical based on individual management programs, she said.

Hagerman said if cow/calf producers had cows and unweaned calves born last spring and sold before April 15, they would receive $139 per head.

But if producers continued to graze the cattle another few days past April 15, they would receive only a $33 inventory payment.

The OSU ag policy expert said it’s important to realize there are basically two pots of money making up the $16 billion government relief fund.

“At the end of the day, producers will get a single payment. It’s important to understand the payment comes from the two pots of money and how it is broken out from those pots,” Hagerman said.

For cattle producers, their sales from Jan. 15 to April 15, will be under the CARES Act funds, Hagerman said. But then, during the April 16 to May 14 period, the $33 they will be paid on their highest inventory, including calves on the ground, comes from a different pot of money.

She noted payment limitations also come into play here.

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