Coronavirus: Agriculture Dept. starts food assistance program targeted at farmers, others

WASHINGTON — The Coronavirus Food Assistance Program to assist farmers, ranchers and consumers was announced Friday evening by President Trump during the White House task force briefing on the federal response to the pandemic.

This $19 billion immediate relief program, run by the U.S. Agriculture Department, is to provide critical support to farmers and ranchers, maintain the integrity of the nation’s food supply chain, and ensure every American continues to receive and have access to the food they need, Agriculture Secretary Sonny Perdue said in a prepared statement.

“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,” 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.”

The program 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, according to the USDA:

• Direct Support to Farmers and Ranchers: The program will provide $16 billion based on actual losses for agricultural producers where prices and market supply chains have been affected 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.
• USDA Purchase and Distribution: The USDA will partner with regional and local distributors, whose workforce has been significantly affected by the closure of restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy and meat. The program 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 nonprofits 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.

The USDA has up to an additional $873.3 million available 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 Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security 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, USDA officials said.

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