USDA Pandemic Farm Assistance — CFAP and PARP

When COVID-19 disrupted agricultural supply chains in 2020 — closing restaurants, meat processing plants, export channels, and commodity markets in rapid succession — USDA deployed two successive programs using Commodity Credit Corporation authority to cushion farm income losses: the Coronavirus Food Assistance Program (CFAP), in two rounds, and the Pandemic Assistance Revenue Program (PARP). Together these programs paid out over $26 billion to agricultural producers, making COVID-19 relief one of the largest short-term farm income support actions in USDA history.

Current Law (2026)

What These Programs Did

CFAP 1 was the first response, authorized through the CARES Act and CCC authority in spring 2020. It targeted commodities with documented price losses: non-specialty crops with unpriced inventory as of January 15, 2020, livestock (cattle, hogs, sheep, lambs), dairy, and specialty crops. Payments used a two-tranche structure — one funded by CARES Act appropriations, one by CCC's own authority — calculated against each producer's share of inventory and 2019 production. Commodity prices had collapsed not just from demand destruction (restaurant closures, export disruption) but from supply-chain bottlenecks: hog and cattle prices fell sharply when meatpacking plants restricted capacity.

CFAP 2 expanded coverage in fall 2020 to a broader set of commodities and used a simpler per-acre payment structure for crops. For price-trigger crops, the payment was the larger of $15 per eligible acre or a formula payment (acres × crop yield × marketing percentage × payment rate). This simplified structure reduced administrative complexity: producers certified their 2020 planted acres on FSA Form 578, and FSA calculated payments using published county or crop-specific rates. Specialty crops, livestock, and aquaculture were covered with commodity-specific rates published through notices of funds availability.

PARP (Pandemic Assistance Revenue Program) addressed a recognized gap: CFAP 1 and 2 targeted price losses and inventory but didn't reach producers whose overall farm revenue fell without fitting the commodity-specific triggers. PARP covered any agricultural producer who experienced at least a 15% drop in allowable gross revenue in 2020 compared to 2018 or 2019. Payments used a payment factor — 90% of the revenue shortfall for beginning, limited-resource, socially disadvantaged, underserved, or veteran farmers; 80% for all others — applied to the revenue loss above the 15% threshold. PARP effectively completed the pandemic farm relief safety net by catching producers in diverse or specialty sectors that the commodity-based CFAP calculations underserved.

Key Provisions (7 CFR Part 9)

• § 9.1 — Applicability: CFAP covers U.S.-produced agricultural commodities hurt by COVID-19 disruption; payments are limited by Part 1400 adjusted gross income rules
• § 9.3 — Producer eligibility: eligible producers include U.S. citizens, lawful resident aliens, partnerships of U.S. citizens, corporations organized in the U.S., and Indian tribes; the same entity limitations that apply under other CCC programs apply here
• § 9.102 — CFAP 1 payment calculation: for non-specialty crops, payment is based on up to 50% of 2019 production (as unpriced inventory), with two payment rates applied — one from CARES Act authority, one from CCC authority — and then summed; commodity-specific rates were published by NOFA
• § 9.202 — Contract producers: livestock and poultry growers raising animals under production contracts (i.e., they don't own the animals) could not receive regular CFAP payments; they received a separate contract-based payment calculated using the average revenue loss in their area, recognizing that contract growers' income loss was real but distinct from commodity price exposure
• § 9.203 — CFAP 2 payment calculation: for price-trigger crops, the larger of $15/acre or (planted acres × yield × marketing percentage × payment rate); the $15/acre floor ensured even low-value crops in affected areas received some support regardless of price-formula outcomes
• § 9.303 — PARP eligibility: producers must have been farming in 2020 and demonstrate at least a 15% revenue decline; the decline is measured against either 2018 or 2019 (the producer's choice), allowing producers to choose their best pre-pandemic comparison year
• § 9.304 — Allowable gross revenue definition: includes sales of commodities grown; payments from ARC, PLC, BCAP, and certain other farm programs; but excludes non-farm income, off-farm wages, and certain pass-through income — the definition tracks farm revenue, not total household income
• § 9.306 — PARP payment factor: 90% for beginning, limited-resource, socially disadvantaged, underserved, or veteran farmers; 80% for all others; this differential explicitly provided more support to historically underserved producers
• § 9.4 / 9.305 — Application deadlines: CFAP applications had deadlines in fall 2020 and 2021; PARP applications had a deadline announced by the FSA Deputy Administrator; all programs are now closed
• § 9.6 / 9.308 — Recordkeeping: producers must retain supporting documentation for 3 years after approval; USDA and GAO representatives may inspect records during normal business hours
• § 9.7 / 9.309 — Overpayment recovery: accidental overpayments are recalculated and the producer repays with interest from payment date; intentional misrepresentation results in full repayment of all amounts received, plus interest, and possible criminal referral under 18 U.S.C. § 1621 (perjury)

How It Affected You

If you were a farmer or rancher in 2020: The key distinction among the three programs was which type of COVID-19 harm they addressed. CFAP 1 targeted documented price collapses for specific commodities — if you were a beef cattle producer when cattle prices fell 20%+ in spring 2020, or a dairy farmer during the fluid milk demand collapse, CFAP 1 was the primary relief. CFAP 2 was broader and simpler — the per-acre payment structure meant most commodity crop producers received some payment regardless of price-formula eligibility. PARP was the catch-all: if your farm revenue fell more than 15% but CFAP hadn't reached you — because you were in an underserved sector, grew specialty crops, or operated a diversified farm that didn't fit commodity-specific calculations — PARP was the gap-fill. Applications for all three are now closed, but records and documentation of payments remain relevant for tax years 2020–2022.

If you're a policy analyst or researcher: The pandemic programs demonstrated the breadth of CCC discretionary authority — USDA deployed tens of billions in farm payments without a specific congressional appropriation for each program, using the Commodity Credit Corporation's general borrowing authority and reimbursement-from-Congress mechanism. CFAP and MFP (the 2018-2019 trade war payments under 7 CFR Part 1409) together showed that the CCC is effectively an emergency farm income stabilizer that can be activated quickly through executive action, independent of the annual Farm Bill process. Whether this authority should remain this broad — or be subject to more congressional oversight — is a recurring policy question.

If you're a beginning, socially disadvantaged, or veteran farmer: PARP's 90% payment factor (vs. 80% for all others) and the priority given to underserved producers in program outreach were among the first explicit attempts to use pandemic relief programs to address historical equity gaps in USDA program access. USDA simultaneously opened a separate Pandemic Assistance for Producers initiative targeting sectors and communities consistently underrepresented in traditional commodity programs.

Statutory Authority

These programs implement:

• 15 U.S.C. § 714b — Commodity Credit Corporation Charter Act (broad authority for Secretary to use CCC to support agricultural prices and farm income)
• P.L. 116-136 — CARES Act (provided $9.5 billion specifically for USDA agricultural assistance in response to COVID-19)

Recent Rulemakings

No major amendments since the programs closed in 2021-2022. The Part 9 regulatory framework remains in the CFR as the authoritative record of program terms and eligibility for any remaining claims, audits, or litigation.

Recent Developments

• Programs fully closed (2021–2022): All three COVID-19 pandemic farm assistance programs — CFAP 1, CFAP 2, and USDA Pandemic Assistance Revenue Program (PARP) — closed to new applications by 2022. Part 9 remains in the CFR as the authoritative regulatory record for the closed programs, governing any ongoing appeals, audit findings, or overpayment recovery proceedings.
• Overpayment recovery and audits: USDA OIG and GAO reviewed CFAP payments for accuracy and improper payments. OIG found that some CFAP payments were made to ineligible recipients or based on inflated sales data. FSA conducted outreach to identify overpayments and has been processing repayment demands and appeals. The repayment process for CFAP overpayments follows standard FSA administrative procedures under 7 CFR Part 11.
• CFAP as a precedent for future disaster programs: CFAP's design — direct payments based on commodity type and sales documentation — established a template for future pandemic or disaster-related agricultural assistance. The program's rapid rollout demonstrated FSA's capacity to deploy payments at scale, but also highlighted challenges with documentation requirements and producer eligibility verification that informed the design of subsequent FSA programs.
• No new pandemic farm programs in 119th Congress: As of 2026, no new pandemic-specific agricultural support has been authorized. Farm assistance for natural disasters (drought, flood, hurricane) continues through the permanent Emergency Livestock Assistance Program and Livestock Forage Disaster Program (7 CFR Part 1416), not through new pandemic-style programs.

Pending Action

All three programs are closed to new applications. FSA continues to process appeals and audit repayment cases. No new pandemic-specific farm programs have been authorized in the 119th Congress.