USDA is providing critical support to our nation’s 

farmers and ranchers through the Coronavirus 

Food Assistance Program (CFAP). CFAP provides 

vital financial assistance to producers of 

agricultural commodities with financial assistance 

that gives them the ability to absorb sales declines 

and increased marketing costs associated with the 

COVID-19 pandemic. 

Overview

The Coronavirus Aid, Relief, and Economic Stability Act 

(CARES Act) and the Commodity Credit Corporation 

(CCC) Charter Act authorized the funds for the CFAP. 

USDA’s Farm Service Agency (FSA) and Agricutural 

Marketing Service (AMS) administer the program.

FSA is accepting applications for CFAP from

May 26, 2020, to August 28, 2020.

Who is Eligible?

CFAP payments are eligible to wool producers who 

have suffered a five percentorgreater price decline 

over a specified time as a result of the COVID-19 

pandemic, and who face increased marketing costs for 

inventories. 

CFAP payments for wool are based on the inventory 

subject to price risk held on January 15, 2020. A 

single payment will be made based on 50 percent of a 

producer’s 2019 total production or the 2019 inventory 

as of January 15, 2020, whichever is smaller, multiplied 

by 50 percent and then multiplied by the commodity’s 

applicable payment rates.

Producers must provide the following:

• total 2019 production of wool 

• total 2019 production that was not sold as of 

January 15, 2020

United States

Department of

Agriculture

CORONAVIRUS FOOD ASSISTANCE PROGRAM

for Wool Producers

FARM SERVICE AGENCY

FACT SHEET - JUNE 24, 2020

Unpriced inventory or the production subject to price 

risk means any production, sales and inventory that 

is not subject to an agreed-upon price in the future 

through a forward contract, agreement, or similar 

binding document.

The following table lists wool payment rates for CFAP.

COMMODITY UNIT OF 

MEASURE

CARES ACT 

PART 1 

PAYMENT 

RATE*

CCC 

PART 2

PAYMENT 

RATE*

Wool (graded,

 clean basis) pound $0.34 $0.37

Wool (non-graded, 

greasy basis) pound $0.36 $0.39

*Applied against 50% of unpriced inventory as of January 15, 2020, 

not to exceed 50 percent of 2019 total production.
CORONAVIRUS FOOD ASSISTANCE PROGRAM WOOL PRODUCERS 2

USDA is an equal opportunity provider, employer and lender.

Payment Limitations

CFAP payments are subject to a per person and legal 

entity payment limitation of $250,000. This limitation 

applies to the total amount of CFAP payments made 

with respect to all eligible commodities.

Unlike other FSA programs, special payment limitation 

rules are applied to participants that are corporations, 

limited liability companies, and limited partnerships 

(corporate entities). These corporate entities may 

receive up to $750,000 based upon the number of 

shareholders (not to exceed three shareholders) who 

are contributing at least 400 hours of active person 

management or personal active labor. 

For a corporate entity:

• With one such shareholder, the payment limit for 

the entity is $250,000;

• With two such shareholders, the payment limit 

for the entity is $500,000 if at least two members 

contribute at least 400 hours of active personal 

labor or active personal management, or 

combination thereof, with respect to the operation 

of the corporate entity; and 

• With three such shareholders, the limit is $750,000 

if at least three members contribute at least 400 

hours of active personal labor or active personal 

management, or combination thereof, with respect 

to the operation of the corporate entity. 

Payment Structure

To ensure the availability of funding throughout the 

application period, producers will receive 80 percent 

of their maximum total payment upon approval of the 

application. The remaining portion of the payment, not 

to exceed the payment limit, will be paid at a later date 

as funds remain available.

How to Apply

FSA staff at your local USDA Service Center will work 

with producers to file applications. Applications may be 

submitted via mail, fax, hand delivery, or via electronic 

means. Please call your office prior to sending 

applications electronically.

The CFAP application and associated forms are 

available online at farmers.gov/cfap. 

More Information

This fact sheet is for informational purposes only; other 

restrictions may apply. For more information about the 

CFAP program, visit farmers.gov/cfap or contact your 

local FSA office. Additionally, producers in search of 

one-on-one support with the CFAP application process 

can call 877-508-8364 to speak directly with a USDA 

employee ready to offer assistance.

To find your local FSA office, visit farmers.gov/cfap.