Back in December 2024, Congress passed the American Relief Act, part of which included $10 billion in Emergency Commodity Assistance Program (ECAP) payments. Farmers are now reporting they’re starting to see those payments hit their bank accounts this week.
“Remember, they’re only getting 85% now because there was only $10 billion allocated. So the remaining 15%, plus or minus, will be issued later. I think farmers should collect the full 15%. If not, it will be really, really close,” says Farm CPA Paul Neiffer.
The emergency relief was created as a way to help offset financial losses for agricultural producers last year, and USDA then had 90 days to roll out the program. Farmers can sign up until August 15.
Timing of Remaining 15% of Expected Payment
The next question is: when will USDA issue the remaining 15%? Neiffer expects those payments to be issued shortly after the initial signup deadline ends.
“That likely won’t be issued until after August 15, because the sign up period doesn’t end until then. And that seems like a very long sign up period for this, but there will be certain farmers who don’t have their acres in the database, so to speak, and they’ll have to get those updated with FSA.”
According to Neiffer, there’s no reason to believe USDA won’t issue the remaining 15% of expected payments. He even says they probably could’ve issued 95% of the payments to start.
“Remember, these payment rates got reduced for corn, soybeans and wheat by a little bit,” Neiffer says. “Even at the higher payment rates with all the acres I saw, it was only about $10.2 billion. And then by the time you factor in payment limits and so on and so forth, they’re going to be under $10 billion. So, farmers should get the whole 15%.”
Payments will be made to farmers on a flat per-acre rate on 100% of planted acres, or 50% of those prevented from planting.
Neiffer says he’s hearing the initial signup period has gone smoothly. Not only has it been quick, payments are then happening within weeks of signing up.
Specific Requirements For Eligibility
To be eligible, farmers must meet the following requirements, according to Betty Resnick, American Farm Bureau Federation economist:
- Be actively engaged in farming
- Have an interest in input expenses for a covered commodity
- Have reported acreage of eligible commodities to FSA for the 2024 crop year planted and prevent plant acres to FSA on an FSA-578, Report of Acreage form
- Have reported acres that were prevented from being planted to FSA for the 2024 crop year on an CCC-576 Notice of Loss form (if applicable)
Eligible Crops And Rates
Commodities included in the program are:
- Wheat: $30.69
- Corn: $42.91
- Sorghum: $42.52
- Barley: $21.67
- Oats: $77.66
- Upland cotton & extra-long staple cotton: $84.74
- Long & medium grain rice: $76.94
- Peanuts: $75.51
- Soybeans: $29.76
- Dry peas: $16.02
- Lentils: $19.30
- Small chickpeas: $31.45
- Large chickpeas: $24.02
Eligible Oilseeds:
- Canola: $31.83
- Crambe: $19.08
- Flax: $20.97
- Mustard: $11.36
- Rapeseed: $23.63
- Safflower: $26.32
- Sesame: $16.83
- Sunflower: $27.23
To calculate your potential payment, use this USDA calculator. Producers can also contact their local FSA offices with additional questions.
Hear more details from Neiffer about not only the program, but also possible tax changes this year.
