 My name is Ron Hogan. I'm with the NDSU Extension Service and the Agri Business Department, Farm Management Specialist. And we work together with FSA to put on these webinars. And our webinar today is the CFAP2 program. And we're going to have the state FSA personnel present some slides. And we want you to, if you have questions, we'll try to leave the questions till the end. But we want you to put the questions in the Q&A. On the bottom of your screen, there should be a Q&A section where you click on that. And you can enter your question. And we will try to answer the questions. We were scheduled for two hours, but we probably won't be an hour plus the way it looks and depending on how many questions. So with that, I think I've covered everything. Just make sure, and I think we have you all muted and your video off so we can let the presenters start presenting. And there will be several of them from the state FSA office. And the first one will be Laura Heinrich. And I'll turn it over to you. Thanks, Ron and Miranda. We really appreciate NDSU's effort in allowing us to present this information. It's a great relationship that we've been able to build through the years. So what we'd like to do today is present some information on the Coronavirus Food Assistance Program 2, or CFAP 2 as we'll call it, because we always have to have acronyms when we talk FSA talk. So today, we're going to talk about what exactly is CFAP 2, who's eligible for the program, eligible commodities, and then the different payment categories that those eligible commodities fall into, such as price trigger commodities, flat rate crops, and sales commodities. And we'll go through each one of those in greater detail throughout the presentation. So I'm going to provide some general information about the program. So USDA is implementing CFAP 2 for agriculture producers who continue to face a market disruption and associated costs because of COVID-19. CFAP 2 will provide up to an additional $14 billion of financial assistance that gives the ability of those producers to absorb some of that increased marketing costs. This second sign up of CFAP builds on the assistance we provided under CFAP 1. Under CFAP 1 in North Dakota, we issued over $294 million to over 18,000 producers. And so this program is just really building off of that and helping producers who've had issues continuing throughout this coronavirus pandemic. We encourage producers who have continued to see an increase in their marketing issues with their crops. We encourage them to apply for CFAP 2. During the first round of the coronavirus program, USDA listened to producers and really took that feedback and tried to implement another program that would fill some of those holes that were missed under the first program. As a result, CFAP 2 has been adapted to better address the impacts to farmers and ranchers. And many more commodities are eligible than under the first program. The biggest change is that the 5% or greater national price decline is no longer the single determining factor for eligible commodities. With a few exceptions, generally marketable commodities are eligible under CFAP 2. Commodities that are now under CFAP 2 that were not covered under the first program are hemp, broilers from non-contract poultry growers, shelled and dry eggs, turkeys, bison, all classes of wheat and many more commodities, including dry edible beans, honey, and we'll go through the rest of the commodities that are now eligible as we go throughout the presentation. Another change is that participants will receive 100% of their eligible payments right away. Under the first program, we only issued 80% and then issued an additional payment later. Under this program, we will issue 100% of the payments as soon as that application is able to be approved. These payments also will not be withheld to satisfy prior USDA debt, nor are they offset by Treasury. So signup began on September 21st of 2020 and it goes through December 11th. So we have just under a month for you to come in and apply if you haven't already. So producers who are in the business of farming at the time of application are eligible and those producers must also have risk in the production of eligible commodities that fall under those three categories that we talked about earlier. That first category of price trigger commodities, those commodities are 5% or greater market price, incurred a 5% or greater market price decline between the average of mid-January 2020 in a comparison to the average of late July 2020. The commodities that fall in the flat rate crops did not meet that 5% decline trigger or do not have data available to determine if they had a 5% decline. And then the last category is the specialty sales-based commodities and those are sales-based approached commodities where producers are paid based on the five payment gradations associated with their 2019 sales. Producers will need to file the following forms. The application is an AD 3117 and in addition to that, there are the specific eligibility forms that'll need to be completed such as the farm operating plan and associated forms and Rondeval will cover those in just a minute. We also have AGI or adjusted gross income certification forms and highly rotable and wetland certification forms that'll need to be completed. So producers will apply though they're only gonna file one application nationwide. It is a certification based program so producers will just certify their commodity information on the application and the only time they'll need to provide documentation is if they're selected for spot check or the county committee, the local county committee would request documentation prior to approval of their application. They can submit that application to any USDA service center in the United States but the recording county or their control county is the county that's responsible for acting or approving or disapproving that application. This is what the application looks like. The part A is the producer agreement or the producer, it gives all of the requirements for the program and explains what the producer is certifying to when they sign the application. Parts B, C, D, E and F and G are all program specific parts of the application and those will be covered in greater detail as we go through this presentation. And then the producer is gonna sign in part I. With that I'll turn it over to Ron Duvall to cover the producer eligibility, payment limitation and payment eligibility. Morning everyone. My name is Ron Duvall and I work in the payment eligibility, payment limitation division at the North Dakota State FSA office. So we're just gonna cover some basic eligibility requirements for the CFAP program. And so what I wanna do is I wanna just start with who can participate in CFAP too. So producers who have risk and producing an eligible commodity, those people who have suffered from disruptions of significant marketing costs are eligible for CFAP too. Average adjusted gross income, producers have to produce, they have to, their income, AGI has to be less than 900,000 for tax years, 16, 17, 18 and average of those. And then also, or they can have 75% of their adjusted gross income from farming or ranching or forestry related activities. Now individuals and entities also have to commercially produce those ag commodities. They have to be in the business of farming at the time of the application. They have to comply with provisions of the highly erodible land and wetland conservation regulations also typically called conservation compliance rules. And they also, if you're a foreign person, then you need to provide land capital in a substantial amount of active personal labor to the farming operation. You also cannot have a controlled substance violation. And just one reminder is that contract growers are not eligible for CFAP too. And the difference between a contract grower and someone who's growing a crop with a contract is that a producer who has marketing contract to sell a crop is not considered a contract grower but typically a contract grower owns a facility but they don't own the commodity. So if you own the commodity, you have a contract, you're an eligible producer but if you don't own the commodity, you're just growing it, you're ineligible for that. And then again, a producer is a person who has risk in the commodity and does not include producers who are no longer in the business of farming at the time of application. All right, so participants participation in CFAP one, the program that we had run previous to this does not make you ineligible for CFAP two. And if you didn't apply for CFAP one, you can still apply for CFAP two. New producers who may not have historical sales or records can still apply and that does not include producers that are no longer in business of farming at the time of the application. So the payment limitations. There's a limit of 250,000 per person and legal entity that applies to the total payments for all eligible commodities. Now, corporations, entities or corporate entities, LLCs, LLPs, trusts and estates may receive up to $500,000 if two members contribute at least 400 hours of active personal labor or management or $750,000 if three members contribute at least 400 hours of active personal management. And again, the CFAP two payment limitations are separate from CFAP one. And we're gonna go through just a little bit of discussion about this for corporations, entities, LLPs and so on. We're gonna go through a little bit of discussion about that here in a minute. But just a reminder here, CFAP two limitations, 250,000 per person or legal entity, it's a separate payment limitation from CFAP 1.0. And then we're using the 2020 farm business file and our FSA 2020 records for determining eligibility. Now, what I was talking about a minute ago was there's this optional increase. So the payment limit for a corporation is or an entity is 250,000. But what there is is we have this optional increase in payment limit that's available to Corpse, LLCs, LPs, trusts and estates. And those additional payment limits are available when members or partners, stockholders, heirs or beneficiaries, they contribute 400 plus hours of active personal labor or active personal management to the farming operation. This is the same rule that we had during the previous coronavirus food assistance program, one that we ran. So with this optional payment limit, like I discussed a few minutes ago, what happens is that we can add $250,000 per producer up to three entity members allowing up to a $750,000 payment limit. So if we have two entity members that provide 400 hours of labor, active personal labor or active personal management, then the payment limit increases to 500,000 and then subsequently with three entity members providing 400 hours of active personal labor, active personal management, that payment limit increases to $750,000. And then also revocable trusts using a social security number can also seek an increase in payment limit if the trust provides evidence to the satisfaction of our county committee, documenting that there's more than one beneficiary of the trust, such as like a husband or wife operation or that evidence may include but is not limited to a copy of the executed trust agreement. This is a little different from what we've done in the past. Okay, so one thing that I wanted to touch on from the last coronavirus program that we ran and the current CFAP-2 is that payments to persons and legal entities are attributed according to the rules laid out in the seven CFR part 1400. But there's an exception and the payments to legal entities qualifying for those will be limited to the lesser of 500,000 or 750,000 or the sum of the amount of each eligible entity member may receive regardless of the ownership share. And so before with CFAP-2 before this current coronavirus food assistance program shares were limited to the or the payments were limited to the amount of the shares of the individuals within the entity. So if you had like a, you had several members, we'll just go through this example here. So previously ABC Corp payment women increased to 500,000 based on two members. And each member, one member one had 90% ownership share, member two had 10% ownership share. So we increased the payment limit only up to their 10% share and 90% share. So you can see when we go through this decision or through where this case, member one's attribution amount of 250,000 is basically lowered because we're taking 90% of the 500,000 to 450,000 not. And then that would not exceed 250,000 and the member attribution is 50,000 based on the 10% share. So what we're looking at here is that the total payment to this producer for ABC Corporation is now going to be 300,000 based off of their shares in the entity. The 250,000 plus the 500,000. So now the way that the rules were changed with the CFAP2 program is that we're not looking at the 90% ownership and the 10% ownership anymore. We're just looking at the $250,000 payment limit. So in this case, that same situation the producer, each producer is gonna earn $250,000 payment limit if they provide the 400,000 hours of labor. So now where the first round the producer would have earned 300,000, now that operation is gonna earn 500,000 because we're not looking at the share. Now I want you to understand too that these rules are going back to CFAP1. So later this year, as our software is developed, some producers who were limited to that original $300,000 limitation, those people are going to receive additional monies because the Congressional's changed that rule along the way allowing for the producers to receive more. So we're gonna go through one more example and this is a corporation or an LLC with embedded members within it. So we have ABC Corp who's increased payment limit to 500,000 on two members. This is the previous payment limit rules. And as we go through, you can see that the payment limit for the member one LLC was 250,000. So the maximum payment that ABC Corp would receive is $250,000 and then under the new rules we're gonna follow the eligibility for that corporation member one LLC through to each of the members. So ABC Corp is now going to have a $500,000 payment limitation because rather than looking at the shares of the ownership of the members of the member one LLC, so producer A at 90%, producer B at 10%, we don't care about that share of the ownership anymore. We're just looking at the payment limit per individual. So we're taking ABC Corp we're looking at its member which is member one LLC. And then we have to look through that membership to see who are the individuals providing labor for that. And then we're allowing each member of that embedded entity to receive payment limits. So we're gonna have an increased payment limit of $500,000 to this corporation based on the first level members of that embedded entity. Okay, just some attribution thought here is that CFAP payments to a legal entity will be tracked through four levels of ownership and will be reduced in an amount that represents the indirect ownership interest of the fourth level entity of the payment entity. All right, well, thank you, Ron. My name is Wanda Brayton and I am the conservation livestock disaster program specialist here at the North Dakota State Office. I'm gonna cover a couple of slides here on the commodity categories. Laura touched on this a little bit. So again, there are three major categories for payment calculations in the CFAP-2 program that we're gonna talk about today. Those categories again are our price trigger commodities, our flat rate row crops and our sales commodities. As we move through this webinar, we will cover the different types of commodities that are available or eligible under each type of payment category. So the price trigger category includes commodities that USDA has determined to have that experienced, a 5% or greater market price decline between the average for mid-January of 2020 in comparison for the average of late July of 2020. Eligible commodities within that category are your dairy, your milk, broilers and eggs, livestock, excluding any kind of breeding stock. So we'd be talking about our beef cattle, hogs and pigs, lambs and sheep. And also our barley, corn, sorghum, soybean, sunflowers, upland cotton, wheat, all of those classes. So these commodities are also listed on the farmers.gov slash CFAP website and producers don't have to justify the price decline if the crops show up as eligible on the farmers.gov CFAP website and the producers can apply for payment. So we'll go through each of the price trigger categories and provide some details about each eligible commodity. The first one we're gonna talk about is the dairy provisions. In order to be eligible, in order to be an eligible dairy operation, the dairy operation must be commercially marketing milk at the time of application. So if the dairy operation dissolves before applying for the CFAP too, then they would be ineligible under the dairy category for the CFAP too program. If it's a seasonal dairies, they are eligible and they can apply for seasonal dairy operations that stop producing milk before December 31st of 2020. Those producers would need to report to FSA the date they stopped production of the milk and refund any unearned CFAP payments according to the number of days in production. As we just stated, dairy operations that dissolve prior to applying for CFAP too are ineligible. If the dairy dissolves after applying for CFAP too, then the producer must report the dissolution date to FSA. Then the actual production will be used to estimate the production according to the pro-rated number of days the milk was produced. Any of those unearned payments may need to be refunded to USDA if the payment has already been issued. For CFAP too, the eligible milk production is broken down into those two categories. We look at the actual milk production and the estimated milk production. The actual production is milk commercially marketed for the months of April through August 31st of 2020 along with any dumped milk during that same timeframe. When we're talking about the estimated milk production that is milk expected to be commercially marketed for the months of September through December of 2020, the estimated milk production is determined by the daily average of the actual milk production multiplied by the number of commercially marketed days of milk was produced in September through December. So then we have to ask ourselves how the price trigger category works for cow milk. Producers will receive a little more than a penny for each pound of cow milk produced or dumped between that April and August 31st, 2020 date or timeframe and an estimated amount of milk that will be produced between September and December of 2020. The CFAP software will automatically calculate that estimated milk production in pounds for those months of September to December. We've received some questions as to whether goat milk is available for the CFAP2 program and the answer is yes. However, the goat milk falls under a sales commodity and not under the price trigger category. Producers will be required to self-certify to their total milk production for the months of April through August 31st of 2020. The documentation such as milk marketing statements for April through August, those can help producers determine what your actual production is. So the next commodity that we will discuss is the eggs and broilers. Eggs and broilers fall into the price trigger category for CFAP2. So this means that eggs and broiler producers have experienced that 5% or greater price decline in comparison of the average prices for the week of January 13th through the 17th of 2020 and the average prices for the week of July 27th through the 31st of 2020. An eligible producer is a person or legal entity who shares in the risk of producing a commodity, just like Ron was talking about earlier. So in order to be considered an eligible producer of eggs or broilers, the producers must be an independent grower. Contract grower is not eligible for the CFAP2 program, just like Ron was talking about. And the producers must be in the business of egg or broiler production at the time of application in order to be considered an eligible producer. An eligible egg operation is one who commercially markets shell, dried, frozen or liquid egg eggs from chickens in the US at the time of application. The operation must have a risk in the egg sales and the operation must not have a guaranteed price on the egg sold. So if an egg producer has a guaranteed price on their egg production, they would not be eligible for the CFAP2 program. Producers must self-certify to their dried, liquid and frozen egg production in pounds for the 2019 calendar year. And for the shell eggs, the producers must self-certify the number in dozens. So if the egg producer is new and does not have any production from the 2019 calendar year, then we would use their actual production from 2020 when we're applying the payment. The definition of a broiler is any chicken that has been commercially produced for meat purposes and not used for laying or breeding purposes. So just like the eligible egg production, the eligible production for broilers is a producer self-certification of the 2019 total broiler production. And again, for the new broiler producers who began farming in 2020 and do not have that production from 2019, they would use their actual 2020 broiler production as of the date the producer submits a CFAP2 application for payment. So looking at some of those price trigger for eggs and broilers, the payment is based on the producer's 2019 production like we were talking about. And like I said earlier, producers report their egg production by dozen for shell eggs and in pounds for all other egg types. And then the broilers are reported by head. So for eggs, the conversion is from eggs to pounds, producers who sell frozen, liquid or dried eggs in the shell to a processor can reach out to their local office or the CFAP call center for assistance in converting the production to pounds for their CFAP2 application. For the broilers, the definition for broilers are chickens commercially produced for meat purposes that have left the farm for slaughter and are not used for laying or breeding purposes. The CFAP2 payment is calculated using the 2019 production times 75% times the egg type payment rate or the broiler payment rate per head. Our next commodity is livestock. An eligible producer is a person or legal entity who shares in the risk of producing a commodity as we've talked about producers who are not in the business of livestock production at the time of application are not considered an eligible livestock producer. Eligible livestock for the CFAP2 payment are beef cattle, including bread heifers, hogs and pigs and all breeds of sheep. This does exclude breeding stock. So as we just mentioned, breeding stock are ineligible for the CFAP2. This would include your cows and bulls, sows and boars, ewes and rams. Basically, if they have ever reproduced or been used for breeding, they are ineligible for the CFAP2 program. Also ineligible livestock include very cattle and equine, companion animals or animals raised for hunting or game. And also as we stated a couple of times now, the contract growers are not eligible for CFAP2, but keep in mind that a marketing contract to sell a crop owned by the grower is not considered contract grower. Any livestock not meeting the definition of an eligible commodity for CFAP2 purposes are also considered ineligible. CFAP2 for livestock, like we said, include the beef cattle, the hog sheep, pigs, lambs, all ages and weight ranges are paid at the same rate and those livestock must be produced in the US. Payments for livestock will be equal to the highest inventory of the specific livestock on a date selected by the producer from April 16th to August 31st, 2020, multiplied by the applicable payment rate per head. So with that, I'm going to turn it over to Brian Haugen. So on a stated, my name is Brian Haugen, Program Director here at the North Dakota State Office of the Price Support Division. And today under the CFAP2, I'll be discussing the acreage based crop provisions which fall into two categories, that being price trigger and flat rate crops. To begin with, just wanted everyone to understand that on the CFAP2 application individuals that are applying, the data is going to be for eligible crops and eligible intended uses for whether the commodity being a price trigger or a flat rate crop is automatically going to populate to the application for all counties in which a producer would have an interest in the eligible crops and a total of the applicable 2020 acreage data would fall to the application. The first item that we're going to discuss of the two categories under the acreage based crops is price trigger crops. And with that on our screen identifies eight commodities that were determined by the department to have a 5% or greater price decline. With these eight commodities that are identified, the next slide is going to peel them back to identify all of the eligible commodities along with based on the acreage report the eligible intended uses. I would like to point out, as far as on barley again under the CFAP2, all barley is eligible intended uses that are not eligible for the CFAP2 is of these eight commodities that are reported with an intended use of grazing, left standing, green manure, or prevent plant. So under the price trigger crops, yields are a factor. You will see forthcoming when we talk about the flat rate crops that yield is not a factor for those, but it is for our price trigger. So one to go through and explain more specifically how it works for these eight commodities that are a price trigger. It's going to be based on again all of the nationwide pulling from the annual acreage report data for 2020 for those eligible eight commodities and eligible intended uses. And then that will be multiplied by the weighted 2020 APH data of the approved yield that's returned from RMA. Or if a 2020 APH yield is not available from RMA, then it will be the yield that will be used for the price trigger crops is going to be 85% of the weighted 2019 R County benchmark yield. So for these price trigger crops, how does the payment become calculated? Would want to point out on any of those eight commodities, a producer would receive no less than $15 per acre. That's the minimum amount. So what the system is going to calculate and do a comparison of and equate for the individual applicant, they'll receive a payment that's going to be equal to or greater than either of the following two. And the first one as explained there, it's going to again use the acreage for the eligible price trigger crop multiplied by the applicable yield. Again, that's going to be a 2020 APH approved yield. Or if that is not available, then the 85% of the 2019 R County benchmark yield. That's going to be calculated acreage times yield times a department determined crop marketing percentage. And then in addition to that of the eight commodities, all eight commodities have a pre-determined payment rate per commodity. And we'll show you an example of how this is computed. So it will go through that exercise in calculation as compared to simply taking the eligible acres times $15 an acre. And the higher of the two is what the CFAP-2 applicant will receive. So we'll go through and show an example of that comparison, the higher of the two for a price trigger crop. This is an example of producer applying for CFAP-2 on the commodity of corn. Again, acreage data is looked upon all counties. The producer has an interest in across the nation and that equates to 175 acres of corn. RMA has returned yield information to the agency with a weighted 2020 APH in this example of 140.16 bushels per acre. So with that information, what the software again will do for a calculation, and this would be using the formula that we just went through on slide 54, it's going to then take not only acreage times the yield, but also multiply that by a commodity payment rate that is applicable for the price trigger commodity, and then also multiply that by a crop marketing percentage, which for the commodity of corn, that percentage is 40%. The rate per bushel under CFAP-2 for the commodity of corn is 58 cents. So multiplying the acreage times yield times the payment rate of 58 cents times the 40% marketing percentage equates to a payment of $5,690. That would then be compared to simply taking acreage times $15, and that would calculate to $2,625. So again, the producer would receive the higher of the two, no less than a $15 breaker. And in this example, the higher of the two is going to be the $5,690. So that's how the payment is computed for our price trigger commodities. The next component that we want to discuss on our acreage-based crops is flat rate crops. And under the flat rate crops, very identical to what we have for the price trigger crops, as far as ineligible intended uses, those that are reported as intended use for grazing, green manure, left standing, and prevent those crops reported as prevent plant for flat rate are ineligible. Unlike our price trigger crops, as mentioned, the flat rate crops yields are not a factor. It's going to be the acreage times the applicable rate. Under our flat rate crops, on this slide, we are identifying all those, the department has determined as eligible to receive a flat rate crop payment under the CFAP-2. The mechanics are similar to our price trigger crops that individuals applying the 8031-17 is going to automatically populate in part G. Acreage the producer has reported farming interests then of eligible flat rate crops right to the application. And again, all acreage nationally will be totaled and displayed in block 22. So again, with our flat rate crops, the payment calculation is straightforward using the acreage from the 578 multiplied by the $15 per acre payment for those eligible crops. So looking at examples similar to what we did with the price trigger crops for our flat rate commodities, we have an example of a producer that, that applied for CFAP-2 has an eligible commodity that being Canola and nationally based on all counties the producer has an interest in, there's 200 acres of Canola. So the system would automatically calculate again the eligible acres with the eligible intended uses times that $15 and this individual would then be eligible for a CFAP-2 payment applicable to the commodity of Canola of $3,000. Next I'll turn it over to Laura to discuss sales commodities. Thank you, Brian. So the last category we're gonna cover is sales commodities. This category includes aquaculture, specialty crops including fruits, vegetables and tree nuts. And in this category, this is where we've added honey, dry edible beans and peas, lentils and chickpeas or garbanzo beans. So those are new crops that are added to the specialty crops for CFAP-2 in comparison to CFAP-1. We also cover nursery crops and floor culture under sales commodities. And then livestock grown for food, fiber, fur, feathers including alpacas, emus, llamas, bison, buffalo, beefalo, deer, elk and the remaining of those specialty livestock listed on the screen. We also cover miscellaneous commodities such as Christmas trees, goat milk, mohair, mink and wool and also tobacco which would be applicable to our Southern states. What commodities are ineligible for CFAP-2? Any breeding stock are ineligible, equine, companion or comfort animals or pets. Commodities produced by contract growers or livestock raised for hunting or game purposes are ineligible for CFAP-2. So to be eligible for a sales commodity, a producer must either grow or produce a sales commodity in 2020. Once we've determined that that producer did grow or produce a sales commodity in 2020 that would have been affected by the coronavirus, then we're gonna go back and look at what their 2019 sales of all sales commodities are to determine what their payment will be. So the eligible sales that we're gonna look at are only sales of raw commodities grown by the producer. Sales from adding value like processing and packaging would not be included in the sales amount entered on the application. Producers will certify to their 2019 commodity sales in dollars and cents and it'll enter that amount in item 19 of part F of the application. If that producer is a new producer and did not have any 2019 sales of any sales commodities, they may qualify for a new producer and we'll go through some examples. So for a new producer is defined as a producer who began farming sales commodities in 2020 and had no 2019 sales. And in that situation, they'll certify to their actual 2020 sales at the time of application in lieu of their 2019 sales. So our first example is producer B who grew a hundred acres of blueberries as an individual with a hundred percent share in 2019 and he sold all of those blueberries in 2019 for a total of $250,000. In 2020, producer B's spouse, producer C, began farming as a new producer. In 2020, producer B and producer C now share in a hundred acres of blueberries. They share 50-50 and in 2020, they had $200,000 in sales. So in this scenario, producer B is gonna certify to their 2019 sales of $250,000 because they're not a new producer. So producer B will use their 2019 sales of $250,000. But producer C is a new producer of sales commodities. So in that scenario, producer C, this spouse is gonna certify to their 2020 sales. So in this scenario, that's $100,000 because they had 50% share of $200,000 of sales. Our second example is producer A who grew 120 acres of watermelons in 2018 but did not plant any sales commodities in 2019 due to disaster and they did not sell any other sales commodities in 2019. So in 2020, the producer grew 120 acres of watermelons and had a total sales of $320,000. So our first criteria is that produce, we have to look to see, did that producer grow or produce a sales commodity in 2020? In this scenario, yes. The producer grew 120 acres of watermelons. So they have an eligible sales commodity in 2020. Now we're gonna go back and look at their 2019 sales. In this scenario, the producer didn't have any 2019 sales. So then we're gonna say, is this producer a new producer? Well, when we look back further into this producer's growing history, he had planted watermelon, which is our sales commodity or a sales commodity. And since they had a sales commodity in previous years, they wouldn't be determined a new producer. So in this scenario, producer A would certify to $0 of sales commodities because they didn't have any sales in 2019 and they're not considered a new producer. So next we just wanna go through a couple examples of scenarios that may happen here in North Dakota in regards to sales commodities. So our first example is for a Buffalo producer. So Sally breeds and grows Buffalo for direct marketing of the meat and buy products to online customers. Sally's sales records show several income streams from various products. She's products that she sells, including Buffalo meat, hides and shoulder mounts. So in Sally's situation, Sally would certify to the value of the live animal delivered to the point of harvest, whether on or off the farm. So she's gonna certify to the value of that Buffalo when it goes to be slaughtered into meat. After delivery, there's value added by processing the animal into various byproducts. The sales of the byproducts, such as the meat hides and shoulder mounts should not be included, only the value of the live animal. Our second example is grapes. So Sean grows grapes and owns a winery to process grapes into wine. Sean also buys grapes from other growers. For the CFAP II application, Sean should determine the value of his raw grapes at a price comparable to what was paid by the winery for similar quality raw grapes. And that's what they're gonna certify to on the application. He's not gonna certify to the value of the wine that he sold from the grapes he grew. He's gonna have to determine what the value of those grapes were in its raw form. And that's what Sean will certify to on their application. And our third example is Sam raises cucumbers and sells raw cucumbers and cucumber pickles at a local farmer's market directly to customers. The 2019 sales will be the value of the raw cucumbers sold at the market plus the raw value of the cucumber pickles. Sam would use the quantity of cucumbers processed into pickles and the price of raw cucumbers sold at the market to calculate the value of cucumber pickles. And that's the amount of value that they will enter that Sam will enter onto the application under sales commodities. So this is an example of part F on the application. So under each category, the producer's gonna certify to their total 2019 sales of each different type of sales commodity. And then to calculate the payment we'll add all of those sales commodities together. And then we're gonna apply the applicable payment factor based on the five different categories of sales ranges. So the first zero to $49,999 we'll use a payment factor of 10.6% from 50,000 to 99,999, there's a 9.9% payment factor and so on and so forth till we get over any sales over a million dollars. We'll use a factor of 8.8%. And again, this slide says it's the 2019 sales but if that producer would be determined to be a new producer we'd use their 2020 actual sales at the time of application to determine the payment model. So here's an example. So Farmer Joe has 2019 sales of $75,000. Therefore two payment factors apply. So we're gonna apply that 10.6% payment factor to the first $49,999 for a total of $5,299.89. And then for the additional $25,001 we apply the payment factor of 9.9% to get $2,475.10. And then we add those two together to get the total payment for the producer for the sales commodities. And the total payment would be $7,774.99. So now that we've covered all the different eligible commodities and how the payments will be calculated, how do you actually apply? So if you're new to FSA, don't worry about it especially since we just covered those sales commodities and you may not be a producer who is familiar with the Farm Service Agency. We want you to go out and contact your local Farm Service Agency County office. And when you do, they're gonna ask you for some basic information, your name and address, your personal information such as your tax identification number because we need that to be able to pay you. They're also gonna go through those eligibility forms that Ron discussed earlier. And then we'd also talk to you about a direct deposit so we could give you that payment directly into your bank account. And then some producers may need to file an acreage report as Brian Hogan indicated for the commodities that he covered. You do need an acreage report on file. If you need to find that form and you wanna fill it out at home on your own, you can go ahead and download that application from www.farmers.gov.cfap. So I asked you to go ahead and contact our local county offices. Because of COVID-19, it actually our county offices have been affected also. At this time, our doors are open, but the only time we allow producers in is if they've contacted us by phone and previously made an appointment. So we always wanna make sure that you're calling ahead of time before you make that long drive into the county office. We want you to call ahead, make sure they're open and they have time and are able to make an appointment for you. If we're not able to allow you to come into the office at that time or we can assist you better without you coming into the office or you don't feel comfortable coming into the local county office, we have other avenues to assist you. We can email you the application process on the phone with you, complete it and mail it out to you for your signature. We have options of being able to allow you to do an e-signature. You can sign up for EOF, which is our authentication system that you can actually apply online and enter that application directly into our software. Or we can go ahead and allow you to do a signature using your cell phone or your computer. So we have opportunities to complete an application that way also. So please just call our county office before you drive into the, into the your local service center and make sure that they are able to assist you. So once you've applied, we wanna remind you that you need to keep the documentation that you used to certify your livestock numbers or your sales commodity receipts. We need you to keep that documentation for three years in case you're selected for spot check or if the county committee would have additional, big questions, some of the information you provided and they may want you to supply some supporting documentation for that. And then after you sign your application, you have 60 days to provide us all of those eligibility forms that Ron discussed. The local office will begin reviewing your application and determining eligibility. And then once they approve that application, we will go ahead and if we can approve it, we'll approve it and get you paid. Otherwise we'll notify you of any adjustments that we were required to make. So you can either find all of our locations online or we did include a map of where all our county offices are located. And then the next few slides, we have a group email that you can email that email address and it'll go to all the county office employees in that office and along with their phone number. And this is just a slide that has all of our different important internet websites that have the CFAP information on there. If you're questioning whether any of your commodities that you grow are eligible, you can go to the CFAP two eligible commodities finder. It's a very useful tool at the website listed there. We encourage you to sign up for our GOV delivery, which is the system we use to send out emails with important information about what's going on in the farm service agency and what programs we're running and what deadlines may come up. And then you can also give us your cell phone number and we can send you text messages. They'll be brief and we won't overload you, but it'll give you important information about our programs. With that, this is a slide just listing all of the individuals who spoke today in the different program commodity areas and feel free to reach out to any of us via email and we will answer your questions as soon as possible. So with that, I'll turn it back over to Ron Haugen and Miranda to see if we have any questions that we're able to answer. Yes, Laura, I see we have one question here. Before we get started on questions, we have a couple of questions for you guys just to see, you know, get a little bit about who we, more information about who's on today and then also how useful today's webinars. Just two questions that we're gonna ask you and they should pop up on your screen now. Okay, Miranda, you got the polling done. Okay, this one question, I think I know the answer, but I'll address it to Laura. This producer says, I produced a, for the first time in my farming career, produced edible beans, Pinot beans in 2020 and I have no 2019 prior years production. I understand I have to sell the 2020 production by December 11th or I am not eligible for CFAP2. Is that right, could you answer that? Yeah, that is correct. So that as long as that producer would have not sold any other sales commodity. So in this scenario, they said they're a new producer to dry edible beans, but I just wanna make sure that if they didn't, they could not have produced like dry edible peas or garbanzo beans, they couldn't have produced those in previous years either. Or if they had Buffalo back in 2015 and then sold them off and now produce dry edible beans in 2020, they wouldn't be considered a new producer. So if this producer had never produced any sales commodities before 2020 and this year is the first year they planted dry edible beans and they would then use their 2020 sales and the producer's correct. They would have to have their sales, they'd only be able to claim the sales that they've received the funds for by December 11th, the deadline. Okay. Another dry edible bean question. How about if you produced and sold 2018 and produced and sold in 2018 but the money was deferred to 2019? Okay, we actually look at the date that that money is received. So in that scenario, the producer would have had to have planted a sales commodity in 2020. So they would have had this plant, let's just say dry edible beans again in 2020 to be eligible. Once they've done that, we'll look at any sales that were received. We don't care what year that sales is from, what year crop that sales is from. So in this scenario, that producer would be able to claim those 2019 or 2018 dry edible beans that they received the money for in 2019. They will include those sales on their application. Okay. Any other questions? We also wanted to let you know that this is being recorded and it will be made available to you as well. Put in the chat box. I don't know if everybody has that open, but the recording as well as the slides, if you weren't able to write down an email address or a website fast enough, will be posted on the NDSU extension farm management page. Okay. Here's another question. It seems that it's very unfair that I would have to sell my 2020 beans by 1211 as the price hit rock bottom now. The program provisions state that it's sales through, if you are a new producer, it's the sales through December 11th through the program deadline. So that's what the procedure is that we have to follow here at FSA. Any other questions? Here we go. Oh, I guess he was just thanking you for the answer. Okay. I guess that's probably exhausted our time for questions here. If I don't see any other questions, I guess we can call an end to it. I want to thank you people that have participated and attended this webinar. Any other questions as we mentioned, and please just get ahold of any of us. We're always available to answer questions. And we want to thank the FSA office, the state FSA personnel for putting these slides together. It was very informative and very detailed. We appreciate this. And we had extension, try to help get the word out to all of the producers. So thank you, Miranda, for setting up things. And with that, I guess we will end the meeting and say good afternoon.