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. 2022 Oct 5:10.1002/aepp.13325. Online ahead of print. doi: 10.1002/aepp.13325

Analysis of the payments from the coronavirus food assistance program and the market facilitation program to minority producers

Anil K Giri 1,, Dipak Subedi 1, Kathleen Kassel 1
PMCID: PMC9874844  PMID: 36711012

Abstract

This paper examines the payments made to minority producers, focused on African American producers, from the COVID‐19 program, Coronavirus Food Assistance Program (CFAP), of the United States Department of Agriculture (USDA) and compares it with one of the other more recent ad hoc program payments, the Market Facilitation Program (MFP). There were two rounds of the CFAP, and combinedly (as of March 2022), the program made direct payments of $31.0 billion ($11.8 billion from CFAP 1 and $19.2 billion from CFAP 2) starting in 2020. The MFP made a total payment of $23.5 billion (in two rounds, MFP 2018 and MFP 2019) to producers affected by the retaliatory tariffs placed on US producers by trade partners across multiple years. CFAP made almost $600 million in direct payments to minority producers, including Black or African American producers. Black or African American only producers received more than $52 million in CFAP payments. CFAP payments were proportional to the value of agricultural commodity sold for most minority producers. The 2017 Census of Agriculture showed that the majority of minority producers, including African American producers but excluding Asian producers, raised livestock. CFAP made the highest payments to livestock minority producers. The CFAP payment distribution pattern shows that payments reached minority producers who often did not receive Government payments. CFAP made more payments and as a share of total program outlays to minority producers compared to MFP. However, for Black or African American only producers, even though the magnitude increased (because CFAP disbursed more funds compared to MFP), the share of payment received did not increase.

Keywords: African American, Coronavirus Food Assistance program (CFAP), government payments, Market Facilitation Program (MFP)


We saw 99% of the money going to White farmers and 1% going to socially disadvantaged farmers and if you break that down to how much went to Black farmers, it's 0.1%.‐Tom Vilsack, Secretary, USDA, as quoted in Washington Post, March 25, 2021 (Riley, 2021)

The above quote was in reference to the CFAP1 fund disbursed by USDA related to the COVID‐19 relief program. After the Secretary Vilsack's statement above, USDA implemented changes with the goal of improving access to COVID‐19 relief funds for minority farmers, including Black or African American producers. These changes included expanding eligibility to commodities that were initially not eligible to receive payments. For instance, poultry and contract producers initially were ineligible to receive USDA COVID relief payments. However, on August 24, 2021, USDA updated the Coronavirus Food Assistance Program 2 (CFAP 2) for eligible livestock and poultry contract producers and specialty crops, and other sales‐based commodity producers (USDA Farm Service Agency, 2021). Furthermore, the USDA emphasized outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, and renewable fuel producers (USDA Press Release, 2021).

Recent studies do not show racial discrimination in the delivery of USDA programs to minority producers after some instances in the past. There was no evidence of racial discrimination in loan approval (Escalante et al., 2006) and loan amounts and maturities (Escalante et al., 2018) from the USDA's Farm Service Agency (FSA). Ghimire et al. (2020) provide evidence in support of reforms made by the USDA's FSA to lend without bias, especially to socially disadvantaged producers and ranchers. They found certain minority borrowers with lower loan amounts at higher interest rates and with shorter maturities. However, this was not because of discrimination but because of credit risk management considerations (Ghimire et al., 2020). While the lending practice of the USDA has been investigated thoroughly, there are not as many studies that examine the payments made to producers from the USDA. This paper aims to fill that void by examining payments from two recent USDA programs, the CFAP and the Market Facilitation Program (MFP).

This paper examines the payments made to minority producers, focused on African American producers, from the COVID‐19 program, CFAP, of the United States Department of Agriculture (USDA) and compares it with one of the other more recent ad hoc program payments. Almost all the payments from CFAP have been made and the USDA is no longer accepting any new applications for the CFAP. Therefore, this paper provides a robust ex‐post analysis using a novel dataset of the actual payments and sheds light on payments differentiated by race. It also compares payments from CFAP with payments from the MFP for minority producers, including Black producers. Analysis and findings of this paper have the potential to be useful to policymakers and others when drafting new USDA programs as there is more flexibility in rulemaking and disbursement of payments in ad hoc programs compared to existing farm bill programs.

The CFAP was the main COVID‐19 relief program of the USDA. There were two rounds of the CFAP, and combinedly (as of March 2022), the program made direct payments of $31.0 billion ($11.8 billion from CFAP 1 and $19.2 billion from CFAP 2) starting in 2020 (U.S. Department of Agriculture, Farm Service Agency, 2020a, 2020b). Total direct Government payments (in inflation‐adjusted 2020 dollars) for 2019, 2020, and the 20‐year average (2000 through 2019) were $22.7 billion, $45.7 billion, and $17.8 billion, respectively. These values show that the combined payments from CFAP were significantly larger than the total pre‐pandemic year direct Government payments in 2019 and higher than the average total direct Government payment for the past 20 pre‐pandemic years.

Figure 1 shows the total direct Government payments from 2000 to 2020 in inflation‐adjusted 2020 dollars. Total direct Government payments are payments made from the standing Farm Bill programs and new ad hoc payments to the farm sector. In 2020, the farm sector received the highest recorded direct Government payment in real (inflation‐adjusted) dollars. Total direct Government payments for 2020 were $45.7 billion, out of which more than half ($23.5 billion) were from the CFAP program. The other COVID‐19 program, the Paycheck Protection Program (PPP), made forgivable loans to offset labor expenses and made up $6.0 billion, or 13% of total direct Government payments. PPP was designed and administered by the Small Business Administration with the help of the Treasury. Combined, the COVID‐19 relief programs, CFAP and PPP, made payments of $29.5 billion, or nearly two‐thirds of total direct Government payments in 2020. Figure 1 also shows another recent ad hoc program, the MFP. The MFP made a total payment of $23.5 billion (in two rounds, MFP 2018 and MFP 2019) to producers affected by the retaliatory tariffs placed on US producers by trade partners (Giri et al., 2020) across multiple years. The CFAP program was larger than the MFP program, and in 1 year (2020), made more in payments than payments from both rounds of MFP.

FIGURE 1.

FIGURE 1

Direct government payments to U.S. producers, 2000–2020 Source: USDA, Economic Research Service, farm income and wealth statistics, data as of February 4, 2022. Values are adjusted for inflation using the U.S. Bureau of Economic Analysis Gross Domestic Product Price Index (BEA API series code: A191RG) rebased to 2020 by USDA, Economic Research Service

The CFAP made direct payments to producers who faced additional pandemic‐related marketing costs, market disruptions, increased production costs, and reduced farm‐level prices (USDA, 2020a, 2020b). The second round of CFAP 2 was one of the most comprehensive USDA programs as 97% of commodities, measured in terms of cash receipts, were eligible for CFAP 2 funding (Giri et al., 2020). The first round of CFAP (CFAP 1) was also more comprehensive than most of the standing Farm Bill programs, which do not generally make payments to livestock producers. Only 18% of commodities, measured in terms of cash receipts, were ineligible for CFAP 1 funding (Giri et al., 2020).

DATA

CFAP outlays in this report and their demographic distributions are taken from USDA FSA administrative data. FSA tabulates payment receipts for those who receive a payment directly and those that benefit indirectly from the payment. As an illustration, consider a small farming operation with four shareholders, each with a 25% ownership share. Farm program payments will be made directly to the operation and attributed to the four owner‐operators, or beneficiaries, according to their ownership shares. Therefore, when the operation receives a $100 payment each owner is attributed a $25 benefit. This report analyzes the demographic breakdown and payment receipts of the four beneficiaries, not the operation.

To put the payments in context, we use data from the 2017 Census of Agriculture. Every 5 years, the USDA does a comprehensive survey and collects data on land use and ownership, operator characteristics, production practices, income, and expenditures (USDA NASS 2017 Census of Agriculture). The Census of Agriculture is a complete count of U.S. farms and ranches and the people who operate them (USDA NASS Census of Agriculture). The most recent census of Agriculture for which data is available is the 2017 Census of Agriculture (U.S. Department of Agriculture, 2020c).

MINORITY PRODUCER CHARACTERISTICS

In the subsequent short sections, we provide the producer characteristics of minority producers, including Black producers, from the 2017 Census of Agriculture. These characteristics are financial as well as demographics related. We provide data on the number of producers, the number of farms operated, agricultural products sold, and total Government payments received in 2017 for each minority producer type.

Black producers

The 2017 Census of Agriculture reported 48,697 producers who were Black, either alone or in combination with another race and they accounted for 1.4% of the country's 3.4 million producers, and they lived and farmed primarily in southeastern and mid‐Atlantic states (USDA, 2019a). The same Census found farms operated by Black producers were smaller on average and accounted for $1.4 billion (0.4%) of agricultural products sold, with 61% ($858 million) in crop sales and 39% ($559 million) in sales of livestock and livestock products (USDA, 2019a). Finally, they received $59 million in government payments in 2017 (USDA, 2019a). Nearly half (48%) of Black‐operated farms specialized in cattle and dairy production in 2017, almost all in beef cattle production (USDA, 2019a).

Asian producers

The 2017 Census of Agriculture reported 25,310 producers who were Asian, either alone or in combination with another race, and they accounted for 0.7% of the country's 3.4 million producers (USDA, 2019b). The 2017 Census found farms operated by Asians were highly concentrated in California and Hawaii. Asian producers were younger and more likely to have recently started farming than U.S. producers overall. In 2017, Asian‐operated farms sold $7.5 billion in agricultural products, with 58% ($4.3 billion) in crop sales and 42% ($3.2 billion) in sales of livestock and livestock products (USDA, 2019b). In 2017, Asian‐operated farms accounted for less than 2% of total U.S. agriculture sales; more than half specialized in the production of specialty crops and received $27 million in Government payments (USDA, 2019b).

American Indian/Alaska native producers

The 2017 Census of Agriculture reported 79,198 producers who were American Indian or Alaska Natives, either alone or in combination with another race and they accounted for 2.3% of the country's 3.4 million producers (USDA, 2019c). The same Census found that most farms operated by American Indians or Alaska Natives were in Western and Plains states. Furthermore, the Census also revealed that American Indians or Alaska Natives producers were younger and more likely to be female than U.S. producers overall. In 2017, American Indian/Alaska Natives–operated farms sold $3.5 billion in agricultural products, with 40% ($1.4 billion) in crop sales and 60% ($2.1 billion) in sales of livestock and livestock products (USDA, 2019c). In 2017, these farms accounted for 0.9% of U.S. agriculture sales and received $103 million in government payments (USDA, 2019c).

CORONAVIRUS FOOD ASSISTANCE PROGRAM (CFAP) PAYMENTS

In the following sections, we examine the CFAP payments at the national and state level. The 2017 Census of Agriculture identifies states with the highest number of African American producers. So, we examine the distribution of CFAP payments in those states. Furthermore, we also compare payments by commodity to minority groups at the national level.

CORONAVIRUS FOOD ASSISTANCE PROGRAM (CFAP) PAYMENTS AT NATIONAL LEVEL

Table 1 shows total CFAP payments by race in nominal dollars. The largest share—97.92%, or more than $30 billion out of a total of $30.9 billion—went to White producers. Black or African American producers received 0.17% of total CFAP payments, or $52.72 million. In relative terms, this is slightly lower than their reported share of contribution to the total market value of agricultural products sold based on 2017 Agricultural Census data (the last data available). Producers who identified as Black or African American only (and not in combination with other races) contributed 0.27% of the total market value in 2017 (Census of Agriculture 2017) but received 0.17% of total CFAP payments. It is important to note that share of production can and does change year to year. Factors such as the price of commodities planted and harvested by producers, change in commodities produced, and other local and regional factors (such as weather) can affect the market value. Therefore, it is possible that the share of market value for 2020 could be the same as the share of CFAP received by Black producers.

TABLE 1.

Coronavirus food assistance program (CFAP) payments and market value of agricultural products sold by race

Race Total CFAP payments (in $ million) Share (%) of total CFAP Market value of agricultural products sold ($ million) Share (%) of market value of agricultural products sold
American Indian or Alaska Natives only $261.51 0.85% $2340.80 0.60%
Asian only $196.78 0.64% $7106.41 1.82%
Black or African American only $52.72 0.17% $1076.05 0.27%
Native Hawaiian or other Pacific Islander only $17.97 0.06% $517.03 0.13%
White only $30,216.27 97.92% $380,286.34 97.18%

Note: This table shows CFAP payments and market value of agricultural products sold by race categories. Among minority American Indian or Alaska Native only producers received the most payments, but the value of production was highest for Asian only producers. Asian only producers tend to produce specialty crops (fruits, vegetables, and nursery crops).

Source: CFAP payments are from FSA. Market value of agricultural product sold are from the 2017 Census of Agriculture, Table 61. Race categories used to determine shares of value of production are for producer reporting that race alone, not in combination with other races.

Overall, for producers differentiated by race, the CFAP payments were more closely aligned to the market value of products sold at the national level. Where differences existed, the difference was marginal. Producers identified as Asians contributed 1.82% ($7.1 billion) of the market value of agricultural products sold in 2017 and received 0.64% ($196.78 million) of total CFAP dollars. American Indians or Alaska Natives received $261.51 million (0.85% of total CFAP, slightly higher than their share of the market value of agricultural products sold). Native Hawaiian or Other Pacific Islanders received $17.97 million (0.06% of total CFAP, slightly lower than their share of the market value of agricultural products sold). White‐only producers received the largest amount at $30.2 billion (97.92% of total CFAP, slightly higher than their share of market value at 97.18% of total agricultural products sold). T‐test showed the share of CFAP payments and share of the market value of agricultural products sold (in Table 1) were not statistically significantly different.

CORONAVIRUS FOOD ASSISTANCE PROGRAM (CFAP) PAYMENTS AT STATE LEVEL

Figure 2 shows the distribution of total CFAP dollars at the state level. The states where Black or African American only producers received the highest CFAP dollars were Mississippi ($8.9 million), Alabama ($6.4 million), Texas ($5.7 million), Georgia ($5.1 million), Louisiana ($3.5 million), Arkansas ($3.2 million), Florida ($2.8 million), North Carolina ($2.6 million), Oklahoma ($2.5 million), Virginia ($2.4 million), South Carolina ($2.3 million), and Tennessee ($1.9 million). Black or African American only producers of these 12 states received 95% of all CFAP payments made to Black or African American only producers.

FIGURE 2.

FIGURE 2

Distribution of total coronavirus food assistance program (CFAP) payments to black or African American only producers by state Source: Farm Service Agency (FSA), USDA.

Figure 2 also shows the share of total CFAP received by Black or African American only producers for each of the States. Black or African American only producers in five states received more than 1% of the total CFAP dollars received by all producers of that state. Those five states were: Mississippi (2.6%), Alabama (2.4%), South Carolina (1.9%), Louisiana (1.2%), and Georgia (1.2%). Figure 1 suggests that Black or African American only producers in states with higher numbers received more in CFAP dollars and more as a share of total CFAP dollars for the states. This suggests that participation and allocation of CFAP dollars in States with a higher population of African American producers were relatively proportional. We explicitly list the total CFAP dollars and share of total CFAP dollars received by Black or African American only producers for the top 12 states, based on the number of producers, from the 2017 Census of Agriculture.

CORONAVIRUS FOOD ASSISTANCE PROGRAM PAYMENTS BY COMMODITY AND RACE

Table 2 shows the total CFAP payments (at the national level) by commodities for minority producers. There are a few key observations from Table 2. First, except for Asian producers, the highest CFAP payments were for cattle producers. American Indian or Alaska Natives only producers received the highest CFAP cattle payments ($165.4 million), followed by Black or African American only cattle producers ($28.9 million). Native Hawaiian or other Pacific Islander only cattle producers received $22.7 million in CFAP payments. This aligns with the Census of Agriculture finding that the majority of minority producers, except Asians, are engaged in livestock production, especially cattle production. Asian American producers engaged more in poultry production. It is important to note that cattle producers of all races do not generally receive Government payments from standing Farm Bill programs. Therefore, it is more likely than not that many minority cattle producers, including Black producers, received Government payments for the first time. The CFAP payment distribution pattern shows that payments reached minority producers who often did not receive Government payments.

TABLE 2.

Coronavirus food assistance program payments by commodities to minority producers

Commodity American Indian or Alaska natives only Black or African American only Asian only Mixed race Native Hawaiian or other Pacific islander only
Alfalfa $5,183,958 $15,737 $242,745 $860,799 $210,433
Almonds $745,282 $38,854 $12,148,244 $2,049,760 $157,395
Basil N/A $1266 $2,318,190 N/A N/A
Cattle $165,374,112 $28,948,052 $6,048,560 $22,669,496 $8,611,355
Chickens $6,687,273 $845,199 $26,891,495 $2,302,785 N/A
Corn $10,940,008 $2,945,072 $1,391,221 $4,215,719 $2,007,505
Cotton $5,386,447 $2,529,984 $166,815 $821,401 $74,337
Guava N/A N/A $7,091,342 $79,610 N/A
Hogs $662,214 $691,670 $153,779 $240,906 $217,482
Milk $2,470,887 $166,055 N/A $616,796 $293,934
Milk/Lbs $2,694,662 $162,225 N/A $377,049 $141,269
Mushrooms $2,087,689 N/A $102,093 N/A N/A
Pistachios $206,494 $16,259 $2,271,937 $195,063 $2881
Soybeans $7,999,815 $7,154,988 $762,302 $2,638,996 $720,628
Squash $22,810 $186,593 $2,338,151 N/A N/A
Strawberries $3,098,262 $14,109 $1,477,785 N/A $73,128
Tomatoes N/A $19,458 $1,833,914 N/A $23,766
Walnuts $964,671 N/A $6,723,399 $537,113 $40,121
Wheat $13,053,537 $847,903 $553,388 $2,680,480 $664,294
All other $23,862,185 $3,820,011 $107,111,575 $16,409,930 $3,727,328

Note: This table shows CFAP payments by commodity differentiated by race. Cattle producers of all races but Asian only received the largest payments.

Source: Farm Service Agency, USDA.

Cattle producers not only received larger payments but also a larger share of total CFAP payments for that race (i.e., distribution of CFAP payments was skewed toward cattle producers), except for Asian producers. Sixty‐six percent, 60%, and 51% of total CFAP payment made to American Indian or Alaska Natives only, Black or African American only, Native Hawaiian or other Pacific Islander only producers, respectively, went to cattle producers of that race. Asian only cattle producers received 3% of total CFAP payments made to all Asian producers. Asian producers received the highest payment in all other categories, which includes specialty crops. This is also consistent with the Census of Agriculture finding that showed more than half of Asian‐operated farms specialized in the production of specialty crops. Black or African American only producers received the second largest amount of soybean CFAP dollars at $7.1 million, or 37% of total CFAP dollars.

CORONAVIRUS FOOD ASSISTANCE PROGRAM PAYMENTS BY COMMODITIES TO BLACK OR AFRICAN AMERICAN ONLY PRODUCERS AT STATE LEVEL

The 2017 Census of Agriculture identifies the share of farms specializing by commodity types for Black producers. The Census shows more than 54% of farms operated by Black producers specialized in livestock enterprises: cattle and dairy (48%), sheep and goats (4%), hogs and pigs (1%), and poultry and eggs (1%) operations. Eighteen percent of Black‐operated farms specialized in other crops and 12% in specialty crops. It is not possible, using publicly available Census tabulations, to break down the other crop and specialty crops categories. The Census identifies the top 12 states with Black producers. Therefore, we examine CFAP payments by livestock commodities for those top 12 states.

Table 3 shows CFAP payments by commodity for 12 states with the most Black or African American only producers. We find for half of the 12 States more than half of CFAP dollars went to cattle producers. More than 96% of total CFAP dollars in Oklahoma went to Black or African American only cattle producers. The share was 91%–80% for Black or African American only cattle producers of Texas and Alabama, respectively. For some other states such as North Carolina, Arkansas, and Virginia the share of total CFAP payments to cattle producers was less than one‐third. In fact, the share of total CFAP dollars going to all livestock enterprises was less than one‐third for these states suggesting Black or African American only producers engage more in crop enterprises in these states.

TABLE 3.

Coronavirus food assistance program payments by commodities to Black or African American only producers for census identified top states

State Cattle Hogs and pigs Poultry and eggs Sheep and goats Total CFAP
Alabama $5,109,902 $27,641 N/A $6210 $6,370,186
Arkansas $762,341 N/A N/A $5921 $3,236,312
Florida $969,517 $128,328 N/A $23,430 $2,774,217
Georgia $2,335,267 $95,039 $291,867 $38,514 $5,116,196
Louisiana $2,201,393 $4002 $127,646 N/A $3,516,463
Mississippi $6,007,946 $57,154 $215,768 N/A $8,898,798
North Carolina $376,916 $188,351 N/A $7921 $2,558,449
Oklahoma $2,440,935 N/A N/A N/A $2,531,240
South Carolina $1,203,855 $83,302 $48,028 N/A $2,316,699
Tennessee $701,818 N/A N/A N/A $1,919,310
Texas $5,225,990 $29,555 N/A $26,757 $5,738,958
Virginia $629,915 $53,505 $161,890 N/A $2,426,315
Total $28,948,052 $691,670 $845,199 $166,413 $52,722,269

Note: This table shows payments to Black or African American producers in states with the largest Black or African American producers. Black or African American producers of Mississippi received the largest CFAP payments.

Source: Farm Service Agency, USDA. Top states identified by the 2017 Census of Agriculture.

COMPARISON OF THE CORONAVIRUS FOOD ASSISTANCE PROGRAM AND MARKET FACILITATION PROGRAM PAYMENTS BY RACE

The MFP and CFAP programs were implemented for entirely different purposes. The MFP made payments to producers impacted by retaliatory tariffs placed on American producers. The CFAP made assistance payments to producers impacted by the COVID‐19 pandemic. Fewer commodities were eligible for MFP payments compared to CFAP payments. Finally, payment rates and payment structure were different for the two programs. Therefore, there are significant limitations to drawing conclusions by comparing payments from these two programs. However, the programs had some similarities, including payment limitations. Both programs were new programs designed by the USDA. So, comparing the share of total payments made to producers differentiated by race can still provide insights into designing future programs to reach more minority producers.

Table 4 lists the total and share of MFP and CFAP payments by race and shows a higher share of CFAP payments went to minority producers. While 99.18% of total MFP payments went to White only producers, 97.92% of total CFAP payments went to White only producers. This information provides evidence that more payments as a share of total payments from CFAP went to minority producers compared to MFP. However, this gain was not realized by Black or African American only producers.

TABLE 4.

Payments from the market facilitation program and coronavirus food assistance program differentiated by race

Race Total CFAP payments ($ million) Share (%) of total CFAP Total MFP ($ million) Share (%) of total MFP
American Indian or Alaska Natives only $261.51 0.85% $64.90 0.28%
Asian only $196.78 0.64% $26.44 0.11%
Black or African American only $52.72 0.17% $40.35 0.17%
Mixed race $59.35 0.19% $22.77 0.10%
Native Hawaiian or other Pacific Islander only $17.97 0.06% $7.35 0.03%
Unknown race $52.40 0.17% $27.30 0.12%
White only $30,216.27 97.92% $22,938.39 99.18%
Total $30,857.01 100.00% $23,127.52 100.00%

Note: This table shows CFAP and MFP payments by race. Among identified minority producers, American Indian or Alaska Natives only producers received the largest total CFAP and MFP payments.

Source: Farm Service Agency, USDA.

An interesting observation from Table 4 is that even though the two programs were significantly different in scope and propose, they both paid 0.17% of total payments to Black or African American only producers. Table 4 also shows in absolute terms the CFAP's total outlay was $7.7 billion, or 33%, more than MFP. The amount of money received by Black or African American only producers increased from $40.35 million from MFP to $52.72 million from CFAP, a 31% increase.

The gain of more CFAP payments being disbursed (as a share of total payments) to minority producers was realized by American Indian or Alaska Natives only producers, Asian only producers, and Native Hawaiian or other Pacific Islander only producers. These producers received more than double in actual payments and as a share of total payments from CFAP compared to MFP. American Indian or Alaska Natives only producers received a higher share (0.85%) of total CFAP payments compared to (0.28% of total) MFP payments. Asian only producers received a higher share (0.64%) of total CFAP payments compared to (0.11% of total) MFP payments. Native Hawaiian or Other Pacific Islander only producers received a higher share (0.06%) of total CFAP payments compared to (0.03% of total) MFP payments.

CONCLUSION

The CFAP was the main USDA program that provided economic relief to producers impacted by the COVID‐19 pandemic. CFAP made almost $600 million in direct payments to minority producers, including Black or African American producers. Black or African American only producers received more than $52 million in CFAP payments. CFAP payments were proportional to the value of agricultural commodity sold for most minority producers. The 2017 Census of Agriculture showed that the majority of minority producers, including African American producers but excluding Asian producers, raised livestock. CFAP made the highest payments to livestock minority producers. In some States, such as Oklahoma, 96% of CFAP dollars received by Black or African American only producers went to cattle producers. Producers of almost all commodities, measured in cash receipts, were eligible to receive CFAP payments. Therefore, many producers of all races that do not generally receive Government payments received payments in 2020. CFAP made more payments in actual dollars and as a share of total program outlays to minority producers compared to MFP. However, for Black or African American only producers, even though the magnitude increased (because CFAP disbursed more funds compared to MFP), the share of payment received did not increase. CFAP payments were more than double and as a share of total program dollars to minority producers (except for Black or African‐ American producers) compared to MFP.

ACKNOWLEDGMENTS

We thank USDA economists John Jinkins and Melinda Wengrin for the data and review. We also thank USDA economists Jeff Hopkins and Krishna Paudel for their review and input. Finally, we also thank anonymous reviewers and Mindy Mallory for their review and feedback.

Giri, Anil K. , Subedi Dipak, and Kassel Kathleen. 2022. “Analysis of the Payments from the Coronavirus Food Assistance Program and the Market Facilitation Program to Minority Producers.” Applied Economic Perspectives and Policy 1–13. 10.1002/aepp.13325

Editor in charge: Mindy Mallory

Funding information

This research was supported by the U.S. Department of Agriculture, Economic Research Service. The findings and conclusions in this publication are those of the author(s) and should not be construed to represent any official USDA or U.S. Government determination or policy.

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