Relief for Farmers and Ranchers

1. Direct support to farmers and ranchers: The program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
2. USDA purchase and distribution: USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. They will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community, and faith-based organizations, and other non-profits serving Americans in need.

The USDA also has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. Furthermore, the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act and Families First Coronavirus Response (FFCRA) Act provide the agency with at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases.