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When and how to apply for payments?
ECAP payments will be determined based on the acres of crops planted or prevented from being planted in 2024. The payment amount will be calculated using a flat rate for the eligible crops and multiplying it by the number of eligible acres. For acres that were prevented from being planted, the payment will be 50% of the full rate. These payments are separate from the $21 billion in disaster aid that will be distributed later this year.
Farmers do not have to wait for the pre-filled application to apply for the funds. The sign-ups began on March 19 and will go on till August 15, 2025. The requirement to apply for all ECAP-eligible commodities is just one application and can be submitted through various modes. One can submit the application to FSA in person or use Box and One-Span to send it electronically. The application can also be submitted via fax or by applying online at the official website of the FSA by using a safe login government account.
Rollins has instructed the FSA to make the sign-up and approval process as easy as possible. Farmers who have already submitted their 2024 acreage reports will receive pre-filled applications. ECAP payments will be made as applications are approved, but the first payments will be 85% of the total to make sure the program stays within its budget. If there is extra money left, FSA may issue a second payment, as reported by Farm Journal.
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Will ECAP payments help the farmers?
Chad Hart, an ag economist at Iowa State University, said on a March 18 AgriTalk segment that the payments will “definitely help” farmers and ranchers in the U.S.
He shared, “If you think about what the ag economy has been going through in the past couple of years, we have seen a drop in net farm income that has led to a softening of the overall ag economy, which has manifested itself in, for example, the layoffs we’ve seen with John Deere and things like that. So this does help support that cash flow going into planting season,” as reported by the Farm Journal.
American Farm Bureau Federation Vice President Scott VanderWal revealed that he has already begun to hear the stories of farmers being denied the operating loans to buy crops for the fields this spring. Thus, the additional help from the USDA is expected to be welcomed by farmers who require the operating capital. VandeWal said on AgriTalk, “Agriculture is really hurting after the last year or so, and we’re looking at negative margins on corn and soybeans, and probably wheat as well, so it’s not a good situation. We’re not seeing our markets come up at all with the rumours of retaliatory tariffs and all these things that are going on.”
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