Supporting Document 2020 - CFAP 2

Supporting Statement

Coronavirus Food Assistance Program

OMB control number-0560-NEW

The Farm Service Agency (FSA) is requesting EMERGENCY CLEARANCE because of the possible sign-up date in early January to begin accepting applications and distributing payments for contract growers & sod and pullet producers.

FSA is requesting EMERGENCY CLEARANCE because FSA was directed by USDA to implement additional CFAP provisions due to the feedback from local office staff and the agricultural industry. These changes will provide additional CFAP assistance to growers that suffered COVID-related revenue losses, to ensure that calculations and most accurately reflect sales, to provide equitable producer treatment and to clarify certain provisions appearing in CFAP 2. The CFAP assists producers of agricultural commodities marketed in 2020 who face continuing market disruptions, reduced farm-level prices, and increased production and marketing cost due to COVID-19. The CFAP application period for all additional CFAP assistance will end in the middle of February.

1. Circumstances that make the collection of information necessary.

Producers will receive payments under the Coronavirus Aid, Relief, and Economic Stability (CARES). Estimated gross outlays for CFAP Additional Assistance are estimated at $5.06 billion. After taking into account payment limitations, net outlays are estimated at $3.73 billion. Top-up payments to beef cattle producers and swine producers account for the bulk of net outlays (79 percent of the total), followed by payments to contract swine, chicken, egg, and turkey producers (at 17 percent of the total)..

In order to determine whether a producer is eligible for CFAP 2 and to calculate a payment, a producer is required to submit AD-3117, CFAP application; CCC-902I, Farm Operating Plan for an Individual, Parts A & B; CCC-902E, Farm Operating Plan for an Entity, Parts A & B; CCC-901, Member Information for Legal Entities, if applicable; CCC-941, Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information; and CCC-942, Certification of Income from Farming, Ranching, and Forestry Operations, Optional, AD-1026- Highly Erodible Land Conservation (HELC) and Wetland Conservation Certification and FSA-578, Report of Acreage.

2. How, by whom, and for what purpose is information used.

This is a new information collection request.

The information submitted by respondents will be used by FSA to determine eligibility and distribute payments to eligible producers under CFAP.

The following forms are for the producers to complete, where applicable, to get CFAP payments:

AD-3117 – CFAP 2.0 application - Producers are required to submit this form in order to be eligible for CFAP payment. Producers will be providing CFAP 2.0 information to the FSA County employee by either in person, or by email or fax. The FSA county office staff will manually enter the information into an automated system except for Part G – Acreage-based Crops that is automatically populated by the system in order to print out the completed CFAP application for applicant to sign it.

CCC-901-Member Information for Legal Entities, if applicable - Producers are required to complete this form to report information about their farming operation, if they have not previously provided it.

CCC-902I-Farm Operating Plans for an Individual (Part A and B) is used to collect information about individuals to report their farm operations to determine eligibility for payments. Also, this form is designed for individuals using a social security number and requesting program payments as an individual on their own farming operation.

CCC-902E- Farm Operating Plans for an Entity (Part A and B) is used to collect information about entities to report their farm operations to determine eligibility for payments. Also, this form is designed for general partnerships, joint ventures, Indian Tribes, corporations, limited partnerships, limited liability companies, trusts, estates, charitable/tax-exempt organizations, public schools, city/county/state-owned entities, or other similar entities that is used by FSA to determine eligibility for payments using an employer identification number and requesting program payments as an entity.

CCC-941- Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information is to be used for producers to do the certification of compliance with the $900,000 AGI limitation applicable to 2011 through 2023 crop, program, and fiscal year benefits.

CCC-942 Request for an Exception to Average AGI limitation is a new form and is required if at least 75 percent of the person or legal entity’s average AGI is derived from farming, ranching or forestry related activities and the participant provided required certification and documentation, the person or legal entity, other than a joint venture or general partnership, is eligible to receive 2019 MFP payments, directly or indirectly up to the payment limit.

AD-1026- Highly Erodible Land Conservation (HELC) and Wetland Conservation Certification for producers to certify compliance with the highly erodible land and wetland conservation provisions as a condition of eligibility for certain USDA programs. It is not necessary to complete this form if a previously filed AD-1026 is on file in the FSA serving office and there have not been any changes in your farming operation or changes to the previously listed affiliates. This form is exempted from the PRA for any FSA programs but included the burden hours for information.

FSA-578- Report of Acreage is used for the producers to provide FSA the acreage data to determine program eligibility. This form is exempted from PRA and reported in the spreadsheet for references.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g. permitting electronic submission of responses, and the basis for the decisions for adopting this means of collection. Also describe any consideration of information technology to reduce burden.

The applicants will submit CFAP information by reporting to FSA County Office employees, emailing, faxing or submit using level 2 authentication online. Then, FSA county office staff will enter the application into an automated system. The system will allow all data fields to be entered, except part G will automatically populate in the system. The system will print out the completed CFAP application that the applicant will sign. If applicants receive it electronically, they will email their confirmation instead of signing the completed application.

Also, CFAP applicants (AD-3117) must submit the following forms to FSA to be eligible for payment: CCC-902 (I or E), Farm Operating Plan for Individual or Entity, CCC-901,Member Information for Legal Entities, if applicable; CCC-941, Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information; and CCC-942, Certification of Income from Farming, Ranching, and Forestry Operations, Optional and AD-1026, Highly Erodible Land Conservation (HELC) and Wetland Conservation and FSA-578, Report of Acreage.

Most applicants will already have CCC-902 (I or E), CCC-901, CCC-941, and CCC-942 on file at the time of application; however, a percentage of applicants who have not previously participated in FSA programs may need to file these forms to become eligible.

The electronic form versions are available in the USDA eForms website: https://forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home.

4. Describe efforts to identify duplication. Show specifically why similar information already available cannot be used or modified for use for the purposes described in Item 2 above.

There are no other similar form exists for CFAP.

5. Methods to minimize burden on small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods to minimize burden.

The information collected does not adversely impact small businesses or other small entities. There are 4,057 small businesses or entities. Economists used 7% of the small business or entities against the total respondents.

6. Describe the consequences to Federal program or policy activities if the collection is not conducted or conducted less frequently, as well as any technical or legal obstacles to reducing burden.

Failure to solicit applications will result in failure to provide payments to eligible producers as intended by the CARES Act. Because of the short time period to receive applications and distribute payments and the need for county offices to complete portions of the application form, applications must be taken at county offices and entered in automated system.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• Requiring respondents to report information to the agency more often that quarterly;

None.

• Requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

None.

• Requiring respondents to submit more than an original and two copies of any document;

None.

• Requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

None.

• In connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

None.

• Requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

None.

• That includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

None.

• Requiring respondents to submit proprietary trade secret, other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information’s confidentiality to the extent permitted by law.

None.

8. Describe efforts to consult with persons outside the Agency to obtain their view on the availability of data, frequency of collection, the clarity of instructions and record keeping, disclosure, or reporting format (if any), and on data elements to be recorded, disclosed, or reported.

This is a new information collection request. The final rule for CFAP will be published in the Federal Register.

9. Explain any decision to provide any payment or gift to respondents.

There is no payment or gift given to respondents.

10. Describe any assurance of confidentiality provided to the respondents and the basis for the assurance in statute, regulation, or Agency policy.

All information collected is treated as confidential. FSA policy prohibits the giving out of individual information. This information is handled according to the Privacy Act and Freedom of Information Act.

11. Provide additional justification for any question of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private.

No questions of a sensitive or personal nature are included in the application.

12. Provide estimates of the hour burden of the collection of information.

FSA estimates that up to 181,600 producers may apply for CFAP 2 payments. The estimates are derived from the CBA document. See the Reporting and Recordkeeping Requirements spreadsheet that contained all the numbers for each form.

The annual burden for this information collection package is 49,385 hours.

AD-3117 – CFAP 2 Application - Producers are required to submit this form to be eligible for CFAP payment. The estimated burden hours for the application is 43,463 (57,950 x 45 minutes). Also, Coronavirus Food Assistance Program 2 (CFAP 2) Application - updating in response to rule changes is also included in this request so the estimated burden hours for the application is 3568. (44,600 x 5 minutes).

Notification to the County offices for the recalculation of payment in response to rule changes is also in this request. The estimated burden hours for the notification is 1,717 (101,000 x 1 minutes).

CCC-901 Member Information for Legal Entities, if applicable - Producers are required to complete this form to report information about their farming operation, if they have not previously provided it. The estimated burden hours for the form is 241 (2,898 x 5 minutes).

CCC-902I- Farm Operating Plans for an Individual (Part A and B) is used to collect information about individuals to report their farm operations to determine eligibility for payments. Also, this form is designed for individuals using a social security number and requesting program payments as an individual on their own farming operation. The estimated burden hours for the form is 1,932 (23,180 x 5 minutes).

CCC-902E- Farm Operating Plans for an Entity (Part A and B) is used to collect information about entities to report their farm operations to determine eligibility for payments. Also, this form is designed for general partnerships, joint ventures, Indian Tribes, corporations, limited partnerships, limited liability companies, trusts, estates, charitable/tax-exempt organizations, public schools, city/county/state-owned entities, or other similar entities that is used by FSA to determine eligibility for payments using an employer identification number and requesting program payments as an entity. The estimated burden hours for the form is 1,932 (23,180 x 5 minutes).

CCC-941- Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information is to be used for producers to do the certification of compliance with the $900,000 AGI limitation applicable to 2011 through 2023 crop, program, and fiscal year benefits. The estimated burden hours for the form is 1448.75 (5,795 x 15 minutes).

CCC-942 Request for an Exception to Average AGI limitation is a new form and is required if at least 75 percent of the person or legal entity’s average AGI is derived from farming, ranching or forestry related activities and the participant provided required certification and documentation, the person or legal entity, other than a joint venture or general partnership, is eligible to receive CFAP, directly or indirectly up to the payment limit. The estimated burden hours for the form is 724 (2,898 x 15 minutes).

AD-1026- Highly Erodible Land Conservation (HELC) and Wetland Conservation Certification for producers to certify compliance with the highly erodible land and wetland conservation provisions as a condition of eligibility for certain USDA programs. It is not necessary to complete this form if a previously filed AD-1026 is on file in the FSA serving office and there have not been any changes in your farming operation or changes to the previously listed affiliates. This form is exempted from the PRA for any FSA programs but included the burden hours for information. The estimated burden hours for the form is 24 (290 x 5 minutes).

FSA-578- Report of Acreage is used for the producers to provide FSA the acreage data to determine program eligibility. The estimated burden hours for the form is 1449 (2898 x 30 minutes)This form is exempted from PRA and reported in the spreadsheet for references.

Respondent cost per hour was derived by using U.S. Bureau of Labor Statistics Occupational Employment and Wages, May 2020, 11-9013 Farmers, Ranchers, and Other Agricultural Managers. The U.S. mean household income, as measured by the Bureau of Labor, is $41.35. Fringe benefits for all private industry workers are an additional 29.9 percent,¹ or $12.36, resulting in a total of $53.71 per hour. The estimated cost is $2,802,684.

13. Provide an estimated of the total annual cost burden to the respondents or recordkeepers resulting from the collection of information.

There are no capital, startup, or ongoing operation/maintenance costs associated with this information collection to respondents or record-keepers.

14. Provide estimates of annualized cost to the Federal Government.

The cost of form development, printing and distribution is minimal because the forms are computer generated. CFAP application information are entered in an automated system manually and will print out the completed CFAP application that the applicant will sign it. County employee cost per response is equal 1 hours for completion of the application form multiplied by $ 27.21 (estimated county employee average hourly wage; based 2020 General Schedule, Grade 7, Step 6). Fringe benefits for all government workers are an additional 31 percent, or $8.43, resulting in a total of $35.64 per hour. The total annualized cost to the Federal Government is $4,141,012 ($35.64 x 116,190 responses).

15. Explain the reason for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I.

This is a new information request.

16. For collection of information whose results will be published, outline plans for the tabulation and publication.

There are no plans to publish the results of CFAP.

17. If seeking approval to not display the expiration date for the OMB approval of information collection, explain the reasons that display would be inappropriate.

FSA will display the OMB expiration date.

18. Explain each exception statement to the certification statement identified in Item 19 on OMB Form 83-I.

FSA is able to certify compliance with all provisions under Item 19 of OMB Form 83-1.

1 U.S. Bureau of Labor Statistics. “Employer Costs for Employee Compensation.” News release. March 19, 2020. https://www.bls.gov/news.release/ecec.htm.