The USDA has announced a second round of payments under the Emergency Commodity Assistance Program (ECAP) for the 2024 crop year. These new payments are being made because theย $10 billion allocated were not fully used during the first round.
Why are Farmers Getting a Second Payment?
Earlier this year, eligible growers received their initial ECAP payments. This amounted to 85% of the calculated payment owed. That partial payment was made to ensure that funds could be fairly distributed nationwide before the programโs cap was reached.
Now, more than $8 billion has been paid and funds remain. The Farm Service Agency (FSA) is issuing a second payment to eligible producers to put those funds in the hands of farmers.
Who Will Receive This Second Payment?
All producers who received an initial ECAP payment for 2024 will automatically receive this second payment. No action is required by these producers.
How Much Will the Second Payment Be?
The second payment equals 14% of the original gross ECAP amount, bringing total payments from 85% to 99%.
ECAP is calculated using a flat payment rate for the eligible commodity multiplied by the eligible reported acres. For acres reported as prevent planted, ECAP is calculated at 50%.
Any application received after Sept. 25, 2025, will receive one lump sum payment.
ECAP vs SDRP.
With several USDA programs assisting farmers this year, itโs easy to confuse them. ECAP and Supplemental Disaster Relief Program (SDRP) are both sources of financial assistance, but they serve different purposes. ECAP is designed to help with commodity market downturns and is based on planted acres for the 2024 crop year.
SDRP provides $16 billion in relief for crop losses caused by natural disasters in 2023 and 2024. If you’re receiving payments from both, know that they are funded from separate programs with different goals and timelines.
PRMโs Commitment to You
At Precision Risk Management, weโre committed to keeping you informed on every program that affects your bottom line and risk plan. Our team actively monitors USDA disaster and relief programs to make sure you know whatโs available, whatโs changing, and how it impacts your operation.
Have questions or need help understanding your eligibility or payment status? Your PRM Risk Management Advisor is here to help. Contact PRM today.
