COVID Changed Farm Subsidies Forever: The $38.73B Story
The Pandemic Spending Explosion
When COVID-19 shut down restaurants, schools, and food processing plants in early 2020, the agricultural supply chain faced an unprecedented crisis. Dairy farmers dumped milk. Produce rotted in fields. Livestock producers had nowhere to send animals. The USDA responded with the most massive farm payment program in American history.
The Coronavirus Food Assistance Program (CFAP) delivered direct payments to farmers and ranchers affected by market disruptions. CFAP 1, launched in May 2020, provided up to $250,000 per person. CFAP 2, announced in September 2020, expanded eligibility and added flat-rate payments for certain crops.
💡 Key Insight
2020 spending of $38.73B was 2.6x the pre-pandemic average ($15.10B). Even after COVID, spending never returned to pre-2018 levels — 2021 still saw $9.19B in payments.
Year-by-Year Comparison
| Year | Total Spending | Payments |
|---|---|---|
| 2017 | $6.35B | 2,276,899 |
| 2018 | $15.23B | 3,538,051 |
| 2019 | $23.72B | 5,579,359 |
| 2020 🦠 | $38.73B | 6,111,541 |
| 2021 | $9.19B | 1,574,436 |
| 2022 | $7.16B | 1,611,775 |
| 2023 | $9.09B | 1,539,299 |
| 2024 | $16.99B | 3,015,607 |
| 2025 | $2.42B | 182,680 |
CFAP: The Biggest Emergency Farm Program Ever
CFAP wasn't just large — it was historically unprecedented. Previous emergency programs like the Market Facilitation Program (2018-2019 trade war era) had already pushed spending to new highs. But CFAP dwarfed even those records. The program paid producers based on their planted acreage, livestock inventory, and dairy production — effectively compensating for market losses caused by the pandemic.
The Lasting Impact
COVID didn't just create a temporary spending spike — it permanently shifted the baseline. Before 2018, annual farm subsidy spending in our dataset hovered around $6.35B. The combination of trade war payments (2018-2019) and COVID relief (2020) created a "new normal" where Congress and farmers alike expected larger federal support.
By 2021, spending dropped to $9.19B — a decline from the peak, but still 45% above 2017 levels. The precedent was set: when markets faltered, the government would step in with massive direct payments.
Who Got the COVID Money?
Like traditional farm subsidies, COVID payments skewed heavily toward the largest operations. Cattle ranchers, dairy producers, and row crop farmers in states like Texas, Iowa, and Illinois received the lion's share. The payment cap of $250,000 per person sounds high — but entities with multiple members could receive multiples of that cap.
📊 Data Source
Analysis based on USDA Farm Service Agency payment records, 2017-2025. COVID-era programs include CFAP 1, CFAP 2, Pandemic Livestock Indemnity, and related emergency programs.