Farm Emergency Payments: CFAP, MFP, and Disaster Relief

Emergency and one-time programs have reshaped the farm subsidy landscape, often exceeding regular program spending. Here's how trade wars, COVID, and natural disasters transformed farm payments.

The COVID Response: CFAP Payments

The Coronavirus Food Assistance Program (CFAP) was the largest single emergency program in farm subsidy history. Created in 2020, CFAP distributed over $14.2 billion in direct payments to farmers and ranchers affected by pandemic-related market disruptions.

CFAP payments went to producers of virtually every commodity — from row crops to dairy, livestock, and specialty crops. The program operated in multiple rounds:

CFAP1 (CARES Act) — $5.6 billion in initial pandemic relief
CFAP2 — $14.2 billion (the largest round, with most payments in 2020)
CFAP Additional — $5.1 billion in supplemental payments
CFAP3 — $4.3 billion targeting previously underserved producers

The combined impact pushed 2020 total farm subsidy spending to $38.7 billion — more than 6x the 2017 baseline. Read our full COVID spending analysis.

Trade War Compensation: MFP Payments

The Market Facilitation Program (MFP) was created in 2018 to compensate farmers for losses due to retaliatory tariffs during the U.S.-China trade war. Total MFP spending reached $13.5 billion for non-specialty crops and $8.2 billion overall for crops, with additional payments for dairy, hogs, and specialty crops.

MFP payments were controversial because they:

Were not authorized by the Farm Bill but used CCC emergency authority
Were calculated per acre rather than per bushel of actual loss
Disproportionately benefited large operations and certain crop regions
Created payments in 2019 that rivaled regular farm programs

Iowa alone received $1.48 billion in MFP payments, and Illinois received $1.4 billion. Read our trade war spending analysis.

Natural Disaster Programs

Beyond COVID and trade wars, the USDA operates permanent disaster assistance programs:

Livestock Forage Program (LFP) — $7 Billion

LFP compensates ranchers when drought conditions cause grazing losses on eligible land. The program surged from $166M in 2019 to $1.9 billion in 2022 during the severe Western drought — a nearly 12x increase. Oklahoma, Texas, and Kansas are the top recipients.

Emergency Relief Programs (ERP) — $6.6 Billion

The Emergency Relief Program for non-specialty crops distributed $6.6 billion, primarily in 2022. These payments addressed losses from hurricanes, drought, flooding, and other qualifying disasters. A separate specialty crop ERP distributed $1.2 billion.

Emergency Livestock Assistance (ELAP) — $1.8 Billion

ELAP covers livestock losses not addressed by other programs — including losses from disease, adverse weather, and feed transportation issues. California ($469M) and Oklahoma ($190M) are among the top recipients, often related to extreme heat and drought impacts on dairy operations.

Wildfire and Hurricane Indemnity (WHIP) — $2.5 Billion

WHIP and WHIP+ provided payments to producers affected by specific disaster events, including the 2017 hurricane season and 2018-2019 wildfires and flooding. One notable payment of $285 million went to sugar beet cooperatives under the WHIP program.

Supplemental Disaster Relief — $5.4 Billion

The newest major disaster program, Supplemental Disaster Relief for non-specialty crops, distributed $5.4 billion in 2025 payments. This program addresses crop losses from recent disaster events and represents one of the largest single-year program disbursements outside of CFAP.

The New Normal?

Emergency spending has fundamentally changed the farm subsidy landscape. Before 2018, total annual farm subsidy spending rarely exceeded $10 billion. Since then, emergency programs have routinely doubled or tripled total spending. Whether this represents a temporary response to extraordinary circumstances or a permanent shift in agricultural policy remains one of the central questions in farm policy.