Emergency Commodity Assistance Program (ECAP) Announced

The United States Department of Agriculture recently announced $10 billion in direct payments to producers for eligible commodities for the 2024 crop year through the Emergency Commodity Assistance Program (ECAP), as provided by the American Relief Act. These one-time direct payments are intended to support producers impacted by declining commodity prices and elevated input costs. This article will cover the basics of the program, but more detailed information can be found at https://www.fsa.usda.gov/ecap.

How the Program Works

ECAP payments will be based on a flat per-acre payment rate (Table 1) calculated by USDA, which will be multiplied by a producer’s 2024 eligible acres. Eligible acres included reported planted acres and 50% of any reported prevented plant acres. Initial ECAP payments will be prorated by 85 percent to ensure total program payments do not exceed available funding. FSA may issue a second payment if additional funds remain. USDA has made an online payment calculator available: https://www.fsa.usda.gov/ecap/payment-calculator.

Table 1. ECAP Payment Rates

How to Apply

Pre-filled ECAP applications were mailed to all producers with a reported eligible commodity as of March 10, 2025. Producers can submit their applications to their local FSA county office. Producers do not have to wait for their pre-filled application to apply. Applications must be submitted by August 15, 2025.

Payment Limitations

ECAP payments do have payment limitations that are separate from the payment limitations that apply to other programs. The total amount of ECAP payments received by a person or legal entity (except a joint venture or general partnership), either directly or indirectly, may not exceed:

• $125,000, if less than 75 percent of the average gross income of the person or legal entity for the 2020, 2021, and 2022 tax years is derived from farming, ranching, or forestry activities; and
• $250,000, if not less than 75 percent of the average gross income of the person or legal entity for the 2020, 2021, and 2022 tax years is derived from farming, ranching, or forestry activities.
• Gross income will be calculated based on the applicable three-year average (2020, 2021, and 2022) of the reported “total income” on IRS forms 1040, 1041, 1065, and 1120, or similar forms.
• A payment made to a legal entity will be attributed to those members who have a direct or indirect ownership interest in the legal entity, unless the payment of the legal entity has been reduced by the proportionate ownership interest of the member due to that member’s ineligibility.