Cover photo for Reimbursement Transportation Cost Payment

Reimbursement Transportation Cost Payment (RTCP)

Farm Service Agency

Closed September 3, 2021

About

The Consolidated Appropriation Act 2021 reauthorized the Reimbursement Transportation Cost Payment Program (RTCP) for geographically disadvantaged farmers and ranchers to reimburse producers for a portion of the cost to transport agricultural commodities or inputs used to produce an agricultural commodity. 

Eligibility

To be eligible for RTCP benefits, producers must:

  • Be a geographically disadvantaged farmer or rancher producing, marketing and transporting an agricultural commodity in an approved area;

  • Submit an application during the specified period applicable for each fiscal year;

  • Provide proof of the amount of costs incurred for the transportation of the agricultural commodity or input;

  • Comply with conservation and wetland protection requirements on all their land;

  • Be a person or legal entity with an average adjusted gross income that does not exceed $900,000; and

  • Be a citizen or a legal resident alien of the United States in accordance with 7 CFR Part 1400 for foreign persons.

Terms

RTCP payments will be:

  • Calculated based on the amount of costs incurred by the producer for transportation of the agricultural commodity or inputs during a fiscal year and multiplied by the applicable percentage of allowance (cost-of-living allowance or COLA) for the applicable fiscal year in the applicable area;

Example: A producer incurred transportation costs in Hawaii for fiscal year 2020 totaling $15,000. The fiscal year 2020 percentage of allowance in Maui County, Hawaii, is 25 percent. $15,000 x 25 percent = $3,750.

  • Subject to an $8,000 per producer cap per fiscal year; and

  • Subject to a payment factor if the funding availability is exceeded in a fiscal year.

Resources

Similar Programs

Details

Release Date

July 12, 2021

Deadline

September 3, 2021

Organization

Farm Service Agency (FSA)

Financial Instrument

Grant

Maximum Award Amount

$8,000

Total Program Funding

$2,000,000

Image Credit

Ian Taylor

Updated August 13, 2021

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