Under the current crop insurance program, a producer who grows an insurable crop selects a level of crop yield and price coverage and pays a premium that increases as the levels of yield and price coverage rise. However, all eligible producers can receive catastrophic CAT coverage without paying a premium. The premium for this portion of coverage is completely subsidized by the federal government. USDA can waive the fee for financial hardship cases. These higher levels of coverage are known as "buy up" coverage. For many insurable commodities, an eligible producer can purchase revenue insurance.
Under such a policy, a farmer could receive an indemnity payment when actual farm revenue for a crop falls below the target level of revenue, regardless of whether the shortfall in revenue was caused by poor production or low farm commodity prices. Insured producers are also eligible for reduced coverage if they are late or prevented from planting because of flooding.
The annual agriculture appropriations bill traditionally makes two separate appropriations for the federal crop insurance program. It provides discretionary funding for the salaries and expenses of the RMA. It also provides "such sums as are necessary" for the Federal Crop Insurance Corporation, which finances all other expenses of the program, including premium subsidies, indemnity payments, and reimbursements to the private insurance companies.
Program Overview for the th Congress. Producers who grow a crop that is currently ineligible for crop insurance may apply for NAP. NAP is not subject to annual appropriations. Treasury to fund an array of farm programs. Eligible crops under NAP include any commercial crops grown for food, fiber, or livestock consumption for which there is no CAT coverage available under the federal crop insurance program, with limited exceptions. These crops include mushrooms, floriculture, ornamental nursery, Christmas trees, turfgrass sod, aquaculture, honey, maple sap, ginseng, and industrial crops used in manufacturing or grown as a feedstock for energy production, among others.
Trees grown for wood, paper, or pulp products are not eligible. To be eligible for a NAP payment, a producer first must apply for coverage by the application closing date, which varies by crop but is generally about 30 days prior to the final planting date for an annual crop.
Like CAT coverage under crop insurance, NAP applicants must also pay an administrative fee at the time of application. The farmer-paid fee for additional coverage is 5. Four agricultural disaster assistance programs are permanently authorized for livestock and fruit trees: They operate nationwide and are administered by FSA. Producers do not pay fees to participate and can apply at their local FSA offices.
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All programs receive "such sums as necessary" in mandatory funding via the CCC to reimburse eligible producers for their losses. Total payments vary each year based on eligible loss conditions. LIP was amended to include losses from selling livestock at a reduced price due to adverse weather. TAP was amended to increase the individual limit from acres to 1, acres.
Emergency Assistance for Agricultural Land Rehabilitation
LIP provides payments to eligible livestock owners and contract growers for livestock deaths in excess of normal mortality caused by an eligible loss condition e. Payments may also be made when the animal is injured as a direct result of an eligible loss condition but does not die and is sold at a reduced price. Eligible loss conditions may include 1 extreme or abnormal damaging weather that is not expected to occur during the loss period for which it occurred, 2 disease that is exacerbated by an adverse weather event, and 3 an attack by animals reintroduced into the wild by the federal government or protected by federal law.
Eligibility is predicated on not only the occurrence of an eligible loss condition but direct causation to the death of the animal. Eligible livestock include beef and dairy cattle, bison, hogs, chickens, ducks, geese, turkeys, sheep, goats, alpacas, deer, elk, emus, llamas, reindeer, caribou, and equine. The livestock must have been maintained for commercial use and not produced for reasons other than commercial use as part of a farming operation. The program excludes wild free-roaming animals, pets, and animals used for recreational purposes, such as hunting, roping, or for show.
Poultry and swine are the only eligible livestock for contract growers. USDA publishes a payment rate for each type of livestock for each year e. For livestock sold at a reduced sale price, payments are calculated by multiplying the national payment rate for the livestock category minus the amount the owner received at sale times the owner's share. LFP makes payments to eligible livestock producers who have suffered grazing losses on drought-affected pastureland including cropland planted specifically for grazing , or on rangeland managed by a federal agency due to a qualifying fire.
Weekly maps are released based on measurements of climatic, hydrologic, and soil conditions and are combined with local impacts and observations across the country from over participants primarily from government and academic backgrounds. Eleven climatologists rotate as lead author to produce the weekly maps. The drought monitor is used to determine drought relief for USDA programs e. Congressional interest in the U. Drought Monitor has grown in recent years as additional program benefits are tied to it.
For additional information, see http: Eligible producers must own, cash or share lease, or be a contract grower of covered livestock during the 60 calendar days before the beginning date of a qualifying drought or fire. They must also provide pastureland or grazing land for covered livestock that is either a physically located in a county affected by a qualifying drought during the normal grazing period for the county or b managed by a federal agency where grazing is not permitted due to fire.
Eligible livestock types are livestock that have been grazing on eligible grazing land or pastureland or would have been had a disaster not struck. These include alpacas, beef cattle, buffalo, beefalo, dairy cattle, sheep, deer, elk, emus, equine, goats, llamas, poultry, reindeer, and swine. Livestock must be maintained for commercial use as part of a farming operation.
Livestock owned for noncommercial uses, or livestock that is in or would have been in feedlots, are excluded. Payments are generally triggered by the drought intensity level for an individual county as published in the U. Drought Monitor, a federal report published each week.
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The number of monthly payments depends on the drought severity and length of time the county has been designated as such Table 2. Drought intensity level can apply to any area of a county. For details on monthly feed costs and examples, see FSA handbook at http: ELAP provides payments to producers of livestock, honey bees, and farm-raised fish as compensation for losses due to disease, adverse weather, feed or water shortages, or other conditions such as wildfires that are not covered under LIP or LFP.
To fit under the annual cap, payments through FY were reduced to cover a percentage of eligible loss. ELAP specifically provides assistance for the loss of honey bee colonies in excess of normal mortality. In order to meet the eligibility requirements for honey bee colony losses, they must be the direct result of an eligible adverse weather or loss condition such as colony collapse disorder, eligible winter storm, excessive wind, and flood.
For livestock losses, ELAP covers four categories: TAP makes payments to qualifying orchardists and nursery tree growers to replant or rehabilitate trees, bushes, and vines damaged by natural disasters. Losses in crop production—as opposed to the tree, bush, or vine itself—are generally covered by federal crop insurance or NAP. Eligible trees, bushes, and vines are those from which an annual crop is produced for commercial purposes. Nursery trees include ornamental, fruit, nut, and Christmas trees produced for commercial sale. Trees used for pulp or timber are ineligible.
Normal mortality or damage is determined based on a each eligible disaster event, except for losses due to plant disease, or b for plant disease, the time period for which the stand is infected. Also, the loss could not have been prevented through reasonable and available measures. The total quantity of acres planted to trees, bushes, or vines for which a producer can receive TAP payments cannot exceed 1, acres annually.
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When either the President or the Secretary of Agriculture declares a county a disaster area or quarantine area, agricultural producers in that county may become eligible for low-interest emergency disaster EM loans available through FSA. EM loan funds may be used to help eligible farmers, ranchers, and aquaculture producers recover from production losses when the producer suffers a significant loss of an annual crop or from physical losses such as repairing or replacing damaged or destroyed structures or equipment or for the replanting of permanent crops such as orchards.
Once a county is declared eligible, an individual producer within the county or a contiguous county must also meet the following requirements for an EM loan: Applications must be received within eight months of the county's disaster designation date. Loans for nonreal-estate purposes must generally be repaid within seven years. Loans for physical losses to real estate have terms up to 20 years.
Depending on the repayment ability of the producer and other circumstances, these terms can be extended to 20 years for nonreal-estate losses and up to 40 years for real estate losses. Unused funds are carried over and available in the next fiscal year. Therefore, the total loan authority can vary greatly depending on appropriated levels, annual use, and total carryover.
Also in counties with disaster designations, producers who have existing direct loans with FSA may be eligible for Disaster Set-Aside. If, as a result of disaster, a borrower is unable to pay all expenses and make loan payments that are coming due, up to one full year's payment can be moved to the end of the loan. USDA also has several permanent disaster assistance programs that help producers repair damaged land following natural disasters. It also has authority to issue disaster payments to farmers with "Section 32" or "CCC" funds and can use a variety of existing programs to address disaster issues as they arise.
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Agricultural Disaster Assistance - theranchhands.com
Dates and time periods associated with this report. Geographical information about where this report originated or about its content. Showing of 15 pages in this report. Description This report discusses federal programs which provide emergency agricultural land rehabilitation funds. Physical Description 15 pages.
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