FSA notes by Keith Zanter, Clay County FSA Crop Disaster Assistance Program

FSA notes by Keith Zanter, Clay County FSA Crop Disaster Assistance Program Farm Service Agency State Executive Director Michael W. O'Connor, announced that sign up began for the new Crop Loss Disaster Assistance Program (CLDAP) on Feb. 1.

Congress appropriated $875 million for multi-year losses (1994-1998) and $1.5 billion for 1998 losses. Producers cannot receive benefits under both the multi-year provisions and the 1998 single-year provisions. The CCC-540 application will be filed for both the multi-year provisions and the 1998 single-year provisions.

When all applications have been uploaded and the national factors determined, producers will get payment from the program that provides them with the greatest benefit.

Producers who receive CLDAP disaster payment and who did not have insurance on their 1998 crops, will be required to insure their 1999 and 2000 year crops.

Producers determined eligible for the multi-year benefits will receive an additional payment up to 25 percent based on the total indemnity paid and/or total Noninsured Crop Disaster Assistance Program (NAP) payment paid for the qualifying years.

Program Highlights

Eligible persons are those who have a gross revenue less than $2.5 million for the 1997 tax year.

Highly Erodible and Wetland provisions apply to CLDAP benefits.

Risk Management Agency (RMA) will download eligibility records to FSA for multi-year disaster benefits.

Producers who did not carry crop insurance will need to provide production evidence for 1998 losses on crops not insured or non-insurable.

RMA will download 1998 producer records for determining eligibility on insured crops.

Pasture losses are not included in this program.

Rates for determining 1998 single year losses are: 65 percent of the county price for insured crops; 60 percent of the county price for uninsured crops; 65 percent of the county price for non-insurable crops.

Based on information received from the Risk Management Agency, O'Connor estimates that there will be a heavy sign up in many east river counties. Local FSA office employees have been busy since small grain harvest last summer with LDP activity.

O'Connor asks that producers call the office and make appointments for this disaster program. Additional details are available at the Clay County FSA office.

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