FSA Notes

FSA Notes by Keith Zanter The Noninsured Crop Disaster Assistance Program (NAP) administered by the Farm Service Agency provides weather-related loss protection for all crops commercially produced for food or fiber for which Federal Crop Insurance protection is not available. The area affected by the natural disaster must be a county, an area of at least 320,000 acres or acreage on which the value of all crops annually grown exceeds $80 million.

A crop's eligibility for NAP is contingent on a greater than 35 percent loss of production an all acreage of a crop in the affected area. Producers in an approved area may apply for benefits on crop losses in excess of 50 percent of their approved yield. The payment rate is 55 percent of the average market price.

To qualify for crop loss protection, producers must annually file a report of acreage by July 15, annually report production, request an inspection/appraisal before destroying or converting a damaged crop to another use, and file a notice of loss within 15 days of the disaster occurrence or damage to the crop was obvious. Producers must also furnish records to document production, request verification of existing production evidence before commingling and comply with Highly Erodible Land and Wetland Conservation provisions.

Production records for prior years must be furnished or certified to establish a yield for NAP payments. A payment limitation is in effect and a person's qualifying gross income may not exceed $2 million. Producers cannot receive duplicate benefits. If a producer is eligible to receive NAP payments and benefits under any other program for the same crop loss, the producer must choose whether to receive NAP payments or benefits from any other program.

Producers must act to be protected. Producers must file acreage, production, and loss claims timely. If acres, production, and loss claims are not filed timely, the producer may not be eligible for NAP assistance.

Contact the Farm Service Agency at 605-624-7060 Ext. 2 for additional details.

USDA is an equal opportunity employer and lender.

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