FSA Notes

FSA Notes Quality Loss Crop
Disaster Program Signup By Keith L. Zanter Farmers may apply for Quality Loss Crop Disaster Program (CDP) benefits at the Clay County FSA office. The Quality Loss CDP provides benefits to farmers who suffered quality losses to their 2005, 2006, or 2007 crops due to natural disasters. Example: A producer who received a monetary discount on corn with Aflatoxin of more than 20 parts per billion. To be eligible for quality loss benefits, the producer must have: â�?¢ had crop insurance or Noninsured Crop Disaster Assistance program (NAP) coverage for the year that the quality loss occurred; â�?¢ suffered at least 25 percent quality losses â�?¢ obtained an acceptable quality test no later than Jan. 1 of the year following harvest. The payment rate is set at 65 percent of the amount of the affected crop multiplied by 42 percent of the per-unit average market value in the year in which the loss occurred. The quality payment will be calculated separately from the quantity payment. However, if quantity benefits have already been received, the total benefits received from both quantity and quality may not exceed the $80,000 payment limitation. To substantiate the level of quality loss, applicants must supply verifiable production records to the FSA county committee. Verifiable production records shall include the quantity of production, level of quality loss, and the price received from the buyer. Verifiable production records include, but are not limited to: commercial receipts, settlement sheets, warehouse ledger sheets, load summaries or acceptable forage test. 2008 Direct and Counter- Cyclical Program (DCP) The Food, Conservation and Energy Act of 2008 provides for continuing the Direct and Counter-Cyclical Program for 2008 through 2012. Signup for DCP ends on Sept. 30. New for 2008 is the prohibition of DCP direct and counter-cyclical payments on farms with base acres equal to 10 acres or less unless the farm is wholly owned by a socially disadvantaged or limited resource farmer or rancher. All DCP contracts must be submitted by Sept. 30 to be eligible for the 2008 guaranteed direct payment. CRP Continuous Signup Environmentally desirable land devoted to certain conservation practices may be enrolled in CRP at any time under continuous sign-up. Offers are automatically accepted provided the land and producer meet certain eligibility requirements. Producers enrolled in CRP plant long term, resource conserving covers to improve the quality of water, control soil erosion, and enhance wildlife habitat. In return, FSA provides participants with rental payments and cost share assistance. In addition incentive payments are available on many of the CRP practices. Acreage that is currently under CRP contract that will be expiring Sept. 30 may be reenrolled under continuous sign-up provisions if all or part of the acreage meets one of the current continuous sign-up specifications. Some of the practices available under continuous sign-up are riparian buffers, wildlife habitat buffers, wetland buffers, filter strips, wetland restoration, grass waterways, shelterbelts,; living snow fences, salt tolerant vegetation, shallow water areas for wildlife and public wellhead areas. To offer land for continuous sign-up, producers should contact their local FSA offices.

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