Feb 18 deadline for USDA buy up and coverage service for 2019 drought
USDA’s Farm Service Agency (FSA) now offers higher levels of coverage through the Noninsured Crop Disaster Assistance Program (NAP), a popular safety net program. The 2018 Farm Bill also increased service fees and made other changes to the program, including service fee waivers for qualified military veterans interested in obtaining NAP coverage.
“When other insurance coverage is not an option, NAP is a valuable risk mitigation tool for farmers and ranchers,” said FSA Administrator Richard Fordyce. “In agriculture, losses from natural disasters are a matter of when, not if, and having a NAP policy provides a little peace of mind.”
NAP provides financial assistance to producers of commercial crops for which insurance coverage is not available in order to protect against natural disasters that result in lower yields or crop losses, or prevent crop planting.
NAP Buy-Up Coverage Option
The 2018 Farm Bill reinstates higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production.
NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production for basic catastrophic coverage.
Producers have until February 18, 2020, to obtain NAP catastrophic coverage for 2020 hay, pasture, vegetables, and some fruits or buy-up coverage for 2020 hay, vegetables, and some fruits. Ask your local FSA Office about the requirements/qualifications to apply for NAP buy-up coverage for quality losses on hay.
Buy-up coverage is not available for crops intended for grazing (pasture).
NAP Service Fees
For all coverage levels, the new NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. These amounts reflect a $75 service fee increase for crop, county or multi-county coverage. The fee increases took effect on April 8, 2019.
NAP Enhancements for Qualified Military Veterans
The 2018 Farm Bill NAP amendments specify that qualified veteran farmers or ranchers are now eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria.
Beginning, limited resource and targeted underserved farmers or ranchers remain eligible for a waiver of NAP service fees and premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.”
For NAP application, eligibility and related program information, visit www.fsa.usda.gov/nap or contact the Botetourt/Craig/Roanoke FSA County Office at (540) 977-2698, Ext. 2. To locate another local FSA office, visit www.farmers.gov.
DEADLINE: COB Tuesday, February 18, 2020
–submitted by Jean Hazelgrove, FSA
