Noninsured Crop Disaster Assistance Program now available to producers

USDA?s Farm Service Agency?s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of noninsurable crops when low yields, loss of inventory or prevented planting occurs due to natural disaster.

To be eligible for NAP assistance, crops must be noninsurable crops and agricultural commodities for which the catastrophic risk protection level of crop insurance is not available, and must be commercially produced crops grown for food, planted and grown for livestock consumption, including grain and forage crops; crops grown for fiber, such as cotton and flax; crops grown under a controlled environment, such as mushrooms and floriculture; specialty crops, such as honey and maple sap; value loss crops, such as aquaculture, Christmas trees, ginseng, ornamental nursery and turfgrass sod; and seed crops where the propagation stock is produced for sale as seed stock for other eligible NAP crop production.

Producers must apply for coverage of noninsurable crops using Form CCC-471, ?Application for Coverage? and pay the applicable service fees at their local FSA offices. The application and service fees must be filed by the application closing date established for the specific crop as established by the Tennessee State FSA Committee. Service fees range from $100 per crop to a maximum of $300 per producer, per administrative county. For example, a producer who raises three different noninsurable crops in three counties, would be required to pay a total of $900 (3 crops and 3 counties).

The coverage period for NAP crops may vary depending on whether the producer grows annual, perennial or value-loss crops.

To remain eligible for NAP assistance, crop acreage information such as the name of the crop, type and variety (head lettuce, red clover, etc), location and acreage of the crop (field or sub-field), share of the crop and names of other producers and their interest in the crop, must be reported annually. The planting dates and intended uses of the crop must also be annually reported.

Producers benefit from reporting the crop acreage shortly after planting (early in the risk period) in that they ensure that reporting deadlines are not missed and coverage is not lost.

In addition, producers must annually provide information pertaining to the quantity of all harvested production of the crop in which the producer had an interest; the disposition of the harvested crop, such as whether it is marketable, unmarketable, or salavaged; and provide verifiable and reliable crop production records.

Producers must provide production information that can be easily understood by FSA county committees. Failure to report acreage and production information can result in reduced or zero NAP assistance. When a crop or planting is affected by a natural disaster, producers must notify their local FSA county office and complete Part B, (the notice of loss portion) of the application. This must be completed within 15 calendar days of the disaster occurrence; the final planting date if your planting was prevented by a natural disaster; or the date damage to the crop or loss of production becomes apparent to the producer.

To receive NAP benefits, producers must complete Form CCC-576, Notice of Loss and application for payment no later than the immediately subsequent crop year acreage reporting date for the crop. NAP covers the amount of loss greater than 50 percent of the expected production based on the approved yield and reported acreage. Payments are calculated by unit, using the crop acreage, the approved yield, the net production, and 55percent of an average market price for the specific commodity established by the FSA state committee. A payment factor may also be applied that reflects the decreasing cost incurred in the production cycle for the crop that is harvested, unharvested, or prevented from being planted.

A list of the more common NAP crops produced in this area and their sales closing dates are: Alfalfa, April 1, 2007; Green Beans, March 31, 2007; Butter Beans, March 31, 2007 Cabbage, January 31, 2007 Sweet Corn, February 28, 2007; and Peppers (green, banana), March 31, 2007.

For additional information regarding the NAP program, contact the Warren County FSA Service Center located at 811 Faulkner Springs Road, McMinnville, TN or telephone (931) 473-2277.