FAQ: Recently USDA announced it is making disaster protection available for crops that have in the past not been eligible for federal crop insurance coverage. Tell me more.
Answer: U.S. Secretary of Ag Tom Vilsack in December announced greater protection is now available from the Noninsured Crop Disaster Assistance Program (NAP) for crops that traditionally have been ineligible for federal crop insurance. The new options, created by the 2014 Farm Bill, provide greater coverage for losses when natural disasters affect specialty crops such as vegetables, fruits, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup and energy crops.
"These new protections will help ensure farm families growing crops for food, fiber or livestock consumption will be better able to withstand losses due to natural disasters," said Vilsack. "For years, commodity crop farmers have had the ability to buy insurance to keep their crops protected, and it only makes sense that fruit and vegetable, and other specialty crop growers should be able to purchase similar levels of protection. Ensuring these farmers can adequately protect themselves from factors beyond their control is also critical for consumers who enjoy these products and for communities whose economies depend on them."
Previously, the program offered coverage at 55% of average market price for crop losses that exceed 50% of expected production. Producers can now choose higher levels of coverage, up to 65% of their expected production at 100% of the average market price.
Question: I've heard that free basic coverage and premium discounts are available for new, underserved and limited-income farmers. Explain that, and who is eligible?
Answer: The expanded protection will be especially helpful to beginning and traditionally underserved producers, as well as farmers with limited resources, who'll receive fee waivers and premium reductions for expanded coverage. More crops are now eligible for the program, including expanded aquaculture production practices, and sweet and biomass sorghum. For the first time, a range of crops used to produce bioenergy will be eligible as well.
"If America is to remain food secure and continue exporting food to the world, we need to do everything we can to help new farmers get started and succeed in agriculture," Vilsack said. "This program will help new and socially disadvantaged farmers affordably manage risk, making farming a much more attractive business proposition."
To help producers learn more about the Noninsured Crop Disaster Assistance Program and how it can help them, USDA, in partnership with Michigan State University and the University of Illinois, created an online resource. The Web tool, available at www.fsa.usda.gov/nap, allows producers to determine whether their crops are eligible for coverage. It also gives them an opportunity to explore a variety of options and levels to determine the best protection level for their operation.
Submit comments and recommendations by Feb. 13
For this year, producers had until Jan. 14, 2015, to choose expanded coverage through the NAP program. To learn more, visit the Farm Service Agency (FSA) website or contact your local FSA office. FSA, which administers the program, also wants to hear from producers and other interested stakeholders who may have suggestions or recommendations on the program. Written comments will be accepted until Feb. 13, 2015 and can be submitted at www.regulations.gov.