March 15 Is Important Deadline For USDA's NAP Program

March 15 Is Important Deadline For USDA's NAP Program

Farm Service Agency reminds farmers March 15 is deadline to sign up for Non-insured Assistance Program coverage on spring-seeded crops.

FAQ: Deadline to sign up for 2013 coverage by crop insurance policies backed by federal crop insurance is the end of the day on March 15. What about the coverage USDA offers for non-insurable crops—the NAP program? When is the deadline to sign up for NAP?

Answer: John Whitaker, state executive director for USDA's Farm Service Agency in Iowa, reminds producers that March 15, 2013 is the application deadline to sign up for the Non-Insured Assistance Program or NAP coverage on most spring-seeded crops.

SIGN UP NOW FOR NAP: USDA's Non-Insured Assistance Program or NAP covers spring-seeded crop acreage that is isn't insurable with regular commercially available crop insurance. This includes spring planted vegetables and other non-insurable crops.

Producers interested in obtaining NAP on their 2013 spring-seeded non-insurable crop acreage should visit their local county office as soon as possible to complete an application for 2013 acres. This deadline date also applies to persons who have a policy that expired and want to renew coverage for 2013.

NAP coverage is available for crops only where insurance coverage is not available under Federal Crop Insurance policies provided by private insurance agents. This includes spring seeded vegetables and other non-insurable crops. Producers must contact a crop insurance agent for questions regarding the insurability of a crop in their county. The eligibility differs county by county across the country.

NAP covers losses incurred by damaging weather conditions

NAP is designed to cover losses due to damaging weather conditions. The program covers losses of more than 50% of normal yields or the farm's yield calculated using actual production histories. Payments for production lost in excess of 50% are paid at 55% of the values established for the crop.

The cost per policy is $250 per crop per producer with a $750 cap per county. NAP coverage begins 30 days after the application is filed and the $250 administrative fee has been paid. The $250 administrative fee is non-refundable. Producers that are considered limited resource under FSA provisions may have the service fees waived.

Producers who currently have NAP coverage or who are interested in coverage need to keep an accurate records of their production, and report acreage of the crops to FSA annually. They must promptly notify FSA when losses occur.

You must meet USDA's risk management purchase requirement

Additionally, as in past USDA disaster programs, producers must meet the risk management purchase requirement by either obtaining a policy or plan of insurance, under the Federal Crop Insurance Act or NAP coverage. Coverage requirements vary slightly depending on the disaster program.

Producers are encouraged to contact their local FSA office to obtain NAP coverage, or to get additional information on NAP before the March 15, 2013 deadline. Information on the NAP program can also be found on FSA's website www.fsa.usda.gov.

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