USDA Farm Service Agency (FSA) State Executive Director Bruce Nelson announced a major policy change affecting crop eligibility for the 2014 Noninsured Crop Disaster Assistance Program (NAP) in some Montana counties.
Today, the national FSA office approved Montana FSA’s request for an exemption in specific counties to allow the use of NAP coverage for nonirrigated corn intended for grain and silage (NAP practice of forage) beginning the 2014 crop year. Prior to January 2014, if catastrophic (CAT) risk protection level of crop insurance was available to any crop, type and intended use in the county then NAP could not be offered for those crops within that county for any practice. National procedure was recently amended to allow states to request exemptions to that provision.
Effective today, nonirrigated corn intended for grain and nonirrigated corn intended for silage (forage) is available for NAP coverage beginning in 2014 for producers in the following counties that were previously not approved for NAP due to crop insurance being available on the irrigated practice: Big Horn, Blaine, Carbon, Carter, Fergus, Hill, Judith Basin, McCone, Musselshell, Phillips, Powder River, Rosebud, Stillwater, Treasure, Valley and Yellowstone.
In addition, nonirrigated corn intended for grain is available for 2014 NAP coverage for the following counties that were previously not approved for NAP due to crop insurance being available on the irrigated practice: Custer, Dawson, Fallon, Garfield, Prairie, Richland, Roosevelt and Wibaux. However, because crop insurance is available for nonirrigated corn silage (NAP practice of forage), in these counties, NAP cannot be offered for the intended use of silage (forage).
The application deadline for the 2014 Noninsured Crop Disaster Assistance Program (NAP) for all non-insurable spring planted and forage crops, including grass for hay and grazing is March 17, 2014. The 2014 sales closing dates have already ended for honey (Dec. 2, 2013) and value-loss crops (Sept. 2, 2013).
Eligible producers can apply for coverage at their local FSA office using form CCC-471, Application for Coverage. Producers must file the application and pay the applicable service fee on or before the application closing date for the applicable crop. The service fee is the lesser of $250 per crop or $750 per producer per administrative county, not to exceed a total of $1,875 for a producer with farming interests in multiple counties.
NAP provides financial assistance to eligible producers when natural disasters cause catastrophic loss of production (low yield) or prevented planting of an eligible noninsurable crop by providing coverage equivalent to the catastrophic risk protection level of crop insurance. In the event of a natural disaster, NAP covers the amount of loss greater than 50 percent of the expected production based on the producer’s approved yield and reported acreage.
NAP is available on commercially-produced agricultural commodity crops for which the catastrophic risk protection level of crop insurance is not available. If the Risk Management Agency (RMA) offers coverage for a specific crop and intended use in the county, then NAP coverage is not available for that crop.
For more information on NAP and other FSA programs, contact your local FSA office and visit us online at http://www.fsa.usda.gov/mt.
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