FSA crop disaster program begins

The USDA Farm Service Agency has begun sign-ups for the new Crop
Disaster program for the 2001-02 crop year, the local FSA county
director said.
The USDA Farm Service Agency has begun sign-ups for the new Crop Disaster program for the 2001-02 crop year, the local FSA county director said.

“Over the past two years, there have been weather conditions such as drought and lack of chilling hours that impacted some growers’ crop yields significantly, said Michele Satterlee, FSA county director. “We’re working to provide benefits to qualifying farmers and ranchers as soon as possible.”

Producers who suffered a 35-percent loss in yield as a direct result of a verifiable weather condition can call the USDA Service Center to schedule an appointment for submitting an application.

Satterlee said the closing date for sign-ups will be announced later, but producers will be given ample opportunity to complete the process. Payments will provide $2 billion in aid for producers suffering from natural disasters.

Under CDP, producers will be reimbursed for qualifying crop production and quality losses to crops for either the 2001 or 2002 crops, but not both, so applicants must choose whichever year they suffered the greatest loss.

CDP provisions are similar to previous disaster programs authorized for 1998 through 2000, although the payment rates will be less. The law requires the 2001 or 2002 crop disaster payments be reduced if the sum of: the disaster payment; the net crop insurance indemnity, and the the value of the crop that was not lost, exceeds 95 percent of what the value of the crop would have been in the absence of a loss.

A crop insurance linkage requirement also applies as a condition of receiving disaster benefits. Any producer who chose not to obtain crop insurance or participate in the noninsured crop disaster assistance program in the year for which benefits will be received must agree to purchase buy-up insurance or NAP coverage, as applicable, for the 2004-05 crop years.

The CDP has no funding limitation, but each producer is limited to $80,000 in payments. Payments will be made to producers after the sign-ups begin.

For more information, call 637-4360.

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