The sign up for USDA
’s new Crop Disaster Program for the 2001 or 2002 crop year has
begun. Local producers who suffered a 35 percent loss in yield as a
direct result of a verifiable weather condition can call the USDA
Service Center at (831) 637-4360 to schedule an appointment for
submitting an application.
The sign up for USDA’s new Crop Disaster Program for the 2001 or 2002 crop year has begun. Local producers who suffered a 35 percent loss in yield as a direct result of a verifiable weather condition can call the USDA Service Center at (831) 637-4360 to schedule an appointment for submitting an application.
The closing date for sign-up will be announced later. 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 slightly less. The law also requires the 2001 or 2002 crop disaster payments be reduced if the sum of : (1) the disaster payment; (2) the net crop insurance indemnity; and (3) 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 NAP (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 and 2005 crop years. Failure to purchase coverage will result in the required refund of the CDP payment plus interest.
A list of crop insurance agents is available at the FSA office.
The CDP has no funding limitation but each producer is limited to $80,000 in payments. Payments will be made to producers shortly after sign-up begins. Producers with gross revenues exceeding $2.5 million in the prior tax year are not eligible to participate.
USDA’s Farm Service Agency has developed a web site that provides producers with one convenient location for details on new and existing disaster assistance. The Web site can be accessed at http://disaster.fsa.usda.gov.
