In
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
agricultural law, producers who grow a crop that is not eligible for
crop insurance
Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines ...
may be eligible for a direct payment under the
Farm Service Agency
The Farm Service Agency (FSA) is the United States Department of Agriculture agency that was formed by merging the farm loan portfolio and staff of the Farmers Home Administration (FmHA) and the Agricultural Stabilization and Conservation Service ...
’s Noninsured Crop Disaster Assistance Program (NAP). NAP has permanent authority under the
Federal Crop Insurance Reform Act of 1994
The Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994, , was introduced on April 14, 1994 by Eligio de la Garza ( D- TX) and was signed into law on October 13, 1994 by President William J. Clinton. It consist ...
, (P.L. 103-354, as amended).
To be eligible for a NAP payment, a producer first must apply for coverage under the program by the application closing date, which varies by crop, but is generally about 30 days prior to the final planting date for an annual crop. Like
catastrophic crop insurance, NAP applicants also must pay a $100 per crop service fee at the time of application. In order to receive a NAP payment, a producer must experience at least a 50% crop loss caused by a natural disaster, or be prevented from planting more than 35% of intended crop acreage. For any losses in excess of the minimum loss threshold, a producer can receive 55% of the average market price for the
covered commodity. Hence, NAP is similar to catastrophic crop insurance coverage in that it pays 55% of the market price for losses in excess of 50% of normal historic production. A producer of a noninsured crop is subject to a payment limit of $100,000 per person and is ineligible for a payment if the producer's qualifying gross revenues exceed $2 million.
See also
*
Agriculture in the United States
Agriculture is a major industry in the United States, which is a net exporter of food. As of the 2017 census of agriculture, there were 2.04 million farms, covering an area of , an average of per farm.
Agriculture in the United States is hig ...
References
*{{CRS, article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf, author= Jasper Womach
External links
Noninsured Assistance Program
United States Department of Agriculture
Insurance in the United States