Noninsured Crop Disaster Assistance Program (NAP) from USDA could be advantageous for new farmers or those that are highly leveraged and need to protect their income from weather related disasters.
A January 14 deadline just passed for a program that allows farmers to “buy up” coverage on crops that have expired deadlines. Next up is February 1st.
These crops (and their deadlines) include:
January 14, 2015 – Strawberries, blueberries, apples, cherries and other fruit
February 1, 2015 – Beets, Greens, Herbs, Lettuces, Radishes, Scallions,& Shallots
March 15, 2015 – most other fruits and vegetables, including tomatoes, cucumbers, beans
Past NAP deadlines are listed below:
Ornamental & Non- Nursery – 5/1/2014
Value Loss Crops & Garlic – 9/1/2014
All Forage Crops, Fall & Spring Seeded Small Grains – 9/30/2014
Perennial crops, Fruit & Nut trees – 11/20/2014
Honey & Maple Sap – 12/1/2014
Why is this important? Using an example of squash production: Farmer Brown purchased NAP for his winter squash crop ($250 administrative fee), and he has an Average Production History (APH) of 150 cwt per acre. The value of the squash is $42 per cwt. The producer planted 20 acres of squash and produced 1,470 cwt., or a 51% loss.
Under regular NAP Catastrophic Coverage his payment would be $693 for the covered loss. If he had employed “Buy Up” coverage with NAP, his NET payment would be $15, 860.
Certainly, a more reasonable option considering the investment in crop production expenses. Also, beginning, socially disadvantaged or limited resource farmers qualify for a waived administrative fee and a 50% reduction in premiums, which provides a great opportunity at less financial risk!
For more information, please contact your local Farm Service Agency office or call Sandy Buxton at 518-380-1498 or sab22@cornell.edu.
