USDA Noninsured Crop Disaster Assistance Program More Accessible To Underserved Producers
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The USDA recently announced a change to the Noninsured Crop Disaster Assistance Program (NAP) that makes NAP more accessible to underserved producers. Specifically, USDA’s Farm Service Agency (FSA) simplified the application process so that underserved producers who have a CCC-860 form (“Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification”) on file with FSA can receive basic NAP coverage for all eligible crops. Underserved producers with a CCC-860 form on file for 2022 will receive retroactive basic coverage.
In addition, FSA is waiving all NAP-related service fees for basic coverage for producers with a CCC-860 form on file prior to the application closing date for each crop.
NAP covers crops that cannot be covered by traditional crop insurance, like hay, fruits and vegetables, etc. If you sign up for NAP from USDA, you can get coverage when natural disasters cause low yields, loss of inventory or prevented planting. An eligible producer is a landowner, tenant or someone who shares in the risk of producing an eligible crop.
In addition to the basic catastrophic level coverage under NAP, producers can buy-up higher levels of coverage by paying a premium. Underserved producers are eligible to receive a 50% reduction in their premium if they elect higher levels of coverage before the application closing date for each crop.
Like all other covered producers, in the event of a loss, underserved producers will still need to file a notice of loss and apply for NAP benefits. If you have a CCC-860 form on file with FSA and you suffered a loss from natural disasters in 2022, you will need to contact your local FSA county office to file an acreage report, as well as a notice of loss, and an application for NAP payment.
The changes are directed at removing barriers for underserved producers and helping them manage their farm risk. Of course, any producer of noninsurable crops can apply for NAP coverage by completing FSA form CCC-471 (“Application for Coverage”) and paying a service fee.
Producers who are interested in obtaining NAP coverage for 2023 and future years should contact their local FSA county office for information on eligibility, coverage options and applying for coverage.