Producers who would otherwise be ineligible for the new disaster assistance for Food, Conservation and Energy Act programs may become eligible by paying a fee to the Farm Service Agency.
The 2008 Act requires producers who wish to participate in the new disaster programs to have crop insurance or non-insured crop disaster assistance coverage for the land for which assistance is being requested.
The rule applies to all farms in all counties in which they have an interest. Because the program was enacted after the application periods closed, producers without such coverage could not obtain the new disaster programs. The 2008 Act authorizes a waiver allowing producers to pay a buy-in fee to become eligible.
Producers whose crops, including grazing lands, are not fully covered by crop insurance or NAP sign in by paying a buy-in fee before Sept. 16, under terms of the 2008 Act. Those who miss this opportunity will not be eligible for disaster assistance. Producers are also reminded that the payment of the applicable buy-in fee does not afford the producer crop insurance or NAP coverage; it only affords eligibility for the 2008 disaster programs.
The crop insurance and NAP coverage requirements will be waived in 2008 for producers who did not obtain crop insurance or NAP coverage by the applicable sales closing date. In order to receive this coverage, the producer must file an application for waiver and pay a buy-in fee in an amount equal to the 2008 applicable NAP coverage or catastrophic risk protection plan fee for the crop or grazing lands.
Producers who meet the definition of “Socially Disadvantaged, Limited Resource,” or “Beginning Farmer or Rancher,” do not have to meet the Risk Management Purchase Requirement, and do not have to pay the buy-in fee.
The 2008 eligibility fee for either the catastrophic risk protection insurance or NAP is $100 per crop, but not more than $300 per producer per administrative county, or $900 total per producer for all counties less any previously paid fees for CAT and/or NAP. Producers can contact their local administrative FSA office to file the waiver application and pay applicable fees.
Additional information about the buy-in plan can be obtained at the Love/Carter/Marshall regional office in Marietta, (580) 276-2528, Ext. 2.
