FSA: NAP coverage deadline fast approaching

Montana Farm Service Agency

BOZEMAN — USDA Farm Service Agency State Executive Director Bruce Nelson recenty reminded Montana farmers and ranchers that Monday, March 16, is the sales closing deadline for most noninsurable 2015 spring planted crops.

The application deadline for the 2015 Noninsured Crop Disaster Assistance Program is for all noninsurable crops except for honey, perennial forage crops intended for hay and grazing, fall seeded annual crops, and value loss crops.

The 2015 sales closing dates for basic NAP coverage and buy-up level of NAP coverage have already ended: Sept. 30 for perennial forage crops intended for hay and grazing and fall seeded annual crops; Dec. 1 for honey; and Sept. 1 for value-loss crops. 

Eligible producers can apply for coverage at their local FSA office using form CCC-471, Application for Coverage. Producers must file the application and pay the applicable service fee on or before the application closing date for the applicable crop. The service fee is the lesser of $250 per crop or $750 per producer per administrative county, not to exceed a total of $1,875 for a producer with farming interests in multiple counties.

NAP provides financial assistance to eligible producers when natural disasters cause catastrophic loss of production, low yield, or prevented planting of an eligible noninsurable crop by providing coverage equivalent to the catastrophic risk protection level of crop insurance. In the event of a natural disaster, NAP provides catastrophic level coverage based on the amount of loss that exceeds 50 percent of expected production at 55 percent of the average market price for the crop. The 2014 Farm Bill authorized additional coverage levels ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price. This additional “buy-up” coverage must be elected by a producer by the application closing date.  Producers who elect additional coverage must pay a premium in addition to the service fee.  Crops intended for grazing are not eligible for additional coverage.

Beginning farmers or ranchers, limited resource producers, and traditionally underserved farmers, including minorities and women, are eligible for a waiver of the service fee and a 50 percent premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.”  Anyone with questions regarding beginning, limited resource, and traditionally underserved farmer definitions and eligibility can contact the local FSA office.

NAP is available on commercially-produced agricultural commodity crops for which the catastrophic risk protection level of crop insurance is not available. If the Risk Management Agency offers coverage for a specific crop and intended use in the county, then NAP coverage is not available for that crop.

A copy of a Montana NAP Factsheet is available at: http://www.fsa.usda.gov/Internet/FSA_File/15_mtnap.pdf. For more information on NAP and other FSA programs, contact the local FSA office and visit the FSA website online at http://www.fsa.usda.gov/mt.