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2008 and 2009 Supplemental Revenue Assistance Program (SURE) Disaster Assistance Participation Requires Crop/Livestock Insurance and NAP
Please be aware that crop insurance or NAP coverage is necessary to be eligible for the new SURE disaster assistance program. The deadline to apply for NAP 2009 has been extended to December 1, 2008 for those crops whose application (sign up) deadline fell before December 1, 2008. Those 2009 NAP crops whose deadline has already passed have also been extended to December 1, 2008. However, crop insurance deadlines have not been extended. Special provisions are required for eligibility for the 2008 disaster assistance program and farmers should check with their local Farm Service Agency office for details.
2008 Disaster Assistance (SURE)
For participation in the 2008 disaster assistance program (SURE), “The 2008 Act requires producers who wish to participate in the new disaster programs to have crop insurance or non-insured crop disaster assistance (NAP) coverage.” Coverage is necessary,
- For the land for which assistance is being requested, and
- For all farms in all counties in which they have an interest.
Since the 2008 disaster Act was enacted after the application period had closed for some insurance and NAP programs, producers who did not have either coverage could not comply with this eligibility requirement
for the new disaster program.
To take care of this problem for 2008 participation, the rules were set to:
- Authorize a waiver that allows producers to pay a fee, called a “buy-in” fee, to be eligible for this new disaster assistance.
- Deadline for the buy-in fee is due no later than Sept. 16, 2008.
- Those missing this opportunity will not be eligible for disaster assistance under (SURE).
FSA warns that the payment of the applicable “buy-in fee” does not pay for or trigger insurance coverage but only makes them eligible for the 2008 disaster programs (SURE). Also note that the NAP and crop insurance programs are separate programs and have different application (sign-up) requirements and payment schedules.
The buy-in fee schedule is also separate for crop insurance and NAP:
- NAP: The buy-in fee for 2008 eligibility for NAP is $100 per crop, but not more than $300 per producer per administrative county (2 counties $600) or $900 total per producer for all counties less any previously paid fees for NAP.
- CAT: The buy-in fee for 2008 eligibility (only for catastrophic risk protection insurance (CAT)) is $100 per crop, but not more than $300 per producer per administrative county (2 counties $600) or $900 total per producer for all counties less any previously paid fees for CAT.
- Those qualifying as limited resource, socially disadvantaged and beginning farmers should check with the FSA on having the buy-in fee waived.
The bottom line is crop insurance and NAP coverage requirement deadlines are being waived in 2008 for producers who did not obtain crop insurance or NAP coverage by the applicable sales closing date. But 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 his/her crops or grazing lands.
Producers can contact their local administrative FSA County Office to file the application for waiver and pay the applicable fees.
For 2009 Disaster Assistance (SURE):
The deadline for Non-Insured Assistance (NAP) sign-up for crops whose application closing date is before December 1, 2008 has been extended to December 1, 2008. Those crops that have passed the application deadline have also been extended to December 1, 2008.
To be eligible for the new disaster assistance programs in 2009 producers must sign up for crop and livestock related insurance (at least CAT coverage) or NAP. The short of it is according to the USDA, "If producers do not sign up and pay for NAP (or have crop insurance) on crops that they will certify in 2009, they will not qualify for the new disaster program (SURE) (regardless of any other crops insured)." (Source: www.fsa.usda.gov) Producers must make application before December 1, 2008 for 2009 SURE eligibility.
The cost structure for 2009 NAP and crop insurance are not related and differ by time and crop. For 2009 NAP costs producers should check with their local Farm Service Agency Service Center (http://offices.sc.egov.usda.gov/locator/app). For 2009 CAT and buy-up crop insurance producers should check with their crop insurance sales person (http://www3.rma.usda.gov/apps/agents)
Important Dates to Remember
2008 SURE Participation Deadline.
“Buy-In” fee is due.
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September 16, 2008. |
Required to participate in 2008 SURE program. Check with you local FSA Office. |
2009 SURE Participation Deadline.
NAP is required. |
NAP sign-up dates vary. For those 2009 crops whose NAP sign up date was before December 1, 2008, NAP sign up has been extended to December 1, 2008 for 2009 SURE participation |
Participation in the NAP(Non-Insured Assistance Program) is required in order to participate in the 2009 SURE program. Check with your local FSA office for details. |
2009 SURE Participation Deadline.
Crop Insurance coverage is required. |
Sign-up dates vary. Producers of crops eligible for crop insurance coverage should check with their crop insurance salesperson on sales closing dates.
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For crops covered by crop insurance, a minimum of CAT (Catastrophic) coverage is required in order to participate in the 2009 SURE program. |
Thanks are extended to William Henderson, Alabama Farm Service Agency state office and Dale Rackley, Valdosta Regional Service Office of Risk Management Agency/ USDA for reviewing this paper. For further information contact: James L. Novak, Ext. Economist and Prof., Dept. Ag. Econ. & Rural Soc. Auburn University, AL 36849. Phone: 334-844-3512. E-mail: novakjl@auburn.edu
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