By Curtis Talley, Ben Werling and Ben Phillips, Michigan State University Extension
Educational workshops are available to commercial producers wanting more information on the Non-Insured Crop Disaster Assistance Program (NAP), such as eligible producers and crops, coverage levels, and service fees and premiums.
The Non-insured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops to protect against natural disasters that result in lower yields, crop losses or prevented planting.
As part of the reauthorization of the NAP program in the 2014 Farm Bill, there were important changes made for producers. Previously, NAP provided coverage based on the amount of loss that exceeds 50 percent of expected production at 55 percent of the average market price of the crop. The 2014 Farm Bill authorizes additional coverage levels ranging from 50 to 65 percent of production, in 5 percent increments at 100 percent of the average market price.
For all coverage levels, the NAP 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.
The additional coverage must be chosen by the producer by the application closing date. The schedule of fees and premiums follow a standard formula. The maximum premium for a producer is $6,562.50 (the maximum payment limitation of $125,000 times a 5.25 percent premium fee).
To provide commercial producers with more information about this important program, a series of educational workshops have been planned. Speakers will be from the Farm Service Agency and Michigan State University Extension. Topics include:
- Eligible producers.
- Eligible crops.
- Eligible causes of loss.
- Coverage levels.
- Service fees and premiums.
- Providing Notice of Loss and applying for payment.
- Information Farm Service Agency uses to calculate payment.
- Payment limitation.