FSA programs explained: Catastrophic Coverage through the FSA | TSLN.com

FSA programs explained: Catastrophic Coverage through the FSA

James Neill

The deadline to sign up for the Non-insured Crop Disaster Assistance Program (NAP) is March 15, in South Dakota.

If you were enrolled last year, you should have already received your continuous coverage reminder. The Non-insured Crop Disaster Assistance Program (NAP) provides a catastrophic level of crop insurance for crops that are not eligible for insurance from a private insurance carrier or if a catastrophic level of coverage is not available.

The majority of crops covered in Meade County, SD, are: grass, hay and pasture, but other crops are available for coverage. The crops eligible for coverage vary from county to county. If you are unsure if your crops are eligible for NAP coverage, you should contact your local Farm Service Agency (FSA) Service Center.

If you enrolled in NAP last year for a yield based crop, you are required to submit your production evidence before the crop reporting deadline. In South Dakota, that deadline is July 15. You may simply certify your production if submitted before the deadline, but you must maintain your production records for at least three years.

Your yield will be determined by dividing your production by the number of acres certified with FSA and not necessarily the number of acres harvested. Any acres harvested that were not reported to the FSA as being intended for harvest, must remain separate. Grass hay tends to be difficult since some producers may not necessarily know if they will harvest or graze their hay by the crop reporting deadline. If you have NAP coverage on your grass hay, it is very important that you carefully consider how you report your grass hay. For example, if a producer certifies two hundred acres of grass hay for forage, but only harvests one hundred acres, the production for the one hundred acres will be divided by the two hundred acres for yield purposes.

If you have grass hay that will not be harvested and is covered with NAP coverage, you should request an appraisal of the unharvested production. If an appraisal is conducted, the appraised production can be added to the harvested production when determining your yield. If you are requesting an appraisal for reasons other than disaster losses, you required to pay the cost of the appraisal.

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Producers who have failed to provide production evidence because they forgot or did not harvest production may receive an assigned yield of seventy-five percent of their prior years approved yield. Producers may only receive an assigned yield only once. If you already have an assigned yield and fail to provide production evidence, you will receive a zero for that year’s yield. One or more zero yields have a significant impact on your approved yield.

If you have the production evidence, but failed to timely provide the production, your production evidence may be accepted when calculating future year’s yields. However, production submitted after the crop reporting deadline may not be used to calculate your approved yield for this year.

So if you participate in the Noninsured Crop Disaster Assistance Program and cover a yield crop, take some time to look over your CCC-452, approved yield. Your yield is just as important as paying your administrative fee for coverage.

James R. Neill is the County Executive Director for the Farm Service Agency in Meade County, South Dakota and may be contacted at: james.neill@sd.usda.gov. Questions about the Noninsured Crop Disaster Assistance Program or any other program administered by the Farm Service Agency should be directed to your local Farm Service Agency Service Center.

James R. Neill is the County Executive Director for the Farm Service Agency in Meade County (SD). Questions about disaster programs or any other program administered by the Farm Service Agency should be directed to your local Farm Service Agency Service Center.

James R. Neill is the County Executive Director for the Farm Service Agency in Meade County (SD). Questions about disaster programs or any other program administered by the Farm Service Agency should be directed to your local Farm Service Agency Service Center.

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