FSA programs explained: NAP crop yields
For those producers that have paid the administrative fee for the Noninsured Crop Disaster Assistance Program (NAP) for a yield based crop, this article is for you. The 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 crops eligible under NAP will vary by county. For example, soybeans are not insurable in Meade County (SD) and are eligible for NAP, but are not eligible for NAP in Brookings County (SD) since the crop is insurable.
If you had a crop that was not insurable and paid the administrative fee for NAP, you should have received a 15-page document detailing the terms and conditions of the program. I am positive that you have memorized every detail of these terms, but in case you hadn’t, I would like to discuss the importance of yields.
Producers with NAP coverage are required to submit their production by crop type before next year’s crop reporting deadline. The production is divided by the total number of acres certified and not by the number of acres harvested. This means that producers certifying the number of acres for their crops covered by NAP must know what fields they intend to harvest going into the year. This is not a problem for most crops.
However, grass hay tends to be a different story. Some producers may not necessarily know if they will cut 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 200 acres of grass hay for forage, but only cuts 100 acres of hay, the production for the 100 acres will be divided by the 200 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.
Producers who have failed to provide production evidence because they forgot or did not harvest production may receive an assigned yield of 75 percent of their established yield. Producers may only receive an assigned yield 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 your yield falls down to a half a ton per acre, any production greater than a quarter ton per acre would not be eligible for an indemnity. Remember, NAP is a catastrophic level of coverage and only covers losses greater than 50 percent.
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 NAP 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, sd and may be contacted at email@example.com. 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.
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