Noninsured assistance program: risk protection for uninsurable crops

As a reminder, producers interested in obtaining a 2002 Noninsured Assistance Program (NAP) crop policy may file an application for coverage.

A service fee of $100 per crop per county or $300 per producer per county, not to exceed a total of $900 per producer for all counties is collected from producers purchasing policies.

In 2001, USDA’s Farm Service Agency (FSA) had more than 40,000 NAP crop policies across the United States.

Under NAP, eligible crops are those produced for food (including livestock feed) or fiber for which catastrophic federal crop insurance is not available.

These crops include alfalfa, native and tame grasses, forage and hay crops, double crop soybeans and sorghums, Christmas trees, and ornamental and nursery seed stock.

In order to be eligible for payment benefits, applicants suffering damaging weather disasters must have a reduced expected unit production of the crop of more than 50 percent, a timely filed acreage report, and necessary crop loss documentation.

An NAP payment is calculated by unit using reported crop acreage, approved yield, net production harvested, if any, and 55 percent of an average specific crop market price.

Also, those producers who received 2000 crop disaster program payments are reminded that they must purchase crop insurance coverage on each crop for which benefits were received for the 2002 crop year.

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