Madison County Farm Service Agency News: November 2009

2010 DCP Signup Now Through June 1, 2009

USDA computes DCP Program payments using base acres and payment yields established for each farm.

Eligible producers receive direct payments at rates established by statute regardless of market prices. For 2010, eligible producers may request to receive advance direct payments based on 22 percent of the direct payment.

We will issue advance direct payments beginning Dec. 1. Counter-cyclical payment rates vary depending on market prices. Counter-cyclical payments are issued only when the effective price for a commodity is below its target price.

The effective price is the higher of the national average market price received during the 12-month marketing year for each covered commodity and the national average loan rate for a marketing assistance loan for the covered commodity. Call us for an appointment.

Supplemental Disaster Assistance Program (SURE)

The 2008 Farm Bill amended the Trade Act of 1974 to create five new disaster programs, collectively referred to as SURE. To be eligible for these programs, you must purchase at least catastrophic risk protection (CAT) level of crop insurance for all insurable crops, and/or Noninsured Crop Disaster Assistance Program (NAP) coverage for non-insurable crops under SURE, TAP, and ELAP.

Producers, who meet the definition of a Socially Disadvantaged, Limited Resource Producer, or Beginning Farmer or Rancher, do not have to meet this risk management purchase requirement. Call us for more information.

Emergency Livestock Assistance Program (ELAP)

ELAP provides compensation to eligible producers of livestock and honey bees for losses due to disease, adverse weather, or other loss conditions.

Producers who suffered losses in 2008 must file a notice of loss and application for payment at the county office no later than Dec. 10. Producers who suffered losses Jan. 1 through Sept. 10 must file a notice of loss by Dec. 10 and an application for payment no later than Jan. 30.

Producers who suffer losses Sept. 14 through Dec. 31 shall file a notice of loss within 30 days of when the loss is apparent but no later than Jan. 30. There are no late file provisions for ELAP.

Producers with eligible losses must timely file an acreage report on grazing land acres, honey bee colonies. Eligible physical losses of honey bees and honey bee hives, lost due to adverse weather or loss conditions are eligible under ELAP.

You will be required to provide documentation of beginning and ending inventory of honey bee colonies when claiming a physical loss of honey bees or honey bee hives.

Physical losses will be compensated at 60 percent of the actual replacement cost of the honey bees or honey bee hives.

Non-Insured Crop Disaster Assistance Program (NAP) Coverage

NAP was designed to reduce financial losses that occur when natural disasters cause a catastrophic loss of production or prevented planting of an eligible crop by providing coverage equivalent to catastrophic (CAT) insurance.

Statute limits NAP to each commercial crop or agricultural commodity, except livestock, for which CAT is not available. The application deadline date for the 2010 coverage on fruit tree, nut trees & perennial crops is Nov. 20.

For Honey and Maple Sap, the application closing date is Dec. 1.

In order to be eligible for disaster assistance programs like SURE, producers are required to timely purchase, at a minimum, CAT coverage for all insurable crops and/or NAP coverage for all non-insurable crops on their entire farm. NAP coverage for 2010 costs $250 per crop, but not more than $750 per producer per county, or not more than $1,875 total per producer for all counties.

Producers who already have coverage on 2009 NAP crops may choose to continue coverage on the same crop or crops for 2010, if the applicable service fee is submitted by the application closing date.

A new CCC-471, application for coverage is not required to be signed when applying for continuous coverage of the same crop or crops.

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Madison County Farm Service Agency News: November 2009

2010 DCP Signup Now Through June 1, 2009

Supplemental Disaster Assistance Program (SURE)

Emergency Livestock Assistance Program (ELAP)

Non-Insured Crop Disaster Assistance Program (NAP) Coverage

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