Cover photo for Noninsured Crop Disaster Assistance Program

Noninsured Crop Disaster Assistance Program (NAP)

Farm Service Agency

Due May 31, 2021

About

NAP provides financial assistance to producers of noninsurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters.

Eligibility

Eligible Producers:

An eligible producer is a landowner, tenant or sharecropper who shares in the risk of producing an eligible crop and is entitled to an ownership share of that crop. An individual’s or entity’s average adjusted gross income (AGI) cannot exceed $900,000 to be eligible for NAP payments. Also, NAP payments received, directly or indirectly, will be attributed to the applicable individual or entity and limited to $125,000 per crop year, per individual or entity for crops with basic (catastrophic) coverage. Any NAP payments received directly or indirectly for crops with additional (buy-up) coverage, will be attributed to the applicable individual or entity and limited to $300,000 per crop year, per individual or entity. (To learn more, visit fsa.usda.gov/limits.)

Eligible Crops Eligible crops must be commercially produced agricultural commodities for which crop insurance is not available and be any of the following:

  • Crops grown for food

  • Crops planted and grown for livestock consumption, such as grain and forage crops, including native forage; Crops grown for fiber, such as cotton and flax (except trees)

  • Crops grown in a controlled environment, such as mushrooms and floriculture

  • Specialty crops, such as honey and maple sap

  • Sea oats and sea grass

  • Sweet sorghum and biomass sorghum

  • Industrial crops, including crops used in manufacturing or grown as a feedstock for renewable biofuel, renewable electricity or biobased products

  • Value loss crops, such as aquaculture, Christmas trees, ginseng, ornamental nursery and turf-grass sod

  • Seed crops where the propagation stock is produced for sale as seed stock for other eligible NAP crop production

Eligible Causes of Loss:

Eligible causes of loss include the following natural disasters:

  • Damaging weather, such as drought, freeze, hail, excessive moisture, excessive wind or hurricanes

  • Adverse natural occurrences, such as earthquake or flood

  • Conditions related to damaging weather or adverse natural occurrences, such as excessive heat, plant disease, volcanic smog (VOG) or insect infestation.

The damaging weather or adverse natural occurrence must occur during the coverage period, before or during harvest, and must directly affect the eligible crop.

Terms

Coverage Levels:

NAP provides basic coverage equivalent to the catastrophic level risk protection plan of insurance coverage, which is based on the amount of loss that exceeds 50 percent of expected production at 55 percent of the average market price for the crop. The 2018 Farm Bill re-authorizes higher levels of coverage ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price. Additional (buy-up) coverage must be elected by a producer by the application closing date. Producers who elect additional coverage must pay a premium in addition to the service fee. Crops intended for grazing are not eligible for additional coverage.

Resources

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Details

Tags

Deadline

May 31, 2021

Organization

Farm Service Agency (FSA)

Financial Instrument

Insurance

Image Credit

Joshua Hoehne

Updated January 28, 2021

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