Local Producers Urged to Consider Risk Protection Coverage before March 15th Sales Closing Deadline

USDA’s Farm Service Agency (FSA) reminds producers of commercial fruits and vegetables they must file application for Noninsured Crop Assistance Disaster (NAP) Program coverage by the March 15, 2022 final sales closing date for the following crops:

green beans, sweet corn, tomatoes, potatoes, okra, squash, peas, pumpkins

peppers, watermelons, cucumbers, cantaloupes and hemp.

NAP provides catastrophic level (CAT) coverage 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 authorizes additional coverage levels ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price. Additional 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.

Eligible producers must apply for coverage using form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office. The application and service fee must be filed by the application closing date. For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950. Producers can elect increases coverage for additional premiums.

Beginning, limited resource, socially disadvantaged and qualifying veterans are eligible for a waiver of the service fee and a 50 percent premium reduction when they file form CCC-860. A “beginning farmer” is defined as a person who has not operated a farm for more than 10 years, and materially and substantially participates in the operation. For 2022, in DeKalb and Cannon counties, a “limited resource farmer” is defined as having gross farm sales less than or equal to $189,200 per year in each of the tax years 2019 and 2020 and less than $29,419 (Cannon Co.) or $26,500 (DeKalb Co.) in total household adjusted gross income each tax year 2019 and 2020. A “socially disadvantaged farmer” is defined as a farmer who is a member of groups such as: American Indians, Alaskan Natives, Asians, Asian Americans, Blacks, African Americans, Native Hawaiians, Pacific Islanders, Hispanics, and Women. A “veteran farmer” is defined as a farmer who has served in the Armed Forces and has operated a farm for less than 10 years, or first obtained status as a veteran during the most recent 10-year period.

For additional program details, contact the DeKalb/Cannon County Farm Service Agency, located at 647 Bright Hill Rd., or phone the office at 597-8225, extension 2.