NAP closing date March 15

Thursday, February 28, 2008

Bill R. Fuller, State Executive Director for the Kansas Farm Service Agency, reminds producers that March 15 is the application closing date for certain crops under the Noninsured Crop Disaster Assistance Program (NAP). Crops eligible for NAP benefits are limited to those not insurable in the county and are produced for food or fiber.

March 15 is the final date to pay the applicable service fee and obtain NAP coverage for coarse grains, vegetable and melon crops, amaranth, chestnuts, cotton, pecans, pumpkins, safflower, sesame, squash, and walnuts. The administrative service fee is $100 per crop per administrative county not to exceed $300 per producer per administrative county and a $900 maximum fee for multi-county producers.

Interested producers must pay the fee and file form CCC-471, Application for Coverage, by the application closing deadline.

This coverage entitles eligible producers to a payment of 55 percent of an average market price for the commodity if a natural disaster caused a 50 percent production loss or greater of an eligible crop.

In the unfortunate event that a producer does suffer a loss on their particular crop, a form CCC-576, Notice of Loss, must be filed with FSA within 15 calendar days after the disaster occurrence, or the date the loss becomes apparent to the producer.

Producers are limited to $100,000 in benefits per person per crop year, they must certify crop acres by applicable deadlines, maintain production evidence for 3 years, not exceed the $2 million gross revenue provisions, and must comply with conservation compliance provisions in order to be eligible.

Interested producers shall contact their local Farm Service Agency at the USDA Service Center prior to the March 15 application closing date to obtain NAP coverage.

CROP INSURANCE NOTE: With the spring sales closing date for many Federal crop insurance policies right around the corner, crop insurance agents have been marketing their products aggressively. The USDA subsidized multi-peril crop insurance marketed by these companies is regulated by USDA so is the same product offered to producers at the same cost through the various insurance companies. Some producers around the country report that some agents have approached them with promises of lower insurance premiums, refunds, or dividends.

Most of these schemes are not legal. The Risk Management Agency and state insurance regulators have stepped up their efforts to uncover illegal rebating. Those producers who are found to participate in these schemes will not only lose their crop insurance coverage but may also become ineligible for other government programs. Producers can report suspicions of illegal rebating to the OIG Hotline: (800) 424-9121.