Sign-up begins soon for new disaster assistance programs

Last week the topics of this column were two of the new disaster programs that were a part of the "new Farm Bill" passed in 2008. Since the sign up time for both of these is now, I am going to speak to those topics again this week.

The Livestock Indemnity Program (LIP) offers reimbursement for livestock death losses in excess of normal that are caused by adverse weather events. This program does not have a precedent in my tenure with USDA offering coverage for livestock producers. Consequently, it is new to all of us - producers and FSA staff alike.

This program is based on the calendar year, and the deadline for filing claims is 30 days following the end of the year. For 2009, that is the end of January, 2010 which is coming up next week. Those who had losses late in 2009, then, will need to contact our office and complete their application by the end of this month.

Documentation of inventory numbers and death losses will be needed to complete an application --- our office staff can provide more information about these requirements. During 2010, losses should be reported and documented as they occur within 30 days, then final applications filed by the end of the year.

The other disaster program sign up currently in progress involves the Supplemental Revenue Assistance Payments program referred to as "SURE." This program is different than previous ones also. It is a revenue based disaster program rather than a yield-loss based program for the mechanically harvested crops. 0So, it covers wheat, corn, soybeans, hay, etc. without consideration for the grazing or livestock portions of an operation.

Also, since it is a revenue based comparison based on actual average prices, the marketing year for these crops must pass before the determination can be made whether or not a loss has occurred.

The sign up now for this program, then, is for the 2008 year. The sign up started as of Jan. 4 with no end date yet announced. The sign up, then, for 2009 will likely be a year from now.

SURE provides crop disaster assistance payments to eligible producers on farms that have incurred crop production or crop quality losses. The program takes into consideration crop losses on all crops grown by a producer on all farms in all counties. SURE provides assistance in an amount equal to 60 percent of the difference between the SURE farm guarantee and total farm revenue. The farm guarantee is based on the amount of crop insurance and Non-insured Crop Disaster Assistance Program (NAP) coverage on the farm. Total farm revenue takes into account the actual value of production on the farm as well as insurance indemnities and certain farm program payments.

To be eligible for SURE, producers must have suffered at least a 10 percent production loss on a crop of economic significance. In addition, producers must meet the risk management purchase requirement by either obtaining a policy or plan of insurance, under the Federal Crop Insurance Act or NAP coverage, for all economically significant crops.

Producers considered socially disadvantaged (generally minority producers), a beginning farmer or rancher, or a limited resource farmer may be eligible for SURE without a policy or plan of insurance or NAP coverage. Also note: for 2008 only, SURE coverage has been enhanced by the economic stimulus legislation elevating the coverage level for all applicants. Consequently, 2008 program benefits could be noticeably higher for qualifying applicants.

In addition to meeting the risk management purchase requirement, a producer must have a farming interest physically located in a county that was declared a primary disaster county or contiguous county by the Agriculture Secretary under a Secretarial Disaster Designation. Bourbon County and all surrounding counties are included in the required disaster designations for both 2008 and 2009, so will qualify for SURE consideration for both years.

If a Secretarial designation is not received in future years, individual producers may also be eligible for SURE if the actual production on the farm is less than 50 percent of the normal production on the farm due to a natural disaster. For SURE, a farm is defined as all crops in which a producer had an interest nationwide.

For more information on the new SURE program, please visit your local FSA county office or http://www.fsa.usda.gov. USDA is an equal opportunity employer, provider and lender.

Editor's Note: Doug Niemeir is the County Executive Director for the USDA/Farm Service Agency. He can be reached by emailing him at Douglas.Niemeir@ks.usda.gov