Are you SURE?

The enrollment period for the 2010 Supplemental Revenue Assistance Payment Program, commonly called "SURE," is currently ongoing and will conclude on Friday, June 1. This is one of the "permanent" disaster program parts of the current farm bill. The program is actually ending as the current legislation is also ending this year, but it does cover 2010 and 2011. We are taking applications for 2010 right now. The 2011 sign up time will be a year from now.

SURE covers mechanically harvested crops. For us, that includes wheat, corn, soybeans, grain sorghum, hay, etc. Grazed crops are not included in this program. The Livestock Feed Program (LFP) does cover grazing, but Bourbon County did not meet the qualifying factors for either 2010 or 2011.

SURE is a revenue-loss program rather than a yield-loss program, so all crops on all farms in all counties are included in the program computations. Actual average prices are used in the analysis, too, accounting for the time-lag between harvest and when we are able to calculate SURE benefits.

To receive SURE payments, an eligible producer must have a qualifying loss. A qualifying loss means at least a 10 percent overall production loss affecting one crop of economic significance due to a disaster on a farm (in this case all farming interests) in a disaster county. Bourbon County, though not a "declared" county for 2010, is eligible as a contiguous county to a declared county. (Actually, counties on all four sides were declared disaster counties for 2010 -- Allen, Linn, Crawford and Vernon.)

To be eligible for SURE (once the loss levels are met), a producer must have obtained a policy or plan of insurance through the Federal Crop Insurance Corporation on insurable crops and obtained Noninsured Crop Disaster Assistance Program (NAP) coverage from the Farm Service Agency on crops not insurable through commercial means.

Note: Eligible farmers and ranchers who meet the definition of "socially disadvantaged, limited resource, or beginning farmer or rancher," do not have to meet this requirement.

SURE payments are based on 60 percent of the difference between the SURE disaster program guarantee and the total farm revenue. The SURE guarantee is determined by totaling the calculated guarantee for each crop on a producer's farm. For insured crops, the guarantee is based on the level of insurance coverage the producer elected. Higher levels of coverage result in higher crop guarantees. For NAP crops the guarantee is based on a formula that includes the yield, acreage and price factors.

The crop insurance and NAP coverage requirements include all crops of economic significance on the farm. An "economically significant" crop is one that contributes at least 5 percent of the expected revenue for a producer's farm.

Looking over a farm operation and coming to a conclusion of whether or not there is any potential SURE benefit we have found to be a very tricky estimation.

There have been some producers eligible for the 2010 benefits, and others have not been eligible. Consequently, those interested in having us "run the figures" should ask our office for a closer look at their 2010 farm business SURE possibilities.

In Bourbon County, call us at (620) 223-1880 or stop by 1515 S. Judson in Fort Scott.