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USDA announced last week that producers who would otherwise be ineligible for the new disaster assistance programs, SURE, can become eligible by requesting a waiver and paying a fee. In addition, senators introduced legislation for farmers to receive advance disaster payments.
The 2008 Farm Bill was not finalized until deadlines had passed to sign up for crop insurance, required to participate in the new program. Because of that, USDA is offering a one-time waiver in exchange for a "buy-in fee," which a press release said would equal the applicable 2008 non-insured crop disaster assistance (NAP) coverage fees or the catastrophic risk protection plan fees for the land in question.
The buy-in fee is due no later than Sept. 16, 90 days after the date of enactment of the 2008 Farm Bill. Those who do not carry the proper crop insurance AND do not pay the buy-in fee will not be eligible for disaster assistance.
The buy-in fee for 2008 eligibility only for either the catastrophic risk protection insurance (CAT) or NAP is $100 per crop, but not more than $300 per producer per administrative county, or $900 total per producer for all counties less any previously paid fees for CAT and/or NAP.
Producers can contact their local administrative FSA County Office to file the application for waiver and pay the applicable fees.
The applicable buy-in form must be completed and applicable fees paid by Sept. 16, 2008.
Payment of the applicable fees will allow the producer to be eligible for benefits for losses under Supplemental Revenue Assistance Payments (SURE) Program, Livestock Forage Disaster Program (LFP), Tree Assistance Program (TAP), and Emergency Assistance Livestock, Honeybees and Farm-Raised Fish Program (ELAP).
Every producer whose crops, including grazing lands, are not fully covered by crop insurance or NAP may take advantage of this one-time opportunity. Those who miss this opportunity will not be eligible for disaster assistance. Producers are also reminded that the payment of the applicable buy-in fee does not afford the producer crop insurance or NAP coverage; it only affords eligibility for the 2008 disaster programs.
Click here for the full USDA release on the buy-in waiver.
Fund availability
USDA has said funds from the new program, dubbed "SURE" for Supplemental Revenue Assistance Payments Program, won't likely be available until next year due to the rulemaking process and technology issues.
Thursday night (July 10 U.S. Senators Chuck Grassley, R-Iowa, and John Thune, R-S.D., introduced a bill (S. 3251) which would ensure eligible farmers suffering crop losses would receive advance disaster payments from the USDA in the calendar year crop losses occur.
"When the Finance Committee wrote the Disaster Trust Fund provision, it was always our intent that USDA would be able to give advance payments. It's hard to believe that USDA wouldn't use the discretion we gave them to help out farmers when they need it most. I know it's a little more work to make advance payments, but that's no excuse to leave farmers hanging who just had their homes and their livelihoods washed away by floods," Grassley said.
"USDA officials have publicly stated that USDA does not have authority to issue advance disaster payments, and they have also said that USDA is not in any hurry to begin drafting rules for the permanent disaster program," said Thune. "I strongly disagree and am taking no chances by introducing this bill today which specifically authorizes the Secretary of Agriculture to issue advance SURE disaster payments no later than December 31 of the year the disaster losses occurred. With skyrocketing chemical fertilizer, fuel, and other input costs resulting in record operating expenses, farmers should not have to wait until late 2009 for disaster assistance for 2008 crop disaster losses."
In addition to authorizing advance disaster payments, the bill also includes language that requires USDA to draft and publish regulations governing the 2008 Farm Bill authorized permanent disaster programs no later than November 15, 2008.
Under this legislation, the Secretary would be able to issue advance crop disaster payments of no less than 50% of projected final SURE payments. The remainder of the disaster payments would be issued once final crop losses are determined.
Policy is one of the most important issues facing farmers today, but often the most difficult to digest. Jacqui Fatka has a passion to decode the often difficult world of agricultural policy into terms understandable for today's ag players.
Fatka joined the Farm Progress team as E-Content Editor in August 2003 after graduating from Iowa State University. Prior to full-time employment with Farm Progress, she interned at Wallaces Farmer magazine, Iowa Sen. Chuck Grassley's press office and the Iowa Pork Producers Association and freelanced for National Hog Farmer. She also worked as a public relations consultant with Iowa Industries for the Future, an effort to bring together major players in the biorenewables industry.
Currently Fatka is a staff editor at a sister publication, Feedstuffs. For Farm Futures she regularly tells the story of ongoing agricultural policy changes. Her byline can also be found on management profiles.
Fatka grew up on a grain and livestock farm near Atlantic, Iowa. She currently lives in central Ohio with her husband Eric.
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