Notice of Funds Availability (NOFA); Noninsured Crop Disaster Assistance for 2012 Fruit Crop Losses
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SUMMARY:
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SUPPLEMENTARY INFORMATION: NAP is operated by the
NAP coverage is limited to crops other than livestock that are commercially produced for food and fiber, and to other specific crops (christmas trees, turfgrass sod, aquaculture including ornamental fish, ornamental nursery, etc.) for which catastrophic risk protection plan of insurance under 7 U.S.C. 1508(b) is not available through the
NAP coverage is not automatic; producers must apply for NAP and pay a service fee at their FSA county office to obtain coverage, as well as meet certain other eligibility criteria. Information about the service fee is discussed below in the Service Fee section. Catastrophic level NAP covers the amount of losses due to low yield greater than 50 percent of expected production. As specified in current regulations in 7 CFR part 1437, NAP payments for low yield loss are calculated based on the loss of an eligible NAP crop in excess of 50 percent of expected production (guarantee) times 55 percent of the average market price for the crop. This means that the maximum payment for a total loss under NAP catastrophic coverage is 27.5 percent (50 percent of 55 percent).
The 2014 Farm Bill adds the availability of higher coverage levels for most crops (other than those grown for grazing) and retroactive coverage for 2012 fruit losses, as described in more detail in the following section of this document. The 2014 Farm Bill does not change the basic scope of NAP as a risk management program for crops not otherwise covered by a catastrophic risk protection plan of insurance.
2014 Farm Bill Changes to NAP
The 2014 Farm Bill modifies NAP to permit producers an opportunity to obtain additional risk management coverage ranging from 50 to 65 percent of production, in 5 percent increments, and for 100 percent of the average market price. This "additional assistance" coverage is discussed below in the Additional Assistance Coverage Levels for 2012 Fruit Losses section. As specified in the 2014 Farm Bill, the premium for this additional level of coverage is 5.25 percent times the level of coverage. The premium is discussed below in the Premium Calculation section. The coverage levels and premium calculations are specified in the 2014 Farm Bill and FSA has no discretion to offer different coverage levels or premiums.
As noted earlier, the 2014 Farm Bill authorized NAP assistance retroactively for losses to 2012 fruit crops grown on trees and bushes in counties that had Secretarial disaster designations for frost or freeze for the 2012 crop year. This additional 2012 NAP assistance is being provided under NAPFF. Where the 2014 Farm Bill was silent with respect to NAPFF, FSA made a discretionary decision to make all producers of eligible fruit crops with eligible losses in disaster counties in 2012 eligible for NAPFF, whether or not they purchased 2012 NAP coverage during the original application period for 2012. Any producers of NAP eligible fruit crops intended for harvest as fresh or processed fruit or juice fruit (and not fruit for intended uses of seed or root stock), without regard to whether or not the producer previously obtained 2012 NAP coverage on eligible fruit crops in eligible counties, will be able to apply for NAPFF assistance for eligible causes of loss to these fruit crops in eligible counties.
Definitions
NAPFF will be implemented using the existing regulations for NAP (7 CFR part 1437), including the definitions in those regulations.
The following definitions from similar disaster assistance programs also apply to this NOFA:
* "Beginning farmer" and "socially disadvantaged farmer" as defined in 7 CFR 1416.102, and
* "Bush," "tree," and "vine" as defined in 7 CFR 1416.402.
The following terms are specifically defined for NAPFF. They are similar to the way these terms are defined in the existing NAP and disaster assistance regulations, but are revised to reflect that NAPFF is only available for 2012 losses:
"Limited resource farmer" means a farmer or rancher who is both the following:
(a) A person whose direct or indirect gross farm sales did not exceed
(b) A person whose total household income was at or below the national poverty level for a family of four in each of the same two previous years referenced in paragraph (a) of this definition.
Limited resource producer status may be determined using the USDA Limited Resource Farmer and Rancher Online Self Determination Tool located on the Limited Resource Farmer and Rancher Web site at http://www.lrftool.sc.egov.usda.gov/.
For legal entities requesting to be considered Limited Resource Farmer or Rancher, the sum of the gross sales and household income must be considered for all members.
"Crop year" means the calendar year in which the crop is normally harvested or in which the majority of the crop would have been harvested. For the purpose of NAPFF assistance, the eligible crop year is 2012.
The 2014 Farm Bill sections on AGI and payment limits refer to "benefits" from FSA and CCC programs. (Most FSA and CCC program benefits are cash payments, but some programs provide non-cash benefits such as technical assistance and subsidized risk management products.) This NOFA uses the terms "assistance," "coverage," and "payments" to refer to NAP and NAPFF benefits. For NAP, in general, the period to apply for coverage ends before the crop is planted and coverage begins at least 30 days after application for coverage. Producers who had previously purchased NAP may be eligible to also receive assistance under NAPFF. For NAPFF only, assistance may be obtained retroactively by producers who did not previously apply for 2012 NAP coverage. In the case of NAPFF, assistance will provide payments for known losses.
Eligible Losses
NAPFF assistance is available only for losses that meet specific eligibility criteria and requirements established by the 2014 Farm Bill. All eligibility requirements described below for eligible fruit crops, eligible counties, eligible causes of loss, and eligible coverage period must be met in order to receive payment.
NAPFF assistance is available only for losses to fruit crops grown on a tree or bush. The following fruit crops are eligible: Apples, apricots, aronia, atemoya, avocados, bananas, blueberries, breadfruit, caimito, carambola (starfruit), cherimoya, cherries, coconuts, currants, dates, elderberries, figs, gooseberries, grapefruit, guanabana (soursop), guava, guavaberry, huckleberries, jack fruit, jojoba, jujube, kiwifruit, kumquats, lemons, limes, longan, lychee (litchi), mangos, mangosteen, mayhaw berries, mesple, mulberries, nectarines, noni, olives, oranges, papaya, peaches, pears, persimmons, pineapple, plantain, plumcots, plums, pomegranates, prunes, pummelo, quinces, rambutan, sapodilla, sapote, tangelos, tangerines, and wax jamboo fruit.
Fruit crops grown on canes or vines are not eligible. This requirement is statutory and FSA has no discretion to extend NAPFF assistance to crops that do not meet this requirement. To administer NAPFF assistance, FSA is using the definitions of "bush," "tree," and "vine" as specified in the regulations for the
--This is a summary of a
Notice.
Citation: "79 FR 42493"
Federal Register Page Number: "42493"
"Notices"
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