Producers urged to consider NAP risk protection coverage

The USDA Farm Service Agency (FSA) encourages producers to review available USDA crop risk protection options, including federal crop insurance and Noninsured Crop Disaster Assistance Program (NAP) coverage, before the crop deadline of Dec. 1. Federal crop insurance covers crop losses from natural adversities such as drought, hail and excessive moisture. NAP covers losses from natural disasters on crops for which no permanent federal crop insurance program is available.

The following crops have a NAP application deadline of Dec. 1: Native and improved grasses, clover, grapes and pecans.

Producers can determine if crops are eligible for federal crop insurance or NAP by visiting the RMA website. NAP offers higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price.

Producers of organics and crops marketed directly to consumers also may exercise the "buy-up" option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production.

NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production.

For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1, 950 for a producer with farming interests in multiple counties. Beginning, underserved, veterans and limited resource farmers are now eligible for free catastrophic level coverage.

Federal crop insurance coverage is sold and delivered solely through private insurance agents.

Agent lists are available at all USDA Service Centers or at USDA's online Agent Locator.

Producers can use the USDA Cost Estimator to predict insurance premium costs.

For more information on NAP, service fees, sales deadlines, producers should contact their county USDA Service Center or visit fsa.usda.gov.

Qualified veteran farmers or ranchers are eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria.