Sales Closing Date for Pasture and Hay Loss Protection Approaching

February 9, 2019
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USDA’s Farm Service Agency (FSA) reminds producers of hay and pasture crops that February 15, 2019 is the final sales closing date to purchase a Non-Insured Crop Disaster Assistance Program (NAP) policy.

NAP provides catastrophic level (CAT) coverage based on the amount of loss that exceeds 50 percent of expected production at 55 percent of the average market price for the crop. Additional coverage levels ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price may be elected by the application closing date. Producers who elect additional coverage must pay a premium in addition to the service fee. Crops intended for grazing are not eligible for additional coverage.

Eligible producers must apply for coverage using form CCC-471, “Application for Coverage,” and pay the applicable service fee by the application closing date. For all coverage levels, the NAP service fee is the lesser of $250 per crop or $750 per producer per administrative county, not to exceed a total of $1,875 for a producer with farming interests in multiple counties. Producers who elect additional coverage must also pay a premium equal to: the share of the crop times the number of eligible crop acres times the approved yield times the average market price times the 5.25% premium fee.

Beginning, limited resource, and underserved farmers are eligible for a waiver of the service fee and a 50 percent premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.” For 2018, in DeKalb and Cannon counties, a limited resource farmer/rancher is defined as having gross farm sales less than or equal to $177,300 per year in each of the tax years 2016 and 2017 and less than $25,100 in total household adjusted gross income each tax year 2016 and 2017.

For crop year 2019, hay or pasture producers should report their crop acreage by July 15, 2019 to have a timely filed crop acreage report.

When a crop or planting is affected by a natural disaster, a Notice of Loss (CCC-576) musts be filed within 15 calendar days of the: 1) natural disaster occurrence; 2) final planting date if your planting was prevented by a natural disaster; 3) date damage to the crop or loss of production becomes apparent.

For additional program details, contact the DeKalb/Cannon County Farm Service Agency, located at 647 Bright Hill Rd., or phone the office at 597-8225, extension 2.

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