Mar 6, 2015
Growers: Purchase crop insurance before March 15 deadline

Michigan USDA Farm Service Agency (FSA) Executive Director Christine White urges producers who want to purchase coverage through the Noninsured Crop Disaster Assistance Program (NAP) to do so before the sales closing date of March 15.

NAP provides financial assistance to producers of noninsurable crops when low yields/grazing loss, loss of inventory or prevented planting occur due to natural disasters including drought, freeze, hail, excessive moisture, excessive wind or hurricanes.

The Agricultural Act of 2014, better known as the Farm Bill, allows producers to choose higher levels of NAP coverage. Previously, the program offered coverage at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. Producers can now choose higher levels of coverage, up to 65 percent of their expected production at 100 percent of the average market price.

The crops that are not insurable have a NAP application closing date of March 15.

“NAP allows producers to protect their investment by purchasing coverage for noninsurable crops,” White said. “Natural disasters are an unavoidable part of farming and ranching and FSA programs like NAP and the ability to buy higher levels of protection help producers recover when they experience a loss.”

In order to meet eligibility requirements for NAP, crops must be noninsurable, commercially-produced agricultural commodity crops for which the catastrophic risk protection level of crop insurance is not available.

Eligible producers can apply for coverage using form CCC-471, “Application for Coverage.” Producers must file the application and pay a service fee by the March 15 deadline. The 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.

Beginning, limited resource and traditionally underserved farmers may request a waiver of the service fee and a 50 percent premium reduction when the application for coverage is filed.

For more information on sales closing dates and NAP, contact the local FSA office.

LAC training

FSA is seeking self-motivated individuals, 18 and older, for training sessions to become certified Loss Adjuster Contractors (LAC). All certified LAC’s perform required duties under annual contract agreement with the FSA State Executive Director. Individuals successfully completing required Phase I and Phase II trainings and satisfactory field trainings may be eligible to perform loss adjustment as defined through NAP. For more information on becoming a certified Loss Adjuster for FSA, call Production Adjustment Chief Eric Fischer at 517-324-5107 between 8 a.m. and 3 p.m. weekdays.

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