Author: Lee Wideman
Date: 8/21/2008 6:14 pm EDT
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Wideman Insurance — Memorandum- August 19, 2008
RE: Ag Producers Eligibility for Supplemental Revenue Assurance Payments (SURE), Livestock Forage Disaster Program (LFP), Tree Assistance Program (TAP), and Emergency Assistance Livestock, Honeybees and Farm-Raised Fish Program (ELAP) provided by the Farm Service Agency
While preparing the training information for the 2009 reinsurance year, we are attempting to include information on new FSA programs which came about through the new farm bill. The programs referenced above are designed to provide benefits to eligible producers who suffer production/quality losses. These are the new disaster programs and actually began in 2008. You may have seen where FSA allowed for a "buy-in" to make producers eligible for these programs since the deadlines for purchasing crop insurance and NAP has already passed. The buy-in only applied to 2008.
We wanted to bring to your attention our understanding of the requirement to insure ALL acreage of ALL insured crops for 2009 to ensure eligibility for these new programs. Since the 2009 reinsurance year began July 1, 2008, the 2009 crop year will include crops with MPCI sales closing dates on or after July 1, 2008. We strongly suggest that you verify with your FSA office the rules and requirements to insure all crops prior to the MPCI sales closing dates passing.
'There may be several crops producers grow which have not been insured in the past such as forage production, oats, barley, rye, wheat, cabbage, onions, early citrus varieties and areas of pasture and rangeland simply because the farmer chose not to insure them. Not doing so in 2009 could jeopardize their eligibility for the new disaster programs for all of their crops. For instance, producers with crops such as cabbage where the MPCI sales closing date has already passed may have a problem qualifying for 2009. A determination on this issue will need to be made by the FSA.
Producers may be required to carry insurance on crops they haven't had to in the past in order to be eligible for the programs listed above.
We will be sharing the information that we have on these FSA programs at our upcoming 2009 Fall Agent Update Meetings. Many of the details are not known at this time as the ink is barely dry on the 2008 Farm Bill. The FSA is scrambling to write and interpret procedure(s) from the new farm bill, but we encourage you to contact your local FSA office for further information.
Thanks,
Lee
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