Deadline for 2017 NAP Insurance Coverage Approaching

September 30, 2016 is the 2017 NAP Application Closing Date for Annual Fall-Seeded Crops, Perennial Forage and Grazing, Mixed Forage Crops including spring seeded Annual types of mixed forage, Rye, Speltz, Tritical, Wheat and Garlic.

NAP provides financial assistance to eligible producers when natural disasters cause catastrophic loss of production (low yield) or prevented planting of an eligible noninsurable crop by providing coverage equivalent to the catastrophic risk protection level of crop insurance. In the event of a natural disaster, 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. The 2014 Farm Bill authorized additional coverage levels ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price. This additional “buy-up” coverage must be elected by a producer 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 can apply for coverage at their local FSA office using form CCC-471, Application for Coverage. Producers must file the application and pay the applicable service fee on or before the application closing date for the applicable crop. 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 farmers or ranchers, limited resource producers, and underserved farmers, including minorities and women, 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.” If you have questions regarding beginning, limited resource, and underserved producer definitions and eligibility, please contact your local FSA office.

NAP is available on commercially-produced agricultural commodity crops for which the catastrophic risk protection level of crop insurance is not available. If the Risk Management Agency (RMA) offers coverage for a specific crop and intended use in the county, then NAP coverage is not available for that crop.