Introduction
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What is NAP?
Noninsured Crop Disaster
Assistance
Program
• Risk protection
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Application of Coverage
• You must make an application for NAP on
or before the application closing date for
the crop/commodity in the county.
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Application of Coverage (Continued)
• Eligible producers must apply for coverage
of noninsurable crops using Form CCC-471,
“Application for Coverage” and pay the
applicable service fee at the FSA office
where their farm records are maintained.
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Application of Coverage (Continued)
For basic CAT coverage
• The service fee is the lesser of :
 $250 per crop,
 $750 per producer per administrative county,
not to exceed a total of
$1875 for a producer with farming interests in
multiple counties.
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Application of Coverage (Continued)
• Basic CAT (Catastrophic) level is figured as
50% of the yield and 55% of the price.
Acres x share x (50%) yield x (55%) price
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Service Fee & Premium
FSA will waive NAP service fees and reduce
buy-up premiums by 50% for:
• Beginning farmers (BF)
• Limited resource farmers (LR)
• Socially disadvantaged farmers (SDA)
The completion of form CCC-860 is required.
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Service Fee
FSA will waive NAP service fees for:
• Beginning farmers (BF)
• Limited resource farmers (LR)
• Socially disadvantaged farmers (SDA)
The completion of form CCC-860 is required.
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Statutory Changes
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Buy-Up Coverage
In addition to CAT-level coverage, NAP will
offer buy-up coverage for the 2015 through
2018 crop years
Crops and grasses intended for grazing are
excluded from buy-up coverage
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Buy-Up Coverage (Continued)
Buy-up coverage levels:
Yield Level
50%
55%
60%
65%
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Price Level
100%
100%
100%
100%
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Buy-Up Coverage (Continued)
In addition to the service fee, producers who
elect buy-up coverage must pay a premium
equal to the lesser of:
• 5.25% of the guarantee
• Guarantee acres x share x yield x coverage
level (yield/price) x price x 5.25%
• 5.25% of the payment limit
• CAP is $125,000 x 5.25% or $6563
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Buy-Up Coverage (Continued)
FSA will reduce buy-up premiums by 50% for:
• Beginning farmers (BF)
• Limited resource farmers (LR)
• Socially disadvantaged farmers (SDA)
The completion of form CCC-860 is required.
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Buy-Up Coverage (Continued)
For value loss crops, buy-up coverage will be
based on the maximum dollar value for
which the producer requests coverage
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Buy-Up Coverage (Continued)
If the application closing date for a crop has
passed before publication of the NAP rule,
producers will have additional time to apply
for retroactive buy-up coverage for that crop
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Eligible Crops
Any commercial agricultural crop (excluding
livestock and their by-products), commodity or
acreage of a commodity grown for food or fiber,
and commercial or industrial crops for which
CAT or additional coverage (non-pilot) is not
available.
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Eligible Crops (Continued)
Additional eligible crops:
• Sweet sorghum
• Biomass sorghum
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Eligible Crops (Continued)
Expanded definition of industrial crops –
includes crops produced as a feedstock for:
• Renewable biofuel
• Renewable electricity
• Bio based products
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Eligible Crops (Continued)
Crops are ineligible if either type of coverage
is available under the Federal Crop Insurance
Act:
• CAT under section 508(b)
• Additional coverage under sections 508(c)
and 508(h) (excluding some pilot
programs)
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Acreage Reporting
Accurate and timely reporting
• COF’s will review acreage reporting data with the
producer to verify accuracy
• Producers must sign acreage report
• Accurate acreage reports ensure program
eligibility
• Inaccurate acreage reports can result in loss of
benefits or improper payments
• Total cropland report, all cropland on a farm must
be reported to ensure program eligibility
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Acreage Reporting (Continued)
• Acreage reports must be filed by the final
acreage reporting date
• Exceptions
• If crop is not planted by the final reporting
date the producer has 15 calendar days after
planting is completed
• Producer acquires a lease after the final
reporting date – producer has 30 calendar
days after acquiring the lease to report
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Limitations and Eligibility
• $125,000 payment limitation
• $900,000 AGI provision
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Notice of Loss
A Notice of Loss should be filed timely.
• during the coverage period
• within 15 days the loss becomes apparent
Producers of hand harvested crops shall notify
COF within 72 hours and file NOL within 15 days
of earlier of occurrence or loss becomes
apparent
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Eligible Causes of Loss
• Loss must occur from an eligible cause of
loss during the coverage period before or
during harvest
• Eligible causes of loss apply the same to
basic and buy-up coverage.
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Damaging Weather
•
•
•
•
•
•
•
Drought
Hail
Excessive moisture
Freeze
Tornado
Hurricane
Excessive wind
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Adverse Natural Occurrence
•
•
•
•
Earthquake
Flood
Volcanic eruption
Any combination of the above
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Ineligible Causes of Loss
Some examples:
• Losses that are not direct result of an
eligible cause of loss in the coverage period
• Failure to reseed or replant when
practicable
• Failure to follow good farming practices
• Water contained or released
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Application for Payment
• Producer signs after the loss is filed and
worked by an approved loss adjuster
• No later than 60 days after normal harvest
date
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Production
The production reporting date (PRD) is the
later of the acreage reporting date for the
crop in the subsequent year or 60 days after
the normal harvest date.
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Buy-Up Example
• Forage Sorghum
– 100 Acres
– 2 T Approved Yield
– 2014 Price $137.33
– 100% share
– Not SDA/LR/BF
– Selected 60/100 Coverage Level
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Buy-Up Example (Continued)
• Premium Calculation
– Yield x Coverage Level x Price x Acres x Share =
Guarantee (used only for calculation of
premium)
– Guarantee x .0525 = Premium
• So:
– 2T x .60 x $137.33 x 100 Ac x 100% = $16,480
– $16,480 x .0525 = $865 Premium for Buy-Up
– The $250 Administrative Fee also applies.
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Buy-Up Example (Continued)
• Harvests 1 ton of Forage Sorghum. There
was an eligible cause of loss.
– 2 T Yield x 60% coverage level = 1.2 T coverage
– 1.2 T coverage – 1 T harvest = .2 T loss
– .2 T loss x $137.33 x 100 Ac x 100% share =
$2,747 NAP payment.
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Buy-Up Example (Continued)
• If the same producer selected CAT only:
– $250 administrative fee is only cost.
• With the same 1 T harvest:
– 1 T coverage (50%) – 1 T harvest = no covered
loss. Zero Payment
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Questions???
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