Producers Urged to Seek Risk Protection Coverage before Crop Sales Closing Deadlines

February 28, 2020
By:

USDA’s Farm Service Agency (FSA) reminds producers who wish to purchase crop loss protection, for non-insurable crops for the 2020 crop year, of the March 16, 2020 final sales closing date for the following crops:

green beans sweet corn tomatoes potatoes okra squash peas
pumpkins peppers watermelons cucumbers cantaloupes hemp

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 2018 Farm Bill authorizes additional coverage levels ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price. Additional 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 must apply for coverage using form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office. The application and service fee must be filed by the application closing date. For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950. Producers can elect increases coverage for additional premiums.

Beginning, limited resource, socially disadvantaged and qualifying veterans are eligible for a waiver of the service fee and a 50 percent premium reduction when they file form CCC-860. A “beginning farmer” is defined as a person who has not operated a farm for more than 10 years, and materially and substantially participates in the operation. For 2020, in DeKalb and Cannon counties, a “limited resource farmer” is defined as having gross farm sales less than or equal to $180,300 per year in each of the tax years 2017 and 2018 and less than $27,974 (Cannon Co.) or $25,750 (DeKalb Co.)in total household adjusted gross income each tax year 2017 and 2018. A “socially disadvantaged farmer” is defined as a farmer who is a member of groups such as: American Indians, Alaskan Natives, Asians, Asian Americans, Blacks, African Americans, Native Hawaiians, Pacific Islanders, Hispanics, and Women. A “veteran farmer” is defined as a farmer who has served in the Armed Forces and has operated a farm for less than 10 years, or first obtained status as a veteran during the most recent 10-year period.

Producers should report crop acreage shortly after planting (early in the risk period) to ensure reporting deadlines are not missed and coverage is not lost. In addition, producers must annually provide the following production information: the quantity of all harvested production of the crop in which the producer held an interest during the crop year; the disposition of the harvested crop, such as whether it is marketable, unmarketable, salvaged or used differently than intended; and verifiable or reliable crop production records (when required). The NAP crop year 2020 acreage reporting deadlines for Tennessee are as follows:

July 15, 2020: sweet corn, tomatoes, potatoes, okra, squash, pumpkins, peppers,
watermelons, cucumbers, cantaloupes, peas

August 15, 2020: green beans (1st and 2nd plantings), hemp

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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