Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
2/8/99
Contacts:
William Edwards, Extension Economics, (515) 294-6161
Treva Blumenshine, Extension Communication Systems, (515)
294-5672
Disaster Payments Available from USDA
AMES, Iowa -- The U.S. Department of Agriculture (USDA) has announced details of a disaster assistance program for crop producers who suffered severe production losses in 1998, according to William Edwards, Iowa State University Extension economist.
The production losses must have been caused by natural perils, with losses exceeding 35 percent of normal production. Normal production is measured by proven yield history provided for crop insurance coverage or county data collected by the National Agricultural Statistics Service. Assistance is available for both insured and uninsured crops, including those for which no crop insurance coverage is offered, according to Edwards.
For crops that were insured in 1998, including catastrophic level coverage, losses in excess of 35 percent will be paid at the rate of 65 percent of the indemnity prices set for Multiple Peril Crop Insurance (MPCI), according to Edwards. "For corn and soybeans, the payment rates will be $1.69 per bushel and $3.90 per bushel, respectively. Disaster payments will be in addition to any crop insurance indemnity payments already received," he said.
For crops that were not insured or not eligible for insurance the payment rates will be only 60 percent of the MPCI prices, or $1.56 for corn and $3.60 for soybeans. "In addition, uninsured producers who receive disaster payments will be required to purchase crop insurance coverage for the next two years," he said.
If 1998 production information for a loss payment has been submitted to a crop insurance agent, no further documentation will be required by the Farm Service Agency (FSA). Otherwise, proof of production must be submitted to FSA.
Alternatively, farmers who have received a crop insurance indemnity payment on at least one crop in three of the past five years may be eligible for an additional payment equal to 25 percent of the past insurance payments, according to Edwards. "Producers can receive the larger of this payment or a disaster payment for 1998 crops, but not both. A similar program is available for crops that are not eligible for crop insurance coverage," he said.
Producers can apply for crop disaster assistance payments at their county FSA office. If the total value of payments requested exceeds the national appropriation, all payments will be reduced proportionately. For more information, contact your local ISU Extension county office.
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