Orlando Harmon
The US Department of Agriculture (USDA) provides agricultural disaster assistance to eligible producers and dairy operations through the Farm Service Agency (FSA) and the Commodity Credit Corporation (CCC). This includes the Wildfire and Hurricane Indemnity Program Plus (WHIP+), which offers payments to producers to offset losses from hurricanes, wildfires, and other natural disasters. To be eligible for USDA programs and crop insurance, producers must meet conservation compliance by having a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026) on file. Additionally, producers who receive payments through WHIP+ are required to purchase crop insurance for the next two consecutive years to avoid repaying their WHIP+ payments. The Noninsured Crop Disaster Assistance Program (NAP) is another form of disaster assistance that provides basic coverage for crops not insured through private crop insurance. To receive payments for losses under NAP, producers must complete and file form CCC-576 within the specified timeframe.
| Characteristics | Values |
|---|---|
| FSA-CCC payments | Financial assistance to crop producers who experienced quality losses caused by qualifying disaster events in the 2018 and 2019 crop years |
| Payments to eligible producers and dairy operations for milk through the Wildfire and Hurricane Indemnity Program Plus (WHIP+), the On-Farm Storage Loss Program, and the Wildfire and Hurricane Indemnity Program | |
| Support to producers who were prevented from planting eligible crops in 2019 due to various natural disaster events | |
| $2.9 billion in combined payments out of the 2018 Wildfire and Hurricane Indemnity Program Plus (WHIP+) and remaining 2017 Wildfire and Hurricane Indemnity Program (WHIP) appropriations | |
| $1.223 billion in indemnities for 2018 and 2019 eligible disasters | |
| $535 million for a 10 to 15 percent expansion of existing coverage on prevented planting | |
| Increased payment percentage for historically underserved producers, including beginning, limited resource, and veteran farmers and ranchers | |
| Crop Insurance | Required for producers receiving QLA payments for the next two available crop years at the 60% coverage level or higher |
| Required for producers who qualified for a payment at FSA by having a qualifying disaster during the 2020 and 2021 crop years, for the next 2 crop years | |
| Required for producers who received payments for crop losses and prevented planting losses through WHIP+ | |
| Required for producers who received payments through the Emergency Relief Program (ERP) | |
| Required for producers who apply for the ARC program at FSA | |
| Required for producers with crops covered by federal crop insurance | |
| Required for producers who are unable to obtain adequate USDA coverage for their crops |
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What You'll Learn
The Wildfire and Hurricane Indemnity Program Plus (WHIP+)
The WHIP+ program is administered by the U.S. Department of Agriculture (USDA) through its Farm Service Agency (FSA). The USDA announced the opening of WHIP+ signup on March 23, 2020, for producers impacted by drought or excess moisture, as well as sugar beet growers. The program is designed to help producers recover from losses related to natural disasters in 2018 and 2019.
The WHIP+ payment is calculated based on several factors, including the expected value of the crop, the value of the harvested crop, the level of insurance coverage (reflected in the WHIP factor), a payment factor, and any insurance payments received. The WHIP factor varies depending on the level of insurance coverage obtained by the producer, with higher coverage levels resulting in a higher WHIP factor. The payment factor is also adjustable by state and commodity, reflecting the decreased costs incurred by producers when the crop was not harvested or planted.
Both insured and uninsured producers were eligible to apply for WHIP+. However, all producers who received payments for crop losses and prevented planting losses were required to purchase either crop insurance or Noninsured Disaster Assistance Program (NAP) coverage. The coverage requirement was set at the 60% level or higher for the two crop years following the year for which WHIP+ payments were distributed. Producers who received WHIP+ payments and failed to purchase crop insurance for the next two consecutive years would be required to repay their WHIP+ payment.
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The Emergency Relief Program (ERP)
The first phase of ERP assistance provided payments to producers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters in 2020 and 2021. Payments were based on existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program (NAP) data already submitted to the FSA. Producers with Federal crop insurance coverage administered by the Risk Management Agency (RMA) and the Federal Crop Insurance Corporation (FCIC) must contact their crop insurance agent to file a Notice of Loss in the event of crop damage. Those who purchased crop insurance will be compensated for covered losses.
To qualify for ERP, eligible producers must have experienced a qualifying disaster during the 2020 and 2021 crop years. Additionally, they are required to carry at least 60% coverage through crop insurance for the next two crop years. Producers who receive ERP payments are mandated to purchase crop insurance or NAP coverage for the subsequent two available crop years. The ERP payment percentage for historically underserved producers, including beginning, limited resource, and veteran farmers and ranchers, is increased by 15% for crops with insurance coverage or NAP.
The second phase of ERP, introduced in 2022, continues to provide assistance to producers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters. This phase utilizes Federal Crop Insurance or NAP data to determine eligibility and the extent of assistance.
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Noninsured Crop Disaster Assistance Program
The Noninsured Crop Disaster Assistance Program (NAP) is a US government initiative that provides financial protection to producers of agricultural commodities who have suffered losses due to natural disasters. To be eligible for the program, producers must not have crop insurance and must have suffered a loss due to damaging weather (drought, freeze, hail, excessive moisture or wind, hurricanes), natural events (earthquakes, floods), or related conditions (excessive heat, plant disease, volcanic smog, insect infestations). To apply, producers must contact their local FSA office, as the specific crops that qualify for NAP coverage vary by county. Producers must also pay any applicable service fees and file by the application closing date set by their state FSA committee.
NAP offers two levels of coverage: basic and buy-up. Basic coverage is equivalent to a catastrophic level risk protection plan, where the loss exceeds 50% of the expected yield at 55% of the average market price. Buy-up coverage, which requires a service fee plus a premium, offers higher levels of protection.
It is important to note that the Noninsured Crop Disaster Assistance Program is not the only form of disaster assistance available to farmers. The USDA offers additional programs, such as the Wildfire and Hurricane Indemnity Program Plus (WHIP+), which provided payments to producers to offset losses from hurricanes, wildfires, and other qualifying natural disasters in 2018 and 2019. To be eligible for certain programs, producers may need to meet conservation compliance requirements by having a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026) on file. Additionally, producers with crop insurance typically report losses through their Approved Insurance Provider, who then notifies the USDA.
The specific requirements and processes for obtaining disaster assistance can vary depending on the program and individual circumstances. It is recommended that producers contact their local USDA Service Center or visit the DisasterAssistance.gov website for more information on the Noninsured Crop Disaster Assistance Program and other available resources.
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Eligibility for USDA programs
To be eligible for USDA programs and crop insurance, you must meet certain requirements. Firstly, you need to meet conservation compliance by having a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026) on file, which is typically only done once. Additionally, for crop insurance and disaster assistance, you must report your planted crops through your Approved Insurance Provider, from whom the USDA will obtain the information. If you don't have crop insurance, you can report your crops to the USDA using the Report of Acreage (FSA-578) form for both spring and fall-seeded crops.
In terms of financial requirements, there are income restrictions for USDA eligibility. For many programs, your adjusted gross income must not exceed $900,000. USDA loans, also known as Rural Development loans, are specifically designed for low- to medium-income borrowers. The income limits vary depending on household size; for 2025, a household of 1-4 people must have an income below $112,450, while a household of 5-8 people must not exceed $148,450. These loans promote affordable homeownership in rural areas, so property location is a crucial factor in determining eligibility. The USDA updates property eligibility areas annually to account for population changes, and you can use their interactive map to check if a specific address falls within an eligible rural area.
To apply for USDA loans, you can utilize your farmers.gov account to view and apply for FSA loans. You can also connect with the Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees at USDA Service Centers for assistance with your business needs. After submitting your loan application, your lender will send an appraiser to assess the home's value, condition, and eligibility. They will also verify your income eligibility and ensure the property meets safety and livability standards.
It's important to note that specific USDA programs may have additional eligibility forms and requirements. For example, if you've signed up for the ARC program at FSA, you cannot simultaneously sign up for the Supplemental Coverage Option through crop insurance. Additionally, certain programs like the Quality Loss Option and the Emergency Relief Program require participants to purchase crop insurance for a specified number of years after receiving financial assistance for disaster-related losses.
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Disaster relief for dairy operations
The Farm Service Agency (FSA) and the Commodity Credit Corporation (CCC) are part of the US Department of Agriculture (USDA). The USDA provides agricultural disaster assistance to eligible producers and dairy operations for milk through the Wildfire and Hurricane Indemnity Program Plus (WHIP+). This program was expanded in 2019 to cover losses from Tropical Storm Cindy and losses of peach and blueberry crops in 2017 and 2018 due to extreme cold and hurricane damage.
The WHIP+ program provided payments to producers to offset losses from hurricanes, wildfires, and other qualifying natural disasters that occurred in 2018 and 2019. To be eligible for a WHIP+ payment, producers were required to purchase either crop insurance or NAP coverage for the next two available crop years. Producers who fail to do so will be required to pay back their WHIP+ payment.
The Noninsured Crop Disaster Assistance Program (NAP) provides basic coverage for non-insurable crops. Producers must apply for coverage at their local FSA office and pay any applicable service fees.
The Livestock Indemnity Program (LIP), Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP), and the Livestock Forage Disaster Program (LFP) are other programs funded by the CCC and administered by the FSA that cover grazing and livestock losses.
The FSA also offers loans and programs to help farmers recover from disasters. Disaster assistance programs under the Biden Administration's USDA have experienced significant delays in providing relief to farmers.
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Frequently asked questions
FSA stands for Farm Service Agency and CCC stands for Commodity Credit Corporation.
FSA-CCC payments are payments made to eligible agricultural commodity producers as part of agricultural disaster indemnity programs.
No, FSA-CCC payments are not crop insurance. However, they are related to crop insurance in that they are a form of financial assistance for agricultural producers in the event of a disaster that causes crop losses.
