Noninsured Assistance Program
Producers who grow a crop that is currently not eligible for crop insurance may be eligible for a direct payment under the Farm Service Agency’s noninsured assistance program (NAP). NAP has permanent authority under the Federal Crop Insurance Reform Act of 1994 and was designed to replace ad-hoc farm disaster legislation that was enacted nearly every year between 1988 and 1993. For a producer of an noninsured crop to become eligible for a payment, area-wide losses for that crop must be at least 35% of normal yields. Once the 35% area-wide threshold is reached, an individual producer must then experience a minimum crop loss of 50%. A noninsured producer then receives a payment comparable to an insured producer under catastrophic crop insurance coverage — 60% of the market price on losses in excess of 50%. A producer of a noninsured crop is subject to a payment limit of $100,000 per person and is ineligible for a payment if the producer’s qualifying gross revenues exceed $2 million.
Selected Noninsured Assistance Program links:
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