Agricultural Disaster Assistance
April 29, 2022
The U.S. Department of Agriculture (USDA) offers several
Agricultural Disaster Assistance
Updated December 12, 2023
(RS21212)
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Summary
The U.S. Department of Agriculture (USDA) offers programs to help farmers recover programs to help farmers recover
financially from natural disasters, including drought and floods. Most programs have permanent financially from natural disasters, including drought and floods. Most programs have permanent
Megan Stubbs
authorization, and one requires a federal disaster designation (the emergency loan program). authorization, and one requires a federal disaster designation (the emergency loan program).
Specialist in Agricultural
Most permanent programs receive mandatory funding amounts that are Most permanent programs receive mandatory funding amounts that are
“"such sums as necessarysuch sums as necessary
”
Conservation and Natural
" and are not subject to annual discretionary appropriations.and are not subject to annual discretionary appropriations.
Resources Policy
The federal crop insurance program offers subsidized policies designed to protect crop producers The federal crop insurance program offers subsidized policies designed to protect crop producers
from risks associated with adverse weather, as well as weather-related plant diseases and insect from risks associated with adverse weather, as well as weather-related plant diseases and insect
infestations and declines in commodity prices. Policies must be purchased prior to the planting infestations and declines in commodity prices. Policies must be purchased prior to the planting
season. Eligible commodities include most major crops and many specialty crops (including fruit, tree nut, vegetable, and season. Eligible commodities include most major crops and many specialty crops (including fruit, tree nut, vegetable, and
nursery crops), as well as forage and pastureland for livestock producers. Producers who grow a crop that is currently nursery crops), as well as forage and pastureland for livestock producers. Producers who grow a crop that is currently
ineligible for the federal crop insurance program may apply for the Noninsured Crop Disaster Assistance Program (NAP). ineligible for the federal crop insurance program may apply for the Noninsured Crop Disaster Assistance Program (NAP).
NAP provides a basic level of coverage (when loss exceeds 50% of expected production) NAP provides a basic level of coverage (when loss exceeds 50% of expected production)
as well asand options to purchase options to purchase
additional coverage. Similar to crop insurance, policies must be purchased prior to the planting season.additional coverage. Similar to crop insurance, policies must be purchased prior to the planting season.
There are four permanently authorized disaster programs for livestock and trees. Producers do not pay a fee to participate, There are four permanently authorized disaster programs for livestock and trees. Producers do not pay a fee to participate,
and advanced sign-up is not required. and advanced sign-up is not required.
The programs are as follows:1.
1. The Livestock Indemnity Program (LIP) provides payments to eligible livestock owners and contract growers at a The Livestock Indemnity Program (LIP) provides payments to eligible livestock owners and contract growers at a
rate of 75% of market value for livestock deaths in excess of normal mortality or livestock sold at a reduced sale rate of 75% of market value for livestock deaths in excess of normal mortality or livestock sold at a reduced sale
price caused by adverse weather, price caused by adverse weather,
from attacks by reintroduced wild animals, and disease.attacks by reintroduced wild animals, and disease.
2.
2. The Livestock Forage Disaster Program (LFP) provides payments to eligible livestock producers who have suffered The Livestock Forage Disaster Program (LFP) provides payments to eligible livestock producers who have suffered
a loss of grazed forage on drought-affected pasture or grazing land or on rangeland managed by a federal agency due loss of grazed forage on drought-affected pasture or grazing land or on rangeland managed by a federal agency due
to a qualifying fire.to a qualifying fire.
3.
3. The Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP) provides payments The Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP) provides payments
to producers of livestock, honey bees, and farm-raised fish as compensation for losses due to animal disease, adverse to producers of livestock, honey bees, and farm-raised fish as compensation for losses due to animal disease, adverse
weather, and feed or water shortages.weather, and feed or water shortages.
4.
4. The Tree Assistance Program (TAP) provides payments to orchardists/nursery tree growers to replant or rehabilitate The Tree Assistance Program (TAP) provides payments to orchardists/nursery tree growers to replant or rehabilitate
trees, bushes, and vines damaged by natural disasters.trees, bushes, and vines damaged by natural disasters.
Separately, for all types of farms and ranches, when Separately, for all types of farms and ranches, when
a county has been declared a disaster area by either the President or the the President or the
Secretary of AgricultureSecretary of Agriculture
declares a county a disaster area, producers in that county may become eligible for , producers in that county may become eligible for
USDA low-interest emergency disaster loanslow-interest emergency disaster loans
.
from USDA.
USDA has several permanent disaster assistance programs designed to help producers repair damaged land following natural USDA has several permanent disaster assistance programs designed to help producers repair damaged land following natural
disasters. It also has authority to issue payments to farmers with funds from the Commodity Credit Corporation (CCC) or disasters. It also has authority to issue payments to farmers with funds from the Commodity Credit Corporation (CCC) or
“Section 32.”"Section 32" for selected natural disaster related losses. Finally, USDA can use a variety of existing programs to address disaster issues as they arise, such as allowing Finally, USDA can use a variety of existing programs to address disaster issues as they arise, such as allowing
emergency grazing on land enrolled in the Conservation Reserve Program, offering assistance to prevent the spread of animal emergency grazing on land enrolled in the Conservation Reserve Program, offering assistance to prevent the spread of animal
disease, and providing indemnity payments for milk and milk product loss due to chemical or toxic contamination.disease, and providing indemnity payments for milk and milk product loss due to chemical or toxic contamination.
Since 2018, Congress has provided supplemental appropriations covering crop and livestock losses above those provided for Since 2018, Congress has provided supplemental appropriations covering crop and livestock losses above those provided for
in permanent programs. USDA has implemented this ad hoc assistance through various programs, in permanent programs. USDA has implemented this ad hoc assistance through various programs,
such as the Wildfires and Hurricanes Indemnity Program (WHIP), the On-Farm Storage Loss Program, the Milk Loss Program, and block grants with states. The Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43, Division B) authorizes $10 billion for production losses in 2020 and 2021, which USDA announced will be implemented through the Emergency Relief Program (ERP) and Emergency Livestock Relief Program (ELRP).
Economic and market losses related to the COVID-19 pandemic recently the Emergency Relief Program (ERP) and Emergency Livestock Relief Program (ELRP). In total, over $19 billion has been appropriated in FY2018 through FY2023 to cover agricultural losses in 2017 through 2022.
Economic and market losses are not considered eligible losses under the USDA disaster are not considered eligible losses under the USDA disaster
assistance programs. While USDA has provided some flexibilities through existing programs, most disaster assistance assistance programs. While USDA has provided some flexibilities through existing programs, most disaster assistance
programs require some level of production or physical loss from an unavoidable natural cause in order to trigger eligibility.programs require some level of production or physical loss from an unavoidable natural cause in order to trigger eligibility.
Congressional Research Service
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Contents
Federal Crop Insurance.................................................................................................................... 1
Noninsured Crop Disaster Assistance Program (NAP) ................................................................... 4
Supplemental Agricultural Disaster Assistance Programs ............................................................... 5
Livestock Indemnity Program (LIP) ......................................................................................... 5
Livestock Forage Disaster Program (LFP) ................................................................................ 6
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program
(ELAP) ................................................................................................................................... 7
Tree Assistance Program (TAP) ................................................................................................ 8
Emergency Disaster Loans .............................................................................................................. 8
Other USDA Assistance .................................................................................................................. 9
Emergency Agricultural Land Assistance Programs ............................................................... 10
Assistance to Prevent Spread of Animal Diseases .................................................................. 10
Dairy Indemnity Payment Program (DIPP) ............................................................................ 10
Permanently Appropriated Funds ............................................................................................. 11
Authority Under Existing USDA Programs ............................................................................ 12
Ad Hoc Assistance ......................................................................................................................... 12
Supplemental Appropriations .................................................................................................. 13
Emergency Livestock Relief Program (ELRP) ....................................................................... 14
Emergency Relief Program (ERP) .......................................................................................... 14
Wildfires and Hurricanes Indemnity Program Plus (WHIP+) ................................................ 15
Tables
Table 1. Select Permanent USDA Agricultural Disaster Assistance Programs ............................... 2
Table 2. Livestock Forage Program (LFP) ...................................................................................... 7
Contacts
Author Information ........................................................................................................................ 15
Congressional Research Service
link to page 5 link to page 8 Agricultural Disaster Assistance
The U.S. Department of Agriculture (USDA) offers several programs designed to help he U.S. Department of Agriculture (USDA) offers several programs designed to help
farmers and ranchers recover from the financial effects of natural disasters, including (1) farmers and ranchers recover from the financial effects of natural disasters, including (1)
T federal crop insurance, (2) the Noninsured Crop Disaster Assistance Program (NAP), (3) federal crop insurance, (2) the Noninsured Crop Disaster Assistance Program (NAP), (3)
livestock and fruit tree disaster programs, and (4) emergency disaster loans for both crop and livestock and fruit tree disaster programs, and (4) emergency disaster loans for both crop and
livestock producers. All have permanent authorization, while the emergency loan program is the livestock producers. All have permanent authorization, while the emergency loan program is the
only one requiring a federal disaster designation (seeonly one requiring a federal disaster designation (see
Table 1). Most programs receive mandatory . Most programs receive mandatory
funding amounts of funding amounts of
“"such sums as necessarysuch sums as necessary
”" and are not subject to annual discretionary and are not subject to annual discretionary
appropriations.appropriations.
11 The Agricultural Improvement Act of 2018 (2018 farm bill, P.L. 115-334 The Agricultural Improvement Act of 2018 (2018 farm bill, P.L. 115-334
) made a number of amendments to) amended these programs, generally to expand availability and support. these programs, generally to expand availability and support.
Prior to the creation of many of the permanently authorized programs at USDA, Congress had Prior to the creation of many of the permanently authorized programs at USDA, Congress had
historically provided farmers and ranchers with ad hoc disaster assistance payments authorized historically provided farmers and ranchers with ad hoc disaster assistance payments authorized
through supplemental appropriations. Subsequently, policies shifted away from the temporary through supplemental appropriations. Subsequently, policies shifted away from the temporary
forms of assistance in favor of enacting more permanent forms of support.forms of assistance in favor of enacting more permanent forms of support.
22 More recently, More recently,
policies have shifted to supplement permanent programs with ad hoc assistance for select policies have shifted to supplement permanent programs with ad hoc assistance for select
agriculture losses. agriculture losses.
SupplementalThrough supplemental appropriations appropriations
in FY2018, FY2019, and FY2021 since FY2018, Congress amended amended
existing disaster assistance programs and existing disaster assistance programs and
authorized over $15 billionprovided billions in assistance for production in assistance for production
losses from natural disasters in 2017 through losses from natural disasters in 2017 through
2021.32022.3 USDA has also used separate discretionary USDA has also used separate discretionary
authorities to respond authorities to respond
administratively to to natural disasters.
disasters.
Economic and market-related losses are not generally considered eligible losses under USDA’s disaster assistance programs. Most disaster assistance programs are statutorily required to include some level of production or physical loss from an unavoidable natural cause to trigger eligibility. As such, this report does not discuss USDA payment programs related to the COVID-19 pandemic or trade disputes.4
This report provides an overview of permanently authorized federal disaster assistance programs This report provides an overview of permanently authorized federal disaster assistance programs
for agricultural losses from natural disaster as well as discretionary authority that USDA may use for agricultural losses from natural disaster as well as discretionary authority that USDA may use
to provide assistance. It also discusses ad hoc assistance authorized by Congress.to provide assistance. It also discusses ad hoc assistance authorized by Congress.
4
Federal Crop Insurance
The federal crop insurance program is permanently authorized by the Federal Crop Insurance Act, The federal crop insurance program is permanently authorized by the Federal Crop Insurance Act,
as amended (7 U.S.C. as amended (7 U.S.C.
§§1501 et seq.) and is operated through public and private entities. Private 1501 et seq.) and is operated through public and private entities. Private
insurance companies, known as Approved Insurance Providers (AIPs), are the primary insurers insurance companies, known as Approved Insurance Providers (AIPs), are the primary insurers
selling and servicing the insurance policies. USDAselling and servicing the insurance policies. USDA
’'s Risk Management Agency (RMA) drafts s Risk Management Agency (RMA) drafts
federal crop insurance policies, sets premium rates, and regulates AIPs. The Federal Crop federal crop insurance policies, sets premium rates, and regulates AIPs. The Federal Crop
Insurance Corporation (FCIC) reinsures crop insurance policies and subsidizes the AIPs expenses. Insurance Corporation (FCIC) reinsures crop insurance policies and subsidizes the AIPs expenses.
The program is designed to protect crop producers from risks associated with adverse weather, as The program is designed to protect crop producers from risks associated with adverse weather, as
well as weather-related plant diseaseswell as weather-related plant diseases
and, insect infestations insect infestations
, and declines in commodity prices.
Table 1. Selected Permanent USDA Agricultural Disaster Assistance Programs
all programs permanently authorized—disaster designation or declaration required only for loans
Program & Agency
|
Commodity Coverage & Requirements
|
Payment Trigger
|
Timing & Funding
|
Crop insurance indemnifies yield, revenue, or margin losses—RMA.
|
and declines in commodity prices.
1 For a brief summary of these programs, see CRS In Focus IF10565, Federal Disaster Assistance for Agriculture. 2 For example, the Food, Conservation, and Energy Act of 2008 (2008 farm bill; P.L. 110-246) and the Agricultural Act of 2014 (2014 farm bill; P.L. 113-79) authorized the “Supplemental Agricultural Disaster Assistance Programs”
discussed below.
3 Bipartisan Budget Act of 2018 (P.L. 115-123), Additional Supplemental Appropriations for Disaster Relief Act, 2019 (P.L. 116-20), and Disaster Relieve Supplemental Appropriation Act, 2022 (Division B, P.L. 117-43).
4 For additional information on USDA COVID-19 assistance, see https://www.usda.gov/coronavirus. For additional information on USDA’s trade aid assistance, see CRS Report R45865, Farm Policy: USDA’s 2019 Trade Aid Package.
Congressional Research Service
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Table 1. Select Permanent USDA Agricultural Disaster Assistance Programs
(all programs permanently authorized—disaster designation or declaration required only for loans)
Program and Agency
Commodity Coverage and Requirements
Payment Trigger
Timing and Funding
Crop insurance indemnifies yield, revenue, or
More than 100 eligible crops; livestock margins
Yield, revenue, or margin loss
Indemnity payment issued after
margin losses—RMA.
and pasture also covered. Producer must
greater than the deductible
claim is filed, adjusted, and
purchase a subsidized policy prior to planting.
specified in the policy.
processed; unlimited funding.
Noninsured Crop Disaster Assistance
Crops not currently eligible for crop insurance. Crop loss in excess of 50%;
Payment issued after claim is
Program (NAP) payments for reduced yield and
Producer pays fee prior to planting.
additional coverage available.
filed and processed; unlimited
loss—FSA.
funding. More than 100 eligible crops; livestock margins and pasture covered. Producer must purchase a subsidized policy prior to planting.
Yield, revenue, or margin loss greater than the deductible specified in the policy.
|
Indemnity payment issued after claim is filed, adjusted, and processed; unlimited funding.
|
Noninsured Crop Disaster Assistance Program (NAP) payments for reduced yield and loss—FSA.
|
Crops not currently eligible for crop insurance. Producer pays fee prior to planting.
|
Crop loss in excess of 50%; additional coverage available.
|
Indemnity payment issued after claim is filed, adjusted, and processed; unlimited funding.
|
Supplemental agricultural disaster assistance programs issue payments for qualifying losses—FSA issue payments for qualifying losses—FSA
Livestock Indemnity Program (LIP); payments for livestock death losses or livestock sold at a reduced sale price.
|
Beef and dairy cattle, hogs, chickens, ducks, geese, turkeys, sheep, goats, alpacas, deer, elk, emus, and equine; no fee.
|
Livestock deaths in excess of normal mortality or sold at Livestock Indemnity Program (LIP);
Beef and dairy cattle, hogs, chickens, ducks,
Livestock deaths in excess of
Payment issued after application
payments for livestock death losses or livestock
geese, turkeys, sheep, goats, alpacas, deer, elk,
normal mortality or sold at
is processed; unlimited funding.
sold at a reduced sale price.
emus, and equine; no fee.
reduced sale price caused by reduced sale price caused by
adverse weather adverse weather
andor disease.
Payment issued after application is processed; unlimited funding.
|
Livestock Forage Disaster Program (LFP); payments for grazing losses from drought or fire.
|
Drought-affected pastureland and cropland for grazing; rangeland managed by a federal agency affected by a qualifying fire; no fee.
|
Drought intensity for an individual county, as published in the U.S. Drought Monitor; or qualifying fire.
|
Payment issued after application is processed; unlimited funding.
|
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP); payments for losses not covered by LIP or LFP.
|
Livestock, honey bees, and farm-raised fish; losses may be caused by disease, adverse weather, feed or water shortages, or wildfires; no fee.
|
Bee losses in excess of normal mortality; certain losses and costs for livestock, including feed and water costs.
|
Payment issued after application is processed; unlimited funding.
|
Tree Assistance Program (TAP); payments for tree, bush, and vine losses.
|
Trees, bushes, and vines that produce disease.
Livestock Forage Disaster Program
Drought-affected pastureland and cropland
Drought intensity level for an
Payment issued after application
(LFP); payments for grazing losses from
planted for grazing; rangeland managed by a
individual county, as published in
is processed; unlimited funding.
drought/fire.
federal agency due to a qualifying fire; no fee.
the U.S. Drought Monitor.
Emergency Assistance for Livestock,
Livestock, honey bees, and farm-raised fish;
Bee losses in excess of normal
Payment issued after application
Honey Bees, and Farm-Raised Fish
losses may be caused by disease, adverse
mortality; certain losses and
is processed; unlimited funding.
Program (ELAP); payments for losses not
weather, feed or water shortages, or wildfires;
costs for livestock, including feed
covered by LIP/LFP.
no fee.
and water costs.
Tree Assistance Program (TAP); payments
Trees, bushes, and vines from which an annual
Tree/vine mortality loss or
Payment issued after application
for tree, bush, and vine losses.
crop is produced; no fee.
damage in excess of 15%.
an annual crop; no fee.
Tree, bush, or vine mortality loss or damage in excess of 15%.
|
Payment issued after application is processed; unlimited funding.is processed; unlimited funding.
Emergency (EM) disaster loans offer low-interest financing for production or physical losses—FSA.
|
Damage to crops, livestock, equipment, or farmland when commercial credit is not available.
|
County disaster declaration by President, Secretary, or FSA; 30% crop loss or a physical loss.
|
Application due within eight months of disaster; funding subject to appropriations.
|
Disaster Set-Aside allows deferred loan payment for direct loans—FSA.
|
One full year's loan payment can be moved to end of loan period.
|
Disaster declaration by President, Secretary, or FSA.
|
Upon declaration of disaster.
|
Source: Compiled by CRS.
Emergency (EM) disaster loans offer low-
Damage to crops, livestock, equipment, or
County disaster declaration by
Application due within eight
interest financing for production or physical losses—
farmland when commercial credit is not
President, Secretary, or FSA; 30% months of disaster; funding
FSA.
available.
crop loss or a physical loss.
subject to appropriations.
Disaster Set-Aside allows deferred loan payment
One ful year’s loan payment can be moved to
Disaster declaration by President, Upon declaration of disaster.
for direct loans—FSA.
end of loan period.
Secretary, or FSA.
Source: Compiled by CRS.
Notes: FSA = Farm Service Agency; RMA = Risk Management Agency. USDA also offers other emergency assistance for land rehabilitation and forbearance on rural FSA = Farm Service Agency; RMA = Risk Management Agency. USDA also offers other emergency assistance for land rehabilitation and forbearance on rural
housing loans and rural water and waste water disposal loans. See CRS Report R42854, housing loans and rural water and waste water disposal loans. See CRS Report R42854,
Emergency Assistance for Agricultural Land Rehabilitation; and CRS Report and CRS Report
RL31837, An Overview ofR47510, Rural Definitions Used for Eligibility Requirements in USDA Rural Development Programs.
.
CRS-2
Agricultural Disaster Assistance
Crop insurance is available for most major crops and many specialty crops (including fruit, tree Crop insurance is available for most major crops and many specialty crops (including fruit, tree
nut, vegetable, and nursery crops) as well as forage and pastureland for livestock producers. A nut, vegetable, and nursery crops) as well as forage and pastureland for livestock producers. A
producer who chooses to purchase an insurance policy must do so by an administratively producer who chooses to purchase an insurance policy must do so by an administratively
determined deadline date, which varies by crop and usually coincides with the beginning of determined deadline date, which varies by crop and usually coincides with the beginning of
planting season. Insurance products that protect against loss in revenue and profit margins are planting season. Insurance products that protect against loss in revenue and profit margins are
also available. Policies are typically available in major growing regions.also available. Policies are typically available in major growing regions.
The federal crop insurance program was instituted in the 1930s and was subject to major The federal crop insurance program was instituted in the 1930s and was subject to major
legislative reforms in 1980 and again in 1994 and 2000. The Agriculture Risk Protection Act of legislative reforms in 1980 and again in 1994 and 2000. The Agriculture Risk Protection Act of
2000 (P.L. 106-224) authorized new federal spending for the program primarily through more 2000 (P.L. 106-224) authorized new federal spending for the program primarily through more
generous premium subsidies to help make the program more affordable to farmers and enhance generous premium subsidies to help make the program more affordable to farmers and enhance
farmer participation levels in an effort to preclude the need for ad hoc emergency disaster farmer participation levels in an effort to preclude the need for ad hoc emergency disaster
payments.payments.
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Under the current crop insurance program, a producer who grows an insurable crop selects a level Under the current crop insurance program, a producer who grows an insurable crop selects a level
of crop yield and price coverage and pays a premium that increases as the levels of yield and of crop yield and price coverage and pays a premium that increases as the levels of yield and
price coverage rise. However, all eligible producers can receive catastrophic (CAT) coverage price coverage rise. However, all eligible producers can receive catastrophic (CAT) coverage
without paying a premium. The premium for CAT coverage is subsidized by the federal without paying a premium. The premium for CAT coverage is subsidized by the federal
government. Under CAT coverage, participating producers can receive a payment equal to 55% of government. Under CAT coverage, participating producers can receive a payment equal to 55% of
the estimated market price of the commodity on crop losses in excess of 50% of normal yield—the estimated market price of the commodity on crop losses in excess of 50% of normal yield—
referred to as 50/55 coverage.referred to as 50/55 coverage.
Although eligible producers do not have to pay a premium for CAT coverage, they are required to Although eligible producers do not have to pay a premium for CAT coverage, they are required to
pay upon enrollment a $655 administrative fee per covered crop for each county where they grow pay upon enrollment a $655 administrative fee per covered crop for each county where they grow
the crop. USDA can waive the fee for financial hardship cases. In addition to the administrative the crop. USDA can waive the fee for financial hardship cases. In addition to the administrative
fee, producers can elect to pay a premium, which is partially subsidized by the government, to fee, producers can elect to pay a premium, which is partially subsidized by the government, to
increase the 50/55 CAT coverage to any equivalent level of coverage between 50/100 and 85/100 increase the 50/55 CAT coverage to any equivalent level of coverage between 50/100 and 85/100
(i.e., 85% of yield and 100% of the estimated market price) in increments of 5%. These higher (i.e., 85% of yield and 100% of the estimated market price) in increments of 5%. These higher
levels of coverage are known as levels of coverage are known as
buy-up coverage. coverage.
For many insurable commodities, an
An eligible producer eligible producer
canmay also purchase revenue insurance purchase revenue insurance
for many insurable commodities. Under . Under
such a policy, a farmer could receive an indemnity payment when actual farm revenue for a crop such a policy, a farmer could receive an indemnity payment when actual farm revenue for a crop
falls below the target level of revenue, regardless of whether the shortfall in revenue was caused falls below the target level of revenue, regardless of whether the shortfall in revenue was caused
by poor production or low farm commodity prices. Insured producers are also eligible for reduced by poor production or low farm commodity prices. Insured producers are also eligible for reduced
coverage if they are late or prevented from planting because of flooding.coverage if they are late or prevented from planting because of flooding.
The annual agriculture appropriations bill traditionally makes two separate appropriations for the The annual agriculture appropriations bill traditionally makes two separate appropriations for the
federal crop insurance program. It provides discretionary funding for the salaries and expenses of federal crop insurance program. It provides discretionary funding for the salaries and expenses of
the RMA. It also provides the RMA. It also provides
“"such sums as are necessarysuch sums as are necessary
”" for the FCIC, which finances all other for the FCIC, which finances all other
expenses of the program, including premium subsidies, indemnity payments, and reimbursements expenses of the program, including premium subsidies, indemnity payments, and reimbursements
to the AIPs.to the AIPs.
66 The total cost of the program varies by year, primarily due to fluctuating levels of The total cost of the program varies by year, primarily due to fluctuating levels of
indemnity payments from changes in commodity prices, planting decisions, and weather indemnity payments from changes in commodity prices, planting decisions, and weather
conditions. Across all policies, the average premium subsidy was about 62% of total premiums in conditions. Across all policies, the average premium subsidy was about 62% of total premiums in
2021.72022.7 The federal government also subsidizes the costs of selling and servicing the policies (as The federal government also subsidizes the costs of selling and servicing the policies (as
5 H.Rept. 106-639; “Conference Report on H.R. 2559, Agricultural Risk Protection Act of 2000,” House debate, Congressional Record, vol. 146, part 67 (May 25, 2000), p. H3817-H3828; and “Risk Management for the 21st Century Act,” Senate debate, Congressional Record, vol. 146, part 34 (March 23, 2000), pp. S1627-S1642. 6 The FCIC is funded through a mandatory indefinite appropriation that draws necessary funds directly from the U.S. Treasury.
7 In crop year 2021, total premiums were $14.3 billion, and premium subsidies were $8.8 billion. See RMA, Crop Year
Government Cost of Federal Crop Insurance Program, April 20, 2022, at https://rma.usda.gov/-/media/RMA/AboutRMA/Program-Budget/21cygovcost.ashx?la=en.
Congressional Research Service
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Agricultural Disaster Assistance
delivery subsidies to Approved Insurance Providers) and absorbs underwriting losses (indemnities delivery subsidies to Approved Insurance Providers) and absorbs underwriting losses (indemnities
in excess of premiums received) in years when indemnities are high.in excess of premiums received) in years when indemnities are high.
8
For a more detailed analysis of the federal crop insurance program, see CRS Report R46686, For a more detailed analysis of the federal crop insurance program, see CRS Report R46686,
Federal Crop Insurance: A Primer..
Noninsured Crop Disaster Assistance Program
(NAP)
Producers who grow a crop that is currently ineligible for crop insurance may apply for NAP. Producers who grow a crop that is currently ineligible for crop insurance may apply for NAP.
NAP has permanent authority under Section 196 of the Federal Agriculture Improvement and NAP has permanent authority under Section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. Reform Act of 1996 (7 U.S.C.
§7333) and is administered by USDA7333) and is administered by USDA
’'s Farm Service Agency s Farm Service Agency
(FSA). It was first authorized under the Federal Crop Insurance Reform Act of 1994 (P.L. 103-(FSA). It was first authorized under the Federal Crop Insurance Reform Act of 1994 (P.L. 103-
354). NAP is not subject to annual appropriations. Instead, it receives such sums as are necessary 354). NAP is not subject to annual appropriations. Instead, it receives such sums as are necessary
through USDAthrough USDA
’'s Commodity Credit Corporation (CCC), which has a line of credit with the U.S. s Commodity Credit Corporation (CCC), which has a line of credit with the U.S.
Treasury to fund an array of farm programs.Treasury to fund an array of farm programs.
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Eligible crops under NAP include any commercial crops grown for food, fiber, or livestock Eligible crops under NAP include any commercial crops grown for food, fiber, or livestock
consumption for which there is no CAT coverage available under the federal crop insurance consumption for which there is no CAT coverage available under the federal crop insurance
program, with limited exceptions. These crops include mushrooms, floriculture, ornamental program, with limited exceptions. These crops include mushrooms, floriculture, ornamental
nursery, Christmas trees, turfgrass sod, aquaculture, honey, maple sap, ginseng, and industrial nursery, Christmas trees, turfgrass sod, aquaculture, honey, maple sap, ginseng, and industrial
crops used in manufacturing or grown as a feedstock for energy production, among others. Trees crops used in manufacturing or grown as a feedstock for energy production, among others. Trees
grown for wood, paper, and pulp products are not eligible. To be eligible for a NAP payment, a grown for wood, paper, and pulp products are not eligible. To be eligible for a NAP payment, a
producer first must apply for coverage by the application closing date, which varies by crop but is producer first must apply for coverage by the application closing date, which varies by crop but is
generally about 30 days prior to the final planting date for an annual crop. Like CAT coverage generally about 30 days prior to the final planting date for an annual crop. Like CAT coverage
under crop insurance, NAP applicants must also pay an administrative fee at the time of under crop insurance, NAP applicants must also pay an administrative fee at the time of
application. The NAP service fee is the lesser of $325 per crop or $825 per producer per application. 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 for farms in multiple counties.administrative county, not to exceed a total of $1,950 for farms in multiple counties.
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To receive a NAP payment, a producer must experience at least a 50% crop loss caused by a To receive a NAP payment, a producer must experience at least a 50% crop loss caused by a
natural disaster or be prevented from planting more than 35% of intended crop acreage. For any natural disaster or be prevented from planting more than 35% of intended crop acreage. For any
losses in excess of the minimum loss threshold, a producer can receive 55% of the average losses in excess of the minimum loss threshold, a producer can receive 55% of the average
market price for the covered commodity. Hence, NAP is similar to CAT coverage in that it pays market price for the covered commodity. Hence, NAP is similar to CAT coverage in that it pays
55% of the market price for losses in excess of 50% of normal historical production.55% of the market price for losses in excess of 50% of normal historical production.
Additional coverage (referred to as Additional coverage (referred to as
buy-up coverage) may be purchased at 50% to 65% (in 5% coverage) may be purchased at 50% to 65% (in 5%
increments) of established yield and 100% of average market price, contract price, or other increments) of established yield and 100% of average market price, contract price, or other
premium price. The farmer-paid fee for additional coverage is 5.25% times the product of the premium price. The farmer-paid fee for additional coverage is 5.25% times the product of the
selected coverage level and value of production (acreage multiplied by yield multiplied by the selected coverage level and value of production (acreage multiplied by yield multiplied by the
average market price multiplied by the produceraverage market price multiplied by the producer
’'s share of the crop).s share of the crop).
1011 Grazing land is not Grazing land is not
eligible for buy-up coverage.eligible for buy-up coverage.
A producer of a noninsured crop is subject to an annual payment limit of $125,000 per person for A producer of a noninsured crop is subject to an annual payment limit of $125,000 per person for
catastrophic coverage and $300,000 for buy-up coverage. A producer is ineligible under NAP if catastrophic coverage and $300,000 for buy-up coverage. A producer is ineligible under NAP if
8 For more information on CCC, see CRS Report R44606, The Commodity Credit Corporation (CCC). 9 For more on NAP, see USDA factsheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/noninsured_crop_disaster_assistance_program-nap-fact_sheet.pdf. Also, see NAP crop eligibility, premium, and payments estimator at https://apps.fsa.usda.gov/nap/costtool/login.do.
10 For NAP enhancements, see CCC and FSA, “Noninsured Crop Disaster Assistance Program; Final Rule,” 85 Federal
Register 12213-12221, March 2, 2020.
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Agricultural Disaster Assistance
the producer’the producer's total adjusted gross income (AGI) exceeds $900,000.s total adjusted gross income (AGI) exceeds $900,000.
1112 The total federal cost of The total federal cost of
NAP was $164.3 million in FY2018, $138.4 million in FY2019, $133.5 million in FY2020, and $159.7 million in FY2021.12 NAP was $237.1 million in FY2022.13
Supplemental Agricultural Disaster Assistance
Programs
Programs
Four agricultural disaster assistance programs are permanently authorizedFour agricultural disaster assistance programs are permanently authorized
for livestock and fruit trees: (1) the Livestock Indemnity Program (LIP); (2) the Livestock Forage Disaster Program : (1) the Livestock Indemnity Program (LIP); (2) the Livestock Forage Disaster Program
(LFP); (3) the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (LFP); (3) the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program
(ELAP); and (4) the Tree Assistance Program (TAP). They operate nationwide and are (ELAP); and (4) the Tree Assistance Program (TAP). They operate nationwide and are
administered by FSA. Producers do not pay fees to participate and can apply at their local FSA administered by FSA. Producers do not pay fees to participate and can apply at their local FSA
offices.offices.
13
14
All programs receive All programs receive
“"such sums as necessarysuch sums as necessary
”" in mandatory funding via the CCC to reimburse in mandatory funding via the CCC to reimburse
eligible producers for their losses. Total payments vary each year based on eligible loss eligible producers for their losses. Total payments vary each year based on eligible loss
conditions. conditions.
For FY2021In FY2022, LIP payments totaled $, LIP payments totaled $
18.922.2 million, LFP payments totaled $ million, LFP payments totaled $
554.0 1,241.9 million, ELAP payments totaled $million, ELAP payments totaled $
77.2248.8 million, and TAP payments totaled $ million, and TAP payments totaled $
9.6 million.1411.1 million.15 All All
payments are reduced by sequestration.payments are reduced by sequestration.
15
16
For individual producers, payments under LFP may not exceed $125,000 per year. There are no For individual producers, payments under LFP may not exceed $125,000 per year. There are no
limits on limits on
the amount of paymentspayment amounts received under LIP, ELAP, and TAP. To be eligible for a received under LIP, ELAP, and TAP. To be eligible for a
payment under any of these programs, a producerpayment under any of these programs, a producer
’'s total AGI cannot exceed $900,000.s total AGI cannot exceed $900,000.
16 17
Livestock Indemnity Program (LIP)
LIP provides payments to eligible livestock owners and contract growers for livestock deaths in LIP provides payments to eligible livestock owners and contract growers for livestock deaths in
excess of normal mortality caused by an eligible loss condition (e.g., adverse weather, disease, or excess of normal mortality caused by an eligible loss condition (e.g., adverse weather, disease, or
animal attack). Payments may also be made when the animal is injured as a direct result of an animal attack). Payments may also be made when the animal is injured as a direct result of an
eligible loss condition but does not die and is sold at a reduced price. Eligible loss conditions may eligible loss condition but does not die and is sold at a reduced price. Eligible loss conditions may
include (1) extreme or abnormal damaging weather that is not expected to occur during the loss include (1) extreme or abnormal damaging weather that is not expected to occur during the loss
period for which it occurred, (2) disease that is caused or transmitted by a vector and is not period for which it occurred, (2) disease that is caused or transmitted by a vector and is not
susceptible to control by vaccination, and (3) an attack by animals reintroduced into the wild by susceptible to control by vaccination, and (3) an attack by animals reintroduced into the wild by
the federal government or protected by federal law. Eligibility is predicated on not only the
11 For additional information on payment limits and AGI requirements, see CRS Report R44739, U.S. Farm Program
Eligibility and Payment Limits.
12 USDA, 2023 Explanatory Notes - Commodity Credit Corporation, March 2022, at https://www.usda.gov/sites/default/files/documents/30-2023-CCC.pdf.
13 For local FSA contact information, see FSA locator at http://offices.sc.egov.usda.gov/locator/app?agency=fsa. 14 USDA, 2023 Explanatory Notes - Commodity Credit Corporation, March 2022, at https://www.usda.gov/sites/default/files/documents/30-2023-CCC.pdf.
15 Sequestration is a process to reduce federal spending through automatic, largely across-the-board reductions that permanently cancel mandatory and/or discretionary budget authority. The supplemental agricultural disaster assistance programs classify as nonexempt mandatory accounts and are therefore reduced by sequestration. For additional information on sequestration, see Appendix C in CRS Report R46951, Agriculture and Related Agencies: FY2022
Appropriations.
16 For additional information on payment limits, see CRS Report R46248, U.S. Farm Programs: Eligibility and
Payment Limits.
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5
Agricultural Disaster Assistance
the federal government or protected by federal law. Eligibility is predicated on not only the occurrence of an eligible loss condition but also direct causation to the death or injury of the occurrence of an eligible loss condition but also direct causation to the death or injury of the
animal.animal.
Eligible livestock include beef and dairy cattle, Eligible livestock include beef and dairy cattle,
bisonbeefalo, bison, buffalo, hogs, chickens, ducks, geese, turkeys, , hogs, chickens, ducks, geese, turkeys,
sheep, goats, alpacas, deer, elk, emus, llamas, reindeer, caribou, sheep, goats, alpacas, deer, elk, emus, llamas, reindeer, caribou,
ostriches, and equine. The livestock must and equine. The livestock must
have been maintained for commercial use and not produced for reasons other than commercial have been maintained for commercial use and not produced for reasons other than commercial
use as part of a farming operation. The program excludes wild free-roaming animals, use as part of a farming operation. The program excludes wild free-roaming animals,
pets,horses and and
animals used for recreational purposes, such as hunting, roping, or for show. Poultryother animals used or intended to be used for racing or wagering, animals used for hunting, and animals produced or maintained for consumption by owners. Poultry (including chickens, ducks, geese, and turkeys) and swine and swine
are the only eligible livestock for contract growers.are the only eligible livestock for contract growers.
18
The LIP payment rate is equal to 75% of the average fair market value of the deceased animal The LIP payment rate is equal to 75% of the average fair market value of the deceased animal
type. USDA publishes a payment rate for each type of livestock for each year (e.g., $type. USDA publishes a payment rate for each type of livestock for each year (e.g., $
919.471,163.23 per per
adult beef cow and $4.adult beef cow and $4.
2429 per duck as of per duck as of
April 2022).17August 2023).19 For eligible livestock contract growers, the For eligible livestock contract growers, the
payment rate is based on 75% of the national average input costs for the applicable livestock. For payment rate is based on 75% of the national average input costs for the applicable livestock. For
livestock sold at a reduced sale price, payments are calculated by multiplying the national livestock sold at a reduced sale price, payments are calculated by multiplying the national
payment rate for the livestock category minus the amount the owner received at sale multiplied payment rate for the livestock category minus the amount the owner received at sale multiplied
by the ownerby the owner
’'s share.s share.
Livestock Forage Disaster Program (LFP)
LFP makes payments to eligible livestock producers who have suffered grazing losses on LFP makes payments to eligible livestock producers who have suffered grazing losses on
drought-affected pastureland (including cropland planted specifically for grazing), or on drought-affected pastureland (including cropland planted specifically for grazing), or on
rangeland managed by a federal agency due to a qualifying fire.rangeland managed by a federal agency due to a qualifying fire.
Eligible producers must own, cash or share
U.S. Drought Monitor
lease, or be a contract grower of covered
The U.S. Drought MonitorThe U.S. Drought Monitor
is a collaboration between USDA, the National Oceanic and Atmospheric Administration (NOAA), and the National Drought Mitigation Center (NDMC) at the University of Nebraska-Lincoln. Weekly is a col aboration between
livestock during the 60 calendar days before
the USDA, National Oceanic and Atmospheric
the beginning date of a qualifying drought or
Administration, and the National Drought Mitigation
fire. They must also provide pastureland or
Center at the University of Nebraska-Lincoln. Weekly
grazing land for covered livestock that is
maps are released based on measurements of climatic, maps are released based on measurements of climatic,
hydrologic, and soil conditions and are combined with hydrologic, and soil conditions and are combined with
either (a) physically located in a county
local impacts and observations across the country from
affected by a qualifying drought during the
over 400local impacts and observations across the country from over 425 participants (primarily from government and participants (primarily from government and
normal grazing period for the county or (b)
academic backgrounds). Eleven climatologists rotate as
managed by a federal agency where grazing is
academic backgrounds). Meteorologists and climatologists from USDA, NOAA, and NDMC rotate as lead author to produce the weekly maps. The drought lead author to produce the weekly maps. The drought
not permitted due to fire.
monitor is used to determine drought relief for USDA monitor is used to determine drought relief for USDA
programs (e.g., LFP and the Non-Fat Dry Milk Program) programs (e.g., LFP and the Non-Fat Dry Milk Program)
Eligible livestock types are livestock that have
and by the Internal Revenue Service (IRS) to determine
been grazing on eligible grazing land or
and by the Internal Revenue Service to determine the replacement period for livestock sold because of the replacement period for livestock sold because of
drought. Congressional interest in the drought. Congressional interest in the
U.S. Drought Monitor has grown as additional program benefits are tied to it. For more information, see https://droughtmonitor.unl.edu/.
Eligible producers must own, cash or share lease, or be a contract grower of covered livestock during the 60 calendar days before the beginning date of a qualifying drought or fire. They must also provide pastureland or grazing land for covered livestock that is either (a) physically located in a county affected by a qualifying drought during the normal grazing period for the county or (b) managed by a federal agency where grazing is not permitted due to fire.
Eligible livestock types (referred to as "covered livestock") are livestock that have been grazing on eligible grazing land or pastureland, or would have been had a disaster not struck, and are produced or maintained for commercial use.20 Eligible grazing periods vary by location and pasture type.21
U.S. Drought
pastureland or would have been had a disaster
Monitor has grown as additional program benefits are
not struck. These include alpacas, beef cattle,
tied to it. For additional information, see
buffalo, beefalo, dairy cattle, sheep, deer, elk,
http://droughtmonitor.unl.edu/.
emus, equine, goats, llamas, poultry, reindeer, and swine. Livestock must be maintained for commercial use as part of a farming operation. Livestock owned for noncommercial uses, or livestock that is in (or would have been in) feedlots, are excluded.
Payments are generally triggered by the drought intensity level for an individual county as Payments are generally triggered by the drought intensity level for an individual county as
published in the U.S. Drought Monitor (see published in the U.S. Drought Monitor (see
text box), a federal report published each week. The ), a federal report published each week. The
17 Payment rates are available in the USDA fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/livestock_indemnity_program_lip-fact_sheet.pdf. For more information, see 7 C.F.R. §1416 Subpart D—Livestock Indemnity Program.
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6
link to page 10 Agricultural Disaster Assistance
number of monthly payments depends on the drought severity and length of time the county has number of monthly payments depends on the drought severity and length of time the county has
been designated as been designated as
suchsuch (Table 2). For drought, the payment amount is equal to the number of . For drought, the payment amount is equal to the number of
monthly payments multiplied by 60% of estimated monthly feed cost. For producers who sold monthly payments multiplied by 60% of estimated monthly feed cost. For producers who sold
livestock because of drought conditions, the payment rate is equal to 80% of the estimated livestock because of drought conditions, the payment rate is equal to 80% of the estimated
monthly feed cost.monthly feed cost.
18
22
Table 2. Livestock Forage Program (LFP)
(
drought intensity and time period determine the number of monthly paymentsdrought intensity and time period determine the number of monthly payments
)
Drought Monitor Intensity
Qualifying Time Period
No. of Monthly Payments
D2 (severe drought)D2 (severe drought)
For at least eight consecutive weeks during For at least eight consecutive weeks during
the normal grazing period
one monthly paymentone monthly payment
the normal grazing period
D3 (extreme drought)D3 (extreme drought)
At any time during the normal grazing periodAt any time during the normal grazing period
three monthly payments
three monthly payments
|
D3 (extreme drought)D3 (extreme drought)
For at least four weeks during the normal For at least four weeks during the normal
grazing period
four monthly paymentsfour monthly payments
grazing period
D4 (exceptional drought)D4 (exceptional drought)
At any time during the normal grazing periodAt any time during the normal grazing period
four monthly paymentsfour monthly payments
D4 (exceptional drought)D4 (exceptional drought)
For four weeks (not necessarily consecutive) For four weeks (not necessarily consecutive)
five monthly payments
during the normal grazing period during the normal grazing period
five monthly payments
|
Source: 7 U.S.C. §9081(c).7 U.S.C. §9081(c).
Notes: Drought intensity level can apply to any area of a county. The Drought intensity level can apply to any area of a county. The
LFPLivestock Forage Disaster Program (LFP) monthly payment rate for drought is monthly payment rate for drought is
equal to 60% of the lesser of the monthly feed cost based on either (a) corn prices, specified feeding equal to 60% of the lesser of the monthly feed cost based on either (a) corn prices, specified feeding
requirements, and number of animals or (b) the normal carrying capacity of the land. For details on monthly feed requirements, and number of animals or (b) the normal carrying capacity of the land. For details on monthly feed
costs and examples, see FSA LFP handbook at https://www.fsa.usda.gov/Internet/FSA_File/costs and examples, see FSA LFP handbook at https://www.fsa.usda.gov/Internet/FSA_File/
1-lfp_r00_a051-lfp_r00_a03.pdf. In .pdf. In
the case of a producer who sold livestock because of drought conditions, the payment rate is equal to 80% of the case of a producer who sold livestock because of drought conditions, the payment rate is equal to 80% of
the monthly feed cost. For fire on federally managed rangeland, the payment rate is 50% of the monthly feed the monthly feed cost. For fire on federally managed rangeland, the payment rate is 50% of the monthly feed
cost, adjusted for the number of days the producer is prohibited from grazing (not to exceed 180 days).cost, adjusted for the number of days the producer is prohibited from grazing (not to exceed 180 days).
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised
Fish Program (ELAP)
ELAP provides payments to producers of livestock, honey bees, and farm-raised fish as ELAP provides payments to producers of livestock, honey bees, and farm-raised fish as
compensation for losses due to disease, adverse weather, feed or water shortages, or other compensation for losses due to disease, adverse weather, feed or water shortages, or other
conditions (such as wildfires) that are not covered under LIP or LFP.conditions (such as wildfires) that are not covered under LIP or LFP.
19
ELAP specifically provides assistance for the loss of honey bee colonies in excess of normal mortality. To meet the eligibility requirements for honey bee colony losses, losses must be the direct result of an eligible adverse weather or loss condition such as colony collapse disorder, eligible winter storm, excessive wind, and flood. For livestock losses, ELAP covers three categories: (1) livestock feed and grazing losses that are not due to drought or wildfires on
18 For more information on LFP, see 7 C.F.R. §1416 Subpart C—Livestock Forage Disaster Program; the USDA fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/livestock_forage_program_lfp-fact_sheet.pdf.
19 For more information on ELAP, see 7 C.F.R. §1416 Subpart B—Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program; general ELAP fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/elap-general-fact-sheet.pdf; ELAP honey bee fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/elap-honeybee-fact-sheet.pdf; ELAP livestock fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/elap-livestock-fact-sheet.pdf; and ELAP farm-raised fish fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/elap_farm_raised_fish-factsheet.pdf.
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Agricultural Disaster Assistance
federally managed lands, (2) losses resulting from the additional cost of transporting water to livestock due to an eligible drought, and (3) losses resulting from the additional cost associated with gathering livestock for inspection and treatment related to cattle tick fever23
ELAP covers five categories of livestock loss: (1) livestock grazing loss that is not due to drought or wildfires on federally managed lands; (2) livestock feed loss caused by eligible loss condition resulting in purchased or mechanically harvested feed being destroyed, additional feed purchased above normal, and additional cost of feed delivery; (3) loss resulting from the additional cost of transporting water to livestock due to an eligible drought; (4) loss resulting from the additional cost of hauling livestock to forage or other feeding location and back due to an eligible drought; and (5) loss resulting from the additional cost associated with gathering livestock for inspection and treatment related to cattle tick fever. ELAP provides assistance for the loss of honey bee colonies in excess of normal mortality. To meet the eligibility requirements for honey bee colony losses, losses must be the direct result of an eligible adverse weather or loss condition such as colony collapse disorder, eligible winter storm, excessive wind, and flood. For farm-raised fish, ELAP covers losses in excess of normal mortality from eligible adverse weather or loss condition, and purchased or produced feed losses that was intended for feed but damaged because of an eligible adverse weather event or loss condition. Applicants who . Applicants who
are defined as a are defined as a
socially disadvantaged, ,
limited resource,,
beginning, or , or
veteran farmer or rancher farmer or rancher
are eligible for up to 90% of cost of loss.are eligible for up to 90% of cost of loss.
20 24 All other losses are based on a national payment rate not to exceed 80% of cost of loss.25
Tree Assistance Program (TAP)
TAP makes payments to qualifying orchardists and nursery tree growers to replant or rehabilitate TAP makes payments to qualifying orchardists and nursery tree growers to replant or rehabilitate
trees, bushes, and vines damaged by natural disasters. Losses in crop production—as opposed to trees, bushes, and vines damaged by natural disasters. Losses in crop production—as opposed to
the tree, bush, or vine itself—are generally covered by federal crop insurance or NAP. Eligible the tree, bush, or vine itself—are generally covered by federal crop insurance or NAP. Eligible
trees, bushes, and vines are those from which an annual crop is produced for commercial trees, bushes, and vines are those from which an annual crop is produced for commercial
purposes. Nursery trees include ornamental, fruit, nut, and Christmas trees produced for purposes. Nursery trees include ornamental, fruit, nut, and Christmas trees produced for
commercial sale. Trees used for pulp or timber are ineligible.commercial sale. Trees used for pulp or timber are ineligible.
To be considered an eligible loss, the individual stand must have sustained a mortality loss or To be considered an eligible loss, the individual stand must have sustained a mortality loss or
damage in excess of 15% after adjustment for normal mortality or damage. Normal mortality or damage in excess of 15% after adjustment for normal mortality or damage. Normal mortality or
damage is determined based on (a) each eligible disaster event, except for losses due to plant damage is determined based on (a) each eligible disaster event, except for losses due to plant
disease, or (b) for plant disease, the time period for which the stand is infected. Also, the loss disease, or (b) for plant disease, the time period for which the stand is infected. Also, the loss
could not have been prevented through reasonable and available measures.could not have been prevented through reasonable and available measures.
For replacement, replanting, and/or rehabilitation of trees, bushes, or vines, the payment For replacement, replanting, and/or rehabilitation of trees, bushes, or vines, the payment
calculation is the lesser of (a) 65% of the actual cost of replanting (in excess of 15% mortality) calculation is the lesser of (a) 65% of the actual cost of replanting (in excess of 15% mortality)
and/or 50% of the actual cost of rehabilitation (in excess of 15% damage), or (b) the maximum and/or 50% of the actual cost of rehabilitation (in excess of 15% damage), or (b) the maximum
eligible amount established for the practice by FSA.eligible amount established for the practice by FSA.
21 Applicants who are defined as Applicants who are defined as
beginning or or
veteran farmer or ranchers are eligible for higher payments, including the lesser of (a) 75% of the farmer or ranchers are eligible for higher payments, including the lesser of (a) 75% of the
actual cost of replanting (in excess of 15% mortality) and/or actual cost of replanting (in excess of 15% mortality) and/or
5075% of the actual cost of % of the actual cost of
rehabilitation (in excess of 15% damage) or (b) the maximum eligible amount established for the rehabilitation (in excess of 15% damage) or (b) the maximum eligible amount established for the
practice by FSA.practice by FSA.
2226 The total quantity of acres planted to trees, bushes, or vines for which a The total quantity of acres planted to trees, bushes, or vines for which a
producer can receive TAP payments cannot exceed 1,000 acres annually.producer can receive TAP payments cannot exceed 1,000 acres annually.
23 27
Emergency Disaster Loans
When either the President or the Secretary of Agriculture declares a county a disaster area or When either the President or the Secretary of Agriculture declares a county a disaster area or
quarantine area, agricultural producers in that county may become eligible for low-interest quarantine area, agricultural producers in that county may become eligible for low-interest
emergency disaster (EM) loans available through FSA.emergency disaster (EM) loans available through FSA.
2428 Producers in counties that are Producers in counties that are
20 For additional information and definitions for socially disadvantaged, limited resource, beginning, or veteran farmer or rancher, see CRS Report R46727, Defining a Socially Disadvantaged Farmer or Rancher (SDFR): In Brief.
21 Higher payment rates of up to 75% for replanting and rehabilitation are available for beginning and veteran farmers and ranchers.
22 For additional information on beginning and veteran farmer and rancher provision in farm bill programs, see CRS In Focus IF11227, 2018 Farm Bill Primer: Beginning Farmers and Ranchers; and CRS In Focus IF11093, 2018 Farm
Bill Primer: Veteran Farmers and Ranchers.
23 For more information on TAP, see 7 C.F.R. §1416 Subpart E—Tree Assistance Program; the general TAP fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/tree_assistance_program-tap-fact_sheet.pdf; and the TAP Florida citrus greening fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/tap-florida-citrus-greening-factsheet.pdf.
24 The Secretary of Agriculture may designate quarantine areas under the Plant Protection Act (Title VI of P.L. 106-224) or animal quarantine laws. For an overview of the USDA emergency disaster designation and declaration process, see https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/
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Agricultural Disaster Assistance
contiguous to a county with a disaster designation also become eligible for EM loans. EM loan contiguous to a county with a disaster designation also become eligible for EM loans. EM loan
funds may be used to help eligible farmers, ranchers, and aquaculture producers recover from funds may be used to help eligible farmers, ranchers, and aquaculture producers recover from
production losses (when the producer suffers a significant loss of an annual crop) or from losses (when the producer suffers a significant loss of an annual crop) or from
physical losses (such as repairing or replacing damaged or destroyed structures or equipment or losses (such as repairing or replacing damaged or destroyed structures or equipment or
for the replanting of permanent crops such as orchards). A qualified applicant can then borrow up for the replanting of permanent crops such as orchards). A qualified applicant can then borrow up
to 100% of actual production or physical losses (not to exceed a loan total of $500,000).to 100% of actual production or physical losses (not to exceed a loan total of $500,000).
Once a county is declared eligible, an individual producer within the county (or a contiguous Once a county is declared eligible, an individual producer within the county (or a contiguous
county) must also meet the following requirements for an EM loan: A producer must (1) be an county) must also meet the following requirements for an EM loan: A producer must (1) be an
established family farmer and a citizen or permanent resident of the United States; (2) experience established family farmer and a citizen or permanent resident of the United States; (2) experience
a crop loss of more than 30% or a physical loss of livestock, livestock products, real estate, or a crop loss of more than 30% or a physical loss of livestock, livestock products, real estate, or
property; and (3) be unable to obtain credit from a commercial lender but still show the potential property; and (3) be unable to obtain credit from a commercial lender but still show the potential
to repay the loan, including having acceptable credit history and collateral to secure the loan. to repay the loan, including having acceptable credit history and collateral to secure the loan.
Applications must be received within eight months of the countyApplications must be received within eight months of the county
’'s disaster designation date. s disaster designation date.
Loans for nonreal-estate purposes must generally be repaid within seven years. Loans for physical Loans for nonreal-estate purposes must generally be repaid within seven years. Loans for physical
losses to real estate have terms up to 20 years. Depending on the repayment ability of the losses to real estate have terms up to 20 years. Depending on the repayment ability of the
producer and other circumstances, these terms can be extendedproducer and other circumstances, these terms can be extended
by FSA to 20 years for nonreal-estate to 20 years for nonreal-estate
losses and up to 40 years for real estate losses.losses and up to 40 years for real estate losses.
The EM loan program is permanently authorized by Title III of the Consolidated Farm and Rural The EM loan program is permanently authorized by Title III of the Consolidated Farm and Rural
Development Act (P.L. 87-128), as amended, and is subject to annual appropriations. In Development Act (P.L. 87-128), as amended, and is subject to annual appropriations. In
FY2022, FY2023, the program received $the program received $
37.74.1 million of new loan authority. million of new loan authority.
2529 Unused funds are carried over and Unused funds are carried over and
available in the next fiscal year. Therefore, the total loan authority can vary greatly depending on available in the next fiscal year. Therefore, the total loan authority can vary greatly depending on
appropriated levels, annual use, and total carryover. appropriated levels, annual use, and total carryover.
In FY2021As of November 2023, the total loan authority , the total loan authority
is $958.2 million.26
Also inin FY2024 is approximately $223,000.30
In counties with disaster designations, producers who have existing direct loans with FSA counties with disaster designations, producers who have existing direct loans with FSA
may be eligible for Disaster Set-Aside. If, as a result of disaster, a borrower is unable to pay all may be eligible for Disaster Set-Aside. If, as a result of disaster, a borrower is unable to pay all
expenses and make loan payments that are coming due, up to one full yearexpenses and make loan payments that are coming due, up to one full year
’'s payment can be s payment can be
moved to the end of the loan.moved to the end of the loan.
27 31
Other USDA Assistance
USDA also has several permanent disaster assistance programs that help producers repair USDA also has several permanent disaster assistance programs that help producers repair
damaged land following natural disasters. It also has authority to issue payments to farmers from damaged land following natural disasters. It also has authority to issue payments to farmers from
permanently appropriated funds and can use a variety of existing programs to address disaster permanently appropriated funds and can use a variety of existing programs to address disaster
issues as they arise.
emergency_disaster_designation_declaration_process-factsheet.pdf. For the USDA fact sheet on EM loans, see https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/fsa_emergencyloanprogram_factsheet-2020.pdf.
25 Division A, Title II of P.L. 117-103. 26 For the most recent funding levels available, see emergency loan funding totals at http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/funding/index.
27 No loan may receive more than one disaster set-aside unless it is later restructured. For more information, see USDA fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2017/disaster_set_aside_program_oct2017.pdf.
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issues as they arise.
Emergency Agricultural Land Assistance Programs
Several USDA programs offer financial and technical assistance to producers to repair, restore, Several USDA programs offer financial and technical assistance to producers to repair, restore,
and mitigate damage by a natural disaster on private land.and mitigate damage by a natural disaster on private land.
The Emergency Conservation Program (ECP) and the Emergency Forest The Emergency Conservation Program (ECP) and the Emergency Forest
Restoration Program (EFRP) are administered by FSA. For both programs, FSA Restoration Program (EFRP) are administered by FSA. For both programs, FSA
pays participants a percentage of the cost to restore the land to a productive state. pays participants a percentage of the cost to restore the land to a productive state.
ECP also funds water for livestock and installing water conserving measures ECP also funds water for livestock and installing water conserving measures
during times of drought. EFRP was created to assist private forestland owners during times of drought. EFRP was created to assist private forestland owners
with losses caused by a natural disaster on nonindustrial private forest land.with losses caused by a natural disaster on nonindustrial private forest land.
The Emergency Watershed Protection (EWP) program and the EWP floodplain The Emergency Watershed Protection (EWP) program and the EWP floodplain
easement program are administered by USDAeasement program are administered by USDA
’'s Natural Resources Conservation s Natural Resources Conservation
Service and the U.S. Forest Service. EWP assists sponsors, landowners, and Service and the U.S. Forest Service. EWP assists sponsors, landowners, and
operators in implementing emergency recovery measures for runoff retardation operators in implementing emergency recovery measures for runoff retardation
and erosion prevention to relieve imminent hazards to life and property created and erosion prevention to relieve imminent hazards to life and property created
by a natural disaster. The EWP floodplain easement program is a mitigation by a natural disaster. The EWP floodplain easement program is a mitigation
program that pays for permanent easements on private land meant to safeguard program that pays for permanent easements on private land meant to safeguard
lives and property from future floods, drought, and the consequences of erosion lives and property from future floods, drought, and the consequences of erosion
through the restoration and preservation of the landthrough the restoration and preservation of the land
’'s natural s natural
values.
functions and values. For more information on these programs, see CRS Report R42854, For more information on these programs, see CRS Report R42854,
Emergency Assistance for
Agricultural Land Rehabilitation..
Assistance to Prevent Spread of Animal Diseases
Under the Animal Health Protection Act (7 U.S.C. Under the Animal Health Protection Act (7 U.S.C.
§§8301 et seq.), USDA is authorized to take 8301 et seq.), USDA is authorized to take
protective actions against the spread of livestock disease, including seizing, treating, or protective actions against the spread of livestock disease, including seizing, treating, or
destroying animals if USDA determines that an extraordinary emergency exists because of the destroying animals if USDA determines that an extraordinary emergency exists because of the
presence of a pest or disease of livestockpresence of a pest or disease of livestock
and poultry. As part of its animal health program, USDA. As part of its animal health program, USDA
’'s Animal s Animal
and Plant Health Inspection Service (APHIS) compensates producers for animals that must be and Plant Health Inspection Service (APHIS) compensates producers for animals that must be
euthanized, for their disposition, and for euthanized, for their disposition, and for
infectedcontaminated materials that must also be destroyed. Funding materials that must also be destroyed. Funding
is provided by annual appropriations or through the CCC for larger amounts.is provided by annual appropriations or through the CCC for larger amounts.
During the highly pathogenic avian influenza (HPAI) outbreak in During the highly pathogenic avian influenza (HPAI) outbreak in
20142022 and and
20152023, USDA , USDA
transferred at total of $transferred at total of $
989793.7 million in CCC funds to APHIS to respond to the outbreak. APHIS million in CCC funds to APHIS to respond to the outbreak. APHIS
obligated nearly $obligated nearly $
850433 million of this total in FY2022.32 As of December 2023 million of this total, including more than $200 million in indemnity payments to producers.28 In February 2022, a new HPAI outbreak occurred in the United States. As of April 2022, HPAI outbreaks have been found in , HPAI outbreaks have been found in
2947 states states
, and APHIS has requested an undisclosed amount of CCC funds to respond to the 2022 outbreak. and 900 confirmed commercial and backyard flocks.33
Dairy Indemnity Payment Program (DIPP)
DIPP provides payments to dairy farmers for milk, or cows producing milk, and to manufacturers DIPP provides payments to dairy farmers for milk, or cows producing milk, and to manufacturers
of dairy products who have been directed to remove their milk or dairy products from commercial of dairy products who have been directed to remove their milk or dairy products from commercial
28 During the 2014-2015 HPAI outbreak, over 50 million birds were depopulated, including 211 commercial flocks and 21 backyard flocks in 15 states. USDA, APHIS, Final Report for the 2014-2015 Outbreak of Highly Pathogenic Avian
Influenza (HPAI) in the United States, revised August 11, 2016, at https://www.aphis.usda.gov/animal_health/emergency_management/downloads/hpai/2015-hpai-final-report.pdf. For more information, see CRS Report R44114, Update on the Highly-Pathogenic Avian Influenza Outbreak of 2014-2015.
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markets because of the presence of certain chemical or toxic residue in the product. DIPP is markets because of the presence of certain chemical or toxic residue in the product. DIPP is
authorized by authorized by
Section 3 of P.L. 90-484, as amended. The 2018 farm bill extended the authority for P.L. 90-484, as amended. The 2018 farm bill extended the authority for
DIPP through FY2023. Funding is authorized through an annual appropriation to the CCC for DIPP through FY2023. Funding is authorized through an annual appropriation to the CCC for
such sums as necessary, to remain available until expended. Since the programsuch sums as necessary, to remain available until expended. Since the program
’'s inception in s inception in
1965 through 1965 through
FY2021FY2022, USDA has made approximately $, USDA has made approximately $
4145.3 million in payments to dairy million in payments to dairy
farmers.farmers.
29
34
Eligible loss contamination Eligible loss contamination
may beincludes those caused by pesticides, nuclear radiation or fallout, toxic caused by pesticides, nuclear radiation or fallout, toxic
substances, and chemical residue. Program participants must not be responsible for the substances, and chemical residue. Program participants must not be responsible for the
contamination nor have been indemnified for the same loss from another source. In contamination nor have been indemnified for the same loss from another source. In
FY2021, 2021, USDA amended regulations to allow for indemnification of cows that are likely not marketable USDA amended regulations to allow for indemnification of cows that are likely not marketable
due to contamination. This change was made primarily to address concerns about per- and due to contamination. This change was made primarily to address concerns about per- and
polyfluoroalkyl substances (PFAS) in dairy cows, making them unmarketable for a lengthy polyfluoroalkyl substances (PFAS) in dairy cows, making them unmarketable for a lengthy
duration and therefore eligible for depopulation.duration and therefore eligible for depopulation.
30 35
Permanently Appropriated Funds
USDA has discretionary authority to distribute payments to farmers with Funds for Strengthening USDA has discretionary authority to distribute payments to farmers with Funds for Strengthening
Markets, Income and Supply (referred to as Markets, Income and Supply (referred to as
"Section 32") and CCC.) and CCC.
3136 While both Section 32 and While both Section 32 and
CCC have broad authority to support U.S. agriculture, many of their activities are required under CCC have broad authority to support U.S. agriculture, many of their activities are required under
various statutes, such as omnibus farm bills.various statutes, such as omnibus farm bills.
3237 Beginning in FY2012, annual appropriations acts Beginning in FY2012, annual appropriations acts
limited select discretionary uses of CCC and Section 32. The FY2018 omnibus appropriation removed this limitation for CCC and allowed for limited carryover funding under Section 32 to be used pending congressional notification.
USDA’limited select discretionary uses Section 32 by limiting carryover funding pending congressional notification.USDA's Section 32 program is funded by a permanent appropriation of 30% of s Section 32 program is funded by a permanent appropriation of 30% of
the previous yearthe previous year
’'s customs receipts. Funds are used for a variety of activities, s customs receipts. Funds are used for a variety of activities,
including child nutrition programs, the purchase of commodities for domestic including child nutrition programs, the purchase of commodities for domestic
food programs, and farm disaster assistance. The statutory authority is Section 32 food programs, and farm disaster assistance. The statutory authority is Section 32
of the Agricultural Adjustment Act Amendment of 1935 (P.L. 74-320, 7 U.S.C. of the Agricultural Adjustment Act Amendment of 1935 (P.L. 74-320, 7 U.S.C.
§612c). The authority to provide disaster assistance is attributed to clause 3 of 612c). The authority to provide disaster assistance is attributed to clause 3 of
Section 32, which provides that funds Section 32, which provides that funds
“"shall be used to re-establish farmersshall be used to re-establish farmers
’ ' purchasing power by making payments in connections with the normal purchasing power by making payments in connections with the normal
production.production.
”" The The
FY2022FY2023 appropriation (§714, P.L. 117- appropriation (§714, P.L. 117-
103328) limits use of clause ) limits use of clause
3 to carryover funding of no more than $350 million following a two-week 3 to carryover funding of no more than $350 million following a two-week
advance notice to Congress.advance notice to Congress.
The CCC serves as the funding institution for carrying out federal farm support The CCC serves as the funding institution for carrying out federal farm support
programs, such as commodity price support and production programs, programs, such as commodity price support and production programs,
conservation programs, disaster assistance, agricultural research, and bioenergy conservation programs, disaster assistance, agricultural research, and bioenergy
development. It is federally chartered by the CCC Charter Act of 1948 (P.L. 80-development. It is federally chartered by the CCC Charter Act of 1948 (P.L. 80-
806), as amended. The authority to provide assistance is attributed to Section 5 of
29 USDA, 2023 Explanatory Notes, Farm Service Agency, March 2022, at https://www.usda.gov/sites/default/files/documents/27-2023-FSA.pdf.
30 CCC, FSA, USDA, “Supplemental Dairy Margin Coverage Payment; Conservation Reserve Program; Dairy Indemnity Payment Program; Marketing Assistance Loans, Loan Deficiency Payments, and Sugar Loans; and Oriental Fruit Fly Program,” 86 Federal Register 70689-70708, December 13, 2021. 31 For additional information on Section 32, see CRS Report RL34081, Farm and Food Support Under USDA’s Section
32 Program. For additional information on the CCC, see CRS Report R44606, The Commodity Credit Corporation
(CCC).
32 Most CCC- and Section 32-funded programs are classified as mandatory spending programs and therefore do not require annual appropriations.
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the act (15 U.S.C. 806), as amended. The authority to provide assistance is attributed to Section 5 of the act (15 U.S.C. §714c), which, among other activities, authorizes the CCC to 714c), which, among other activities, authorizes the CCC to
support the prices of agricultural commodities through loans, purchases, support the prices of agricultural commodities through loans, purchases,
payments, and other operations.payments, and other operations.
In general, CCC cannot directly indemnify agricultural losses unless directed by Congress.Authority Under Existing USDA Programs
In addition to implementing the disaster assistance programs discussed above, USDA can use In addition to implementing the disaster assistance programs discussed above, USDA can use
authority under other existing programs to help producers recover from natural disasters. authority under other existing programs to help producers recover from natural disasters.
Examples of these programs and disaster related actions include the following:Examples of these programs and disaster related actions include the following:
authorizing emergency grazing and haying on Conservation Reserve Program authorizing emergency grazing and haying on Conservation Reserve Program
(CRP) acres;(CRP) acres;
33
38
reducing the emergency loan interest rate and making emergency loans available reducing the emergency loan interest rate and making emergency loans available
earlier in the season;earlier in the season;
targeting conservation assistance through the Environmental Quality Incentives targeting conservation assistance through the Environmental Quality Incentives
Program (EQIP), including providing additional funding for farmers and ranchers Program (EQIP), including providing additional funding for farmers and ranchers
to implement conservation practices that prevent excessive soil erosion, restore to implement conservation practices that prevent excessive soil erosion, restore
streambanks, and respond to animal mortality (farmers and ranchers contribute streambanks, and respond to animal mortality (farmers and ranchers contribute
about half the cost of implementing the practices);about half the cost of implementing the practices);
3439 and and
directing Emergency and Imminent Community Water Assistance Grants for directing Emergency and Imminent Community Water Assistance Grants for
rural water systems experiencing emergencies resulting from a significant decline rural water systems experiencing emergencies resulting from a significant decline
in quantity or quality of drinking water.in quantity or quality of drinking water.
35
40 Ad Hoc Assistance
Ad Hoc Assistance
The U.S. farm policy mix that provides assistance to agricultural producers for damage and loss following a natural disaster continues to include both permanent and temporary authorized support. The authorization of permanent disaster assistance programs in the 2008 and 2014 farm The authorization of permanent disaster assistance programs in the 2008 and 2014 farm
bills,bills,
3641 as well as expanded crop insurance and NAP policies, were intended to reduce the need as well as expanded crop insurance and NAP policies, were intended to reduce the need
for ad hoc disaster assistance.for ad hoc disaster assistance.
42 Following enactment of the 2008 farm bill, Congress appropriated Following enactment of the 2008 farm bill, Congress appropriated
littleless in the way of supplemental disaster assistance for agriculture for several years, most of in the way of supplemental disaster assistance for agriculture for several years, most of
which was for land rehabilitation efforts under EWP and ECP. This changed in 2018, when an which was for land rehabilitation efforts under EWP and ECP. This changed in 2018, when an
active hurricane and wildfire season in 2017 prompted Congress to authorize ad hoc assistance active hurricane and wildfire season in 2017 prompted Congress to authorize ad hoc assistance
through a series of supplemental appropriations.
33 Emergency grazing and haying on CRP acres are generally restricted during primary nesting season for certain wildlife. Authorization is provided either at the national FSA level or by a state FSA committee utilizing the U.S. Drought Monitor. For more information on CRP emergency grazing and haying requirements, see FSA, “CRP Haying and Grazing Emergency and Non-Emergency Use,” at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/crp_haying_grazing_factsheet.pdf.
34 For additional information on EQIP Disaster Recovery Assistance, see https://www.nrcs.usda.gov/Internet/FSE_MEDIA/nrcseprd1429025.pdf.
35 USDA’s Rural Utilities Service provides grants and loans for rural water systems in communities with fewer than 10,000 inhabitants. Its programs are for domestic water service, not water for agricultural purposes. For more information, see USDA, Rural Development, “Rural Decentralized Water Systems Grant Program,” at https://www.rd.usda.gov/programs-services/water-environmental-programs/rural-decentralized-water-systems-grant-program.
36 See the “Supplemental Agricultural Disaster Assistance Programs” section discussed above.
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Supplemental Appropriations
The Bipartisan Budget Act of 2018 (P.L. 115-123) authorized $2.36 billion for production losses not covered under NAP or crop insurance in 2017.37 The majority of this funding was made available through the Wildfires and Hurricanes Indemnity Program (WHIP), referred to as 2017
WHIP.38 Congress directed that only crop, tree, bush, and vine losses from a wildfire or hurricane in 2017 were eligible for assistance under 2017 WHIP.39 A portion of the funding was also used for a $340 million block grant to the State of Florida to assist the citrus industry.40
The FY2019 supplemental appropriation (P.L. 116-20) authorized an additional $3 billion to USDA to cover crop, tree, bush, and vine losses from 2018 and 2019 natural disasters that were not covered under crop insurance or NAP.41 USDA announced that the majority of the FY2019 supplemental appropriation funding would be provided under an expanded version of WHIP, referred to as WHIP+. Under the 2019 supplemental appropriation, Congress required USDA make payments for additional losses not previously covered, including for crops that were prevented from being planted in 2019, on-farm stored commodities, quality-related losses, and milk losses. The FY2019 supplemental appropriation also authorized, and USDA made available, block grants to select states to cover livestock, poultry, and forestry losses.42
Approximately 60% of 2017 WHIP was unobligated before funds expired on December 31, 2019. The FY2020 through a series of supplemental appropriations. Such supplemental appropriations have continued and total over $19 billion from FY2018 through FY2023 (over $20 billion when adjusted for inflation).43
As the appropriations language directing the supplemental funds has evolved over time, so too has the implementation. Both the Trump and Biden Administrations have implemented these funds through a series of ad hoc programs that have changed in name and eligibility requirements. Table A-1 provides a summary of funds appropriated to date and the corresponding programs implemented by USDA. The most recent supplemental funding, provided in FY2022 and FY2023, has been implemented through the Emergency Relief Program (ERP).44
Emergency Relief Program (ERP) 2022
The Disaster Relief Supplemental Appropriations Act of 2023 (passed as Division N of the Consolidated Appropriations Act, 2023 [P.L. 117-328], FY2023 supplemental) included $3.741 billion for losses that occurred in calendar year 2022. Qualifying natural disaster events under ERP included wildfires, tornadoes, hurricanes, floods, derechos, excessive heat, winter storms, freeze, smoke exposure, excessive moisture, qualifying drought, and related conditions. Qualifying losses included crops (including milk, on-farm stored commodities, crops prevented from planting, and harvested adulterated wine grapes), trees, bushes, and vines. The majority of the FY2023 supplemental funds are being implemented through ERP, an ad hoc program established to implement similar supplemental funds appropriated in FY2022.45 The current ERP—referred to as "ERP 2022"—is offered in two tracks.
ERP 2022 Track 1 is calculated using existing NAP and crop insurance data. Each producer's loss is calculated consistent with the loss procedures for the type of coverage purchased but using an ERP factor ranging from 75% to 95% in place of the coverage level. The ERP factor is based on the amount of crop insurance or NAP coverage the producer originally purchased. This calculated amount is then be adjusted by subtracting out the net crop insurance indemnity or NAP payment. For historically underserved producers—including beginning, limited resource, socially disadvantaged, and veteran farmers and ranchers—the premium or administrative fee paid is added to the payment. ERP 2022 Track 1 also applies a progressive factor to all payments calculated based on crop insurance indemnities.46 The higher the ERP 2022 payment, the lower the progressive factor percentage applied.47
ERP 2022 Track 2 provides payments based on estimated revenue loss. There are two options for determining revenue loss—tax year option or expected revenue option. The tax year option includes a calculation based on the allowable gross revenue for the 2018 or 2019 tax year compared with the disaster year's allowable gross revenue for the 2022 or 2023 tax year. The expected revenue option allows the producer to certify the revenue they reasonably expected to receive absent any disaster conditions and the actual disaster year revenue. Estimated revenue is limited to 70% of agricultural loss if no crop insurance or NAP coverage was purchased. Track 2 calculations include the progressive factor and are prorated based on available funds.
Payments under ERP 2022 are limited to $125,000 per person or legal entity if less than 75% of the participant's adjusted gross income was from farming. If more than 75% of the participant's AGI was from farming, then payments are limited to a maximum of $900,000 for specialty and high value crops and $250,000 for all other crops per person or legal entity. All ERP participants that received a payment under ERP 2022 are required to purchase a crop insurance or NAP policy for the next two available crop years.
Emergency Livestock Relief Program (ELRP) 2022
The FY2023 supplemental directed $464.5 million to livestock producers who incurred forage losses in 2022 due to qualifying droughts or wildfires. USDA is providing payments though ELRP—referred to as "ELRP 2022." Livestock producers were eligible for a portion of these losses under LFP; however, that program uses a static annual payment rate that does not adjust for rising feed costs within the year. ELRP 2022 is intended to help compensate for higher supplemental feed costs they may have incurred.48
Payments are calculated on livestock inventories and drought-affected forage acres reported on 2022 LFP applications. A livestock producer's gross LFP calculated payment in 2022 is multiplied by 90% for historically underserved producers—including beginning, limited resource, socially disadvantaged, and veteran farmers and ranchers—and by 75% for all other producers to determine the payment per month, per animal unit.49 This payment is then multiplied by 25% based on available funds. Payments are expected to be issued automatically with no application required. Only LFP participants in 2022 are eligible for ELRP 2022.
Payment limits for ELRP are based on an individual's or entity's average AGI over a three-year period—2018, 2019, and 2020—depending on how much of that income is derived from farming.50 Generally, payments are limited to $125,000 per person or legal entity. If more than 75% of the participant's AGI is from farming, then ELRP payments are limited to $250,000. The AGI eligibility thresholds that apply to farm commodity support programs and permanent disaster assistance programs, such as the "Supplemental Agricultural Disaster Assistance Programs" described above, do not apply in determining ELRP eligibility.
Appendix. Supplemental Appropriations
Table A-1. Supplemental Appropriations and Ad Hoc Programs for Natural Disaster Assistance
nominal dollars
Fiscal Year (Calendar Year Loss)
|
Funding
|
Appropriation and Selected Congressional Direction
|
Ad Hoc Programs Created/Implemented
|
FY2018 (2017 losses)
|
$2.360 billion
|
Bipartisan Budget Act of 2018 (P.L. 115-123, Division B, Title I), for crop, tree, bush, and vine losses from a wildfire or hurricane, not covered under NAP or crop insurance. - Payments limited to 85% of loss for those who purchased NAP or crop insurance, and 65% for those who did not purchase NAP or crop insurance.
- Allows for block grants.
- Requires purchase of NAP or crop insurance for next two crop years.
|
Wildfires and Hurricanes Indemnity Program (WHIP), referred to as 2017 WHIP; and block grant to Florida for citrus losses.
|
FY2019 (2018 and 2019 losses)
|
$3.005 billion
|
Additional Supplemental Appropriations for Disaster Relief Act of 2019 (P.L. 116-20, Title I), for crop, tree, bush, and vine losses from natural disasters that were not covered under NAP or crop insurance. - Adds losses not previously covered, such as crops that were prevented from being planted in 2019, on-farm stored commodities, quality-related losses, harvested adulterated wine grapes, and milk losses.
- Expands eligible events to hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms, and wildfires.
- Payments limited to 90% of loss for those who purchased NAP or crop insurance, and 70% for those who did not purchase NAP or crop insurance.
- Allows for block grants for forest restoration and poultry and livestock losses.
- Requires purchase of NAP or crop insurance for next two crop years.
- Lowers tree mortality threshold for TAP from 15% to 7.5% in 2018.
- Provides $7 million for payments to whole farm revenue policy holders (crop insurance) whose payments were reduced due to assistance received through state-legislated disaster assistance programs.
|
Wildfires and Hurricanes Indemnity Program Plus (WHIP+); Milk Loss Program; On-Farm Storage Loss; Quality Loss Adjustment Program; Federal Crop Insurance Program Supplemental Prevented Planting Payments, referred to as top-up payments; and block grants to select states to cover livestock, poultry, and forestry losses.
|
FY2020 (2017, 2018, and 2019 losses)
|
[est. $1.500 billion]
|
Further Consolidated Appropriation Act (P.L. 116-94Further Consolidated Appropriation Act (P.L. 116-94
, Division B, §791), rescinds and repurposes unobligated funds from P.L. 115-123 (2017 WHIP) and reallocates it to the same purposes as P.L. 116-20 (WHIP+) with some additions. - Expands eligibility to include quality losses of crops, drought (extreme drought or higher intensity according to the U.S. Drought Monitor), and excessive moisture
- Covers losses due to Tropical Storm Cindy, peaches and blueberries due to freeze in 2017, and blueberry productivity losses in 2018.
- Directs $400 million to block grants.
- Pays sugar beet losses through cooperative processors.
See FY2018 and FY2019 funding above.
|
FY2022 (2020 and 2021 losses)
|
$10.000 billion
|
, Division B, §791) repurposed those funds to WHIP+, rescinding the 2017 WHIP unobligated balance of an estimated $1.5 billion and reallocating it to WHIP+, while expanding eligibility and creating additional program requirements.
The Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43
, Division B, Title I), for crop, tree, bush, and vine losses, Division B) authorized $10 billion for production losses in 2020 and 2021 not covered under NAP or crop not covered under NAP or crop
insurance. The act expands the list of qualifying events to include droughts; wildfires; hurricanes; floods; derechos; excessive heat; winter storms; freezes, including a polar vortex; smoke exposure; quality losses of crops; and excessive moisture. Congress requires that $750 million of the FY2022 funds must be used for livestock losses incurred in 2021 from drought or wildfire. In March 2022, USDA announced it would implement the FY2022 funding through the Emergency Relief Program (ERP) and Emergency Livestock Relief Program (ELRP).43
37 CRS In Focus IF10829, Agriculture Funding in the Bipartisan Budget Act of 2018. 38 USDA, “Nearly $2 Billion Now Available for Eligible Producers Affected by 2017 Hurricanes and Wildfires,” press release, July 16, 2018, https://www.usda.gov/media/press-releases/2018/07/16/nearly-2-billion-now-available-eligible-producers-affected-2017.
39 For additional information, see FSA, 2017 Wildfires and Hurricanes Indemnity Program (WHIP), https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/wildfires-and-hurricanes-indemnity-program/index. The FY2019 supplemental expanded eligibility under 2017 WHIP to include losses from Tropical Storm Cindy, peach and blueberry losses from extreme cold in calendar year 2017, and blueberry productivity losses from extreme cold and hurricanes in calendar year 2018.
40 An additional $3.2 million was available for administrative expenses. FSA, “Perdue Announces Florida Citrus Hurricane Recovery Details,” press release, May 1, 2018. 41 CRS In Focus IF11245, FY2019 Supplemental Appropriations for Agriculture. 42 FSA, “USDA Announces Block Grants for Three States as Part of Broader Disaster Relief Package,” press release, November 8, 2019, https://www.fsa.usda.gov/news-room/news-releases/2019/usda-announces-block-grants-for-three-states-as-part-of-broader-disaster-relief-package.
43 USDA, “USDA to Provide Payments to Livestock Producers Impacted by Drought or Wildfire,” press release, March 31, 2022, https://www.usda.gov/media/press-releases/2022/03/31/usda-provide-payments-livestock-producers-impacted-drought-or.
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Emergency Livestock Relief Program (ELRP)
The FY2022 supplemental directed $750 million to livestock producers who incurred losses in 2021 due to qualifying droughts or wildfires. Livestock producers were eligible for a portion of these losses under LFP; however, the program uses a static annual payment rate that does not adjust for rising feed costs within the year. In 2021, USDA estimated that drought and wildfires caused nearly a 40% increase in feed costs per animal unit.44 In response, USDA created the ELRP, to provide additional payments to livestock producers with approved LFP applications in 2021 to help compensate for the higher feed costs they may have incurred.
USDA plans to implement ELRP in two phases. Phase one payments are calculated on livestock inventories and drought-affected forage acres reported on 2021 LFP applications. A livestock producer’s gross LFP calculated payment is multiplied by 90% for historically underserved producers—including beginning, limited resource, and veteran farmers and ranchers—and by 75% for all other producers to determine the ELRP payment per month, per animal unit.45 USDA estimates that payments to eligible producers through phase one of ELRP will amount to more than $577 million.46
Payment limits for ELRP are based on an individual’s or entity’s average AGI over a three-year period—2017, 2018, and 2019—depending on how much of that income is derived from farming.47 Generally, payments are limited to $125,000 per person or legal entity. If more than 75% of the participant’s AGI is from farming, then ELRP payments are limited to $250,000. The AGI eligibility thresholds that apply to farm commodity support programs and permanent disaster assistance programs, such as the “Supplemental Agricultural Disaster Assistance Programs”
described above, do not apply in determining ELRP eligibility.
Emergency Relief Program (ERP)
The majority of FY2022 supplemental funds are expected to be implemented through ERP. As part of the ELRP announcement in March 2022, USDA stated that ERP will provide payments to diversified, row crop, and specialty crop operations that were impacted by eligible natural disaster events in 2020 and 2021.48 ERP is to be implemented in two phases, with the first phase using crop insurance and NAP data as the basis for calculating initial payments. The second phase is to address eligible producers that did not participate in crop insurance or NAP. USDA indicates that additional details will be forthcoming.
44 USDA, FSA, “Notice of Funds Availability; Emergency Livestock Relief Program (ELRP),” 87 Federal Register 19466, April 4, 2022.
45 The gross LFP calculated payment is the amount calculated prior to any payment reductions (e.g., sequestration, payment limitation, and exceeding the average Adjusted Gross Income limitation). For additional details, see the “Supplemental Agricultural Disaster Assistance Programs” section. 46 USDA, “USDA to Provide Payments to Livestock Producers Impacted by Drought or Wildfire,” press release, March 31, 2022, at https://www.usda.gov/media/press-releases/2022/03/31/usda-provide-payments-livestock-producers-impacted-drought-or.
47 Producers are assumed to be in the lowest payment limit category unless an exception to the payment limit is filed with USDA and documentation from a certified public accountant or attorney states that at least 75% of the person’s or legal entity’s average AGI was from adjusted gross farm income. Farm income includes income received or obtained from farming, ranching, and forestry operations.
48 USDA, “USDA to Provide Payments to Livestock Producers Impacted by Drought or Wildfire,” press release, March 31, 2022, at https://www.usda.gov/media/press-releases/2022/03/31/usda-provide-payments-livestock-producers-impacted-drought-or.
Congressional Research Service
14
Agricultural Disaster Assistance
Wildfires and Hurricanes Indemnity Program Plus (WHIP+)
WHIP+ provided assistance payments to cover a portion of production losses in calendar years 2018 and 2019 from Hurricanes Michael or Florence, other hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms, wildfires, drought, excessive moisture, and other natural disasters. Eligible losses were expanded in FY2020 to include quality loss, drought (D3 U.S. Drought Monitor intensity or higher), and excessive moisture, as well as the types of losses eligible under 2017 WHIP. Payments for WHIP+ were based on several factors, including (1) the expected value of the crop, (2) the level of insurance or NAP coverage, (3) a WHIP+ payment factor, (4) the value of the crop harvested, and (5) insurance payments received. Payment calculations vary based on production loss; value of crop loss; and tree, bush, and vine loss.49 All WHIP+ participants were required to purchase crop insurance or NAP for the next two crop years.
The FY2019 supplemental and FY2020 appropriation specifically identified eligible production loss types following natural disasters. USDA administered these provisions through payments and programs separate from WHIP+, including block grants to state, the On-Farm Storage Loss Program, milk loss payments, and payments for crops that were prevented or delayed planted.
Author Information
Megan Stubbs
Specialist in Agricultural Conservation and Natural Resources Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
49 For additional information, see CRS In Focus IF11539, Wildfires and Hurricanes Indemnity Program (WHIP).
Congressional Research Service
RS21212 · VERSION 83 · UPDATED
15 insurance. - Includes crops that were prevented from being planted in 2020 and 2021, on-farm stored commodities, harvested adulterated wine grapes, quality loss of crops, and milk losses.
- Eligible events include droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including polar vortex), smoke exposure, and excessive moisture.
- Directs $750 million for livestock losses in 2021 due to drought and wildfire.
- Payment limits are based on percentage of income from farming and are higher for specialty and high value crops.
- Payments limited to 90% of loss for those who purchased NAP or crop insurance (minus premiums and fees paid), and 70% for those who did not purchase NAP or crop insurance.
- Requires purchase of NAP or crop insurance for next two crop years.
Emergency Relief Program (ERP phase 1 and 2); Emergency Livestock Relief Program (ELRP); and Milk Loss Program.
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FY2023 (2022 losses)
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$3.741 billion
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Disaster Relief Supplemental Appropriations Act, 2023 (passed as Division N of the Consolidated Appropriations Act, 2023 [P.L. 117-328]), for revenue, quality, or production losses not covered under NAP or crop insurance. - Losses include milk, on-farm stored commodities, crops prevented from being planted in 2022, and harvested adulterated wine grapes, other crops, trees, bushes, and vines.
- Eligible events include droughts, wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freezes (including a polar vortex), smoke exposure, and excessive moisture.
- Directs $494.5 million for livestock losses in 2022 due to drought and wildfire.
- Includes other requirements from FY2022 regarding payment limits and NAP and crop insurance purchase requirements.
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ERP-2022 (track 1 and 2); ELRP-2022; On-Farm Stored Commodities; and Milk Loss Program.
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Source: CRS compiled using cited appropriations, and USDA press releases and websites.
Notes: Crop insurance refers to the Federal Crop Insurance Program, WHRP refers to a Whole Farm Revenue Policy under crop insurance, and NAP refers to the Noninsured Crop Assistance Program. Funding levels are in nominal dollars included in cited appropriation measures and not adjusted for inflation. Estimate shown in brackets to denote that the amount should not be included in totals as it reflects the repeal and repurpose of prior funds, not new funding. For additional information about the WHIP program, see CRS In Focus IF11539, Wildfires and Hurricanes Indemnity Program (WHIP).
Footnotes
1.
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For a brief summary of these programs, see CRS In Focus IF10565, Federal Disaster Assistance for Agriculture.
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2.
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For example, the Food, Conservation, and Energy Act of 2008 (2008 farm bill; P.L. 110-246) and the Agricultural Act of 2014 (2014 farm bill; P.L. 113-79) authorized the "Supplemental Agricultural Disaster Assistance Programs," discussed below.
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3.
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Bipartisan Budget Act of 2018 (P.L. 115-123), Additional Supplemental Appropriations for Disaster Relief Act, 2019 (P.L. 116-20), Disaster Relieve Supplemental Appropriation Act, 2022 (Division B, P.L. 117-43), and Consolidated Appropriations Act, 2023 (Division N, P.L. 117-328).
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4.
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Economic and market-related losses are not generally considered eligible losses under the U.S. Department of Agriculture's (USDA's) disaster assistance programs. Most disaster assistance programs are statutorily required to include some level of production or physical loss from an unavoidable natural cause to trigger eligibility. As such, this report does not discuss USDA payment programs related to the Coronavirus Disease 2019 (COVID-19) pandemic, trade disputes, or other economic related losses.
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5.
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H.Rept. 106-639; "Conference Report on H.R. 2559, Agricultural Risk Protection Act of 2000," House debate, Congressional Record, vol. 146, part 67 (May 25, 2000), p. H3817-H3828; and "Risk Management for the 21st Century Act," Senate debate, Congressional Record, vol. 146, part 34 (March 23, 2000), pp. S1627-S1642.
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6.
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The FCIC is funded through a mandatory indefinite appropriation that draws necessary funds directly from the U.S. Treasury.
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7.
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In crop year 2022, total premiums were $19.2 billion, and premium subsidies were $12.0 billion. See RMA, Crop Year Government Cost of Federal Crop Insurance Program, May 1, 2023, at https://www.rma.usda.gov/-/media/RMA/AboutRMA/Program-Budget/22cygovcost.ashx?la=en.
8.
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For additional information, see CRS In Focus IF12189, Federal Crop Insurance Program (FCIP): Limits on Administrative and Operating Subsidies.
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9.
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For more information on CCC, see CRS Report R44606, The Commodity Credit Corporation (CCC).
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10.
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For more on NAP, see USDA factsheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/noninsured_crop_disaster_assistance_program-nap-fact_sheet.pdf.
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11.
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For NAP enhancements, see CCC and FSA, "Noninsured Crop Disaster Assistance Program; Final Rule," 85 Federal Register 12213-12221, March 2, 2020.
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12.
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For additional information on payment limits and AGI requirements, see CRS Report R44739, U.S. Farm Program Eligibility and Payment Limits.
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13.
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USDA, 2024 Explanatory Notes—Commodity Credit Corporation, March 2023, at https://www.usda.gov/sites/default/files/documents/30-2024-CCC.pdf.
14.
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For local FSA contact information, see FSA locator at http://offices.sc.egov.usda.gov/locator/app?agency=fsa.
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15.
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USDA, 2024 Explanatory Notes—Commodity Credit Corporation, March 2023, at https://www.usda.gov/sites/default/files/documents/30-2024-CCC.pdf.
16.
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Sequestration is a process to reduce federal spending through automatic, largely across-the-board reductions that permanently cancel mandatory and/or discretionary budget authority. The supplemental agricultural disaster assistance programs classify as nonexempt mandatory accounts and are therefore reduced by sequestration. For additional information on sequestration, see Appendix C in CRS Report R46951, Agriculture and Related Agencies: FY2022 Appropriations.
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17.
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For additional information on payment limits, see CRS Report R46248, U.S. Farm Programs: Eligibility and Payment Limits.
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18.
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For more information, see 7 C.F.R. §1416 Subpart D—Livestock Indemnity Program.
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19.
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Payment rates are available in the USDA fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/livestock_indemnity_program_lip-fact_sheet.pdf. Historically, LIP payment rates were issued once annually. In 2022 and 2023, USDA issued midyear adjustments to the LIP payment rates to account for rapid changes in livestock markets. For more information, see USDA, FSA, "USDA Updates Livestock Disaster Payment Rate to Assist Producers Hard-Hit by Heat and Humidity," press release, August 25, 2023.
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20.
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Ineligible livestock includes those in feedlots; non-grazing animals; yaks; poultry; swine; unweaned livestock; livestock not produced for commercial use, such as wild or free roaming livestock and horses for racing or wagering; animals maintained for hunting; or animals produced for consumption by owner. For definitions of covered livestock, see 7 U.S.C. §9081(c)(1)(A) and 7 C.F.R. §1416.202.
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21.
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For weekly LFP updates on eligibility based on grazing period, drought intensity, and forage type, see USDA, FSA, "Livestock Forage Disaster Program (LFP)," at https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/livestock-forage/index.
22.
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For more information on LFP, see 7 C.F.R. §1416 Subpart C—Livestock Forage Disaster Program; and the USDA fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/fsa_lfp_livestockforageprogramfactsheet_2022.pdf.
23.
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For more information on ELAP, see 7 C.F.R. §1416 Subpart B—Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program; general ELAP fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2022/fsa_elap_generalfactsheet-22.pdf; ELAP honey bee fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2022/fsa_elaphoneybeefact_sheet-22.pdf; ELAP livestock fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/elap-livestock-fact-sheet.pdf; and ELAP farm-raised fish fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2022/elap_farmraisedfish_factsheet-2022-final.pdf.
24.
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For additional information and definitions for socially disadvantaged, limited resource, beginning, or veteran farmer or rancher, see CRS Report R46727, Defining a Socially Disadvantaged Farmer or Rancher (SDFR): In Brief.
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25.
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7 C.F.R. §1416.109.
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26.
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For additional information on beginning and veteran farmer and rancher provision in farm bill programs, see CRS In Focus IF11227, 2018 Farm Bill Primer: Beginning Farmers and Ranchers; and CRS In Focus IF11093, 2018 Farm Bill Primer: Veteran Farmers and Ranchers.
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27.
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For more information on TAP, see 7 C.F.R. §1416 Subpart E—Tree Assistance Program; the general TAP fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/tree_assistance_program-tap-fact_sheet.pdf; and the TAP Florida citrus greening fact sheet at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/tap-florida-citrus-greening-factsheet.pdf.
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28.
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The Secretary of Agriculture may designate quarantine areas under the Plant Protection Act (Title VI of P.L. 106-224) or animal quarantine laws. For an overview of the USDA emergency disaster designation and declaration process, see https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/emergency_disaster_designation_declaration_process-factsheet.pdf. For the USDA fact sheet on EM loans, see https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/fsa_emergencyloanprogram_factsheet-2020.pdf.
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29.
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Division A, Title II of P.L. 117-328.
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30.
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For the most recent funding levels available, see emergency loan funding totals at http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/funding/index.
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31.
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No loan may receive more than one disaster set-aside unless it is later restructured. For more information, see USDA, FSA, "Farm Loans: Disaster Set-Aside Program," at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/archived-fact-sheets/disaster_set_aside_program_oct2017.pdf.
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32.
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USDA, 2024 Explanatory Notes—Commodity Credit Corporation, March 2023, at https://www.usda.gov/sites/default/files/documents/30-2024-CCC.pdf.
33.
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USDA, Animal and Plant Health Inspection Service, "2022-2023 Confirmations of Highly Pathogenic Avian Influenza in Commercial and Backyard Flocks," December 8, 2023, at https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/animal-disease-information/avian/avian-influenza/hpai-2022/2022-hpai-commercial-backyard-flocks.
34.
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USDA, Farm Service Agency (FSA), 2024 Explanatory Notes—Farm Service Agency, March 2023, at https://www.usda.gov/sites/default/files/documents/27-2024-FSA.pdf.
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35.
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CCC, FSA, USDA, "Supplemental Dairy Margin Coverage Payment; Conservation Reserve Program; Dairy Indemnity Payment Program; Marketing Assistance Loans, Loan Deficiency Payments, and Sugar Loans; and Oriental Fruit Fly Program," 86 Federal Register 70689-70708, December 13, 2021.
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36.
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For additional information on Section 32, see CRS In Focus IF12193, Farm and Food Support Under USDA's Section 32 Account. For additional information on the CCC, see CRS Report R44606, The Commodity Credit Corporation (CCC).
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37.
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Most CCC- and Section 32-funded programs are classified as mandatory spending programs and therefore do not require annual appropriations.
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38.
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Emergency grazing and haying on CRP acres are generally restricted during primary nesting season for certain wildlife. Authorization is provided either at the national FSA level or by a state FSA committee utilizing the U.S. Drought Monitor. For more information on CRP emergency grazing and haying requirements, see FSA, "CRP Haying and Grazing Emergency and Non-Emergency Use," at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/crp_haying_grazing_factsheet.pdf.
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39.
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For additional information on natural disaster recovery assistance through EQIP, see https://www.nrcs.usda.gov/sites/default/files/2022-09/Natural%20Disaster%20Recovery%20Assistance%20through%20EQIP.pdf.
40.
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USDA's Rural Utilities Service provides grants and loans for rural water systems in communities with fewer than 10,000 inhabitants. Its programs are for domestic water service, not water for agricultural purposes. For more information, see USDA, Rural Development, "Rural Decentralized Water Systems Grant Program," at https://www.rd.usda.gov/programs-services/water-environmental-programs/rural-decentralized-water-systems-grant-program.
41.
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See the "Supplemental Agricultural Disaster Assistance Programs" section discussed above.
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42.
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H.Rept. 106-639; "Conference Report on H.R. 2559, Agricultural Risk Protection Act of 2000," House debate, Congressional Record, vol. 146, part 67 (May 25, 2000), p. H3817-H3828; and "Risk Management for the 21st Century Act," Senate debate, Congressional Record, vol. 146, part 34 (March 23, 2000), pp. S1627-S1642.
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43.
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Adjusted for inflation in FY2023 dollars using Office of Management and Budget, Table 10.1—Gross Domestic Product and Deflators Used in the Historical Tables: 1940–2028, March 2023, at https://www.whitehouse.gov/wp-content/uploads/2023/03/hist10z1_fy2024.xlsx.
44.
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FY2022 supplemental funds were included in the Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43, Division B, Title I), and FY2023 supplemental funds were included in the Disaster Relief Supplemental Appropriations Act of 2023 (passed as Division N of the Consolidated Appropriations Act, 2023 [P.L. 117-328]). For more details, see the Appendix. Previous ad hoc programs are no longer active and not discussed in this report.
45.
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The Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43, Division B, Title I) included $10 billion in supplemental funds to cover agricultural losses occurring in calendar years 2020 and 2021. Most of these funds were implemented through ERP in two phases. For additional information, see CRS In Focus IF12544, Department of Agriculture's Emergency Relief Program (ERP).
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46.
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USDA, FSA, "Emergency Relief Program (ERP 2022)," Track 1 fact sheet, October 2023, at https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/emergency-relief-program/pdfs/fsa_erp_2022_track_1_factsheet.pdf.
47.
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The progressive factor is applied to ERP 2022 payments ranging from 100% for payments up to $2,000 to 10% for payments over $10,000. For example, if the estimated ERP payment were $2,000, then the progressive factor would be 100%. If the estimated ERP payment were $5,000, then the progressive factor would be 100% for the first $2,000, then 80% for the next $2,000, and 60% for the final $1,000, resulting in an adjusted payment of $4,200.
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48.
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USDA, FSA, "USDA Previews Emergency Relief Assistance for Agricultural Producers Who Incurred Losses Due to 2022 Natural Disaster Events," press release, May 19, 2023, at https://www.fsa.usda.gov/news-room/news-releases/2023/usda-previews-emergency-relief-assistance-for-agricultural-producers-who-incurred-losses-due-to-2022-natural-disaster-events.
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49.
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The gross LFP calculated payment is the amount calculated prior to any payment reductions (e.g., sequestration, payment limitation, and exceeding the average Adjusted Gross Income limitation). For additional details, see the "Supplemental Agricultural Disaster Assistance Programs" section.
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50.
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Producers are assumed to be in the lowest payment limit category unless an exception to the payment limit is filed with USDA and documentation from a certified public accountant or attorney states that at least 75% of the person's or legal entity's average AGI was from adjusted gross farm income. Farm income includes income received or obtained from farming, ranching, and forestry operations.
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