link to page 1 
May 9, 2022
Farm Bill Primer: Disaster Assistance
A number of federal programs help agricultural producers
Figure 1. Total Payments for Selected Permanent
recover from the effects of natural disasters, including the
Agricultural Disaster Assistance Programs
Noninsured Crop Disaster Assistance Program (NAP),
(FY2016-FY2021)
livestock and fruit tree disaster programs, and ad hoc
assistance. With the exception of ad hoc assistance, all
programs are permanently authorized and receive “such
sums as necessary” from the U.S. Department of
Agriculture’s (USDA) Commodity Credit Corporation
(CCC). As such, these programs require neither
reauthorization in a future farm bill nor annual
appropriations. Since 2018, Congress has authorized ad hoc
assistance through supplemental appropriations to assist
with natural disaster losses that generally were not covered
under the permanent programs. As Congress works on
another farm bill, it could consider whether to amend the
permanent disaster assistance programs or create new
programs to address emerging situations that are being
addressed with ad hoc assistance.
This In Focus provides a summary of existing permanent
and ad hoc disaster assistance programs that help farmers
Source: CRS from payments reported in annual budget requests.
recover financially from natural disasters. This summary
does not cover the Federal Crop Insurance Program (FCIP),
Livestock Forage Disaster Program
which also may provide support to farmers impacted by
LFP makes payments to eligible livestock producers who
natural disasters and is the subject of CRS Report R46686,
have suffered grazing losses on drought-affected
Federal Crop Insurance: A Primer.
pastureland or on rangeland managed by a federal agency
Existing Farm Bill Authorized Provisions
due to a qualifying fire. LFP payments for drought are
equal to 60% of the estimated monthly feed cost.
The 2014 farm bill (P.L. 113-79) permanently authorized
Depending on the severity of the drought, the monthly
four agricultural disaster programs for livestock and fruit
payment rate is multiplied by a factor of one, three, four, or
trees—Livestock Indemnity Program (LIP); Livestock
five. For producers who sold livestock because of drought
Forage Disaster Program (LFP); Emergency Assistance for
conditions, the payment rate is reduced.
Livestock, Honey Bees, and Farm-Raised Fish Program
Emergency Assistance for Livestock, Honey Bees,
(ELAP); and Tree Assistance Program (TAP) (7 U.S.C.
and Farm-Raised Fish Program
§9081). Amendments to these programs were included in
Title I of the 2018 farm bill. These programs provide
ELAP provides payments to producers of livestock, honey
compensation for a portion of lost production following a
bees, and farm-raised fish as compensation for losses due to
natural disaster. Producers do not pay a fee to participate.
disease, adverse weather, feed or water shortages, or other
Total payments under these programs vary each year based
conditions that are not covered under LIP or LFP.
on eligible loss conditions (see Figure 1).
Tree Assistance Program
Payments for individual producers under LFP may not
TAP makes payments to qualifying orchardists and nursery-
exceed $125,000 per year. There are no limits on the
tree growers to replant or rehabilitate trees, bushes, and
amount of payments received under LIP, ELAP, and TAP.
vines damaged by natural disasters. Losses in crop
To be eligible for a payment under any of these programs, a
production may be covered by crop insurance or NAP.
producer’s average adjusted gross income (AGI) over three
Eligible trees, bushes, and vines are those from which a
recent taxable years cannot exceed $900,000.
crop is produced annually for commercial purposes. The
Livestock Indemnity Program
total quantity of acres planted to trees, bushes, or vines for
which a producer can receive TAP payments cannot exceed
LIP provides payments to eligible livestock owners and
1,000 acres annually.
contract growers for livestock deaths in excess of normal
mortality or which are sold at reduced price caused by an
Noninsured Crop Disaster Assistance
eligible loss condition (e.g., adverse weather, disease, or
Program
animal attack). The LIP payment rate is equal to 75% of the
average fair market value of the animal.
Producers who grow a crop that is currently ineligible for
crop insurance may apply for NAP. NAP has permanent
https://crsreports.congress.gov
Farm Bill Primer: Disaster Assistance
authority under Section 196 of the Federal Agriculture
Price Tag
Improvement and Reform Act of 1996 (7 U.S.C. §7333).
Some in Congress have expressed interest in establishing a
NAP offers coverage for catastrophic losses—losses in
new permanent disaster assistance program similar to what
excess of 50% of normal yield. Higher coverage levels may
has been provided through ad hoc disaster assistance.
be purchased for less severe losses (referred to as buy-up
Supplemental appropriations for ad hoc disaster assistance
coverage). Buy-up coverage is available in increments of
have been classified as emergency spending and have not
5% to cover between 50% and 65% of a crop. NAP policies
required an offset under budget rules. New mandatory
must be purchased prior to a disaster event, and producers
spending in a farm bill, however, likely would require
must purchase or renew coverage on an annual basis. The
either increased spending authority (e.g., reconciliation) or
NAP service fee is the lesser of $325 per crop or $825 per
offsets through reductions in other farm bill mandatory
producer per administrative county, not to exceed a total of
spending programs. The amount and type of losses covered
$1,950 for farms in multiple counties. A producer of a
under such a program could impact the total cost and
noninsured crop is subject to an annual payment limit of
therefore the level of offsets required. Amendments to
$125,000 per person for catastrophic coverage and
permanent disaster programs that increase mandatory
$300,000 for buy-up coverage. A producer is ineligible
spending also could require offsets.
under NAP if the producer’s AGI exceeds $900,000.
Since FY2018, the total amount authorized for ad hoc
Ad Hoc Disaster Assistance
disaster assistance of $15 billion has exceeded the $2.6
billion expended under the permanent disaster assistance
Over the past 20 years, Congress has authorized permanent
programs. By comparison, it is less than the federal share of
disaster assistance programs and has expanded crop
FCIP, which averaged $8.2 billion per year from FY2018 to
insurance and NAP to reduce the need for ad hoc disaster
FY2021. Congress may debate how much in production
assistance. Following enactment of the 2008 farm bill (P.L.
losses from natural disasters should federal programs cover,
110-246), Congress appropriated little in the way of
including from permanent and ad hoc sources.
supplemental disaster assistance for agriculture. This
Implementation Challenges
changed in 2018, when Congress authorized supplemental
appropriations for additional production losses in 2017 not
By nature, ad hoc assistance programs are not permanent,
previously covered by crop insurance or NAP. Congress
generally requiring USDA to issue program rules and
subsequently appropriated additional supplemental funding
requirements upon passage of each new extension or on
for natural disaster-related losses in 2018 through 2021,
being amended, which has resulted in payment delays. The
totaling more than $15 billion. During the Trump
supplemental appropriations of recent years also included
Administration, most of this funding was made available
individual provisions targeting specific losses or events,
through the creation of the Wildfires and Hurricanes
which USDA administers through multiple subprograms
Indemnity Program (WHIP). During the Biden
that may create additional complexities for implementation
Administration, most of this funding is expected to be
and participation.
allocated through the new Emergency Relief Program
Improper Payments
(ERP).
Several of USDA’s disaster assistance programs have been
Issues for Congress
identified by USDA’s Office of Inspector General (OIG) as
being susceptible to improper payments. In FY2020, NAP,
Interest in agricultural disaster assistance has increased
LFP, and WHIP were found to have improper payment
since 2018, primarily due to the funding for ad hoc disaster
rates greater than 10%. Portions of WHIP were found to
assistance and questions about the effectiveness of the
have an improper payment rate of over 45%. Most of these
permanent disaster assistance programs. Another farm bill
programs’ improper payments were attributed to
could provide a platform for Congress to debate the federal
government’s
administrative errors (USDA, OIG, USDA’s Fiscal Year
role in responding to natural disaster-related
2020 Compliance with Improper Payment Requirements,
losses for an industry that is acutely influenced by natural
June 2021). Congress may use the farm bill to evaluate
disasters and fluctuations in weather.
these improper payment rates and provide additional
Effectiveness of Permanent Programs
oversight.
With the resurgence in ad hoc disaster assistance, Congress
might reassess the effectiveness of the permanent disaster
Additional CRS Resources
assistance programs. In addition to covering losses beyond
CRS Report RS21212, Agricultural Disaster Assistance
what may be covered by crop insurance and NAP, the ad
CRS In Focus IF10565, Federal Disaster Assistance for Agriculture
hoc programs cover losses not covered by other permanent
programs. This may cause some to question whether the
CRS In Focus IF11539, Wildfires and Hurricanes Indemnity
permanent disaster assistance programs could or should be
Program (WHIP)
expanded to cover losses or events not currently covered
CRS Report R42854, Emergency Assistance for Agricultural Land
(e.g., loss of quality and on-farm storage losses). Also, by
Rehabilitation
covering the losses of farmers who chose not to purchase
insurance, Congress may consider whether WHIP, ERP,
and other ad hoc assistance create a potential disincentive
for future participation in insurance programs.
Megan Stubbs, Specialist in Agricultural Conservation and
Natural Resources Policy
https://crsreports.congress.gov
Farm Bill Primer: Disaster Assistance
IF12101
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.
https://crsreports.congress.gov | IF12101 · VERSION 1 · NEW