Federal Agricultural Assistance for Extreme Heat

Federal Agricultural Assistance for Extreme Heat

link to page 1

August 6, 2024
Federal Agricultural Assistance for Extreme Heat
The National Aeronautics and Space Administration
R46873, Emergency Response to Extreme Heat: Federal
(NASA) reported June 2023 to May 2024 as 12 consecutive
Financial Assistance and Considerations for Congress.
months of record-high monthly average global surface
temperatures (Figure 1). The U.S. Global Change Research
Definition of Extreme Heat
Program’s Fifth National Climate Assessment reported, “it
Federal agencies define extreme heat in different ways and
is very likely that heatwaves will increase in frequency,
use a combination of factors that may include temperature,
severity, and duration as warming continues.”
relative humidity, event duration, and historical trends. An
extreme heat event is often defined relative to a region’s
Extreme heat conditions can impact agricultural
climate. Extreme heat differs from drought, which generally
productivity (e.g., decrease commodity yields and increase
refers to a deficiency of precipitation over an extended
livestock deaths) and farm profitability. For example, one
period of time resulting in a water shortage. For information
peer reviewed study found that two days of relatively high
on federal drought response programs, see CRS Report
temperatures reduced yields in many non-irrigated U.S. row
R46911, Drought in the United States: Science, Policy, and
crops. The U.S. Department of Agriculture (USDA)
Selected Federal Authorities.
administers programs designed to offer financial assistance
to U.S. agricultural producers recovering from production
Summary of Selected USDA Programs
losses, including those due to extreme heat conditions.
USDA insurance and direct payment programs may
financially compensate agricultural producers for a portion
Figure 1. Global Surface Temperature Anomalies
of lost production caused by extreme heat. Several such
(NASA), June 2023-May 2024
programs are permanently authorized and receive indefinite
1951-1980 reference period for comparison
mandatory funding. In general, to receive USDA
agricultural assistance, certain eligibility requirements must
be met. For the insurance programs, eligible producers must
purchase a policy prior to an event and may be required to
pay an administrative fee, premium, or both. For the direct
payment programs, eligible producers are not required to
sign up prior to the qualifying event or pay to participate.
Federal Crop Insurance Program (FCIP)
FCIP offers farmers the opportunity to purchase insurance
against financial losses caused by certain adverse growing
and market conditions, including extreme heat. In general,
FCIP offers insurance coverage for most field crops, a wide
variety of specialty crops, certain types of livestock and
animal products, and grazing lands. FCIP does not cover
losses of livestock, dairy, or grazing lands due to extreme
heat events. USDA calculates FCIP indemnities to farmers
for eligible losses based on the type of FCIP policy
purchased and the level of coverage selected by the

producer. Annual FCIP policies must be purchased prior to
a qualifying event.
Source: NASA, “Twelve consecutive months of global surface
temperature records: June 2023 - May 2024,” July 11, 2024.
Noninsured Crop Disaster Assistance Program
Note: For more information about data represented in the image,
(NAP)
see NASA, Goddard Institute for Space Studies.
With limited exceptions, producers growing commercial
crops for food, fiber, or livestock consumption that are
This In Focus provides an overview of USDA programs
ineligible for certain crop insurance policies may apply for
available to assist agricultural producers in recovering from
NAP coverage. USDA calculates NAP indemnities to
extreme heat conditions. It does not discuss other programs
farmers for eligible losses based on the type of NAP policy
for community water, housing, or food assistance offered
purchased and the level of coverage selected by the
by USDA or other federal agencies. For more information
producer. Annual NAP policies must be purchased prior to
on other heat-related disaster assistance, see CRS Report
a qualifying event.
https://crsreports.congress.gov

Federal Agricultural Assistance for Extreme Heat
Livestock Indemnity Program (LIP)
Programmatic Changes
LIP may provide direct payments to eligible livestock
Not all USDA disaster assistance programs cover losses due
producers for livestock deaths exceeding normal rates due
to extreme heat events. In addition to those limitations in
to extreme heat and other qualifying losses. Eligible losses
the programs discussed above, the Tree Assistance Program
must occur during an unexpected period of abnormal
(TAP) provides assistance for replanting or rehabilitating
weather. Technical committees in each state determine
eligible trees, bushes, and vines damaged by natural disaster
which loss conditions are eligible for LIP payments. The
but not by extreme heat unless approved by the FSA deputy
LIP payment rate is equal to 75% of the national average
administrator. The Livestock Forage Disaster Program
fair market value of the animal as determined by the Farm
(LFP) provides financial assistance to livestock producers
Service Agency (FSA).
affected by qualifying drought and wildfire but not extreme
heat.
Emergency Assistance for Livestock, Honey Bees,
and Farm-Raised Fish (ELAP)
Congress may consider whether USDA disaster assistance
ELAP may provide direct payments to producers of farm-
programs appropriately cover losses due to extreme heat
raised fish, livestock, and honey bees as compensation for
and whether such losses should be treated the same by all
losses due to disease, adverse weather, feed or water
programs or have different programmatic requirements.
shortages, or other conditions that are not covered under
LIP. Extreme heat is listed as a covered loss for farm-raised
Some policymakers may consider current coverage
fish. FSA county committees determine whether livestock
inadequate and choose to expand coverage through the
or honey bee losses due to particular extreme heat events
existing programs discussed above. Alternatively,
are eligible for payments.
policymakers could explicitly require ELAP, TAP, and LFP
to cover such losses. Increasing coverage and mandatory
In the context of extreme heat, ELAP may cover farm-
spending in these programs may require an offset under
raised fish deaths exceeding normal rates and losses of
budgetary rules.
intended fish feed. When applicable, ELAP may cover
livestock grazing losses, livestock feed losses, above
Some policymakers may deem that USDA disaster
normal feed purchases, and additional feed delivery costs.
assistance programs provide too much financial assistance
ELAP may cover lost honey bee colonies, hives, and feed.
for extreme heat events. Congress might choose to
explicitly exclude extreme heat as an eligible loss condition
ELAP payments for the loss of animals or fish are equal to
or otherwise make programmatic changes to reduce total
75% of the average fair market value of the animal as
outlays for extreme heat losses from some or all USDA
determined by FSA. ELAP payments for feed are based on
disaster assistance programs.
a minimum of 60% of the producer’s actual costs for lost
feed, feed transportation costs, and the purchase of
Enhancing the Resilience of Agricultural Producers
additional feed. ELAP payments for grazing losses are
USDA administers conservation programs that may help
based on a minimum of 60% of the lesser of the additional
producers develop adaptation and mitigation strategies to
feed cost incurred due to the lost number of grazing days or
reduce potential losses caused by disasters. In 2023, the
the value of the lost grazing forage.
U.S. Government Accountability Office published 13
potential options for USDA to help enhance the resilience
Ad Hoc and Supplemental Assistance
of agricultural producers against natural disasters and
In addition to the permanent insurance and disaster
reduce federal agricultural disaster exposure. Congress may
assistance programs, Congress appropriated about $13
evaluate the applicability of these options within the context
billion in supplemental ad hoc assistance in FY2022 (P.L.
of extreme heat.
117-43) and FY2023 (P.L. 117-328) for agricultural
production losses for qualifying natural disaster events in
Potential Increase in Cost
calendar years 2020, 2021, and 2022. The primary ad hoc
Producers may pay additional costs, such as increased input
program USDA created to administer this funding is the
expenses, due to extreme heat. An increase in the cost of
Emergency Relief Program (ERP). ERP payments for
production may result in lower farm income and higher
losses due to extreme heat have augmented payments from
consumer prices. Energy costs are an example of input costs
FCIP and NAP and compensated, to a lesser degree,
that may increase, particularly for livestock or commodities
individuals who did not purchase FCIP or NAP coverage.
grown in temperature-controlled environments (e.g., poultry
and hogs). As outside temperatures rise, the cost to
Issues for Congress
maintain optimal temperatures may increase. Congress may
Interest in resilience and response strategies for extreme
consider expanding benefits under USDA programs to
heat conditions is growing in the agricultural sector.
farmers, thereby potentially stabilizing consumer prices.
Congress may consider several issues relevant to USDA’s
Such an approach may change a farmer’s market-based
agricultural assistance for extreme heat conditions.
strategy of minimizing their input costs. In addition, higher
Congress may choose not to take action concerning extreme
consumer prices may offset higher productions costs.
heat.
Christine Whitt, Analyst Agricultural Policy
IF12731
https://crsreports.congress.gov

Federal Agricultural Assistance for Extreme Heat

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 | IF12731 · VERSION 1 · NEW