Federal Agricultural Recovery Resources for Drought-Related Losses

Federal Agricultural Recovery Resources for Drought-Related Losses

INSIGHTi
Federal Agricultural Recovery Resources for
Drought-Related Losses
Updated May 27, 2021
Per the U.S. Drought Monitor, 46.15% of the lower 48 states currently experience some level of drought
intensity, including extreme or exceptional drought in at least two-thirds of Utah (90%), Arizona (87%),
North Dakota (77%), Nevada (76%), New Mexico (75%), and California (74%). The U.S. Seasonal
Drought Outlook indicates that drought is expected to persist through July in nearly al western states.
Prolonged drought conditions could lead to production declines relative to prior years’ levels for row
crops, tree crops, specialty crops, and livestock.
This Insight provides a short overview of selected agricultural recovery resources related to drought. It is
not comprehensive and is not intended to provide up-to-date information on drought conditions or federal
assistance beyond those related to agricultural production.
Additional CRS resources related to agricultural disaster assistance include CRS Report RS21212,
Agricultural Disaster Assistance; CRS Report R42854, Emergency Assistance for Agricultural Land
Rehabilitation; CRS In Focus IF10565, Federal Disaster Assistance for Agriculture; and CRS Report
R46686, Federal Crop Insurance: A Primer.
Federal Agricultural Disaster Assistance Programs
Numerous federal assistance programs are designed to address agricultural losses following natural
disasters, including drought. The U.S. Department of Agriculture (USDA) administers these programs,
which include subsidized insurance, direct payments for loss, loans, and cost share to rehabilitate
damaged lands. The programs have permanent authorization and are intended to assist producers
recovering from production, financial, and physical loss related to or caused by natural disasters. Each
program has a different administrative process for producers requesting assistance.
Direct Payments
Some USDA programs provide payments to cover production losses above normal mortality. Advance
sign-up is not required. However, application deadlines exist following a qualified loss. These programs
are permanently authorized and receive mandatory funding amounts of “such sums as necessary.”
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USDA’s Farm Service Agency (FSA) administers the following direct payment programs; producers may
file applications through local FSA offices.
Livestock Forage Disaster Program (LFP)
LFP provides payments to eligible livestock producers who suffered grazing losses for covered livestock
due to drought on privately owned or cash-leased pastureland (including cropland planted specifical y for
grazing). A county’s Drought Monitor intensity level and the drought severity and duration trigger
payment.
Livestock Indemnity Program (LIP)
LIP provides payments to eligible livestock owners and contract growers for livestock deaths in excess of
normal mortality caused by adverse weather. Drought is not an eligible adverse weather event, except
when associated with anthrax, a condition that may occur because of drought and directly results in the
death of eligible livestock.
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 compensation for
losses due to disease, adverse weather, feed or water shortages, or other conditions not covered under LIP
or LFP. Under ELAP, the cost of transporting water may be covered but not the cost of water.
Tree Assistance Program (TAP)
TAP makes payments to qualifying orchardists and nursery tree growers to replant or rehabilitate trees,
bushes, and vines damaged by natural disasters, including excessive wind and qualifying drought.
Insurance programs general y cover losses in crop production (see “Insurance”).
Cost-Share Assistance
Some USDA programs pay a percentage of the cost to reinstal conservation infrastructure or rehabilitate
damaged land. Advance sign-up general y is not required. However, the programs wil not pay for
impairments existing before the disaster event. These programs are permanently authorized but subject to
appropriations.
Emergency Conservation Program (ECP)
ECP assists landowners in restoring land used in agricultural production damaged by a natural disaster
and in implementing emergency water conservation measures in severe drought periods (e.g., providing
emergency water for livestock and existing irrigation systems for orchards and vineyards). FSA
administers ECP, and local FSA offices accept applications.
Emergency Watershed Protection (EWP) Program
EWP assists local project sponsors to implement emergency recovery measures for runoff retardation and
erosion prevention to relieve imminent hazards to life and property created by natural disasters, including
drought. USDA’s Natural Resources Conservation Service (NRCS) administers EWP. Applications are
filed with local or state NRCS offices.

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Insurance
The Federal Crop Insurance Program and the Noninsured Crop Disaster Assistance Program (NAP)
provide subsidized or federal y supported insurance coverage for yield, revenue, or other losses on
eligible crops and livestock for covered causes of loss. Policies must be purchased prior to a disaster
event. These programs are permanently authorized and have mandatory funding authority. Approved
private insurance companies sel and service federal crop insurance policies. Producers must contact their
crop insurance agents to file a claim following a loss. NAP coverage is for crops that are ineligible for
federal crop insurance and is purchased from FSA. Producers must notify their local FSA offices
following a loss.
Emergency Loans
When either the President or the Secretary of Agriculture declares a county a disaster area, agricultural
producers in that county may become eligible for low-interest emergency farm loans available through
FSA. USDA issues this disaster designation nearly automatical y during periods of severe drought under a
“fast-track” process in accordance with Drought Monitor intensity. Loans may help producers recover
from production and physical losses. The program is subject to appropriations ($1.2 bil ion available in
FY2021).
Conservation Assistance
Certain nonemergency USDA conservation programs also may provide assistance during drought periods.
Conservation Reserve Program (CRP) Emergency Haying and Grazing
CRP provides annual payments to agricultural producers to take highly erodible and environmental y
sensitive land out of production and instal resource-conserving practices for 10 or more years. Haying
and grazing may be conducted on CRP land in response to drought or other emergencies (except during
primary nesting season for birds). In many cases, environmental y sensitive land is ineligible. FSA issues
haying and grazing authorization.
Environmental Quality Incentives Program (EQIP)
EQIP provides financial and technical assistance to producers to address natural resource concerns on
private agricultural and forestland. Under EQIP, conservation plans can emphasize improving soil health
to be more drought-resilient and fund related conservation practices, such as no-til , cover crops, and
irrigation system improvement. If existing conservation practices fail due to drought, assistance may be
available to restore those activities. NRCS administers EQIP.

Author Information

Megan Stubbs

Specialist in Agricultural Conservation and Natural
Resources Policy

Congressional Research Service
4

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