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Quality loss program available

Jun 27, 2008 9:50 AM

Eligible farmers who suffered quality losses to their crops in recent years can enroll in the Crop Disaster Program 2005-2007 (CDP) at local FSA service centers, says USDA Farm Service Agency Administrator Teresa Lasseter.

The CDP provides benefits to farmers who suffered losses to their 2005-07 crops from natural disasters and related conditions. Producers who incurred qualifying quantity or quality losses in 2005, 2006 or 2007 may receive benefits for only one of these years. However, producers may apply for benefits for losses to multiple crops as long as the losses occurred in the same crop year.

Only producers who obtained crop insurance coverage or coverage under the Noninsured Crop Disaster Assistance Program (NAP) for the year of loss will be eligible for CDP benefits.

Producers must have suffered quality losses of at least 25 percent to be eligible for CDP Quality Loss.

The payment rate is set at 65 percent of the amount of the affected crop multiplied by 42 percent of the per-unit average market value in the year in which the loss occurred.

Producers may receive assistance for both quantity and quality losses. However, the total quantity and quality assistance, together with any crop insurance or NAP payment received for the same crop and the value of the crop production not lost, must not exceed 95 percent of the total value of the crop absent the disaster.

More CDP Quality Loss details are at http://www.fsa.usda.gov/Internet/FSA_File/cdpqlty08.pdf.

For more information about CDP and other disaster programs implemented by FSA, visit http://disaster.fsa.usda.gov.