SIGN-UP FOR the 2001 or 2002 Crop Disaster Program is under way at county Farm Service Agency offices. USDA says no closing date has been announced for the program, but producers will be given ample time to complete the process.

Payments for the CDP are authorized by the Agricultural Assistance Act of 2003, signed into law in February, to provide some $2 billion in aid for producers suffering from natural disasters. The CDP has no funding limitation, but each producer is limited to $80,000.

Under the Crop Disaster Program, producers will be reimbursed for qualifying crop production and quality losses to crops (other than sugar cane, sugar beets or tobacco) for either the 2001 or 2002 crops. Payments will be issued for losses exceeding 35 percent of expected production at:

  • 50 percent of the established price for crops that were covered by crop insurance;
  • 50 percent of the established price for crops for which crop insurance was not available; and
  • 45 percent of the established price to producers for crops that could have been insured but were not.

The statute requires 2001 and 2002 crop disaster payments for production and quality losses to be calculated by the same formula and loss thresholds used for the 2000 crop disaster program. This means the prices used to calculate disaster payments for crops insured under the Federal Crop Insurance Program will be the Actual Production History prices. For crops not insured, five-year average market prices will be used. For more information about CDP and other disaster assistance, contact or visit local county FSA offices or USDA Service Centers.