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Noninsured Crop Disaster Assistance Program
Introduction
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Noninsured Crop Disaster
Assistance
Program
• Risk protection
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

You must make an application for NAP on or before
the application closing date for the crop/commodity
in the county.
Eligible producers must apply for coverage of
noninsurable crops using Form CCC-471, “Application
for Coverage” and pay the applicable service fee at
the FSA office where their farm records are
maintained
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For basic CAT (Catastrophic) coverage
 The service fee is the lesser of :
 $250 per crop,
 $750 per producer per administrative county, not to
exceed a total of
$1875 for a producer with farming interests in multiple
counties.
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
Basic CAT level is figured as 50% of the yield and 55%
of the price.
Acres x share x (50%) yield x (55%) price
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FSA will waive NAP service fees and reduce buy-up
premiums by 50% for:
 Beginning farmers (BF)
 Limited resource farmers (LR)
 Socially disadvantaged farmers (SDA)
The completion of form CCC-860 is required.
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Statutory Changes
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In addition to CAT-level coverage,
NAP will offer buy-up coverage for
the 2015 through 2018 crop years
Crops and grasses intended for
grazing are excluded from buy-up
coverage
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Buy-up coverage levels:
Yield Level
50%
55%
60%
65%
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Price Level
100%
100%
100%
100%
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In addition to the service fee, producers who elect buyup coverage must pay a premium equal to the lesser of:
 5.25% of the guarantee
• Guarantee acres x share x yield x coverage level
(yield/price) x price x 5.25%

5.25% of the payment limit
• CAP is $125,000 x 5.25% or $6563
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For value loss crops, buy-up coverage will be based on
the maximum dollar value for which the producer
requests coverage
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If the application closing date for a crop has passed
before publication of the NAP rule, producers will have
additional time to apply for retroactive buy-up
coverage for that crop
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Any commercial agricultural crop (excluding
livestock and their by-products), commodity or
acreage of a commodity grown for food or fiber,
and commercial or industrial crops for which CAT or
additional coverage (non-pilot) is not available.
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Additional eligible crops:
 Sweet sorghum
 Biomass sorghum
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Expanded definition of industrial crops – includes crops
produced as a feedstock for:
 Renewable biofuel
 Renewable electricity
 Bio based products
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Crops are ineligible if either type of coverage is
available under the Federal Crop Insurance Act:
 CAT under section 508(b)
 Additional coverage under sections 508(c) and
508(h) (excluding some pilot programs)
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Accurate and timely reporting
• COF’s will review acreage reporting data with the
producer to verify accuracy
• Producers must sign acreage report
• Accurate acreage reports ensure program eligibility
• Inaccurate acreage reports can result in loss of benefits or
improper payments
•
Total cropland report, all cropland on a farm must be
reported to ensure program eligibility
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

Acreage reports must be filed by the final acreage
reporting date
Exceptions
• If crop is not planted by the final reporting date the
producer has 15 calendar days after planting is completed
• Producer acquires a lease after the final reporting date –
producer has 30 calendar days after acquiring the lease to
report
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
$125,000 payment limitation

$900,000 AGI provision
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A Notice of Loss (NOL) should be filed timely.
• during the coverage period
• within 15 days that loss becomes apparent
Producers of hand harvested crops shall notify COF within 72
hours and file NOL within 15 days of earlier of occurrence or
loss becomes apparent
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
Loss must occur from an eligible cause of loss during
the coverage period before or during harvest

Eligible causes of loss apply the same to basic and
buy-up coverage.
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
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Drought
Hail
Excessive moisture
Freeze
Tornado
Hurricane
Excessive wind
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Earthquake
Flood
Volcanic eruption
Any combination of the above
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Some examples:
• Losses that are not direct result of an eligible cause
of loss in the coverage period
• Failure to reseed or replant when practicable
• Failure to follow good farming practices
• Water contained or released
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

Producer signs after the loss is filed and worked by
an approved loss adjuster
No later than 60 days after normal harvest date
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The production reporting date (PRD) is the later of the
acreage reporting date for the crop in the subsequent
year or 60 days after the normal harvest date.
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
Forage Sorghum
◦
◦
◦
◦
◦
◦
100 Acres
2 T Approved Yield
2014 Price $137.33
100% share
Not SDA/LR/BF
Selected 60/100 Coverage Level
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
Premium Calculation
◦ Yield x Coverage Level x Price x Acres x Share = Guarantee
(used only for calculation of premium)
◦ Guarantee x .0525 = Premium

So:
◦ 2T x .60 x $137.33 x 100 Ac x 100% = $16,480
◦ $16,480 x .0525 = $865 Premium for Buy-Up
◦ The $250 Administrative Fee also applies.
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

Calculating the Payment
Harvests 1 ton of Forage Sorghum. There was an
eligible cause of loss.
◦ 2 T Yield x 60% coverage level = 1.2 T coverage
◦ 1.2 T coverage – 1 T harvest = .2 T loss
◦ .2 T loss x $137.33 x 100 Ac x 100% share = $2,747 NAP
payment.
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
If the same producer selected CAT only:
◦ $250 administrative fee is only cost.

With the same 1 T harvest:
◦ 1 T coverage (50%) – 1 T harvest = no covered loss. Zero
Payment
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