Crop Disaster Program
Published on AidPage by IDILOGIC
on Jun 24, 2005
Purpose of this program:
The Acts authorizes the Secretary to provide disaster assistance to producers who suffered crop losses in the 2000 crop year because of adverse weather conditions. Disaster payment provisions apply if the crop could not be planted or production, both in quantity and quality, was adversely affected by: (1) Damaging weather, including drought, excessive moisture, hail, earthquake, freeze, tornado, hurricane, typhoon, volcano, excessive wind, excessive heat, or a combination thereof; or (2) related conditions of insect infestation such as grasshoppers and Mormon crickets, plant disease such as Pierce's disease and watermelon sudden wilt disease, or other deterioration of the crop, including aflatoxin, that is accelerated or exacerbated naturally because of damaging weather occurring before or during harvest.
Possible uses and use restrictions...
Assistance under the Crop Disaster Program will be available for: (1) 2000 crop losses on prevented planted acreage, reduced production of planted acreage, or reduced quality on certain crops; (2) value loss crops, including nursery and aquaculture. Direct financial compensation will be paid to producers with eligible crop losses greater than 35 percent compared to the historical average county yield or the producers actual production history (APH), whichever is greater. Persons with a gross revenue in excess of $2.5 million for the 1999 tax year are not eligible for benefits under the 2000 CDP. The payment limitation for 2000 CDP benefits is $80,000 per person. There are no use restrictions on the benefits received under this program.
Who is eligible to apply...
Any producer that had a financial risk and received or would have received a share of the 2000 crop will be eligible for benefits, if all other requirements have been met. Eligible crops for the disaster program include: (1) NAP crops defined in FSA Handbook 1-NAP; (2) crops for which Federal crop insurance is available, regardless of whether insurance was purchased. The producer must be able to show, with verifiable evidence, that the producer had an interest in the commodity produced or had control of the crop acreage on which this commodity was grown at the time of the disaster, which is the basis for the application for payment. One of the following shall be obtained as determined by the FSA County Committee: (1) Copies of signed written lease; (2) copies of signed rental agreements; (3) copies of other legal documents showing land ownership or control; (4) statement signed by the landowner that the producer had control of the acreage; (5) statement signed by the operator or producer that the producer had control of the acreage on the farm. Highly Erodible Land and Wetland Restrictions apply to CDP benefits. If, subsequent to the disaster, an eligible producer is now deceased or is a dissolved entity, a representative of the deceased producer or dissolved entity may sign the CCC-557 application, if the representative currently has authority to enter into a contract for the producer.
Producers shall provide production records for uninsured, noninsurable, and insured crops not meeting the loss threshold. Acceptable documentation includes verifiable and reliable records. Verifiable records are production records for an eligible crop must be submitted by the producer to support an application, or as required, to support a certification of production. Verifiable records of production include contemporaneous records provided by the producer that: (1) May be verified by FSA through an independent source; (2) are used to substantiate the amount of production reported; (3) verifiable records must be dated, show disposition of the crop's production, including quantity, and be crop specific for crops that are produced more than once in a calendar year. If verifiable records are not available, the producer shall provide reliable records documentation similar to copies of receipts, ledgers or income, income statements of deposit slips, register tapes, invoices for custom harvesting, and records to verify production input costs.
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
The application sign up period runs from January 18, 2001 through May 4, 2001 or such other date as may be announced. The following forms are required to apply for benefits under the Crop Disaster Program: CCC-557 - 2000 Crop Disaster Program Application; CCC-562 - Gross Revenue Certification Statement; CCC-561 - Contract to purchase Crop Insurance; AD-1026 - Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification (if one is not already on file); CCC-502 - Farm Operating Plan for Payment Eligibility Review (if one is not already on file); FSA-578D - Acreage Report (if one is not already on file for non-insured crops).
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
The CDP provides a one-time payment for 2000 crop disasters.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
The deadline for applications under the 2000 Crop Loss Disaster Program was May 4, 2001 or such other date as may be announced.
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
FSA County Offices were authorized to make payments under this program upon publication of the regulations in the Federal Register.
To prepare for the application procedure, the producer must provide evidence of the existence of the crop, certify to the disaster condition, and provide production totals to FSA. This program is excluded from coverage under E.O. 12372.
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
All producers receiving adverse decisions regarding their application under the disaster program are afforded appeal rights at several levels culminating at the National Appeals Division, which is a separate entity apart from the Farm Service Agency.
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
Any producer that had a financial risk and received or would have received a share of the 2000 crop will be eligible for benefits, if all other requirements have been met.
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
Direct Payments with Unrestricted Use
Financial assistance from the Federal government provided directly to beneficiaries who satisfy Federal eligibility requirements with no restrictions being imposed on the recipient as to how the money is spent. Included are payments under retirement, pension, and compensatory programs.
How much financial aid...
Range and Average of Financial Assistance
There is no minimum amount of assistance which may be received by an individual applicant. The national "person" limit is $80,000.
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
(Direct Payments) FY 03 $1,808,000,000, FY 04 est $0; and FY 05 est $0.
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
Examples of funded projects...
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
All available program funding will be used among eligible applicants.
Criteria for selecting proposals...
All producers meeting eligibility requirements may receive assistance subject to the national payment factor. Applications are non-competitive.
Length and Time Phasing of Assistance
Program payments are made after the application is filed and approved by the COC.
Formula and Matching Requirements
Eligible producers must have suffered 2000 crop losses in excess of 35%. Crop losses above 35% will be eligible for assistance at 65% of the county crop table price for insured crops or crops in which Federal crop insurance is not available and 60% of the county crop table price for insurable crops in which the producer did not purchase Federal crop insurance. As a condition of receiving benefits under CDP, any producer who elected to not purchase crop insurance on a crop in 2000 for which CDP benefits are requested must purchase crop insurance on that crop for the 2001 and 2002 crop years.
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
FSA will implement a national compliance program to spot check and verify the accuracy of applications received throughout the country. The Office of Inspector General will conduct program audits on a random basis throughout the country.
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
Participants must maintain production evidence for 3 years.
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's requirements.
The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act of 2001, Public Law 106-387.
This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Regulations, Guidelines, And Literature
CDP regulations are provided in 7 CFR Part 1480. Agency procedures are listed in Handbook 3-DAP. Disaster Program Fact Sheets may be located on line at http://www.fsa.usda.gov/pas/publications/facts/pubfacts.htm.