USDA’s Farm Service Agency (FSA) announced that higher levels of coverage will be offered through the Noninsured Crop Disaster Assistance Program (NAP), a popular safety net program, beginning April 8, 2019. The 2018 Farm Bill also increased service fees and made other changes to the program, including service fee waivers for qualified military veterans interested in obtaining NAP coverage.
“When other insurance coverage is not an option, NAP is a valuable risk mitigation tool for farmers and ranchers,” said Richard Fordyce, FSA Administrator. “In agriculture, losses from natural disasters are a matter of when, not if, and having a NAP policy provides a little peace of mind.”
NAP provides financial assistance to producers of commercial crops for which insurance coverage is not available in order to protect against natural disasters that result in lower yields or crop losses, or prevent crop planting.
NAP buy-up coverage option
The 2018 Farm Bill reinstates higher levels of coverage, from 50 to 65% of expected production in 5% increments, at 100% of the average market price.