FSA Update

Most producers are aware of the upcoming Crop Reporting Deadline, July 15.
Prior to this date, farmers are required to accurately report their acreage as well as their production in order to remain eligible for all FSA programs including the Non-insured Crop Disaster Assistance Program (NAP).
Providing documentation to establish actual production history (APH) and to support the most recent year’s production has been underemphasized in the past even though doing so can benefit you more than you may realize.
If you missed reporting past years’ production, now is the time to remedy the situation.
Before July 15, bring in last year’s production and that of any other unreported years and watch your APH grow.
As you know NAP compensates eligible producers for losses exceeding 50 percent of the expected yield based on 55 percent of the average market price for the non-insurable commodity.
Eligible producers are also paid for prevented planting of more that 35 percent of the intended acreage. Remember, NAP is not there to make you “whole” financially, but it can provide much needed dollars for a minimum of $100 per crop or a maximum of $300 per county for all crops in that county.
The amount of NAP benefits paid to farmers like you is directly related to your ability to document through good records your actual history of producing the crop or APH.
If at least four years of acceptable production records are not provided, a yield will be assigned, which may cause undue heartache.
Let me demonstrate. It’s not that complicated.
CASE ONE:
PRODUCER REPORTS
PRODUCTION
Looking at charts A, B, C, and D, notice that the Approved Yield increases with each subsequent year.
In 2002, when the producer initially signed up for NAP coverage, he was assigned 65 percent of the County Yield for the previous four years because he was unable to provide acceptable production records.
As he began to provide production for the next three years, that actual production along with increasing percentages of the County Yield brought his Approved Yield up from 650 to 1186.
Remember, this is the yield that the producer will get paid on should he suffer an eligible loss due to a natural disaster.
CASE TWO:
PRODUCER DOES NOT
REPORT PRODUCTION
Now look at charts E, F, G, H, ad I.
Failure to report production caused the Approved Yield to eventually drop to zero within only a few years.
This producer would receive zero benefits if he/she had suffered an eligible loss in 2006.
Don’t let this happen to you.
Report your acreage and production before July 15.
It can only help.
By the way, for those of you that operate retail farm stands and find it difficult to come up with acceptable production records, you may choose to have a pre-harvest appraisal of certain crops for a modest fee.
FSA has 25 crop-loss adjusters statewide ready to assist you in this effort.
Lastly, Emergency Loan applications tied to the 2005 NJ USDA Secretarial Disaster Designation must be received by Sept. 11.
These loans are available to those farmers who had weather related losses in 2005 and who meet our test for credit.
Have a great, lighthearted and productive summer.