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.
TYPES
OF ASSISTANCE:
Direct Payments with Unrestricted Use. Place Cursor Here for Definition
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.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: 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.
Beneficiary
Eligibility: 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.
Credentials/Documentation:
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.
Pre-application
Coordination: 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.
Application
Procedure: 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).
Award
Procedure: The CDP provides a one-time payment
for 2000 crop disasters.
Deadlines:
The deadline for applications under the 2000 Crop Loss Disaster
Program was May 4, 2001 or such other date as may be announced.
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.
Appeals:
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.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
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.
Length
and Time Phasing of Assistance: Program payments
are made after the application is filed and approved by the COC.
POST
ASSISTANCE REQUIREMENTS:
Reports:
None.
Audits:
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.
Records:
Participants must maintain production evidence for 3 years.
FINANCIAL
INFORMATION:
Account
Identification: 12-4336-0-1-351.
Obligations:
(Direct payments) FY 01 $1,251,308,856; FY 02 est $1,808,000,000;
and FY 03 est $0.
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.
All available program funding will be used among eligible applicants.
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.
INFORMATION
CONTACTS:
Regional
or Local Office: Applications are filed at the
local county office of the Farm Service Agency. The location of
all FSA field offices is listed on the WEB at http://www.fsa.usda.gov/edso/
or in the Farm Service Agency section of Appendix IV of the Catalog.
Headquarters
Office: U.S. Department of Agriculture, Farm
Service Agency, Production Emergencies and Compliance Division,
Compliance Branch, 1400 Independence Ave. SW., Washington DC 20250-0514.
Telephone: (202) 720-9882.
Web
Site Address: http://www.fsa.usda.gov
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
All producers meeting eligibility requirements may receive assistance
subject to the national payment factor. Applications are non-competitive.
