By Chad Hart, Department of Economics
USDA has announced additional disaster payments for the 2009 crop year via the Crop Assistance Program (CAP). Payments will be made to producers of rice, upland cotton, sweet potatoes and soybeans in counties that received Secretarial disaster designations in 2009 for excessive moisture or related conditions. In Iowa, 30 counties qualify for the payments, see the list of counties and map below.
In order for producers to qualify for payments, they must have suffered a five percent crop loss in 2009 from excessive moisture or related conditions. The five percent crop loss requirement is based on a comparison of the producer's 2009 actual yield to the higher of the producer's crop insurance APH yield or the county expected yield as determined by the Farm Service Agency (FSA) State Committee. The payment is based on a flat dollar per acre amount, $15.62 for soybeans. If the total payments under the CAP exceed $550 million, then the payment rate will be prorated to cap payments at $550 million. A qualified producer will receive the payment on all 2009 planted acres for the eligible crops on land that is physically located in one of the Secretarially declared disaster counties.
Producers will initially receive 75 percent of their expected payment, with the remaining amount being paid when sign-up is complete and the final payment rates are determined. There is a payment limit of $100,000 per producer in this program. And the payments will be considered as revenue under the Supplemental Revenue Assistance Payments (SURE) program for 2009.
The CAP payments are being administered by the FSA. To sign-up, visit your local FSA office. Sign-up for the payments began Oct. 25, 2010 and continues through Thursday, Dec. 9, 2010. Producers will self-certify the crop losses, but should have documentation to support the crop loss claim. Acreage will be certified from FSA acreage reports. CAP is being funded from a standing USDA program that allows the Secretary of Agriculture to reestablish the purchasing power of agricultural producers.
Chad Hart is the Iowa State University extension grain marketing economist. He can be reached at (515) 294-9911 or email@example.com.
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