USDA taking applications from producers affected by hurricane, fires

COLLEGE STATION – Agricultural producers affected by 2017 hurricanes and wildfires may now apply for assistance to help them recover and rebuild their farming operations. Signup began July 16 and continues through Nov. 16.

The program, known as the 2017 Wildfires and Hurricanes Indemnity Program (2017 WHIP), was authorized by Congress earlier this year by the Bipartisan Budget Act of 2018.

Eligible crops, trees, bushes, or vines, located in a county declared in a Presidential Emergency Disaster Declaration or Secretarial Disaster Designation as a primary county are eligible for assistance if the producer suffered a loss as a result of a 2017 hurricane. Also, losses located in a county not designated as a primary county may be eligible if the producer provides documentation showing that the loss was due to a hurricane or wildfire in 2017. A list of counties that received qualifying hurricane declarations and designations is available on the USDA's website. Eligibility is determined by Farm Service Agency (FSA) county committees.

Agricultural production losses due to conditions caused by last year’s wildfires and hurricanes, including excessive rain, high winds, flooding, mudslides, fire and heavy smoke, could qualify for assistance. Typically, 2017 WHIP is only designed to provide assistance for production losses, however, if quality was taken into consideration under the insurance or Noninsured Crop Disaster Assistance Program (NAP) policy, where production was further adjusted, the adjusted production will be used in calculating assistance under this program.

Eligible crops include those for which federal crop insurance or NAP coverage is available, excluding crops intended for grazing. A list of crops covered by crop insurance is available through the USDA Actuarial Information Browser.

Eligibility will be determined for each producer based on the size of the loss and the level of insurance coverage elected by the producer. A WHIP factor will be determined for each crop based on the producer’s coverage level. Producers who elected higher coverage levels will receive a higher WHIP factor.

The 2017 WHIP payment factor ranges from 65 percent to 95 percent, depending upon the level of crop insurance coverage or NAP coverage that a producer obtained for the crop. Producers who did not insure their crops in 2017 will receive 65 percent of the expected value of the crop. Insured producers will receive between 70 percent and 95 percent of expected value. Those who purchased the highest levels of coverage will receive 95 percent coverage.

Each eligible producer requesting 2017 WHIP benefits will be subject to a payment limitation of either $125,000 or $900,000, depending upon their average adjusted gross income, which will be verified. The payment limit is $125,000 if less than 75 percent of the person or legal entity’s average adjusted gross income is average adjusted gross farm income. The payment limit is $900,000, if 75 percent or more of the average adjusted gross income of the person or legal entity is average adjusted gross farm income.

Both insured and uninsured producers are eligible to apply. However, all producers receiving payments will be required to purchase crop insurance and/or NAP at the 60 percent coverage level or higher for the next two available crop years to meet statutory requirements. Producers who fail to purchase crop insurance for the next two applicable years will be required to pay back the 2017 WHIP payment.