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August 4, 2017


Farm Bill Primer: Disaster Assistance Programs


A number of federal programs help agricultural producers
recover from the effects of natural disasters, including
federal crop insurance; the Noninsured Crop Disaster
Assistance Program (NAP); livestock and fruit tree disaster
programs; and emergency disaster loans. All programs are
permanently authorized and most receive such sums as
necessary through mandatory spending authority. As such,
these programs do not require reauthorization in the next
farm bill. However, Congress may choose to create
additional programs, or amend or replace existing programs
to address emerging issues.

Federal policies that respond to agricultural loss from
disasters have changed over time. Direct payments for
production loss were authorized by Congress in an ad hoc
fashion through emergency funding measures until 2007.
With additional support through federal crop insurance
policies and the creation of more permanent disaster
support programs in the 2008 farm bill (P.L. 110-246), and
continued in the 2014 farm bill (P.L. 113-79), Congress
shifted policies away from ad hoc assistance toward more
permanent forms of assistance. Now, nearly all parts of the
U.S. farm sector are covered by a standing program.

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Title I of the 2014 farm bill permanently reauthorized three
disaster programs for livestock and one for fruit trees (7
U.S.C. 9081). Producers do not pay a fee to participate. All
programs except the Emergency Assistance for Livestock,
Honey Bees, and Farm-Raised Fish Program (ELAP)
receive uncapped mandatory funding through the U.S.
Department of Agriculture's (USDA) Commodity Credit
Corporation (CCC); that is the programs receive such
sums as necessary to reimburse eligible producers for their
losses. Funding for ELAP provided much the same way,
but is capped at $20 million per year.

For individual producers, combined payments under all
programs (except the Tree Assistance Program, TAP) may
not exceed $125,000 per year. For TAP, a separate limit of
$125,000 per year applies. Also, to be eligible for a
payment, a producer's total adjusted gross income cannot
exceed $900,000.


The Livestock Forage Disaster Program makes payments to
eligible livestock producers who have suffered grazing
losses on drought-affected pastureland (including cropland
planted specifically for grazing), or on rangeland managed
by a federal agency due to a qualifying fire.

LFP payments for drought are equal to 60% of the monthly
feed cost for up to five months, depending upon the severity
of the drought. LFP payments for fire on federally managed
rangeland are equal to 50% of the monthly feed cost for the


number of days the producer is prohibited from grazing the
managed rangeland, not to exceed 180 calendar days.


The Livestock Indemnity Program provides payments to
eligible livestock owners and contract growers for livestock
deaths in excess of normal mortality caused by adverse
weather, or attacks by animals reintroduced into the wild by
the federal government or protected by federal law. The LIP
payment rate is equal to 75% of the average fair market
value of the animal.

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The Emergency Assistance for Livestock, Honey Bees, and
Farm-Raised Fish Program provides payments to producers
of livestock, honey bees, and farm-raised fish as
compensation for losses due to disease, adverse weather,
feed or water shortages, or other conditions (such as
wildfires) that are not covered under LIP or LFP.

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The Tree Assistance Program makes payments to
qualifying orchardists and nursery tree growers to replant or
rehabilitate trees, bushes, and vines damaged by natural
disasters. Losses in crop production are generally covered
by federal crop insurance or the Noninsured Crop Disaster
Assistance Program (NAP), see below. Eligible trees,
bushes, and vines are those from which an annual crop is
produced for commercial purposes. Nursery trees include
ornamental, fruit, nut, and Christmas trees produced for
commercial sale. Trees used for pulp or timber are
ineligible. The total quantity of acres planted to trees,
bushes, or vines for which a producer can receive TAP
payments cannot exceed 500 acres annually.


The federal crop insurance program is permanently
authorized by the Federal Crop Insurance Act, as amended
(7 U.S.C. 1501 et seq.) and is administered by USDA's
Risk Management Agency. The program is designed to
protect crop producers from unavoidable risks associated
with adverse weather and weather-related plant diseases
and insect infestations. Eligible producers can also purchase
revenue insurance, which makes payments when farm
revenue falls below a target level, regardless of whether the
cause was a natural disaster. Amendments to the federal
crop insurance program generally occur under a separate
title within farm bills, most recently under Title XI of the
2014 farm bill.

Crop insurance is available for most major crops and many
specialty crops (including fruit, tree nut, vegetable, and
nursery crops), as well as forage and pastureland for
livestock producers. A producer who chooses to purchase


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