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1 1 (January 24, 2024)

handle is hein.crs/goveocp0001 and id is 1 raw text is: Con gressional Research Service MassaInforrming lhe IegisIative debate sin ce 1914 Farm Bill Primer: Disaster Assistance A number of federal programs help agricultural producers recover from the effects of natural disasters, including the Noninsured Crop Disaster Assistance Program (NAP), livestock and fruit tree disaster programs, and ad hoc assistance. With the exception of ad hoc assistance, all programs are permanently authorized and receive such sums as necessary from the U.S. Department of Agriculture's (USDA's) Commodity Credit Corporation (CCC). As such, these programs require neither reauthorization in a future farm bill nor annual appropriations. Since 2018, Congress has authorized ad hoc assistance through supplemental appropriations to assist with natural disaster losses that generally were not covered under the permanent programs. As Congress works on the farm bill, it could consider whether to amend the permanent disaster assistance programs or create new programs to address emerging situations that are being addressed with ad hoc assistance. This In Focus provides a summary of existing permanent and ad hoc disaster assistance programs that help farmers recover financially from natural disasters. This summary does not cover the Federal Crop Insurance Program (FCIP), which also may provide support to farmers impacted by natural disasters and is the subject of CRS Report R46686, Federal Crop Insurance: A Primer. Exsting Farm Bill Authorized Provisions The 2014 farm bill (P.L. 113-79) permanently authorized four agricultural disaster programs for livestock and fruit trees-Livestock Indemnity Program (LIP); Livestock Forage Disaster Program (LFP); Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP); and Tree Assistance Program (TAP) (7 U.S.C. §9081). Amendments to these programs were included in Title I of the 2018 farm bill (P.L. 115-334). These programs provide compensation for a portion of lost production following a natural disaster. Producers do not pay a fee to participate. Total payments under these programs vary each year based on eligible loss conditions (see Figure 1). Payments for individual producers under LFP may not exceed $125,000 per year. There are no limits on the amount of payments received under LIP, ELAP, and TAP. To be eligible for a payment under any of these programs, a producer's average adjusted gross income (AGI) over three recent taxable years cannot exceed $900,000. Livestock Indemnity Program LIP provides payments to eligible livestock owners and contract growers for livestock deaths in excess of normal mortality or which are sold at reduced price caused by an eligible loss condition (e.g., adverse weather, disease, or animal attack). The LIP payment rate is equal to 75% of the average fair market value of the animal. Updated January 24, 2024 Figure I. Total Payments for Selected Permanent Agricultural Disaster Assistance Programs (FY20 I 6-FY2022) S Millions U NAP 1 LFP LIP I ELAP TAP 2,000 1,80 1,000 800 600 200 20T6 21 2018 2019 2020 2021 2022 Fiscal Year Source: CRS from payments reported in annual budget requests. Livestock Forage Disaster Program LFP makes payments to eligible livestock producers who have suffered grazing losses on drought-affected pastureland or on rangeland managed by a federal agency due to a qualifying fire. LFP payments for drought are equal to 60% of the estimated monthly feed cost. Depending on the severity of the drought, the monthly payment rate is multiplied by a factor of one, three, four, or five. For producers who sold livestock because of drought conditions, the payment rate is reduced. Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program ELAP 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 that are not covered under LIP or LFP. Tree Assistance Program TAP 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 may be covered by crop insurance or NAP. Eligible trees, bushes, and vines are those from which a crop is produced annually for commercial purposes. The total quantity of acres planted to trees, bushes, or vines for which a producer can receive TAP payments cannot exceed 1,000 acres annually. Noninsured Crop Disaster Assistance Program Producers who grow a crop that is currently ineligible for crop insurance may apply for NAP. NAP has permanent

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