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Farm Bill Primer: Disaster Assistance


Several federal programs help agricultural producers
recover from the effects of natural disasters, including the

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) (              I
(CCC). As such, these programs require neither
reauthorization in a future farm bill nor annual
appropriations. Congress authorized ad hoc assistance
through supplemental appropriations in six of the seven
fiscal years between FY2018 and FY2024, excluding
FY2021. These funds assist with natural disaster losses that
generally were not covered under the permanent programs.
As Congress works on a 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  - rx(                          ,
which also may provide support to farmers impacted by
natural disasters.

Existing   Farm Bill Authorized Provisions
The 2014 farm bill (P.L. 113-79) permanently authorized
four agricultural disaster programs for livestock and fruit
trees-Livso     Indenit  Progrm  (LP;   ivetock

   Lietok Hone  Bees¾ , and FamRaise  ish Prgrm
 ELAP); and Tre Assistnce Poam (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 dollar
amount of payments received under LIP, ELAP, and TAP.
To be eligible for a payment under any of these programs, a
producer's average annual 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 22, 2025


   Figure I. Total Payments for Selected Permanent
      Agricultural Disaster Assistance Programs
                   (FY20 I 6-FY2023)

                $ NAP  FIP LIP 0ELAP T AP
  ,000

  2,so
  20


  Soo      fb                                  u









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
certain crop insurance policies may apply for NAP. NAP
.congress (ov

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