Non-Insured Crop Disaster Assistance Program (NAP)

USDA’s Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occur due to a natural disaster.

Eligible Producers:  An eligible producer is a landowner, tenant or sharecropper who shares in the risk of producing an eligible crop and is entitled to an ownership share of that crop. An individual’s or entity’s average adjusted gross income (AGI) cannot exceed $900,000 to be eligible for NAP payments.

Eligible Crops: Eligible crops must be commercially produced agricultural commodities for which crop insurance is not available. Crop insurance agents can answer questions about insurability of crops in specific counties. FSA county offices can provide information on whether a given crop is eligible for NAP coverage.

Eligible Causes of Loss include the following natural disasters:

• Damaging weather, such as drought, freeze, hail, excessive moisture, excessive wind or hurricanes;
• Adverse natural occurrences, such as earthquake or flood; and
• Conditions related to damaging weather or an adverse natural occurrence, such as excessive heat, plant disease, volcanic smog or insect infestation.

The natural disaster must occur during the coverage period, before or during harvest, and must directly affect the eligible crop.

Coverage Level: NAP provides catastrophic level (CAT) coverage based on the amount of loss that exceeds 50 percent of expected production at 55% of the average market price for the crop.

Producers have the option of purchasing additional coverage levels ranging from 50% to 65% of production, in 5% increments, at 100% of the average market price.  Additional coverage must be elected by a producer by the application closing date. Producers who elect additional coverage must pay a premium in addition to the service fee. Crops intended for grazing are not eligible for additional coverage.

Applying for Coverage: Producers must apply for NAP coverage and pay the applicable service fee at the FSA office where their farm records are maintained. Application closing dates vary by crop.

Sales Closing Dates: The sales closing dates for eligible crops are established by each FSA State Committee. Generally, the closing date is in mid-March for most annual crops in New England and mid- to late-November for perennial crops. Honey, maple, nursery and floriculture crops have different closing dates. It’s important to check with the FSA office in your state for the exact dates.

Administrative Fees and Premiums: For all coverage levels, the NAP administrative fee is $325 per crop, with a limit of $825 per producer per county, not to exceed $1,950 per producer nationwide.

Producers who elect additional coverage must also pay a premium equal to the producer's share of the crop times the number of eligible acres devoted to the crop times the approved yield per acre times the coverage level times the average market price times a 5.25% premium fee.

The NAP administrative fee does not apply if you meet the definition of a beginning farmer, limited resource farmer, socially disadvantaged farmer, or veteran farmer.  Individuals listed above are also eligible for a 50% reduction to the cost of additional coverage under NAP. Contact your local FSA Office to see if you qualify along with the required reporting requirements.

More Information: More information on NAP is available from your local FSA office. Alternatively, you can go to FSA's website at https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/noninsured-crop-disaster-assistance/index [5] which features an online tool to help you determine crop eligibility and premium costs.