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Grant Community.com Catalog of Federal Domestic Assistance Program Descriptions |
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CATALOG OF FEDERAL DOMESTIC ASSISTANCE 10.450: Crop Insurance
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| PROGRAM AND AWARD | FINANCIAL AND INFORMATION CONTACTS |
| ELIGIBILITY REQUIREMENTS | FINANCIAL AND ADMINISTRATIVE INFO. |
| APPLICATION AND AWARD PROCESS | INFORMATION CONTACTS |
| RELATED PROGRAMS | ASSISTANCE CONSIDERATIONS |
| PROGRAM ACCOMPLISHMENTS | POST ASSISTANCE REQUIREMENTS |
Applicant Eligibility: Unless otherwise restricted by the insurance policy, owners or operators of farmland, who have an insurable interest in a crop in a county where insurance is offered on that crop are eligible for insurance. Producers will be covered under the Noninsured Assistance Program (NAP) which is available to provide coverage similar to the catastrophic risk protection in areas where catastrophic risk protection is not available, if such crop is produced for food or fiber and the area is authorized.
Beneficiary Eligibility: Any insured producer who has a financial loss caused from a covered peril for the particular crop insured or covered by the Noninsured Assistance Program (NAP).
Credentials/Documentation: None. This program is excluded from coverage under OMB Circular No. A-87.
Preapplication Coordination: None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.
Application Procedure: Application for multiple peril crop insurance offered by a company reinsured by FCIC must be filed with a crop insurance sales agent. Both catastrophic and additional coverage are available only from private companies. In general, crops and acreage must be reported to establish insurance coverage for crop insurance and, if not eligible for crop insurance, such must be filed to establish eligibility for NAP. This program is excluded from coverage under OMB Circular No. A-110.
Award Procedure: The insurance contract becomes effective upon issuance of a Notice of Acceptance by the insurance company. Notices of Acceptance for insurance coverage are issued upon a determination that the applicant is eligible.
Deadlines: Applications must be filed by the appropriate sales closing date for the crop involved.
Range of Approval/Disapproval Time: From 15 to 20 days.
Appeals: Appeals should be addressed within 30 days to the National Appeals Division, U.S. Department of Agriculture, Washington, DC 20250.
Renewals: Continuous insurance contract.
Criteria for Selecting Proposals: Not applicable.
Examples of Funded Projects: Not applicable.
Range and Average of Financial Assistance: Level of assistance varies according to policy, crop and indemnities paid.
For crop year 1999, the estimates are about 196.2 million acres for total insurance protection of an estimated $30.8 billion, and for crop year 2000, the estimates are 194.4 million acres for total insurance protection of an estimated $28.8 billion. For crop year 2001, the estimates are about 190.9 million acres for total insurance protection of an estimated $30.8 billion.
Federal Agency: RISK MANAGEMENT AGENCY, (DEPARTMENT OF AGRICULTURE )
Type of Assistance: Insurance.
Obligations: (Total indemnities) FY 99 $1,988,532,000; FY 00 est $ 2,416,772,000; and FY 01 est $2,461,177,000. (Premium subsidy to farmers through reinsured companies FY 99 $939,680,000; FY 00 est $889,814,000; and FY 01 est $956,051,000).
Budget Account Number: 12-4085-0-3-351.
Authorization: Federal Crop Insurance Act, as amended, 7 U.S.C. 1501-1520; Agricultural Adjustment Act of 1938, Title V, 52 Stat. 31; Federal Crop Insurance Act of 1980, as amended, Public Law 101-624; Federal Crop Insurance Reform Act of 1994, Public Law 103-354; Federal Agriculture Improvement and Reform Act of 1996; Public Law 104-127; Agricultural Research, Extension, and Education Reform Act of 1998, Public Law 105-185; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, Public Law 105-277; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriation Act of 2000, Public Law 106-78.
Regulations, Guidelines, and Literature: 7 CFR Part 400 and a brochure "Introduction to Risk Management"- available at no charge.
Regional or Local Office: Interested producers should contact their Regional Office listed in Appendix IV of the Catalog, or a private industry crop insurance agent.
Headquarters Office: Department of Agriculture, Administrator, Risk Management Agency, Ag Box 0801, Washington, DC 20250. Phone: (202) 690-2803. (Home Page)
(See Appendix IV for more contact info.)
Formula and Matching Requirements: This program has no statutory formula nor matching requirements.
Length and Time Phasing of Assistance: Not applicable.
Uses and Use Restrictions: The Federal Crop Insurance Corporation (FCIC), a wholly owned government Corporation, provides reinsurance to insurers who insure crop producers against losses resulting from unavoidable causes and/or uncontrollable events. The Federal Crop Insurance Reform Act of 1994 made significant changes in the program to provide more of the nation's producers with an ongoing source of risk protection to reduce the need for ad hoc disaster payment assistance. The Federal Agriculture Improvement and Reform Act of 1996 provided for more changes, including the provision for a more extensive risk management education program to assist and train producers on risk management strategies, including futures and options trading and insurance protection programs. Catastrophic crop insurance protection (CAT) is fully subsidized except for an administrative fee to be paid by the producer. This coverage compensates the producer for yield losses exceeding 50 percent of yield and at a price equal to 55 percent of maximum price (or equivalent amounts for dollar-based programs). Additional protection is offered at higher levels of coverage and variable levels of premium subsidy. The Noninsured Assistance Program (NAP), which the Farm Service Agency administers, is available to provide coverage equivalent to the catastrophic crop insurance protection in areas where catastrophic crop insurance protection is not available and if such crop is produced for food or fiber. Several pilot insurance programs and alternative risk management products are offered in limited areas for 2000. Alternative risk management products include the Income Protection (IP) program, Revenue Assurance (RA) program, Group Risk Income Protection (GRIP) program, Group Risk Plan of insurance (GRP), Crop Revenue Coverage (CRC), Dairy Options Pilot Program (DOPP), Onion Pilot Stage Removal Option (OPSRO), which removes the Onion stage guarantee reductions in Michigan and New York, and Adjusted Gross Revenue (AGR). In addition, Coverage Enhancement Option (CEO) provides increased coverage by effectively reducing the deductible for selected crops in selected states. Specific crops offered under the IP program are barley, corn, cotton, grain sorghum, soybeans, and wheat. Crops offered for the RA program are corn, soybeans, and spring wheat. Corn, cotton, grain sorghum, rice, soybeans, and wheat are offered in the CRC program. Corn, cotton, forage production, grain sorghum, peanuts, rangeland, soybeans, and wheat are offered under GRP. Corn and soybeans are offered under the GRIP program. These alternative products provide producers in selected Counties and States a choice of insurance models from which to select to insure their crop in lieu of the traditional yield guarantee approach historically available for a number of crops. Insurance is offered on the following crops and/or commodities for the 2000 crop year, with some available only in limited areas and as pilot programs: almonds, aquaculture (cultivated clams), apples, apricots (fresh market and processing), avocados, avocado trees, barley (feed, malting), dry beans, beans (processing), fresh market beans, blueberries, cabbage, canola, carambola trees, cherry, citrus, citrus trees, corn (grain and silage), hybrid corn seed, cotton, ELS cotton, crambe, cranberries, cultivated wild rice, figs, flax, forage, forage seeding, grain sorghum, grapes, table grapes, grapefruit, grapefruit trees, lemon, lemon trees, lime, lime trees, macadamia nuts, macadamia trees, mandarins, mango trees, millet, mint, murcott honey oranges, mustard, nectarines (fresh market), nursery stock, oats, onions, orange, orange trees, peaches (fresh market and processing), peanuts, pears, pecans, dry peas, green peas, peppers, plums, popcorn, potatoes, processing chile peppers, processing cucumbers, prunes, raisins, rangeland, rapeseed, rice, rye, safflower, hybrid sorghum seed, soybeans, strawberries, sugar beets, sugarcane, sunflowers, sweet corn (fresh market and processing), sweet potatoes, tangelos, tangerines, tobacco (guaranteed production/quota), tomatoes (fresh market and processing), walnuts, wheat, and winter squash, including pumpkins. The Risk Management Agency (RMA) anticipates more crops and/or commodities will become insurable through pilot programs approved by the FCIC Board of Directors effective with the 2000 crop year.
Reports: Private Industry Crop Insurance Acreage Report; Actual Production History Yield Report; and in the event of a loss, Notice of Damage, Production Worksheet, and proof of loss.
Audits: Recipients are subject to audit by the RMA internal compliance function, private insurance company auditors, Office of the Inspector General, USDA, and the General Accounting Office.
Records: Insured must keep for 3 years, after the end of the crop year, records of harvesting, shipments, sale or other disposition of all insured crops produced on each unit covered by the contract and separate records for any uninsured acreage of the insured crops.
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