By JANE HOUIN
Ohio Correspondent

WASHINGTON, D.C. — Last week, USDA Farm Service Agency (FSA) Administrator Teresa Lasseter announced eligible farmers who suffered quality losses to their crops in recent years can now enroll in the Crop Disaster Program 2005-07 (CDP) at local FSA service centers.

“We have been conducting sign up since last fall for quantity losses for the 2005-2007 crops, and now we are ready to conduct sign up for quality losses,” said Lasseter. “We have already paid producers more than $1.8 billion for quantity losses and over $274 million for livestock losses. Now we can get the final piece of the disaster programs implemented.”

The CDP provides benefits to farmers who suffered losses to their 2005-07 crops from natural disasters and related conditions. Producers who incurred qualifying quantity or quality losses in 2005, 2006 or 2007 may receive benefits for only one of these years. However, producers may apply for benefits for losses to multiple crops as long as the losses occurred in the same crop year.

Only producers who obtained crop insurance coverage or coverage under the Noninsured Crop Disaster Assistance Program (NAP) for the year of loss will be eligible for CDP benefits. Producers must have suffered quality losses of at least 25 percent to be eligible for CDP Quality Loss. Additionally, producers must also have been in compliance with the Highly Erodible Land Conservation and Wetland Conservation provisions for their crops.

All crops are eligible for quality losses, with the exception of value-loss crops and some specialty crops. Value-loss crops not eligible include aquaculture, floriculture, mushrooms, ginseng root, ornamental nursery and Christmas trees. Ineligible specialty crops include honey, maple sap and turf-grass sod.

The payment rate is set at 65 percent of the amount of the affected crop multiplied by 42 percent of the per-unit average market value in the year in which the loss occurred. Producers may receive assistance for both quantity and quality losses.

However, total assistance, together with any crop insurance or NAP payment received for the same crop and the value of the crop production not lost, must not exceed 95 percent of the total value of the crop absent the disaster.

Payment rates will be based on five broad loss levels, based on the percentage of the loss. Rates range from 30 percent of the established price for quality losses in the 25-34.9 percent range to 95 percent of the established price for quality losses of 95-100 percent.

For example, if a farmer with 45 acres normally yields 175 bushels but has a quality loss of 75 percent because of weather conditions, that places his crop at a Level IV quality loss. Using the 2007 corn price of $3.50, the farmer’s quality payment would be $6,395.88. (45 acres x 175 bushels x 85 percent for a Level IV loss x 65 percent of the amount affected x a $3.50 crop price x 42 percent per-unit average market value = $6,395.88)

Commodities sold under marketing contracts are also eligible for CDP quality loss benefits, based on one or more proxies specified in the contract. When there are multiple marketing contract prices, FSA will calculate a weighted average to determine a single, blended price.
To apply, producers should visit their local FSA county office. Producers must provide verifiable production records. Such records include, but are not limited to, commercial receipts, settlement sheets, load summaries or acceptable forage tests.

Producers can access fact sheets online at www.fsa.usda.gov/Internet/ FSA_File/cdpqlty08.pdf and additional information about CDP and other disaster programs implemented by FSA can be found at disaster.fsa.usda.gov