drought assistance
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Dr. Jody Campiche Assistant Professor & Extension Economist Agricultural Policy Oklahoma State University September 13, 2011. Drought Assistance. Drought Assistance. CRP Emergency Haying/Grazing Disaster Programs Emergency Loans Crop Insurance. - PowerPoint PPT PresentationTRANSCRIPT
Drought AssistanceDr. Jody Campiche
Assistant Professor & Extension EconomistAgricultural Policy
Oklahoma State UniversitySeptember 13, 2011
Drought Assistance
CRP Emergency Haying/Grazing
Disaster Programs
Emergency Loans
Crop Insurance
Conservation Reserve Program (CRP) Emergency Grazing
Emergency grazing authorized in 32 OK counties Alfalfa, Beaver, Beckham, Blaine, Bryan, Caddo, Cimarron, Comanche, Cotton, Custer,
Dewey, Ellis, Grady, Grant, Greer, Harmon, Harper, Jackson, Jefferson, Kay, Kiowa, Logan, Major, McCurtain, Osage, Roger Mills, Stephens, Texas, Tillman, Washita, Woods, and Woodward
Emergency grazing allowed through October 31, 2011 without an additional reduction in payment
Producers receive a 25% reduction in annual rental payment on acres hayed/grazed
▪ Acres not eligible for managed grazing for 2 years
▪ Producers should file request with county FSA office prior to grazing CRP land
Option to use harvested hay from expiring CRP acres (when the acres are being prepared for fall crops)
▪ Livestock producers can use hay to feed their own livestock or can sell or donate the hay▪ If the haying option is utilized, producers will receive a 25% reduction in the CRP rental rate.
Drought/Disaster Programs
Emergency Conservation Program (ECP)
Emergency Loans
LFP
LIP SURE
Emergency Conservation Program (ECP)
Assistance to producers to rehabilitate farmland damaged by a natural disaster (tornado, wildfire, flooding, drought, etc.)
Assists producers with providing water for livestock during drought
Cost share program up to 75% of the cost to provide water to livestock during a
drought
Producers should contact their local FSA office for more information
Emergency Loans
Emergency loan assistance to producers for production losses due to drought, flooding, other natural disasters, or quarantine
Restore/replace essential property Pay production costs associated with the disaster year Pay essential family living expenses Reorganize the farming operation Refinance certain debts
Current interest rate - 3.75%
Check eligibility requirements Complete application at local FSA office within 8 months of the
county’s disaster designation date
Livestock Forage Disaster Program (LFP)
Provides assistance to producers who suffered grazing losses due to drought or fire occurring between Jan. 1, 2008 and Oct. 1, 2011
Eligibility determined on a county basis by U.S. Drought Monitor
Grazing losses must be due to a qualifying drought condition during the normal grazing period for the county
As of August 25, 2011, almost all OK counties (excluding Nowata, Craig, and Ottawa) are covered by a qualifying drought condition for forage sorghum, improved pasture, and native pasture
Livestock Forage Disaster Program (LFP)
Oklahoma producers have already received $35 million in payments from the LFP program in 2011
Eligibility Requirements: Must have crop insurance policy or NAP policy on
grazed acres with a loss Only required to have insurance coverage on acres for
which benefits are requested Eligible farmers/ranchers who meet the definition of
“Socially Disadvantaged,” ,“Limited Resource," or “Beginning Farmer or Rancher,” do not have to meet the crop insurance requirement
Livestock Indemnity Program (LIP)
Provides assistance for losses due to livestock deaths in excess of normal mortality as a result of adverse weather occurring between Jan 1, 2008 and Oct. 1, 2011 Adverse weather events
▪ Tornados, hurricanes, floods, blizzards, disease, wildfire, extreme heat, and extreme cold
Livestock do not have to be located in a county/contiguous county designated as a natural disaster
No risk management purchase requirement
Producers receive 75% of the average fair market value for livestock deaths in excess of normal mortality
Losses must be reported within 30 days of the severe weather event
As of August 23, 2011, Oklahoma producers have received $917,000 in 2011 payments from the LFP program
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish (ELAP)
Provides emergency relief to livestock producers due to blizzards, flooding, and wildfires
Benefits include pasture losses feed and forage losses produced on the farm or purchased prior to
the disaster event above normal purchase of feed and forage expenses to deliver feed to stranded livestock
Producers must have a crop insurance policy or NAP coverage on every farm and commodity (excluding grazed acres)
Provides compensation for losses that are not covered through other disaster programs
SURE
Financial assistance for crop losses due to a natural disaster
To receive SURE payments, an eligible producer must have a qualifying loss qualifying loss - at least a 10% production loss affecting one crop of
economic significance due to a disaster on a farm in a disaster county
Producers outside a declared disaster county, but with production losses >= 50% of the normal production on the farm qualify
Must have insurance to qualify for SURE
Can’t apply for 2011 losses until end of 2011/12 marketing year (so November 2012)
Crop Insurance – FSA NAP
Provides financial assistance for low yields, loss of inventory or prevented planting occur due to natural disasters, such as drought Noninsurable crops ▪ catastrophic risk protection crop insurance is not available▪ crops planted and grown for livestock consumption, such as grain and
forage crops (including native forage)
Natural disaster must occur before or during harvest and must directly affect the eligible crop
Producers must apply for coverage at their local FSA office & notify FSA if crop was affected by drought or other natural disasters and complete the Notice of Loss and Application for Payment
Crop Insurance – FSA NAP
November 30, 2011 deadline NAP coverage for perennial crops, including
pecans or native/improved grasses intended for hay
August 31, 2011 deadline Alfalfa, all small grain grazing acreages, small
grain acreages that will be harvested as forage, small grain inter-seeded in perennial grasses, cool season perennial or mixed grasses intended for grazing, and value loss crops such as nurseries
Crop Insurance - RMA
Federally-subsidized insurance programs
Administered by Risk Management Agency (RMA) and sold through private crop insurance agents
Sales closing date: September 30, 2011
Pasture, Rangeland, Forage Insurance (PRF)
Federally-subsidized insurance programs
Producers sign up w/private crop insurance companies
For the 2012 crop year, the sales closing date is September 30, 2011
Allows forage/livestock producers to protect losses of forage harvested for hay or produced for grazing due to lack of rainfall
All counties in OK eligible for the Rainfall Index PRF Last year, OK only had the vegetation index Rainfall index is much better for OK
Pasture, Rangeland, Forage Insurance (PRF)
Rainfall Index National Oceanic and Atmospheric Administration Climate Prediction Center
(NOAA CPC) data used ▪ each grid is 12 by 12 miles
Producers select at least two, 2-month time periods where rain is important to the operation, called index intervals
Insurance payments calculated using NOAA CPC data for the grid(s) and index interval(s) chosen by the producer
If the final grid index falls below the trigger, producers may receive a loss payment
Coverage based on the experience of the entire grid ▪ not based on individual farms/ranches or specific weather stations in the general area
Not required to insure all acres▪ Can insure acres that are important to the grazing program or hay operation
Pasture, Rangeland and Forage
•Select at least two 2-month time periods when rain is important to your operation. Index Intervals•Coverage Level•Select a Protection Factor between 60-150 percent of the County Base Value.
Pasture, Rangeland and Forage
Payments will be calculated using NOAA CPC rainfall data for the grid(s) and index interval(s) you have chosen to insure.When the final grid index falls below your “trigger grid index”, there may be a loss.
Livestock Risk Protection
• Protects cattle producers against price declines during an established insurance period•Coverage prices and premiums change daily •No other peril is covered
WeatherBill – Total Weather Coverage (TWI)
Key benefits customizable contracts Do not have to prove loss to receive payments
Producers pick the time period or periods they want covered, temperature and/or precipitation levels and the coverage
Can choose which weather station they want to use to record data
Issues payment when weather conditions specified in the policy occur
WeatherBill – Total Weather Coverage (TWI)
Automatically sends payments and requires no proof of loss
Collects premiums, minus any payouts, in November after harvestunpredictable weather conditions
Uses an algorithm to calculate risk and sell insurance online against unpredictable weather
TOTAL WEATHER COVERAGE (TWI)
TOTAL WEATHER COVERAGE (TWI)
TOTAL WEATHER COVERAGE (TWI)
TOTAL WEATHER COVERAGE (TWI)
TOTAL WEATHER COVERAGE (TWI)
TOTAL WEATHER COVERAGE (TWI)
TOTAL WEATHER COVERAGE (TWI)
Questions?Jody Campiche
Assistant Professor & Extension EconomistAg Policy
528 Ag HallStillwater, OK
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