HONEY AND HONEYBEE PROGRAMS

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2 NAP HONEY AND HONEYBEE PROGRAMS ELAP NAP OVERVIEW The Non-insurable Crop Disaster Assistance Program (NAP) is designed to reduce financial losses that occur when natural disasters cause a loss of production, loss of value, or prevented planting of an eligible crop. To qualify for assistance, production losses must occur as a result of an eligible cause of loss during the coverage period and directly cause, accelerate, or exacerbate destruction or deterioration of the eligible crop as determined by the county committee. Eligible honey includes table and non-table honey produced commercially for human consumption. NAP offers coverage equivalent to CAT insurance at 50 percent of a producer s approved yield and 55 percent of the average market price, referred to by FSA as Basic 50/55 NAP Coverage. (Must have greater than 50% loss for payment) Additionally, Buy-Up Coverage levels are available for all crops except for crops intended for grazing, from 50 percent to 65 percent of the approved yield, in 5 percent increments, at 100 percent of the average market price. PREMIUM COST The NAP service fee is $250 per crop per administrative county, up to $750 per producer per administrative county, not to exceed $1,875. All honey is considered a single crop, regardless of type or variety of floral source or intended use. As a result, the service fee for honey will never exceed $250. Basic 50/55 Coverage for honey is available for the $250 service fee. Producers who qualify as Underserved or Limited Resource Producers, or Beginning Farmers/Ranchers are eligible for a service fee waiver and a 50% reduction of buy up premium. Honey producers selecting Buy- Up Coverage must pay the service fee in addition to a premium equal to the product of multiplying the producer s share, times the highest number of eligible colonies reported at any time during the crop year, times the approved yield, times the coverage level, times 100 percent of the average market price, times 5.25 percent. December 2017 ELAP OVERVIEW Emergency Assistance for Livestock, Honey Bees, and Farm Raised Fish Program (ELAP) provides emergency assistance to eligible producers of livestock, honeybees, and farmraised fish that have losses because of disease, adverse weather, or other conditions, including losses because of blizzards and wildfires. ELIGIBLE HONEYBEE LOSSES Colony Loss: Lost in excessive of normal mortality as a direct result of an eligible adverse weather or eligible loss condition, (2017 Normal Mortality is 15%) Physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning on the date of the eligible adverse weather or loss condition. Hive Loss: Damaged or destroyed as a result of an eligible adverse weather or eligible loss condition Physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition. Purchased Feed: purchased feed intended as feed for honeybees that was lost or additional feed purchased above normal quantities to sustain honeybees for a period of time until additional feed becomes available because of an eligible adverse weather or eligible loss condition. Cost of additional feed purchased above normal quantities

3 NAP Eligible Causes of Loss Eligible causes of loss must be the result of a natural disaster. 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 adverse natural occurrences, 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. How do I earn a payment? Honey producers may request NAP coverage by filing a CCC-471 Application for Coverage and paying the NAP service fee by the sales closing date, which is December 1st of the prior calendar year. Buy-Up coverage premiums will be billed at a later date. Producers must timely file acreage reports and production records in pounds of honey produced per colony of bees per crop year. When a natural disaster occurs, a CCC-576 (Parts A-C) Notice of Loss must be filed within 15 calendar days of the date of the disaster. Losses will be calculated by multiplying the producer s highest number of colonies reported at any time in the crop year times the producer s approved yield and subtracting the producer s total actual and assigned production of honey from all the producer s colonies. Producers requesting payment must file an application for payment (CCC-576 Parts D-H) within 60 calendar days of December 31 st, the last day of coverage for the crop. ELAP Eligible Adverse Weather Event for Colony & Hive Losses For honeybee colony and hive losses to be eligible, the honeybee producer must have suffered: a physical loss of honeybee colonies or hive loss because of an eligible adverse weather or eligible loss condition including but not limited to: colony collapse disorder (colony loss only) For colony loss only: Eligible extreme cold, eligible sustained cold, and eligible winter storm as defined in Par 1 LDAP Rev 1 Par 802A Earthquake, excessive wind, flood, hurricane, lightning, tornado, volcanic eruption or wildfire. to be an eligible colony loss, the loss must be in excess of the normal mortality rate Honeybee Normal Mortality Rate for 2017 is 15 percent. * Producer must provide documentation/proof that the participant is following best management practices as determined by COC, such as, but not limited to documentation to substantiate that the producer provided the following: proper nutrition for honeybee colonies preventative treatment for varroa mites and disease proper maintenance and hygiene of hive equipment proper colony management any additional documentation the producer may have, such as State health certifications for varroa mite or nosema levels reflecting the lack of mites or disease. incurred the loss in the county where the eligible adverse weather or eligible loss condition occurred. Notes: Losses because of controllable conditions, such as varroa mites, is not an eligible loss condition. Drought is not considered an eligible loss condition for honeybee colony or honeybee hive losses. December 2017

4 NAP Producer Responsibilities 1. PURCHASE COVERAGE Eligible producers must apply for coverage using form CCC-471 and pay the applicable service fee by the application closing date. December 1st of prior year is the deadline to purchase NAP coverage for Honey. NAP offers coverage equivalent to CAT insurance at 50 percent of a producer s approved yield and 55 percent of the average market price, referred to by FSA as Basic 50/55 NAP Coverage. Additionally, Buy-Up Coverage levels are available for all crops except for crops intended for grazing, from 50 percent to 65 percent of the approved yield, in 5 percent increments, at 100 percent of the average market price. 2. REPORT ACREAGE/COLONIES/HIVES FSA uses acreage reports to verify the existence of the crop, to record the number of colonies, and report the names and shares of all producers sharing in the colonies for producing honey, pollinating, or breeding. Honeybee producers must file their FSA 578 by January 2 nd and must notify the recording FSA Office within 30 calendar days when changes occur in the: total number of colonies names of additional counties to which bees are moved The acreage and the production reports are used to calculate the approved yield (expected production for a crop year). The highest number of colonies reported at any time in the crop year is used. 3. NOTIFY FSA WHEN A LOSS OCCURS When a loss occurs, the producer must notify the FSA office to complete a form CCC-576, Notice Of Loss within 15 calendar days of the earlier of: a natural disaster occurrence the date a loss is apparent the normal harvest date. ELAP Producer Responsibilities 1. REPORT ACREAGE/COLONIES/HIVES FSA uses acreage reports to verify the existence of the crop, to record the number of colonies, and report the names and shares of all producers sharing in the colonies for producing honey, pollinating, or breeding. Honeybee producers must file their FSA 578 by January 2 nd and must notify the recording FSA Office within 30 calendar days when changes occur in the: total number of colonies names of additional counties to which bees are moved 2. NOTIFY FSA WHEN A LOSS OCCURS When a loss occurs, the producer must notify the FSA office to complete a form CCC-934, Emergency Loss Assistance for HoneyBees/Farm-Raised Fish Application within 30 calendar days of the earlier of: 30 calendar days of when the loss is apparent or November 1st. A notice of loss is part of the application process. 3. FILE APPLICATION FOR PAYMENT AND PROVIDE DOCUMENTATION In addition to the notice of loss, a participant must submit a completed application for payment no later than November 1, after the end of the program year in which the loss occurred. (ELAP Program year is October 1- September 30) 4. DOCUMENTATION FOR PRODUCERS TO PROVIDE: For eligible honeybee colony and honeybee hive losses, the participant must provide: proof of beginning inventory for the program year and ending inventory immediately after the eligible adverse weather event or eligible loss condition of honeybee colonies and honeybee hives such as, but not limited to, any of the following: a report of acreage (colonies reported) loan records private insurance documents property tax records sales and purchase receipts December 2017

5 NAP Producer Responsibilities 4. FILE APPLICATION FOR PAYMENT Producers requesting payment must file an application for payment (CCC-576 Parts D-H) within 60 calendar days of December 31 st, the last day of coverage for the crop. 5. PROVIDE PRODUCTION TO UPDATE APH It is the producer s responsibility to provide verifiable or reliable production evidence to maintain APH. The approved yield is an average of a producer s actual production history (APH) for a minimum of four to a maximum of 10 crop years (five years for apples and peaches). To calculate APH, FSA divides a producer s total production by the highest number of colonies reported at any time during the year. ELAP Producer Responsibilities State colony registration proof that the participant is following best management practices as determined by COC, such as, but not limited to documentation to substantiate that the producer provided the following: proper nutrition for honeybee colonies preventative treatment for varroa mites and disease proper maintenance and hygiene of hive equipment proper colony management any additional documentation the producer may have, such as State health certifications for varroa mite or nosema levels reflecting the lack of mites or disease. Report production of honey by January 2 following the crop year in which a report of colonies was filed. The total amount of honey production includes all honey harvested in the calendar year. Please have storage or sales records with you. December 2017

6 UNITED STATES DEPARTMENT OF AGRICULTURE FARM SERVICE AGENCY OVERVIEW Disaster Assistance Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) - Honeybee Assistance FACT SHEET The colony, hive and feed losses must be: October 2017 The 2014 Farm Bill authorized up to $20 million in a fiscal year for the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP). ELAP provides emergency assistance to eligible producers of livestock, honeybees and farm-raised fish. It covers losses due to an eligible adverse weather or loss condition, including blizzards and wildfires, as determined by the Secretary. ELAP covers losses that are not covered under other disaster assistance programs authorized by the 2014 Farm Bill, such as the Livestock Forage Disaster Program (LFP) and the Livestock Indemnity Program (LIP). Recipients of ELAP payments may receive a reduced payment should the total annual national demand for ELAP exceeds $20 million in a fiscal year. ELAP is administered by the Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA). ELIGIBLE HONEYBEES Eligible honeybees include bees housed in a managed hive and used for honey production, pollination or honeybee breeding. Eligible honeybees do not include wild, feral honeybees, leaf cutter bees or other bee species that are not used for producing honey, pollinating or breeding honeybees. ELIGIBLE LOSSES Losses of colonies must be in excess of normal mortality. ELAP covers damage to hives and feed that was purchased or produced, including additional feed purchased above normal quantities to sustain honeybees until such time that additional feed becomes available. Due to an eligible adverse weather or loss condition; and Incurred by an eligible honeybee producer in the county where the eligible adverse weather or loss condition occurred. ELIGIBLE CONDITIONS The losses must be the direct result of an eligible adverse weather or loss condition, including but not limited to: Colony Collapse Disorder (CCD) (colony loss only); Earthquake; Eligible winter storm (colony loss only); Excessive wind; Flood; Hurricane; Lightning; Tornado; Volcanic eruption; and Wildfire. ELIGIBLE PRODUCER To be eligible for losses, the producer must have: An interest and risk in an eligible colony for the purposes of producing honey, pollinating or breeding operation for commercial use as part of a farming operation on the beginning date of the eligible adverse weather or loss condition; and Suffered an eligible honeybee loss in a county where the eligible adverse weather or loss condition occurred on the beginning date of the eligible adverse weather or loss condition. COLONY LOSS PAYMENTS FSA has established a normal mortality rate for colony losses of 15 percent for the 2016 program Page 1

7 ELAP - Honeybee Assistance October 2017 year. Payments for colony losses are based on the average fair market value of colonies in the program year in which the loss occurs, as established by FSA. FSA has established the average fair market value at $140 per colony for the 2017 program year. ELAP payments for honeybee colony losses will be based on a minimum of 75 percent of the result of multiplying: The number of colonies lost in excess of normal mortality (15 percent for 2017) due to an eligible adverse weather or loss condition, times; The average fair market value per colony for the applicable program year. HIVE LOSS PAYMENTS Payments for hive losses are based on the average fair market value of hives in the program year in which the loss occurs, as established by FSA. FSA has established average fair market value at $258 per hive for the 2017 program year. ELAP payments for hive losses will be based on a minimum of 75 percent of the result of multiplying: The number of hives lost due to an eligible adverse weather or loss condition, times; The average fair market value per hive for the applicable program year. FEED LOSS PAYMENTS Payments are based on a minimum of 60 percent of the actual cost of purchased or harvested feed that was intended for honeybees and was damaged because of an eligible adverse weather or loss condition. This includes additional feed purchased above normal quantities to sustain the honeybees for a short time period until additional natural feedstock becomes available. SOCIALLY DISADVANTAGED, LIMITED RESOURCE AND BEGINNING FARMERS AND RANCHERS With respect to the national payment rates referenced above, an eligible honeybee producer who certifies they are socially disadvantaged, limited resource or a beginning farmer or rancher will not have their payment rate for honeybee losses under ELAP reduced by more than 10 percent. PAYMENT LIMITATIONS No person or legal entity, excluding a joint venture or general partnership, may receive, directly or indirectly, more than $125,000 total in payments under ELAP, LFP and LIP combined. The average adjusted gross income (AGI) limitation relating to limits on payments for persons or legal entities, excluding joint ventures and general partnerships, with certain levels of average AGI will apply. Specifically, a person or legal entity with an average AGI (as defined in 7 CFR Part 1400) that exceeds $900,000 will not be eligible to receive ELAP payments. Direct attribution provisions also apply to ELAP. Under direct attribution, any payment to a legal entity will also be considered for payment limitation purposes to be a payment to persons or legal entities with an interest in the legal entity or in a sub-entity. APPLYING FOR ASSISTANCE Producers can apply to receive ELAP assistance at local FSA service centers. For 2017 (loss occurring on or after Oct. 1, 2016, through Sept. 30, 2017) and subsequent program year losses, the application period will end no later than Nov. 1 after the end of the program year in which the honeybee loss occurred. In addition to submitting an application for payment, producers who suffered honeybee losses must submit a notice of loss to the local FSA service center that maintains the farm records for their business. However, if the local FSA service center that maintains the farm records for the Page 2

8 ELAP - Honeybee Assistance October 2017 honeybee producer is not in close proximity to the physical location county where the honeybee loss occurs, the honeybee producer may submit a notice of loss to the local FSA service center in the county where the loss occurred. The following table provides the final dates to file a notice of loss and application for payment for livestock losses. Date of Honeybee Loss Program year 2017 and subsequent program years Final Date to File Notice of Loss 30 days after honeybee loss is apparent Final Date to Submit an Application for Payment Nov. 1 after the program year in which the loss occurred For honeybee colony and hive losses, the participant must include proof of inventory at the beginning of the program year and inventory immediately before and after the eligible adverse weather event or loss condition. For honeybee colony losses due to CCD, the participant must provide proof that best management practices are being followed, such as honeybee colonies are provided proper nutrition, preventative treatment for varroa mites and disease, proper maintenance of hive equipment, proper colony management and any other supporting documents required for determining eligibility. Payments may be made for eligible losses suffered by an eligible participant who is now deceased or is a member of a dissolved entity, if a representative, who currently has authority to act on behalf of the estate of the deceased participant, signs the application for payment. Proof of authority to sign for a deceased individual or dissolved entity must be provided. If a participant is now a dissolved general partnership or joint venture, all members of the general partnership or joint venture at the time of dissolution or their duly authorized representative(s) must sign the application for payment. FSA will use data furnished by the applicant to determine eligiblity for program benefits. Furnishing the data is voluntary; however, without all required data, program benefits will not be approved or provided. FOR MORE INFORMATION This fact sheet is for informational purposes only; other restrictions may apply. For more information about ELAP, visit or contact your local FSA office. To find your local FSA office, visit In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA s TARGET Center at (202) (voice and TTY) or contact USDA through the Federal Relay Service at (800) Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) Submit your completed form or letter to USDA by: 1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C ; 2) fax: (202) ; or 3) program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender. Page 3

9 Disaster Assistance UNITED STATES DEPARTMENT OF AGRICULTURE FARM SERVICE AGENCY Noninsured Crop Disaster Assistance Program for 2015 and Subsequent Years FACT SHEET October 2017 OVERVIEW The Noninsured Crop Disaster Assistance Program (NAP), reauthorized by the 2014 Farm Bill and administered by the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA), provides financial assistance to producers of noninsurable crops to protect against natural disasters that result in lower yields or crop losses, or prevents crop planting. 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. The 2014 Farm Bill specifies that an individual s or entity s average adjusted gross income (AGI) cannot exceed $900,000 to be eligible for NAP payments. Also, NAP payments received, directly or indirectly, will be attributed to the applicable individual or entity and limited to $125,000 per crop year, per individual or entity. (To learn more, visit ELIGIBLE CROPS Eligible crops must be commercially produced agricultural commodities for which crop insurance is not available and be any of the following: Crops grown for food; Crops planted and grown for livestock consumption, such as grain and forage crops, including native forage; Crops grown for fiber, such as cotton and flax (except trees); Crops grown in a controlled environment, such as mushrooms and floriculture; Specialty crops, such as honey and maple sap; Sea oats and sea grass; Sweet sorghum and biomass sorghum; Industrial crops, including crops used in manufacturing or grown as a feedstock for renewable biofuel, renewable electricity or biobased products; Value loss crops, such as aquaculture, Christmas trees, ginseng, ornamental nursery and turf-grass sod; and Seed crops where the propagation stock is produced for sale as seed stock for other eligible NAP crop production. Producers should contact a crop insurance agent for questions regarding insurability of a crop in their county. For further information on whether a crop is eligible for NAP coverage, producers should contact the FSA county office where their farm records are maintained. ELIGIBLE CAUSES OF LOSS 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 adverse natural occurrences, such as excessive heat, plant disease, volcanic smog (VOG) or insect infestation. The natural disaster must occur during the coverage period, before or during harvest, and must directly affect the eligible crop. COVERAGE LEVELS NAP provides basic coverage equivalent to the catastrophic level risk protection plan of insurance coverage, which is based on the amount of loss that exceeds 50 percent of expected production at 55 percent of the average market price for the crop. The 2014 Farm Bill authorizes higher levels of coverage ranging from 50 to 65 percent of production, in 5 percent increments, at 100 percent of the average market price. Additional coverage must be elected by a producer by the application Page 1

10 NAP for 2015 and Subsequent Years October 2017 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 Eligible producers must apply for coverage using form CCC-471, Application for Coverage, and pay the applicable service fee at the FSA office where their farm records are maintained. The application and service fee must be filed by the application closing date. Application closing dates vary by crop and are established by the FSA State Committee. Contact your local FSA office to verify application closing dates. Producers who apply for NAP coverage acknowledge that they have received the NAP Basic Provisions, available at FSA county offices and at SERVICE FEES AND PREMIUMS For all coverage levels, the NAP service fee is the lesser of $250 per crop or $750 per producer per administrative county, not to exceed a total of $1,875 for a producer with farming interests in multiple counties. Producers who elect higher levels of 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 percent premium fee. For value loss crops, premiums will be calculated using the maximum dollar value selected by the producer on form CCC-471, Application for Coverage. The maximum premium for a person or legal entity that is a NAP covered producer is $6,563 (the maximum payment limitation times a 5.25 percent premium fee). If the NAP covered producer is a joint operation, the maximum premium is based on the number of multiple persons or legal entities comprising the joint operation. Beginning, limited resource and targeted underserved farmers or ranchers are eligible for a waiver of the service fee and a 50 percent premium reduction when they file form CCC-860, Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification. To be eligible for a service fee waiver or premium reduction, the NAP covered producer must qualify as one of the following: Beginning farmer or rancher a person or legal entity who: Has not operated a farm or ranch for more than 10 years; and Materially and substantially participates in the operation. For legal entities to be considered a beginning farmer, all members must be related by blood or marriage and must be beginning farmers. Limited resource farmer or rancher a person or legal entity that: Earns no more than $173,600 in each of the two calendar years that precede the complete taxable year before the program year, to be adjusted upwards in later years for inflation; and Has a total household income at or below the national poverty level for a family of four, or less than 50 percent of county median household income for both of the previous two years. Limited resource producer status may be determined using the USDA Limited Resource Farmer and Rancher Online Self Determination Tool located at DeterminationTool.aspx?fyYear=2018. The automated system calculates and displays adjusted gross farm sales per year and the higher of the national poverty level or county median household income. Page 2

11 NAP for 2015 and Subsequent Years October 2017 For legal entities requesting to be considered Limited Resource Farmer or Rancher, the sum of gross sales and household income must be considered for all members. Targeted underserved farmer or rancher a farmer or a rancher who is a member of a group whose members have been subject to racial, ethnic or gender prejudice because of their identity as members of a group without regard to their individual qualities. Groups include: American Indians or Alaskan Natives; Asians or Asian Americans; Blacks or African Americans; Native Hawaiians or other Pacific Islanders; Hispanics; and Women. For legal entities to be considered targeted underserved, the majority interest must be held by targeted underserved individuals. COVERAGE PERIOD The coverage period for NAP varies depending on the crop. The coverage period for an annual crop begins the later of: 30 days after application for coverage and the applicable service fees have been paid; or The date the crop is planted (cannot exceed the final planting date). The coverage period for an annual crop ends the earlier of the: Date the crop harvest is completed; Normal harvest date for the crop; Date the crop is abandoned; or Date the entire crop acreage is destroyed. The coverage period for a perennial crop, other than a crop intended for forage, begins 30 calendar days after the application closing date and ends the earlier of: 10 months from the application closing date; The date the crop harvest is completed; The normal harvest date for the crop; The date the crop is abandoned; or The date the entire crop acreage is destroyed. Contact a local FSA office for information on the coverage periods for perennial forage crops, controlled-environment crops, specialty crops and value loss crops. INFORMATION REQUIRED TO REMAIN ELIGIBLE FOR NAP To be eligible for NAP assistance, the following crop acreage information must be reported: Name of the crop (lettuce, clover, etc.); Type and variety (head lettuce, red clover, etc.); Location and acreage of the crop (field, sub-field, etc.); Share of the crop and the names of other producers with an interest in the crop; Type of practice used to grow the crop (irrigated or non-irrigated); Date the crop was planted in each field; and Intended use of the commodity (fresh, processed, etc.). Producers should report crop acreage shortly after planting (early in the risk period) to ensure reporting deadlines are not missed and coverage is not lost. In addition, producers with NAP coverage must provide the following production information: The quantity of all harvested production of the crop in which the producer held an interest during the crop year; The disposition of the harvested crop, such as whether it is marketable, unmarketable, salvaged or used differently than intended; and Verifiable or reliable crop production records (when required by FSA). When those records are required, producers must provide them in a manner that can be easily understood by the FSA county committee. Producers should contact the FSA office where their farm records are maintained for questions regarding acceptable production records. Page 3

12 NAP for 2015 and Subsequent Years October 2017 Failure to report acreage and production information for NAP-covered crops may result in reduced or zero NAP assistance. Be aware that acreage reporting and final planting dates vary by crop and by region. Producers should contact the FSA office where their farm records are maintained for questions regarding local acreage reporting and final planting dates. For aquaculture, floriculture and ornamental nursery operations, producers must maintain records according to industry standards, including daily crop inventories. Unique reporting requirements apply to beekeepers and producers of Christmas trees, turf-grass sod, maple sap, mushrooms, ginseng and commercial seed or forage crops. Producers should contact the FSA office where their farm records are maintained regarding these requirements. REPORTED ACREAGE AND PRODUCTION FSA uses acreage reports to verify the existence of the crop and to record the number of acres covered by the application. The acreage and the production reports are used to calculate the approved yield (expected production for a crop year). The approved yield is an average of a producer s actual production history (APH) for a minimum of four to a maximum of 10 crop years (five years for apples and peaches). To calculate APH, FSA divides a producer s total production by the producer s crop acreage. A producer s approved yield may be calculated using substantially reduced yield data if the producer does not report production for a crop with NAP coverage, or reports fewer than four years of crop production. Beginning with the 2015 crop year, FSA has changed the production reporting requirements to avoid penalizing producers for years when they do not participate in NAP and do not report their production. Those producers will no longer receive an assigned yield or zero-credited yield in their actual production history (APH) for that year. PROVIDING NOTICE OF LOSS AND APPLYING FOR PAYMENT When a crop or planting is affected by a natural disaster, producers with NAP coverage must notify the FSA office where their farm records are maintained and complete Part B (the Notice of Loss portion) of form CCC-576, Notice of Loss and Application for Payment. This must be completed within 15 calendar days of the earlier of: A natural disaster occurrence; The final planting date if planting is prevented by a natural disaster; The date that damage to the crop or loss of production becomes apparent; or The normal harvest date. Producers of hand-harvested crops and certain perishable crops must notify FSA within 72 hours of when a loss becomes apparent. The crops subject to this requirement will be listed in the NAP Basic Provisions. To receive NAP benefits, producers must complete form CCC-576, Notice of Loss and Application for Payment, Parts D, E, F and G, as applicable, within 60 days of the last day of coverage for the crop year for any NAP covered crop in the unit. The CCC-576 requires acceptable appraisal information. Producers must provide evidence of production and note whether the crop was marketable, unmarketable, salvaged or used differently than intended. DEFINING A NAP UNIT The NAP unit includes all the eligible crop acreage in the county where the producer has a unique crop interest. A unique crop interest is either: 100 percent interest; or A shared interest with another producer. INFORMATION FSA USES TO CALCULATE PAYMENT The NAP payment is calculated by unit using: Crop acreage; Approved yield; Page 4

13 NAP for 2015 and Subsequent Years October 2017 Net production; Coverage level elected by the producer; An average market price for the commodity established by the FSA state committee; and A payment factor reflecting the decreased cost incurred in the production cycle for a crop that is not harvested or prevented from being planted. For value loss crops with additional coverage, payments will be calculated using the lesser of the field market value of the crop before the disaster or the maximum dollar value for which the producer requested coverage at the time of application. FOR MORE INFORMATION This fact sheet is for informational purposes only; other eligibility requirements or restrictions may apply. For more information about NAP, visit or contact your local FSA office. To find your local FSA office, visit In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA s TARGET Center at (202) (voice and TTY) or contact USDA through the Federal Relay Service at (800) Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) Submit your completed form or letter to USDA by: 1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C ; 2) fax: (202) ; or 3) program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender. Page 5

14 UNITED STATES DEPARTMENT OF AGRICULTURE FARM SERVICE AGENCY February 2013 Honey Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments Overview The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) authorizes nonrecourse marketing assistance loans (MALs) and loan deficiency payments (LDPs) for the crop of honey. The American Taxpayer Relief Act of 2012 extends the MAL and LDP provisions for honey from the 2008 Farm Bill to the 2013 crop year. Nonrecourse MALs and LDPs are administered by the Farm Service Agency (FSA), on behalf of the Commodity Credit Corporation (CCC). See the fact sheet Nonrecourse Marketing Assistance Loans/Loan Deficiency Payments for additional information about MALs and LDPs by going to this website: FSA_File/mal_ldp_2013.pdf Honey Nonrecourse Marketing Assistance Loan Honey nonrecourse MALs provide eligible producers with interim financing on their production, facilitates the orderly distribution of loan-eligible honey throughout the year and allows the producer to delay the sale of their honey until more favorable market conditions emerge. A producer may satisfy the loan obligation by delivering to CCC the quantity of honey pledged as collateral for full payment of the loan at maturity. Eligibility To be eligible for a honey nonrecourse MAL or LDP, a producer must have: Produced honey in the United States during the calendar year for which the loan is requested and extracted honey on or before Dec. 31 of the applicable crop year; Had a continuous beneficial interest in the honey through date of repayment of the loan and; Been responsible for the financial risk of keeping the bees and producing the honey. To be eligible for a MAL or LDP, the honey must: Have been produced by an eligible producer; Have been produced and extracted in the United States during the applicable calendar year; Be of merchantable quality deemed by CCC to be suitable for loan and; Be stored in acceptable containers. Adjusted Gross Income Producers or legal entities whose average adjusted gross nonfarm income exceeds $500,000 are not eligible for marketing loan gains or LDPs, but are eligible for MALs that must be repaid at principal plus interest. Program Availability The CCC makes nine-month nonrecourse MALs available to producers on crop honey. Final Loan/LDP Availability Date Eligible producers must submit requests for honey nonrecourse MALs on or before March 31 of the calendar year following the applicable crop year. Maturity Date Loans mature on demand, but no later than the last day of the ninth month after the note and security agreement were approved. Loan Rate The 2008 Farm Bill sets the national loan rate for honey as follows: 60 cents per pound for 2008 and 2009 crop years; 69 cents per pound for 2010 through 2012 crop years; 69 cents per pound for 2013 crop year. Where to Request Loans If the honey is stored on the producer s farm, the producer is required to apply at the FSA county office serving the area. If the honey is stored at a location other than the producer s farm, the producer is required to apply at either (1) the county office serving the storage location or (2) the county office serving the area in which the producer s main business is located. Other Program Provisions A loan service fee is collected at the time of loan disbursement; Interest is charged at a rate of 1 percent higher than the CCC borrowing interest rate; Honey pledged as collateral for a loan must be from Page 1

15 Honey MALs and LDPs February 2013 eligible floral sources and must be in containers that meet the type, size, cleanliness, strength, damage and fill requirements defined by regulations published by CCC in the Federal Register; Pre-loan inspections are required to ensure that honey inventory exists in approved storage containers and is of approximate certified weight. Loan Deficiency Payment (LDP) Provisions Producers who are eligible for a nonrecourse MAL, may choose to receive a LDP in lieu of a MAL. The LDP rate equals the amount by which the loan rate where the commodity is stored exceeds the effective repayment rate for the crop of honey. For More Information Further information on this and other FSA programs is available from local USDA Service Centers or on the FSA website at usda.gov. The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA s TARGET Center at (202) (voice and TDD). To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC , or call toll-free at (866) (English) or (800) (TDD) or (866) (English Federal-relay) or (800) (Spanish Federal-relay). USDA is an equal opportunity provider and employer. Page 2

16 UNITED STATES DEPARTMENT OF AGRICULTURE FARM SERVICE AGENCY Farm Loans Overview Farm Loans FACT SHEET April 2017 OVERVIEW The U.S. Department of Agriculture s Farm Service Agency (FSA) makes and guarantees loans to family farmers and ranchers to promote, build and sustain family farms in support of a thriving agricultural economy. FSA maintains its headquarters in Washington, D.C., with offices located in each state, usually in a state capital or near a state land-grant university, as well as in most agriculturally productive counties. Farmers may apply for direct loans at local FSA offices. Guaranteed loans may be available from commercial lenders who apply for loan guarantees from FSA. Although general information may be obtained from headquarters and state offices, all programs are administered through local offices. The goal of FSA s farm loan programs is to graduate its borrowers to commercial credit. Once a farmer is able to obtain credit from the commercial lending sector, the agency s mission of providing temporary, supervised credit is complete. FSA FARM LOANS FSA s loan programs are designed to help family farmers to start, purchase or expand their farming operation. In many cases, these are beginning farmers who need additional financial and business acumen to qualify for commercial credit. In other cases, they are farmers who have suffered financial setbacks from natural disasters, or who need additional resources with which to establish and maintain profitable farming operations. Some farmers obtain their credit needs through the use of loan guarantees. Under a guaranteed loan, a commercial lender makes and services the loan, and FSA guarantees it against loss up to a maximum of 90 percent in most cases. In certain limited circumstances, a 95 percent guarantee is available. FSA has the responsibility of approving all eligible loan guarantees and providing oversight of lenders activities. For those not yet meeting the qualifications for a loan guarantee from a commercial lender, FSA also makes direct loans, which are serviced by an FSA official. FSA has the responsibility of providing credit counseling and supervision to its direct borrowers by making a thorough assessment of the farming operation. FSA helps applicants evaluate the adequacy of the real estate and facilities, machinery and equipment, financial and production management, and the applicant s goals. FSA assists the applicant in identifying and prioritizing areas needing improvement in all phases of the operation. An FSA official then works one-on-one with the applicant to develop and help strengthen the identified areas that ultimately result in the applicant s graduation to commercial credit. Unlike FSA s commodity loans, most farm loans must be fully secured and can only be approved for those who have repayment ability. FARM OWNERSHIP LOANS Eligible applicants may obtain direct loans up to a maximum indebtedness of $300,000 (maximum indebtedness for a direct farm ownership Microloan is $50,000). Maximum indebtedness for guaranteed loans is $1,399,000 (amount adjusted annually for inflation). The maximum repayment term is 40 years for both direct and guaranteed farm ownership loans. In general, loan funds may be used to purchase a farm, enlarge an existing farm, construct new farm buildings and/or improve structures, pay closing costs and promote soil and water conservation and protection. FARM OPERATING LOANS Eligible applicants may obtain direct loans for up to a maximum indebtedness of $300,000 (maximum indebtedness for a direct operating Microloan is $50,000). Maximum indebtedness for a guaranteed loan is $1,399,000 (amount adjusted annually for inflation). The repayment term may vary, but typically it will not exceed seven years for intermediate-term purposes. Annual operating Page 1

17 Farm Loans Overview April 2017 loans are generally repaid within 12 months or when the commodities produced are sold. In general, loan funds may be used for normal operating expenses, machinery and equipment, minor real estate repairs or improvements, and refinancing debt. TARGETED FUNDS TO SOCIALLY DISADVANTAGED AND BEGINNING FARMERS Each year Congress targets a percentage of farm ownership and farm operating loan funds to socially disadvantaged and beginning farmers. For more information, refer to the FSA fact sheet, Loans for Socially Disadvantaged Farmers and Ranchers. DOWN PAYMENT PROGRAM FSA has a special loan program to assist socially disadvantaged and beginning farmers in purchasing a farm. Retiring farmers may use this program to transfer their land to future generations. To qualify: The applicant must make a cash-down payment of at least 5 percent of the purchase price; The maximum loan amount does not exceed 45 percent of the least of (a) the purchase price of the farm to be acquired, (b) the appraised value of the farm to be acquired or (c) $667,000 (Note: This results in a maximum loan amount of $300,000); The term of the loan is 20 years. The interest rate is 4 percent below the direct farm ownership rate, but not lower than 1.5 percent; The remaining balance may be obtained from a commercial lender or private party. FSA can provide up to a 95 percent guarantee if financing is obtained from a commercial lender. Participating lenders do not have to pay a guarantee fee; and Financing from participating lenders must have an amortization period of at least 30 years and cannot have a balloon payment due within the first 20 years of the loan. YOUTH LOANS These are available as direct loans only and have a maximum loan amount of $5,000. Youth loans may be made to individuals who are sponsored by a project advisor, such as a 4-H club, Future Farmers of America, tribal youth organization or similar agriculture affiliated group. Individuals must be at least 10 but not more than 20 years old to be eligible. EMERGENCY LOANS These loans are available only as direct loans from FSA. Emergency loans assist farmers who have suffered physical or production losses in areas declared by the President as disaster areas or designated by the Secretary of Agriculture as disaster or quarantine areas (for physical losses only, the FSA Administrator may authorize emergency loan assistance). For production loss loans, applicants must demonstrate a 30 percent loss in a single farming enterprise. Applicants may receive loans up to 100 percent of production or physical losses. Loan purposes include operating and real estate, restoring/replacing essential property, production costs for disaster year, essential family living expenses, reorganization and refinancing certain debts. The maximum indebtedness under the emergency loan program is $500,000. CONSERVATION LOANS Conservation loans are available as guaranteed loans only. Eligible applicants may use conservation loan funds to complete any conservation activity included in a conservation plan or Forestry Management Plan and refinance debts related to implementing any conservation activity if refinancing will result in additional conservation benefits. Maximum indebtedness is $1,399,000 (amount adjusted annually for inflation) and the maximum repayment term is 30 years. Note: The family farm and test for credit requirements are not applicable to conservation loans. Page 2

18 Farm Loans Overview April 2017 LAND CONTRACT GUARANTEES These provide certain financial guarantees to the seller of a farm through a land contract sale to a beginning or socially disadvantaged farmer. The seller may request either of the following: Prompt Payment Guarantee: A guarantee up to the amount of three amortized annual installments plus the cost of any related real estate taxes and insurance. Standard Guarantee: A guarantee of 90 percent of the outstanding principal balance under the land contract. The purchase price of the farm cannot exceed the lesser of (a) $500,000 or (b) the market value of the property. The buyer must provide a minimum down payment of 5 percent of the purchase price of the farm. The interest rate is fixed at a rate not to exceed the direct farm ownership loan interest rate in effect at the time the guarantee is issued, plus three percentage points. The guarantee period is 10 years for either plan regardless of the term of the land contract. The contract payments must be amortized for a minimum of 20 years. Balloon payments are prohibited during the 10-year term of the guarantee. WHO MAY BORROW To qualify for assistance, applicants must meet all loan eligibility requirements, including: Be a family farmer; Have a satisfactory history of meeting credit obligations; For direct operating loans, have sufficient education, training, or at least one year s experience in managing or operating a farm or ranch within the last five years. For direct farm ownership loans, all applicants must have participated in the business operations of a farm for at least three years out of the 10 years prior to the date the application is submitted. Other relevant experience, such as post-secondary education, farm apprenticeship, leadership or management experience while serving in any branch of the military or extension programs, may count toward one of the three year s experience required; Be a citizen of the United States, including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Commonwealth of the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia and the Republic of Marshall Islands; a U.S. noncitizen national or a qualified alien under federal immigration law; Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs; Possess legal capacity to incur loan obligations; Not be delinquent on a federal debt; Not have caused FSA a loss by receiving debt forgiveness (certain exceptions apply); and Be within the time restrictions as to the number of years they can receive FSA assistance. In the case of an entity, certain eligibility requirements apply. The entity must: Meet applicant eligibility requirements; Be authorized to operate a farm in the state where the actual operation is located; and Be owned by U.S. citizens, U.S. non-citizen nationals or qualified aliens. For socially disadvantaged members, they must hold a majority interest in the entity applicant to receive benefits. If the individuals holding a majority interest in the entity are related by blood or marriage, at least one member must operate the family farm. If they are not related by blood or marriage, the member(s) holding a majority interest must operate the farm. LOAN SERVICING AND SUPERVISED CREDIT FSA s mission is not limited to providing just credit it is to provide supervised credit. This means that FSA works with each direct loan borrower to identify specific strengths and opportunities for improvement in farm production and management, and then works with the borrower on alternatives and other options to address the areas needing Page 3

19 Farm Loans Overview April 2017 improvement to achieve success. Learningimproved business planning and financial acumen through supervised credit is the difference between success and failure for many farm families. To help keep borrowers on the farm, FSA may be able to provide certain loan servicing benefits to direct loan borrowers whose accounts are distressed or delinquent due to circumstances beyond their control. These benefits include: Re-amortization, rescheduling, consolidation, and/or deferral of loans; Rescheduling at the limited resource (lower interest) rate; Acceptance of conservation contracts on environmentally sensitive land in exchange for reduction of debt; and Writing down the debt (delinquent borrowers only). If none of these options results in a feasible farm operating plan, FSA can work with commercial lenders to help the borrower retain the homestead and up to 10 acres of land or borrowers may be offered the opportunity to pay off their debt for an amount below the full debt. Farms that come into FSA ownership are sold at market value, with preference given to socially disadvantaged and beginning farmers. FOR MORE INFORMATION Additional information may be obtained by contacting your local FSA office at or through the FSA website at In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA s TARGET Center at (202) (voice and TTY) or contact USDA through the Federal Relay Service at (800) Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) Submit your completed form or letter to USDA by: 1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C ; 2) fax: (202) ; or 3) program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender. Page 4

20 Conservation Reserve Program HONEY BEE HABITAT INITIATIVE Honey Bee Habitat Agricultural Productivity Wildlife Habitat Why Choose CRP? You Benefit. Land, Water and Wildlife Benefit. The Honey Bee Habitat Initiative enhances CRP covers by establishing cost effective sources of pollen and nectar to provide high value nutrition for honey bees. The Conservation Reserve Program (CRP) provides farmers and landowners with initiatives like this to achieve many farming and conservation goals. Whatever the conservation challenge soil conservation, water quality protection or wildlife habitat enhancement CRP is a proven land performance and management solution. Why Honey Bee Habitat? And why is it important? One-third of the food we eat requires pollinators. Honey bees are our most important agricultural pollinator, but they are in trouble. Since 2006, an average of nearly one-third of commercial honey bee hives perished each winter. A variety of factors are believed to contribute to this mortality including disease, parasites, nutritional deficiencies, and insufficient nutritious forage. Farmers and landowners can participate in the Honey Bee Initiative while conducting mid-contract management to provide improved nutrition and habitat for honey bee populations. Affiliated Practices: CP-1, CP-2, CP-4D, CP-10, CP-25 and CP-38E For more information about this individual practice, visit: In 2015, the Honey Bee Initiative is available in Michigan, Minnesota, North Dakota, South Dakota and Wisconsin where more than 65 percent of commercial honey bee operations summer, this enhancement will provide the nutritional resources that are critical to honey bee survival. Farm Service Agency Photos Provided by Frank Oberle USDA is an equal opportunity lender, provider and employer.

21 CRP Honey Bee Initiative Benefits High quality forage improves honey bee nutrition by establishing plants that provide pollen and nectar throughout the summer months. USDA has developed cost effective seed mixes to provide better nutrition for honey bees. Better nutrition helps hives during the winter by increasing their honey stores. Offered as a mid-contract management opportunity, the Honey Bee Initiative offers landowners and farmers incentives to reduce the out-of-pocket expense for mid-contract management. Additionally, by establishing good honey bee covers, landowners increase the opportunity to enter agreements with commercial beekeepers to locate hive on their land. Impact Financial Benefits A one-time $120 per acre Honey Bee Incentive Payment (BIP) for habitat restoration $100 per acre for the life of the contract for a 10-year contract for management activity to enhance habitat $125 per acre cost share payment for the life of the contract for a contract in excess of 10 years for management activity to enhance habitat Insect pollination is integral to food security -- honey bees support the production of more than 130 fruits, vegetables, and crops in North America Honey bee pollination supports an estimated $15 billion worth of agricultural production Plants attractive to honey bees also benefit native pollinators, and will attract beneficial insects that are predators of crop pests The honey bee cover promote carbon sequestration and soil health Conservation covers decrease wind and water erosion, and improve water quality by intercepting sediment and nutrients Plants that support honey bees also provide good wildlife habitat, including pheasant, quail, and other game species For more information, contact your local USDA Farm Service Agency office: Farm Service Agency Photos by Peter Berthelsen, Courtesy of Pheasants Forever USDA is an equal opportunity lender, provider and employer.