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Marcinda Kester Farm Programs Chief Slide 2 Noninsured Crop Disaster Assistance Program (NAP) The Noninsured Crop Disaster Assistance Program (NAP) provides financial assistance to eligible producers affected by natural disasters. This federally funded program covers noninsurable crop losses. Slide 3 NAP Life Cycle 3 Slide 4 4 CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing Slide 5 Whats New? 5 In addition to CAT-level coverage, NAP will offer buy-up coverage for the 2015 through 2018 crop years Crops and grasses intended for grazing are excluded from buy-up coverage but can still purchase NAP at the CAT-level coverage. Slide 6 Buy-Up Coverage (Continued) Buy-up coverage levels: 6 Yield LevelPrice Level 50%100% 55%100% 60%100% 65%100% Slide 7 Buy-Up Coverage (Continued) In addition to the service fee, producers who elect buy-up coverage must pay a premium equal to the lesser of: 5.25% of the guarantee 5.25% of the payment limit 7 Slide 8 Buy-Up Coverage (Continued) For value loss crops, buy-up coverage will be based on the maximum dollar value for which the producer requests coverage 8 Slide 9 Service Fee & Premium FSA will waive NAP service fees and reduce buy-up premiums by 50% for: Beginning farmers (BF) Limited resource farmers (LR) Socially Disadvantaged Farmers ( SDA) 9 Slide 10 Limitationsand Eligibility $125,000 payment limitation $900,000 AGI provision 10 Slide 11 NAP Life Cycle 11 CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing 2015 NAP11 Slide 12 Eligible Crops 12 Slide 13 Eligible Crops Any commercial agricultural crop (excluding livestock and their by products), commodity, or acreage of a commodity grown for food or fiber, and commercial or industrial crops for which CAT or additional coverage (non- pilot) is not available 13 Slide 14 Eligible Crops (Continued) crops grown for food crops planted and grown for livestock consumption crops grown for fiber, excluding trees grown for timber, lumber, or paper 14 Slide 15 Eligible Crops (Continued) aquaculture species, including ornamental (tropical) fish floriculture crops ornamental nursery (including propagation stock) Christmas tree crops/commodities 15 Slide 16 Eligible Crops (Continued) turfgrass sod sea oats and sea grass seed crops/commodities where the propagation stock is commercially produced for sale as seed stock for other eligible NAP crop production 16 Slide 17 Eligible Crops (Continued) industrial crops (including those grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or bio based products) 17 NEW - Biomass crops Slide 18 Eligible Crops Additional eligible crops: Sweet sorghum Biomass sorghum 18 Slide 19 Eligible Crops (Continued) New for 2015: NEW - Biomass crops 19 Slide 20 Biomass Crops A biomass crop is any feedstock crop grown for the express purpose of producing bio based product 20 Camelina Slide 21 Biomass Crops To be eligible for NAP assistance, producers must provide evidence satisfactory to the FSA County Committee: that a market exists for the crop the crop is grown for commercial biomass purposes 21 Algae Bioreactor Slide 22 Eligible Crops (Continued) Expanded definition of industrial crops includes crops produced as a feedstock for: Renewable biofuel Renewable electricity Biobased products 22 Slide 23 Ineligible crops by-products resulting from processing or harvesting an eligible crop, such as peanut stover, oat straw, corn stover, wheat straw etc. nonornamental nursery plants, such as strawberry plants, orange trees, etc. Exception to this ineligibility could be plants grown as seed crops home gardens or crops not being produced for commercial sale 23 Slide 24 Ineligible crops (Continued) experimental crops volunteer stands, except native forage livestock and their by-products trees grown for lumber, timber, or paper products 24 Slide 25 Ineligible crops (Continued) CAT or additional level of insurance coverage is available Group Risk Protection insurance Crop acreage for which individual coverage is available only as a pilot product is eligible for NAP assistance. You may submit any exception requests to the National Office for approval. 25 Slide 26 NAP Life Cycle CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing 26 Slide 27 Coverage Options Overview The Agricultural Act of 2014 authorizes FSA to offer NAP catastrophic coverage for a service fee and additional levels of NAP coverage that require payment of a premium in addition to the NAP service fee 27 Slide 28 Coverage Options Overview (Continued) NAP coverage will be available on eligible crops at the CAT (basic) level of 50/55, or in 5 percent increments from 50 up to 65 percent of the producers approved yield at 100 percent of the average market price as established by FSA NOTE: Crops intended to be grazed are not eligible for coverage levels above the Basic CAT Level (50/55) 28 Slide 29 Coverage Options (Continued) If the Elected Coverage Level is Then the eligible cause of loss must have reduced the expected unit production by 50/10050 percent 55/10045 percent 60/10040 percent 65/10035 percent 29 What level of loss is needed to trigger a NAP payment? Slide 30 Electing Coverage Options Producers are required to elect their coverage level at the time of application on the CCC-471 by the application closing date, in the administrative county for the NAP crops Election of coverage level is irrevocable after the application closing date 30 Slide 31 Electing Coverage Options (Continued) If a producer elects NOT to purchase additional coverage levels, the level of assistance will be calculated at the Basic CAT level 50/55 31 Slide 32 Electing Coverage Options (Continued) Coverage levels are elected by pay group, as demonstrated below: Note: You cannot elect different coverage levels for crops in the same pay group 32 CropVarietyPay CropPay Type Planting Period Coverage Level SquashAcorn01550010155/100 SquashButternut01550010155/100 SquashSummer01550020165/100 SquashZucchini01550020165/100 Slide 33 Eligible Producer 33 Slide 34 Producer A producer is an owner, operator, landlord, tenant, or sharecropper, who both: shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the unit, or would have shared had the crop been produced 34 Slide 35 Producer (Continued) Landowners, landlords, tenants, contract growers, or anyone else not having both a share of the risk and a valid share of a crop are ineligible for NAP 35 Slide 36 Producer (Continued) To determine producer eligibility, one of the following must be obtained: copies of: signed written leases with landowner or landlord signed rental agreements with landowner or landlord other legal documents showing land ownership or control 36 Or... Slide 37 Producer (Continued) Obtain: statement signed by: landowner or landlord that producer had control of the acreage operator or producer that producer had control of the acreage on a farm FSA-578, producer print 37 Slide 38 Types of Producers Individuals (Persons) Joint Operations Legal Entities 38 Slide 39 Conservation Compliance To be eligible for NAP benefits, persons and legal entities must be in compliance with all HEL and WC provisions according to 6-CP 39 Slide 40 NAP Life Cycle 40 CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing Slide 41 Overview The approved yield process is used as a uniform method to calculate approved yields for all producers. NAP approved yield establishment: Provides flexibility Provides a sound basis for expected production Safeguards the integrity of NAP 41 Slide 42 Overview (Continued) Approved yields: are calculated by a producers unit for producers who: do not have records, limited to 65% of T-yield are able to provide acceptable records for 1-3 years, use a combination of actual and T-yield are new producers, may have an approved yield based on unadjusted T-yield 42 Slide 43 Overview (Continued) Producers who report NAP crop acreage are responsible for reporting production for all crops selected on CCC-471 Approved yields do not apply to: grazed forage value loss crops controlled environment crops 43 Slide 44 Yield Type Indicators A producers production history is the basis for calculating an approved yield Different rules apply to different types of historical production Yield Type Indicators are an easy way to indicate the type(s) of historical production a producer has in his or her crop database 44 Slide 45 Approved Yields (Continued) Base period: Minimum of 4 consecutive APH crop years Maximum of 10 APH crop years Except apples and peaches - 5 years max Does not include any year the crop was: Not planted Prevented from being planted Not reported as planted 45 Slide 46 Approved Yields (Continued) The approved yield established for the producer will be: equal to the simple average of the yields included in the APH database based on APH years of production records Reminder: The producer must maintain production records for 3 crop years 46 Slide 47 If the producer has records for:The approved yield is the simple average of: 4-10 yearsThose years 3 yearsThe 3 years + 100% of T-yield for missing year 2 yearsThe 2 years + 90% of T-yield for missing years 1 yearThe 1 year + 80% of T-yield for missing years No years65% of the T-yield for 4 years An assigned, zero credited, or substitute yield will not be considered derived from producer-certified production records for the purpose of attaining a higher percentage of T-yield 47 Approved Yields (Continued) Slide 48 No Production Records No Prior Approved Yield The Approved Yield is calculated using ____ of the T-Yield for the 4 most recent crop years for producers who: are not New Producers have not had an approved yield previously established have no records of production 48 65% Slide 49 New Producer Definition: A producer who has not been engaged in farming for a share of the production of the crop for more than 2 crop years in the county Specific rules are applicable with formation or dissolution of entities Yield Type I 49 Slide 50 New Producer (Continued) The approved yield will be calculated based on: 100% of the T-yield for years during which the crop was not produced the actual yield for the 1 or 2 years for which there is a record of production 50 Slide 51 Buy-up Options 51 Slide 52 Buy-up Options Buy-up Options are applicable to crops on which Buy-up coverage is elected Options are: Direct Market Historical Marketing Percentage (HMP) Maximum Dollar Value 52 Slide 53 Direct Market Price Option Option is available to accommodate growers who receive a higher crop price, typically because they do not use an intermediary such as wholesaler or processor 53 Slide 54 Direct Market Price Option (Continued) Marketing channels include: Direct to consumers, such as: On-farm sales, including roadside stand or store Farmers Market CSA U-pick Indirect, such as through: Retailer Wholesaler Packer 54 Slide 55 Direct Market Price Option (Continued) Producer must provide: Actual marketing records Data for immediately preceding 3 years Direct market percentage is recalculated each year the Direct Market Price Option is selected by producer 55 Slide 56 Historical Marketing Percentage (HMP) Option is available to accommodate growers who have a history of marketing a crop through multiple markets Markets include: Processed Fresh 56 Slide 57 HMP (Continued) Producer must provide: Actual marketing records Data for immediately preceding 3 years The HMP is recalculated each year the HMP Option is selected by the producer 57 Slide 58 Maximum Dollar Value Option is available to all producers of value loss crops to select an amount of coverage based on the highest value of inventory they have at any given time 58 Slide 59 Calculating Guarantees 59 Slide 60 Calculation of Guarantee - Yield Based Crops 60 Eligible Acres Approved Yield Elected Yield Coverage Production Guarantee *Applicable price NAP Guarantee X = X X = Producer Share X Elected Price CoverageX Slide 61 NAP Guarantee Example 1 Yield Based Crop Variables Crop (Type/IU/Prac/ PlntPer) Pumpkins (SUG/FH/NI/ 01) Producer Share1.000 Acres Certified20 Approved Yield100 cwt Price$38.3333 Coverage Level65/100 Calculate Guarantee 61 Eligible Acres20 Calculation Share1.000 X App. Yield100X Elect Yld Lvl0.65X Production Guarantee 1,300 cwt = Price38.3333X $49,833 Slide 62 NAP Guarantee Example 1 Comparison to Basic CAT Level Calculated NAP Guarantee at elected 65/100 Buy-up is $49,833 Compare 65/100 guarantee to a guarantee for Basic CAT Level (50/55) Production guarantee = 1,000 cwt NAP guarantee at 50/55= $21,083 Buy-up is a significantly higher guarantee 62 Slide 63 NAP Guarantee Example 1 Per Acre Yield Based Crop Variables Crop (Type/IU/Prac /PlntPer) Pumpkins (SUG/FH/NI/ 01) Producer Share 1.000 Approved Yield 100 Price$38.3333 Coverage Level 65/100 Calculate Guarantee 63 Calculation for Per Acre Share1.000 App. Yield100X Elect Yld Lvl0.65X Price38.3333X Elect Price Lvl1.000X $2,492 Slide 64 NAP Guarantee Example 2 Yield Based Crop Variables Crop (Type/IU/Prac/PlntPer) Apples (COM/FH /NI/01) Producer Share1.000 Acres Certified32 Acres Determined28 Approved Yield350 bu Price$13.600 Coverage Level65/100 Calculate Guarantee 64 Eligible Acres28 Calculation Share1.000 X App. Yield350X Production Guarantee 6,370 bu = Price13.600 X Elect Price Lvl1.000X $86,632 Elect Yld Lvl0.65X Comparison to Basic CAT Production Guarantee = 4,900 bu NAP Guarantee = $36,653 Slide 65 NAP Guarantee Example 2 Per Acre Yield Based Crop Variables Crop (Type/IU/Prac/Plnt Per) Apples (COM/FH /NI/01) Producer Share1.000 Approved Yield350 Price$13.600 Coverage Level65/100 Calculate Guarantee 65 Calculation for Per Acre Share1.000 App. Yield350X Elect Yld Lvl0.65X Price13.600X Elect Price Lvl1.000X $3,094 Slide 66 Basic Calculation of NAP Guarantee Value Loss Crops 66 Producer Elected Value on CCC-471 Application for Coverage (applicable to Buy-up only) Elected Coverage Level (65%, 60%, 55%, or 50%) NAP Guarantee X = Producer Share X Slide 67 NAP Guarantee Example 3 Value Loss Crop Variables Crop (Type/IU/Prac/ PlntPer) Grass (WRG/SO/I R/01) Producer Share1.000 Producer Selected Value $115,000 Coverage Level65/100 Calculate Guarantee 67 Maximum Dollar Value$115,000 Calculation Share1.000 X Elect Cov Lvl0.65 X $74,750 NOTE:Guarantee is based on Producer Selected Value as reported on CCC-471. Established NAP Price used for FMV A or B is only used by FSA for loss calculation purpose. Slide 68 Basic Calculation of NAP Guarantee Grazing Crop 68 Total Acreage by crops with same carrying capacity and grazing days 0.50 (Basic Coverage Level; no buy-up) Price.55 (Basic Price Coverage; no buy-up) NAP Guarantee X X X X = Producer Share / Carrying Capacity Days in Grazing Period X Slide 69 NAP Guarantee Example 4 Grazing Crop Variables Crop (Type/IU/Prac/Plnt Per) Mixed Forage (LGM/GZ/NI /01) Producer Share1.000 Acres Certified80 Acres/AU (NCT)2.0 Grazing Days223 Price$1.413 Coverage LevelBasic (50/55) Calculate Guarantee 69 Eligible Acres80 Calculation Acres/AU2.0 / Grazing Days223X Share1.000X Coverage Lvl0.50X Price1.413X $3466 Price Lvl0.55X Slide 70 NAP Life Cycle CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing 70 Slide 71 71 Acreage Reporting Accurate Reporting County Offices will review acreage reporting data with the producer to verify accuracy Producers must sign acreage report Accurate acreage reports ensure program eligibility Inaccurate acreage reports can result in loss of benefits or improper payments Total cropland report, all cropland on a farm must be reported to ensure program eligibility Slide 72 72 Acreage Reporting (Continued) Timely reporting Acreage reports must be filed by the final acreage reporting date Slide 73 Notice of Loss CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing 73 Slide 74 Notice of Loss/ Application for Payment 74 Slide 75 Eligible Causes of Loss Loss must occur from an eligible cause of loss during the coverage period before or during harvest Eligible causes of loss apply the same to basic and buy-up coverage 75 Slide 76 Damaging Weather Drought Hail Excessive Moisture Freeze Tornado Hurricane Excessive Wind Insufficient Chill Hours* (Limited) 76 Slide 77 Adverse Natural Occurrences Earthquake Flood Volcanic eruption Any combination of the above 77 Slide 78 Related Conditions Conditions resulting from damaging weather or adverse natural occurrence, including but not limited to: Heat Insect Infestation Disease 78 Slide 79 Ineligible Causes of Loss (some) Losses that are not direct result of an eligible cause of loss in the coverage period Failure to reseed or replant when practicable Failure to follow good farming practices Water contained or released NOTE: See CCC-471 NAP Basic Provisions which you will get a copy of at the time of application for coverage. 79 Slide 80 Low Yield and Allowable Value Loss - Notice of Loss Filing File Notice Of Loss by the earlier of: 15 days after the damaging weather or disaster occurrence or date the damage is first apparent to the producer 15 days after the normal harvest date 80 Slide 81 Notice of Loss (Continued) Low Yield Hand harvested crops Notify County Office within 72 hours, and File NOL within 15 days of earlier of occurrence or loss becomes apparent Other crops as determined by DAFP Notify County Office within 72 hours, and File Notice Of Loss within 15 days of earlier of occurrence or loss becomes apparent 81 Slide 82 Grazing Notice of Loss Grazing losses will be determined by: Independent assessments: Notice Of Loss allowed to be filed any time up to the final application for payment date Similar Mechanically harvested forage: Notice Of Loss must be filed within 15 days of occurrence or loss becomes apparent 82 Slide 83 Prerequisites to an Application for Payment Report of acreage is filed CCC-576 Part B is filed and approved Acceptable production evidence provided 83 Slide 84 Prerequisites to an Application for Payment Any document required to establish producer eligibility Other documentation needed to determine the correct payment amount 84 Slide 85 Application for Payment Deadline Beginning in 2015, no later than 60 days after the coverage period ends for all crops on the unit Exception:County Office Committee has the authority to grant an extension up to 180 days. The request must be filed by the producer in writing 85 Slide 86 Introductions and General Session NAP Life Cycle 86 CropsCoverage Approved Yield Commodity Report Summary of Coverage Notice of Loss Application for Payment Payment Premium Billing Slide 87 What will be covered in this segment How is NAP Buy-up Premium Calculated Examples of Calculating Premium 87 Slide 88 Calculating Premium Statutory Changes (Continued) A producer must pay the regular service fee and calculated premium amount based on each eligible crop enrolled and coverage level elected 88 Slide 89 Calculating Premium Statutory Changes (Continued) How do we calculate the Premium? Start by multiplying the number of acres devoted to the eligible crop by Number of Eligible Acres 89 Slide 90 Calculating Premium Statutory Changes (Continued) How do we calculate the Premium? the approved yield on the CCC-452 for the producer by Number of Eligible Acres NAP Approved Yield 90 Slide 91 Calculating Premium Statutory Changes (Continued) How do we calculate the Premium? the producers share in the crop by Number of Eligible Acres NAP Approved Yield Producers Share 91 Slide 92 Calculating Premium Statutory Changes (Continued) How do we calculate the Premium? the coverage level elected by the producerso, what coverage levels are available? Number of Eligible Acres NAP Approved Yield Producers Share Coverage Level 92 Slide 93 Calculating Premium Statutory Changes (Continued) But wait there is more So Whats Next?? 93 Slide 94 Calculating Premium Statutory Changes (Continued) How do we calculate the Premium? Now we multiply everything by the applicable average market price as determined by the State Committee. Then 94 Slide 95 Calculating Premium Statutory Changes (Continued) How do we calculate the Premium? Finish the calculation by multiplying all the previous data by the 5.25 percent premium factor This premium is capped at $6,563 (based on the payment limitation of $125,000 times 5.25 percent) 95 Slide 96 Calculating Premium Statutory Changes (Continued) Premiums will be calculated by: Unit FSA administrative county Each tax ID number Crop definition according to pay group 96 Slide 97 Calculating Premium Examples Yield Based Crop Yield Based Example Pumpkins: 20 Acres Certified Current Approved Yield: 100 cwt. per acre NAP Price: $38.3333 per cwt. Coverage Level 50-65 Producer Share 100 % 97 Slide 98 Calculating Premium Examples Yield Based Crop (Continued) Yield Based Example Pumpkins: Coverage Level GuaranteeMaximum Benefit Premium Calc Max Premium 65/100$149,500$125,000$7,849$6,563 AcresApproved Yield Coverage Level PriceShare 60100 CWT.65$38.3333 100% 98 $49, 833 $2,616 20 Slide 99 Calculating Premium Examples Yield Based Crop (Continued) Yield Based Example Pumpkins: Coverage Level GuaranteeMaximum Benefit Premium Calc Max Premium 65/100$149,500$125,000$7,849$6,563 60/100$138,000$125,000$7,245$6,563 99 $2,616$49,833 $45,999$2415 Slide 100 Calculating Premium Examples Yield Based Crop (Continued) Yield Based Example Pumpkins: Coverage Level GuaranteeMaximum Benefit Premium Calc Max Premium 65/100$149,500$125,000$7,849$6,563 60/100$138,000$125,000$7,245$6,563 55/100$126,500$125,000$6,641$6,563 100 $49,829$2,616 $45,996 $2415 $42,166 $2,214 Slide 101 Calculating Premium Examples Yield Based Crop (Continued) Yield Based Example Pumpkins: Coverage Level GuaranteeMaximum Benefit Premium Calc Max Premium 65/100$149,500$125,000$7,849$6,563 60/100$138,000$125,000$7,245$6,563 55/100$126,500$125,000$6,641$6,563 50/100$115,000 $6,037 101 $49,829 $45,996 $42,163 $38,333 $2,616 $2415 $2,214 $2,012 Slide 102 NAP Participants with Socially Disadvantaged (SDA) Beginning Farmer (BF) and/or Limited Resource (LR) Status SDA, BF and/or LR Status: The premium fee for buy up coverage will be reduced by 50 percent for producers who meet the definitions for underserved, BF and LR status and is capped at $3282 for all crops grown in all counties. 102 Slide 103 LIMITED RESOURCE APPLICANTS A Limited Resource Farmer or Rancher or Forest Owner is: A person with direct or indirect gross farm sales not more than $176,800 (for FY2015) in each of the previous two years. AND A person with 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 in each of the previous two years. Or you can go to the following website and it will determine it for you based on your county info: http://www.census.gov//did/www/saipe/ Slide 104 104 Beginning Farmer A Beginning Farmer or Rancher means an individual or entity who: Has not operated a farm or ranch, or who has operated a farm or ranch for not more than 10 consecutive years. This requirement applies to all members of an entity, will materially and substantially participate in the operation of the farm or ranch. Slide 105 105 Socially disadvantaged group- a group whose members have been subjected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities. The definition that applies to Titles I, V, and VI includes members of a group subject to gender prejudice, while the definition that applies to Titles II, IX, XII, and XV does not. Title XIV and the Education and Risk Management Assistance provision in Title XII do not make specific reference to the statutory definition of socially disadvantaged farmer or rancher. Socially disadvantaged Farmer or Rancher- a farmer or rancher who has been subjected to racial or ethnic prejudices because of their identity as a member of a group without regard to their individual qualities. This term means a farmer or rancher who is a member of a socially disadvantaged group. Specifically, a group whose members have been subjected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities. Those groups include African Americans, American Indians or Alaskan natives, Hispanics, and Asians or Pacific Islanders. Socially Disadvantaged Farmer Slide 106 Crops CoverageAPH Crop Report Notice of Loss Application for Payment Payment Premium Billing Application for Payment 106 Slide 107 Payment Calculation 107 Slide 108 Crop Definition Crops are defined by pay group and consist of: Pay Crop Code Pay Type Code Planting Period 108 Slide 109 Loss Calculation Yield Based Crops Yield based crop losses are determined as follows: Eligible Acres x Share x Approved Yield XCoverage level (50%, 55%, 60%, 65%) =Disaster Level Production =Crop Loss (for payment) 109 Slide 110 Loss Calculation Value Loss Crops Value loss crop losses are determined as follows: Lesser of Field Market Value A or Maximum Dollar Value for Coverage XCoverage Level =Disaster Level Field Market Value B (Inventory after Disaster) =Crop Loss (for payment) 110 Slide 111 Calculation of NAP Payment - Yield Based Crops 111 Eligible Acres Approved Yield Yield Coverage level Disaster Level Production to Count Applicable Price X = X - X Producer Share X Net Production for Payment= Price Coverage Percentage (buy-up 100%; basic 55%)X Payment Factor (Harvested or Unharvested)X Salvage Value ($ amount)- = Calculated NAP Payment Slide 112 NAP Payment Example 1 Yield Based Crop Variables Crop (Type/IU/Prac/ Plnt Per) Pumpkins (SUG/FH/NI/ 01) Producer Share1.000 Acres Certified20 Approved Yield100 cwt Price$38.3333 Coverage Level65/100 Harvested?Yes Production600 cwt 112 Eligible Acres20 Calculation Share1.000 X App Yield100 X Yld Coverage Lvl0.65X Disaster Level1,300 cwt = Production600 cwt- $26,833 Net Production for Payment 700 cwt = Price$ 38.3333X Price Lvl Coverage1.000X Slide 113 NAP Payment Example 1 Comparison to Basic CAT Level Calculated NAP Payment at elected 65/100 Buy-up is $26,833 Compare this calculate payment to the same scenario with Basic CAT level Disaster Level= 1,000 cwt NAP payment at 50/55= $8,433 Buy-up results in significantly higher calculated payment ($26,833 vs $8,433) 113 Slide 114 Pumpkin Overview CROPCOVERAGE LEVEL GUARANTEEPREMIUMPAYMENT % OF LOSS PUMPKIN 20 ACRES 65/100$49, 833$2616 PLUS $250 ADMIN FEE= $2866 54 % Loss in Production $26,833 PUMPKIN 20 ACRES 50/55 CAT LEVEL $21,083No premium $250 admin fee 54% Loss In Production $8433 2014 Farm Bill NAP Training 114 Slide 115 Calculation of NAP Payment - Value Loss Crop 115 Smaller of Actual FMV A ($ Value of Pre Disaster Inventory) OR Producer Selected Maximum Dollar Value FMV B ($ Value of Post Disaster Inventory + $ Value of Ineligible causes of Loss) = Crop Loss - Coverage Level Percentage (65%, 60%, 55%, or 50%) X Producer Share X Unharvested Factor X Price Coverage Level Percentage X = Calculated NAP Payment Disaster Level = Slide 116 NAP Payment Example 3 Value Loss Crop Variables Crop (Type/IU/Prac/ Plant Period) Grass (WRG/SO/IR /01) Producer Share1.000 Producer Selected Value $115,000 Coverage Level65/100 $ Value Before Disaster $ 200,000 FMV B$ 50,000 Unharvested Factor 0.60 116 FMV A$115,000 Calculation Elect Cov Lvl0.65 X FMV B$50,000 - = Crop Loss$24,750 X Share1.000 Disaster Level$74,750 = X UH Factor0.60 X Price Cov Level1.000 = $14,850 Slide 117 Loss Calculation Grazing Crop Grazing crop losses are determined as follows: Producer Acres (acres x share) Carrying Capacity =Animal Acres XGrazing Days =Expected Animal Unit Days (AUDs) XLoss Level ( Similar Mechanical or STC Approved ) =AUD loss (for payment) 117 Slide 118 QUESTIONS??? Contact Information: Marcinda Kester Farm Programs Chief (859)224-7637 Website: http://www.fsa.usda.gov/FSA/webapp?area= home&subject=diap&topic=nap 118