USDA is Providing more than $3 Billion to Specialty Crop Producers and Commodity for Impacts from the 2022 Natural Disasters

The United States Department of Agriculture is working to provide over $3 billion to support Commodity and Specialty Crop Producers that had been impacted by the 2022 Natural Disasters. This program has set out to help balance the financial effects of the 2022 natural disasters that made an impact on crop yield. Zach Ducheneaux from the USDA mentioned that this is the third consecutive year weather has created challenges for some producers. USDA has changed the program phases that are available, now eligible producers can use both simultaneously. Making this change is in hopes of making a few improvements for both USDA and the producers. Once the application is submitted, producers may be eligible for one or both tracks. Also, to limit mistakes, if any payments have been received through track one that will be calculated into track two.

Track one takes existing federal crop insurance or NAP statistics to create a base line to consider when calculating payments. If a producer’s crop insurance or NAP is on file with USDA, they are sending pre-filled track one applications.  Although, producers who are eligible for compensation for losses from the 2022 natural disasters don’t have to wait for the application to arrive. Producers may apply on or after October 31^st 2023 for ERP benefits. If you receive a pre-filled application, you are not automatically eligible for track one payment.

Track two considers revenue, this is to assist producers who encountered decreased revenue because of the 2022 natural disasters. This decreased year will be compared to revenue on a benchmark year. If revenue doesn’t reflect normal year’s revenue, there is another method available. Submitting tax records to FSA is not required unless requested.

In conclusion, USDA is hard at work to ensure that the $3 billion goes to producers who were affected. They have made many changes to the process to reduce the work producers have to do to receive the benefits of this relief program. Please click the link below to read more information from USDA about this program.

For more information go here.