Natural Disaster Buy-In Waiver Approved

The recently approved American Recovery and Reinvestment Act of 2009 (ARRA) allows producers to become eligible for 2008 disaster assistance authorized by the 2008 Farm Bill even if they did not previously obtain otherwise statutorily required crop insurance from the Federal Crop Insurance Corporation (FCIC) or Non-insured Crop Disaster Assistance Program (NAP) coverage for 2008 by now paying a buy-in fee through May 18, 2009.

Paying such a buy-in fee does not provide the producer with crop insurance or NAP for the 2008 crop year; it merely permits the producer to become eligible for the 2008 crop disaster assistance programs.

Producers who choose to buy in under this provision will be considered, for insured crops for the 2008 Farm Bill disaster assistance programs only, to have obtained a policy or plan of insurance for the 2008 crop year at a level of coverage not to exceed 70 percent of the yield at 100 percent of the price. For non-insurable crops for the 2008 Farm Bill disaster programs only, producers will be considered to have a level of coverage equal to 70 percent of the yield. These levels of coverage will be used to calculate the 2008 SURE guarantee. Producers who buy in will not be eligible for actual crop insurance or NAP benefits for the 2008 crop.

Additional information is available at local Farm Service Agency offices.