Farm Service Agency

Public Affairs Staff

1400 Independence Ave SW

Stop 0506, Room 3624-South

Washington, D.C. 20250-0506

Release No. 1539.07

WASHINGTON, Oct. 15, 2007 - USDA Farm Service Agency (FSA) Administrator Teresa Lasseter announced that eligible farmers who suffered quantity losses to their crops in recent years can enroll in the Crop Disaster Program 2005-2007 (CDP) at local FSA service centers starting today. FSA will announce and conduct sign-up for quality losses under CDP as soon as possible.

"Certain crop producers suffered major financial losses as the result of floods, tornados and other natural disasters during the last couple of years," said Lasseter. "This program will help many American farmers to maintain viable businesses so consumers at home and abroad have the food and fiber they need to survive."

Subject to final rules for the program, CDP provides benefits to farmers who suffered losses to the 2005-2007 crops from natural disasters and related conditions so long as the actual crop lost was planted or prevented from being planted before Feb. 28, 2007. Producers who incurred qualifying losses in 2005, 2006 or 2007 must choose only one year to receive benefits. Producers may apply for benefits for losses to multiple crops as long as the losses occurred in the same crop year.

Only producers who obtained crop insurance coverage or coverage under the Noninsured Crop Disaster Assistance Program (NAP) for the year of loss will be eligible for CDP benefits. Producers must have suffered quantity losses in excess of 35 percent to be eligible for CDP. The payment rate is set at 42 percent of the established price. Assistance, together with any crop insurance or NAP payment received for the same crop and including the value of the crop production not lost, must not exceed 95 percent of the total value of the crop absent the disaster.

FSA offices may accept information from producers about quality losses when producers submit applications for quantity losses. However, FSA will only consider quality loss applications complete after FSA announces the quality loss sign-up date and all other information necessary to determine eligibility is received by FSA. Also, FSA will not consider applications completed for any loss, including quantity losses, until a final rule has been issued for this program.

The U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, signed into law on May 25, 2007, by President Bush, authorizes CDP.

For more information about CDP and other disaster programs implemented by FSA, visit: http://disaster.fsa.usda.gov.