U.S. Sending $1 Billion to Farmers Hit by Natural Disasters in 2018-2019

June 14, 2021

The U.S. Department of Agriculture (USDA) will release more than $1 billion in payments over the next several weeks starting June 15 for agricultural producers who suffered losses in 2018 and 2019 natural disasters.

The payments are going to farmers who applied through the Quality Loss Adjustment (QLA) Program and to those producers who have already received payments through the Wildfire and Hurricane Indemnity Program Plus (WHIP+). USDA’s Farm Service Agency provides support for crop value and production losses through QLA and crop quantity losses through WHIP+.

Farmers weathered some significant natural disasters in 2018 and 2019.

“From massive floods to winter storms, and from extreme drought to excess moisture, natural disaster events in 2018 and 2019 were exceptionally catastrophic for agricultural producers nationwide. Many suffered the impacts of multiple events in not just one but both years,” said FSA Administrator Zach Ducheneaux.

For each crop year, 2018, 2019 and 2020, the maximum amount that a person or legal entity may receive, directly or indirectly, is $125,000. Those with gross income of more than $900,000 are typically not eligible.

Second WHIP+ Payments

WHIP+ provides payments to producers to offset production losses to crops, trees, bushes and vines due to hurricanes, wildfires and other natural disasters. Producers received an initial WHIP+ payment for 2019 crop losses equal to 50% of the calculated payment. This second payment will be equal to 40% of the calculated payment for a total 90% WHIP+ program payment. This second round of WHIP+ payments are expected to exceed $700 million. USDA said a third round of payments may be issued if sufficient funds become available. Producers with 2018 crop losses have already been compensated at 100%.ents

All producers receiving QLA Program and WHIP+ payments are required to purchase federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage for the next two available crop years at the 60% coverage level or higher. Some QLA participants may purchase Whole-Farm Revenue Protection coverage offered through USDA’s Risk Management Agency.

Source: USDA

Topics USA Natural Disasters Agribusiness

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