March 15th is the application closing date for 2019 NAP coverage on spring-seeded crops. NAP provides risk protection for most crops that you cannot insure through your MPCI agent. A partial list of NAP-eligible crops in Chouteau County would include:
• Corn
• Flax
• Barley for hay
• Oats for hay
• Peas for hay
• Millet
• Buckwheat
• Sorghum forage
• Sunflowers
Current coverage available for NAP: At this point in time, FSA is only authorized to sell “basic” coverage for NAP crops. Basic coverage provides you a production guarantee equal to 50% of your Actual Production History (APH) for the crop. If a payable loss is incurred, the NAP indemnity payment would be calculated at 55% of the NAP market price for the crop. Examples of NAP coverage at the basic coverage level:
• Corn: A producer with a 70 bushel/acre APH for corn would have a production guarantee for NAP of 35 bushels/acre (50% of 70 bu/acre). If we assume that the NAP market price for 2019 corn is $3.80/bushel, the payment rate for production losses would equal $2.09/bushel (55% of $3.80/bushel). Therefore, if the producer’s 2019 corn yield was only 25 bushels/acre, the NAP payment would be approximately $20.90/acre (production was 10 bushels/acre under the NAP guarantee, and will be paid at a rate of $2.09/bushel).
• Flax: A producer with a 20 bushel/acre APH for flax would have a production guarantee for NAP of 10 bushels/acre (50% of 20 bu/acre). If we assume that the NAP market price for 2019 flax is $8.90/bushel, the payment rate for production losses would equal $4.90/bushel (55% of $8.90/bushel). Therefore, if the producer’s 2019 flax yield was only 7 bushels/acre, the NAP payment would be approximately $14.70/acre (production was 3 bushels/acre under the NAP guarantee, and will be paid at a rate of $4.90/bushel)
What does basic NAP coverage cost? While the 2018 Farm Bill states that the service fee for basic coverage will be $325.00 per crop, our software is not currently updated to reflect that figure. Therefore, at the time that the application for coverage is filed, a service fee of $250.00/crop will need to be paid. Beginning farmers and ranchers, limited resource farmers and ranchers, and socially disadvantaged farmers or ranchers will receive, upon certification, a waiver of the NAP service fee.
