 |
 |
 |
|
|
|
|
|
FLAG HomeWays to Support FLAG
 Give with confidence. GiveDirect. News & Alerts
|
|
Disaster Assistance |
|
|
|
|
|
|
Year after year, we see punishing weather in different regions of the country with devastating effects on agricultural production. A group of federal programs can provide some relief to family farmers after a disaster. This page includes disaster assistance information available from FLAG and other organizations. While the available resources do not make up for the physical, economic, and emotional distress incurred by farmers, hopefully these resources can begin to put farmers back on a path to recovery. Disaster Assistance Programs for Minnesota Farmers:
Disaster Readiness and Recovery: Legal Considerations for Organic Farmers by Jill E. Krueger (Sept. 2007)
Written by FLAG attorneys, Farmers' Guide to Disaster Assistance describes in plain language the rules for programs such as FEMA assistance, federal crop insurance, USDA's Non-Insured Crop Disaster Assistance Program, and Emergency Loans from USDA's Farm Service Agency. A bound copy of the book is available without cost to financially distressed farmers and ranchers by calling FLAG's office at 651-223-5400, or by using our order form. For other persons, the charge is $40.00 plus shipping, through an online publisher. FLAG also offers the Farmers' Guide to Disaster Assistance on CD-R. This CD includes the complete publication in searchable PDF format. The disc also includes the 2-page update; and two bankruptcy articles writen for FLAG by Susan A. Schneider. The cost is $10.00. Price includes shipping. Call the FLAG office to request a copy. NOTE: Changes have been made to programs covered in this book since it was published in October 2004. Please see Updates below each chapter heading or download the December 2004 2-page update (PDF) Download the complete book (without updates) (2,259 KB) or download it by chapter: Chapter 1: Table of Contents, Summary of Disaster Programs Chart, and Introduction Chapter 2: Federal Emergency Management Agency (FEMA) Programs Updates: Chapter 3: Federal Crop Insurance
Chapter 4: Non-Insured Crop Disaster Assistance Program (NAP) Chapter 5: Emergency Conservation Program
Chapter 6: Disaster Assistance for Livestock Producers
Chapter 7: Farm Service Agency (FSA) Emergency (EM) Loans Chapter 8: Farm Service Agency (FSA) Disaster Set-Aside
Chapter 9: Small Business Administration (SBA) Disaster Loans
Chapter 10: Bankruptcy
Chapter 11: Federal Income Taxes Other Updates:
(If you have trouble downloading any of these files, contact .) Emergency Conservation Program availability for Flooded Minnesota Counties More information has been made available about Emergency Conservation Program (ECP) availability for the flooded Minnesota counties. According to the FSA state office, only Houston and Winona counties have submitted requests for authorization to offer ECP assistance. Farmers in other declared counties who have needs that could be met through ECP should contact their FSA county office to urge them to submit a request. Houston county has begun ECP sign-up. The deadline to apply is November 16. The county has not yet been given any funding (which is typical for ECP). In general, farmers can only receive cost-share for activities done after their application is approved and funded, but the county has requested a waiver of this requirement. In any case, farmers in Houston county should get their ECP applications submitted to start the approval process. The priority activities in Houston county are debris removal from farmland; grading, shaping, and leveling of farmland; and repair of water containment or water control structures. Farmers will need an estimate of their costs as part of the application. Winona county’s request for authorization to offer ECP has been forwarded to the FSA national office, but it hasn’t yet been approved. Farmers in Winona county should check in with the FSA county office over the next week or so to find out when sign-up will start. Minnesota farmers affected by recent flooding may be eligible for assistance from the Federal Emergency Management Agency (FEMA) through its Federal Assistance to Individuals and Households Program (IHP). This program provides financial assistance for housing repairs, temporary housing, and disaster-related personal expenses. Contrary to some rumors, farmers can be eligible for FEMA assistance for damage to their homes and/or personal property. However, while a farmer’s house and personal losses may be covered by FEMA, damages to crops, livestock, farm equipment, and barns are not. Farmers should contact the Farm Service Agency to apply for assistance for farming-related losses. IHP assistance is not intended to fully restore damaged property. It is emergency assistance designed to cover only the most urgent needs and give people a place to start. Although IHP benefits cannot be used to duplicate any costs that are already covered by a private insurance company, farmers covered by insurance should still apply because there may be help available for uncovered expenses or if the insurance settlements are delayed. Farmers may be eligible for assistance through IHP for four different types of needs:
The maximum total amount of IHP assistance that any individual or household can receive for any given disaster declared on or after October 1, 2006, is $28,200. To apply for emergency assistance through FEMA, residents of the disaster area should call 800-261-FEMA (800-261-3362) or register at www.fema.gov. Applicants will be asked to provide:
After the application is submitted, an inspector will call to schedule an appointment to visit the property, and within two weeks of that inspection the applicant should receive a decision. Anyone who receives a denial or a smaller award than expected should appeal in writing within 60 days of receiving their decision. The original decision notice will include specific instructions regarding where to send the appeal. Documenting Losses Is an Important Part of Disaster Recovery** Farmers’ ability to receive government assistance for disaster losses depends in large part on their ability to demonstrate the extent of those losses. Documentation of disaster damage needs to show two things: the status of the farm the day before the disaster, and its status the day after the disaster. If a farmer has crop insurance, a crop insurance adjuster will visit the farm to certify the extent of crop damage. But when there is no crop insurance, or for damage to buildings, livestock, or equipment, the process is more complicated. So, as farmers start to clean up, they need to photograph everything, take notes, and get receipts and estimates. To get started, it is often helpful to have good records on hand. Loans and credit reports will not only show how much money is owed, but will also have appraisals of equipment or structures bought with the loans. If these documents were destroyed in the disaster, additional copies can be ordered.
A wide range of documents can be used to show the value of what was on the farm before the disaster. Receipts and credit card bills show the value of purchased inputs or equipment. Acreage of specialty crops can be shown using receipts for inputs such as seed or fertilizer, multiplied by application rates. Sales records can show the prices that were expected for specialty crops. Documentation from auction barns or feedlots will show the number of animals on a farm before the disaster, keeping in mind that some disaster programs may cover losses due to the death of the animal or losses due to premature sales because of a lack of feed. Most farmers will want to dive in immediately after a disaster and start rebuilding, clearing roads and fields, and repairing equipment. However, in some situations this can prevent them from getting compensated for their efforts to recover from the damage. In general, programs such as the Emergency Conservation Program (ECP) require farmers to apply for help and receive approval before incurring the costs that will be the basis of the cost-share request. However, it appears that no Minnesota counties are currently approved for ECP assistance. It is possible that expenses for “emergency” repairs and conservation measures, such as repairs to fences where cattle could get loose, or removal of debris from fields and access roads, could be eligible for assistance later, if ECP funds become available for affected Minnesota counties. Farmers who feel they must take action now to prevent further damage may want to discuss their plans with FSA. It is possible that taking steps such as getting a written estimate to document costs will help a farmer maintain eligibility for any help that becomes available later. It is also important for livestock farmers to document the cost of disposal of livestock mortality. Some past disaster programs have provided cost-share money for mortality disposal.
An Overview of Disaster Assistance Programs for Farmers Minnesota farmers seeking assistance for property damage and other losses caused by recent flooding may find themselves confused by the many different agencies and programs that are offering aid. Disaster assistance programs tend to be very specific, focused on addressing a particular type of loss or need. Those seeking help often have to piece together aid from more than one program to meet their needs. In general, programs aimed at meeting the emergency needs of individual and families—such as food, shelter, and basic necessities—will not cover losses to income-producing property, such as farming structures, equipment, livestock, or crops. And farm disaster programs also tend to be very specific about the types of losses covered. Here is a brief overview of the different federal disaster assistance programs that generally provide assistance for different types of losses. Disaster unemployment assistance is also generally available for farmers, as discussed in a separate sheet. State and private charitable programs may also be available, however, these tend to be offered only for home and personal needs. Damage to Home and Personal Property Farmers whose homes have been damaged or made uninhabitable due to a disaster, or who have suffered losses to the contents of their homes, could be eligible for assistance from the Federal Emergency Management Agency (FEMA), the Small Business Administration (SBA), and the Farm Service Agency (FSA). All of these agencies require persons to maximize their insurance benefits for their losses.
Damage to Farm Structures, Equipment, and Fencing FSA Emergency loans can be used to repair or rebuild damaged farm structures and equipment, and replace fencing damaged in a disaster. Damaged fencing may also be eligible for cost-share assistance through FSA’s Emergency Conservation Program, if funds are made available in the affected county. Crop Losses Farmers who have coverage under a federal crop insurance policy or under the Noninsured Crop Disaster Assistance Program (NAP) should contact their insurer or FSA immediately after the storms to report their losses. Farmers should work with adjusters to determine their losses and submit their claims. If a farmer with insurance or NAP coverage has not yet contacted the insurer or FSA, they should do so immediately. If a crop insurance or NAP claim is denied or the award is lower than expected, the farmer may seek review of the determination. Crop losses can also be the basis for an FSA Emergency “production loss” loan if the farmer suffered at least 30 percent yield loss for at least one crop. If that threshold is met, the eligible loan amount is determined by the farmer’s production losses for all crops. Farmers who were not covered by an insurance policy or NAP, and those who were covered but do not feel that their losses have been adequately addressed, will need to wait and see if Congress will authorize a crop loss assistance program that would cover their losses. Such programs have been made available in recent years, including one currently covering losses back to the beginning of 2005. There is no guarantee that such assistance will be authorized, nor is it known what coverage level might be offered under any such program. Farmers should nonetheless document their crop losses and retain this documentation to be prepared in case a future crop loss assistance program is offered. Livestock Losses There is no standing disaster assistance program for livestock that would be comparable to crop insurance and NAP for crop losses. Therefore, farmers with livestock mortality losses, livestock production losses, and feed losses due to disaster are in a wait-and-see situation. Each of these categories of losses has been covered at one time or another by a disaster program authorized by Congress in the wake of a major disaster. It is possible that some of these losses could be addressed by Congress in the future. However, disaster-related loss of livestock that was owned by the farmer can be the basis for an FSA Emergency “physical loss” loan. Losses of livestock raised on contract cannot be the basis of an Emergency loan application. Debris Removal Floods can leave a great deal of debris on farmland, access roads, and farmstead property throughout the affected areas. Activities like debris removal that are necessary to resume normal farming operations may be eligible for cost-share assistance under FSA’s Emergency Conservation Program (ECP). ECP cost-share may also be available to restore windbreaks and shelterbelts so long as the land is not enrolled in the Conservation Reserve Program (CRP). As noted above, ECP funds are made available by county, so farmers are encouraged to report their losses to their local FSA offices to aid FSA in assessing the damage. ECP cost-share is generally limited to costs incurred after a farmer has been approved for the program, so farmers should communicate with their FSA offices about likely funding availability before beginning any non-critical cleanup. Deadlines: Fillmore, Houston, Olmstead, Steele, Wabasha, and Winona counties – September 28; Dodge county – October 5 Minnesota farmers who are unable to pursue their livelihoods due to recent flooding may be eligible for Disaster Unemployment Assistance (DUA). This program is funded by the Federal Emergency Management Agency (FEMA) and administered by the Minnesota Department of Employment and Economic Development. Disaster unemployment provides temporary financial assistance to individuals, including farmers, who are unable to work as a result of a declared disaster and who would not qualify for standard unemployment benefits. The program is available to:
Benefits are paid on a weekly basis, and are available so long as the person is unable to work due to the disaster, up to a maximum of 26 weeks after the date the disaster was declared. The amount of the payment is based on the individual’s income for the prior tax year, and the benefit must be at least half of the state’s average weekly unemployment benefits. An application for assistance must be submitted within 30 days after the availability of DUA has been announced in the county. For the disaster declaration of August 23, 2007, covering Fillmore, Houston, Olmstead, Steele, Wabasha, and Winona counties, a deadline of September 28 to apply for DUA has been announced. The availability of individual disaster assistance (including DUA) was only announced for Dodge county on September 5, so residents of that county have until October 5 to apply for DUA. However, it is always in a person’s best interest to apply for DUA as soon as possible to begin the receipt of benefits. To apply for Disaster Unemployment Assistance, farmers must provide their Social Security number and proof of earnings—generally a tax return for the previous year. More information about Disaster Unemployment Assistance, including application forms, is available from the Minnesota Department of Employment and Economic Development Web site.
Farmers in many Minnesota counties may be eligible for federal disaster assistance stemming from this summer’s drought. Additionally, we are monitoring whether disaster assistance related to the flooding in southeastern Minnesota will be made available to farmers, and will update you concerning any developments in that area. On Tuesday, August 7, USDA Secretary Mike Johanns announced that 24 drought-impacted Minnesota counties have been declared disaster areas. Those counties, as well as 32 adjacent counties, will be eligible for low-interest loans from USDA. The press release, with USDA’s announcement listing the eligible counties, can be found on USDA’s Web site. Those eligible for USDA’s low-interest emergency loans (EM loans) may use loan proceeds to restore or replace essential property; pay all or part of production costs associated with the disaster year; pay essential family living expenses; reorganize the farming operation; and refinance certain debts. Qualified farmers and ranchers can borrow up to 100 percent of production or physical losses, to a maximum amount of $500,000. INTEREST RATE APPLICATION DEADLINE FOR FURTHER INFORMATION INSURANCE CONSIDERATIONS OTHER FEDERAL PROGRAMS Through another program, the Environmental Quality Incentives Program (EQIP), USDA provides farmers with technical assistance, cost share payments, and incentive payments to assist crop, livestock, and other agricultural producers with environmental and conservation improvements to their operations. EQIP funding is not triggered by natural disaster, but may be used for some conservation measures that help disaster recovery, prevention, and mitigation. Consult Natural Resources Conservation Service (NRCS) for availability of funds and sign-up dates. Additional information about EQIP is available on FLAG’s Publications Web page . OTHER RESOURCES FOR DROUGHT-IMPACTED FARMERS Additionally, farmers needing to purchase feed, or who are feeding drought- stressed feedstuffs, can find purchase and feeding tips on the University of Wisconsin-Extension’s Web site at. Additionally, livestock producers in need of hay may wish to take advantage of the “Hay List,” an Internet-based service matching farmers needing forage with those who have forage to sell or donate. The state will continue to assess the needs of farmers as the drought continues. You may want to encourage crop, forage/pasture, and livestock producers to report losses caused by the drought to FSA, so that FSA will have an accurate view of the damage caused, and can seek assistance from the national office if needed. Farmers should keep detailed records of losses, unusual expenses, etc., in order to preserve eligibility for any assistance that may be announced later. ResourcesNational
Minnesota
MontanaNorth DakotaSouth Dakota
|
|
|
|
|
Thank you for visiting FLAG's web site. Please note that the information located on this site is not intended to provide specific legal advice. You should consult an attorney and not rely on any information contained herein regarding your specific situation. 
Special SectionsDisaster | Shared Appreciation | Federal Register
Comments to Rules | FSA News & Notices | Contracts LitigationDisclaimer | Privacy Statement Farmers' Legal Action Group, Inc. © 1997-2008, Farmers' Legal Action Group, Inc. |
Join Email List
