Farmers in counties hit by natural disasters in 2018 and 2019 can apply through March 5 for payments to offset quality losses on most crops, said the USDA on Tuesday. Payments under the new Quality Loss Adjustment program are expected to range from $500 million to several hundred millions of dollars, said Agriculture Undersecretary Bill Northey.
To qualify, growers must show a 5 percent loss in quality, such as a discount when marketing their products, or a 5 percent decrease in nutrient content for forages. The program is aimed at producers in counties where there was a presidential or USDA disaster proclamation due to floods, drought, wildfire, hurricane, snow storm or other extreme weather but producers in other counties can apply if they can show their crops were affected by one of the “qualifying disaster events.”
Maximum payment will be $125,000 per person per year, with an overall limit of $250,000 for the program. The payment limits are separate from other USDA supports.
“It’s been a little bit of a challenge to get to the place that we are today,” said administrator Richard Fordyce of the Farm Service Agency. Most of USDA’s aid programs are based on reduced production, such as fewer bushels per acre, so time was needed to find an equitable way to judge loss in quality for commodities ranging from corn and soybeans to honey, fish and Christmas trees.
Payments will be issued after the application deadline because of the possibility they will be pro-rated because of claims under a different disaster program, said Northey.
Congress provided $1.5 billion for quality losses and for the Wildfire, Hurricane and Indemnity Plus Program, said North Dakota Sen John Hoeven, an advocate of the quality loss payments. ““We worked hard to secure and advance this quality loss coverage to help make our producers whole following the extensive damage caused by natural disasters in 2018 and 2019,” said Hoeven.