USDA provides $6 billion for crops impacted by natural disasters

Published 3:15 pm Wednesday, May 18, 2022

WASHINGTON, D.C. — Federal assistance is coming for Northwest farmers whose crops were impacted by natural disasters in 2020 and 2021.

The USDA will provide $6 billion in payments through the Farm Service Agency’s Emergency Relief Program, or ERP — an expanded and more inclusive version of the previous administration’s Wildfire and Hurricane Indemnity Program. 

ERP covers commodity and specialty crops, including trees, bushes and vines, damaged by extreme weather.

In a statement, USDA Secretary Tom Vilsack said the funding “will help offset the significant crop losses due to major weather events in 2020 and 2021 and help ensure farming operations are viable this crop year, into the next growing season and beyond.” 

“As the agriculture industry deals with new challenges and stressors, we at USDA look for opportunities to inject financial support back into the rural economy through direct payments to producers who bear the brunt of circumstances beyond their control,” Vilsack said. 

Last year, Congress allocated $10 billion to agricultural producers reeling from natural disasters. That includes severe drought, wildfires and excessive heat across the West.

The ERP deals specifically with crops not intended for grazing, while the Emergency Livestock Relief Program, or ELRP, was also established to cover lost forage and supplemental feed costs for ranchers. Payments under the ELRP began in April.

Phase one of ERP will calculate initial payments for growers using data from existing federal crop insurance or the Noninsured Crop Disaster Assistance Program.

The USDA estimates that phase one will reach more than 220,000 producers who received indemnities for losses covered by federal crop insurance, and more than 4,000 producers who received NAP coverage from 2020 and 2021 crop losses.

Once those initial payments are made, a second phase will cover eligible growers who did not participate in existing risk management programs.

Qualifying natural disasters under ERP include wildfires, hurricanes, floods, derechos, excessive heat, winter storms and freeze events, smoke exposure, excessive moisture and drought. For drought to qualify, the county where crop damage occurred must have been in “severe” drought for eight consecutive weeks, or “extreme” drought, per the U.S. Drought Monitor. 

ERP payments are calculated based on the producer’s level of crop insurance or NAP coverage.

Growers who had crop insurance, experienced losses and qualify for assistance under ERP will receive a pre-filled application from from the Farm Service Agency to expedite payment.

John Aguirre, president of the California Association of Winegrape Growers, said the program will provide much-needed help for producers who sustained losses due to wildfires in 2020.

Industry experts estimate wildfires and smoke damage in 2020 resulted in $601 million in crop damage. As a result, more than $200 million in federal crop insurance indemnity payments were made to California winegrape growers. 

“There is a substantial difference between the estimated value of crop losses due to smoke damage and the crop insurance indemnities paid to growers,” Aguirre said. “The ERP will help bridge the gap. It’s appropriate that Congress and USDA made this assistance available, which our growers have been anticipating for some time.”

Marketplace