The U.S. Department of Agriculture Farm Service Agency (FSA) in Nebraska announced payments now are available to eligible producers who lost stored commodities due to natural disaster in 2018 or 2019. The On-Farm Storage Loss Program (OFSLP) was authorized by the Additional Supplemental Appropriations for Disaster Relief Act of 2019.
Administered by FSA, OFSLP provides payments to eligible producers in impacted counties who suffered uncompensated losses of harvested commodities including grains, oilseeds and hay stored in on-farm structures. For producers to receive payment, the losses must be directly related to an eligible disaster event such as floods, tornadoes, snowstorms and wildfires that occurred during 2018 and/or 2019.
“There are producers throughout the country who had their on-farm storage structures damaged or destroyed by natural disasters during 2018 and 2019,” said FSA State Executive Director Nancy Johner. “This disaster recovery program pays eligible producers who lost their on-farm stored commodities. We encourage producers who suffered a loss to contact their county FSA office for program information and application.”
To be eligible for OFSLP, the farm storage structure must be located on the farm, not used for commercial storage and would have, under normal circumstances, maintained the quality of the commodity. Commodities stored in warehouses are not eligible for OFSLP. Program payments are made for the loss of the stored commodity and not for the loss of the structure itself.
Commodities eligible for OFSLP include: barley, canola, chickpeas (large and small), corn, cotton, crambe, dry peas, flaxseed, grain sorghum, hay (alfalfa and all-hay), lentils, mustard seed, oats, peanuts, rapeseed, rice, safflower seed, sesame seed, soybeans, sunflower seed and wheat.
FSA uses a national payment rate per commodity, which is based on market or harvest prices. Payments will be calculated using a 75 percent factored FSA payment rate multiplied by the quantity lost while stored.
OFSLP has a payment limitation of $125,000 per entity. Adjusted Gross Income does not apply to OFSLP and an acreage report is not required for this program.
For specific commodity payment rates, to submit an application, or for additional program information, contact your local USDA Service Center. Find your local USDA Service Center, visit here.