Summary of Senate-passed Supplemental Disaster Bill
• $3.0 Billion in funding for losses in 2018 and 2019 including: crops, milk, on-farm stored commodities, prevented planting in 2019, and harvested adulterated grapes, trees, bushes, and vines.
• Causes of loss covered include: Hurricanes Michael and Florence, other hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms, and wildfires
• Crop losses will be covered by program similar to the Wildfires and Hurricanes Indemnity Program (WHIP) developed by USDA for the 2017 crop losses
• Bill requires the coverage levels through WHIP, which are based on crop insurance coverage levels, to not exceed 90% of the losses for producers who had crop insurance coverage; and shall not exceed 70% of losses for producers who did not have crop insurance coverage.
• Allows USDA to make block grants to states including for forest restoration and poultry and livestock losses
• Producers who receive assistance must purchase crop insurance, if available, for the next two available crop years
• For determining crop losses covered by WHIP, USDA shall use the higher of the projected or harvest price for crop insurance in determining the expected value of the crop, if there is a revenue insurance policy available for the crop. Note, it does not appear that the grower had to purchase a revenue policy, only that a revenue policy is offered for the crop.
Emergency Forest Restoration Program - $480 million
Emergency Conservation Program - $558 million
Emergency Watershed Protection Program - $435 million
WHIP 2017 shall now also cover losses from Tropical Storm Cindy in 2017
Adjusted Gross Income (AGI) for Market Facilitation Program (MFP)
• Maintains the $900,000 AGI for eligibility, but the AGI does not apply if at least 75% of the AGI is derived from farming, ranching, or forestry related activities.