§ 1437.7 - Application for coverage, service fee, premium, and transfers of coverage.

Copy with citation
Copy as parenthetical citation

Except as provided in paragraph (i) of this section, with respect to each crop, commodity, or acreage, producers must file an application for coverage under this part in the administrative county office by the application closing date.

The service fee or request for service fee waiver under paragraph (g) of this section must accompany the application for coverage in order for it to be considered filed. The service fee is $250 per crop per administrative county, up to $750 per producer per administrative county, not to exceed $1,875 per producer.

The service fee will be applied per administrative county by crop and by planting period, as determined by FSA.

Producers who elect buy-up coverage must pay a premium, in addition to the service fee, equal to the lesser of:

The product obtained by multiplying:

A 5.25-percent premium fee; and

The applicable payment limit; or

The sum of the premiums for each eligible crop, with the premium for each eligible crop obtained by multiplying:

The producer's share of the eligible crop;

The number of acres devoted to the eligible crop;

The approved yield;

The coverage level elected by the producer;

The average market price; and

A 5.25-percent premium fee.

For value loss crops, premiums will be calculated based on the maximum dollar value for which coverage is sought by the applicant, subject to applicable payment limitation, times the 5.25 percent premium.

Premiums will be calculated separately for each crop, type, and intended use as reported on the acreage report and as specified in the basic provisions.

Beginning farmers and ranchers, limited resource farmers and ranchers, and socially disadvantaged farmers or ranchers will receive, upon certification, a waiver of the service fee and a 50 percent premium reduction. The certification is required on or before the time the application for coverage is filed using the form specified by FSA.

Transfers of NAP coverage are governed by the basic provisions.

For the 2015 crop year, if a crop's application closing date is before January 14, 2015, FSA will accept applications for coverage without regard to whether or not the application for coverage was filed by the crop's application closing date, provided that the application for coverage includes buy-up coverage according to § 1437.5(d) and is filed by January 14, 2015. Except as specifically stated in this rule, the provisions of this paragraph (i) do not apply to crops having an application closing date established on or after December 15, 2014 or to applications for coverage that do not include buy-up coverage as an option selected by the applicant. The coverage period for applications for coverage filed according to this paragraph (i) will be as specified in § 1437.6.