USDA to give farmers $6 billion in aid for 2020 and 2021 crops hurt by natural disasters

The Agriculture Department announced Monday the release of $6 billion under the Farm Service Agency's Emergency Relief Program for the more than 220,000 farmers hit by natural disasters in 2020 and 2021. The money comes from $10 billion in disaster relief Congress authorized last fall. 

"Farmers of both commodity crops and specialty crops will receive the first tranche of aid payments. To determine losses, USDA will use its existing crop insurance or Noninsured Crop Disaster Assistance Program (NAP) data as the basis for calculating initial payments. USDA estimates more than 220,000 producers who received crop insurance indemnities or NAP payments will receive ERP payments," Chris Clayton reports for DTN/The Progressive Farmer. "ERP covers losses to crops, trees, bushes and vines due to a qualifying natural disaster event in calendar years 2020 and 2021. Eligible crops include all crops for which crop insurance or NAP coverage was available, except for crops intended for grazing. Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought and related conditions."

"For over two years, farmers and ranchers across the country have been hard hit by an ongoing pandemic coupled with more frequent and catastrophic natural disasters," Agriculture Secretary Tom Vilsack said at a press conference. "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."