Transcript Livestock Outlook, Marketing, And Trade Policies Public

Emergency Assistance For
Livestock, Honey Bees & FarmRaised Fish Program (ELAP)
Vincent H. Smith & James B. Johnson
MSU Department of Agricultural Economics and Economics
Collaborating Partners:
RMA Billings Regional Office
Fort Peck Community College
Billings, MT
January 28, 2010
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Purpose of ELAP
• ELAP is for losses NOT COVERED
under other disaster assistance
programs, specifically:
– Livestock Forage Disaster
Program (LFP)
– Supplemental Revenue Assistance
Payments Program (SURE)
– Livestock Indemnity Program
(LIP)
General Provisions of ELAP
• ELAP has a risk management purchase
requirement.
– To be eligible for ELAP payments, producers on a
farm or ranch must purchase insurance for each
insurable crop excluding grazing land.
– For non-insurable crops, producers must purchase
NAP coverage when available, except grazing
lands.
– Persons without insurance or NAP coverage may
be exempt from the risk management purchase
requirement if they are socially disadvantaged,
limited resource, or a beginning farmer or
rancher.
General Provisions of ELAP
• ELAP payments are limited to $100,000
per year per person or legal entity, a
combined limit with LFP, SURE, and
LIP.
• ELAP relief is funded at $50,000,000
per calendar year nationally. If
eligible requests exceed this maximum,
payments are prorated.
Losses Identified as Likely
Eligible for ELAP Assistance
• LIVESTOCK PRODUCERS:
1. Grazing losses due to adverse weather
or eligible loss conditions, including
wildfires and hail on non-federal
grazing lands. (Generally if the cause
of loss is covered under LFP, such as
drought being the cause, ELAP will not
cover the loss.)
2. Loss of forage or feedstuffs raised by
livestock producers for their livestock that
is damaged or destroyed.
Losses Identified as Likely
Eligible for ELAP Assistance
• LIVESTOCK PRODUCERS, con’d.:
3. Cost of transporting additional feed to
eligible livestock.
4. Costs of purchasing additional feed
above normal quantities to feed eligible
livestock.
5. Payments for death loss above normal
mortality rates for deaths not covered by
LIP.
Losses Identified as Likely
Eligible for ELAP Assistance
• HONEY-BEE & FARM-RAISED FISH
PRODUCERS:
1. Loss of feed intended for honeybees or
farm-raised fish.
2. Honeybee colony or hive losses due to
colony collapse disorder.
3. Losses due to fish deaths from weather or
eligible loss conditions.
Losses Identified as Likely Not
Eligible for ELAP Assistance
• Livestock, honeybee or farmraised fish losses that are not
related to adverse weather or
eligible loss conditions, as
determined by the Deputy
Administrator of the Farm Service
Agency, are not covered under
ELAP.
Examples of ELAP Compensation
for Eligible Losses
•
There are specific are specific compensation
procedures for each of the eight different types of
losses that were identified. Several of the
procedures call for compensation of 60 percent of
total value of the loss, as calculated using Farm
Service Agency procedure. Two types are
illustrated:
•
Grazing Loss Due to Wildfire:
– On May 15th a wildfire destroyed the grazing on
2,000 acres of private rangeland in Roosevelt
County. The grazing period in this county is 199
days, May 1st through November 15th.
Examples of ELAP Compensation
for Eligible Losses
•
Grazing Loss Due to Wildfire:
– The fire caused a loss of 184 grazing days on the
non-irrigated native grass rangeland with a rating
of 19.5 acres per animal unit. Coefficients
capacity used are from the LFP Handbook. But
ELAP compensation losses due to fire on
rangeland are limited to 180 days.
– The ELAP payment calculation is: [(2,000
acres)/(19.5 acres per animal unit)] x [(180
grazing days lost)] x [($1.3347 per day grazing
fee)] x [0.50 payment portion for such a loss] x
[(1.00 producer’s portion of loss)] = $12,320.
Examples of ELAP Compensation
for Eligible Losses
•
Honeybee Loss Due to Colony Collapse:
– A Montana-based honeybee operator started the
Montana pollination season with 1,000 colonies
and ended the season with 200 colonies due to
colony collapse disorder. It was documented
that it will take $48,000 to replace the 800
colonies, or $60 per colony.
– The ELAP payment calculation is: [($48,000)] x
[0.60 payment portion for such a loss] x [(1.00
operator’s share of the loss)] = $28,800.
Summary
•
ELAP is for eligible losses NOT COVERED under
the other disaster programs—LFP, SURE, and LIP.
•
ELAP has a risk management purchase
requirement.
•
Eight common types of losses have been identified
as likely eligible for ELAP assistance.
•
ELAP has been used in Montana to compensate for
grazing losses due to wildfire on private grazing
land and honeybee loss due to colony collapse
disorder.
QUESTIONS?
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