SURE provides financial assistance for crop production and or quality losses due to a natural disaster.
The Supplemental Revenue Assistance Payments (SURE) Program was authorized by the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) to provide assistance to producers suffering crop losses due to natural disasters. SURE is available for crop losses due to natural disasters occurring through Sept. 30, 2011.
Qualifying Crop Losses
To receive SURE payments, an eligible producer must have a qualifying loss. A qualifying loss means at least a 10 percent production loss affecting one crop of economic significance due to a disaster on a farm in a disaster county. Producers outside a declared disaster county, but with production losses greater than or equal to 50 percent of the normal production on the farm (expected revenue for all crops on the farm), also qualify for SURE.
Notes: A "farm" refers to all crop acreage in all counties that a producer planted or intended to plant for harvest for normal commercial sale or farm livestock feeding. A “crop of economic significance” is a crop that contributes at least 5 percent of the expected revenue for a producer's farm. A “disaster county” is a county for which a Secretarial disaster designation has been issued or a county contiguous to a county with a Secretarial disaster designation.
Eligible Producers Risk Management Purchase Requirement (RMPR)
To be eligible for SURE, a producer must have obtained a policy or plan of insurance for all crops through the Federal Crop Insurance Corporation and obtained Noninsured Crop Disaster Assistance Program (NAP) coverage, if available, from the Farm Service Agency. Forage crops intended for grazing are not eligible for SURE benefits.
Note: Eligible farmers and ranchers who meet the definition of "Socially Disadvantaged," "Limited Resource," or "Beginning Farmer or Rancher," do not have to meet this requirement.
Adjusted Gross Income (AGI)
Persons or legal entities whose average nonfarm income exceeds $500,000 are not eligible for SURE payments.
SURE payments are calculated based on 60 percent of the difference between the SURE Disaster Program Guarantee and the Total Farm Revenue (See tables 1 though 3).
The SURE guarantee is determined by totaling the calculated guarantee for each crop on the producer’s farm. For insured crops, the guarantee is based on the level of insurance coverage the producer elected. Higher levels of coverage result in higher crop guarantees. For NAP crops, the guarantee is based on a formula that includes the yield, acreage and price factors. The formula is provided in the example on the back page.
The farm's SURE guarantee cannot exceed 90 percent of the total expected revenue for the farm.
Total Farm Revenue
Total Farm Revenue includes the crop value, crop insurance indemnities, NAP payments, marketing assistance loan gains, loan deficiency payments, other disaster payments and Direct and Counter-cyclical Payments (15 percent of direct payments, plus the entire counter-cyclical payment and ACRE payments).
Quality adjustments may be applied to a crop's value for harvested production affected by eligible disaster conditions.
A limit of $100,000 per person and legal entity collectively received, directly and indirectly, applies to the combination of payments from SURE and the livestock disaster programs - Livestock Forage Program (LFP), Livestock Indemnity Program (LIP) and Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish (ELAP).
Producers must sign up at their county FSA office during the announced application period for each year. If a producer farms in multiple counties, any county FSA office serving the producer will assist the producer in completing an application.
Information Needed for the SURE Application:
- Acreage and production records, if not already provided for the crop insurance program or for NAP;
- Information to establish eligible producer status on the farm (deeds, leases) if not already provided to FSA;
- Other information requested by FSA.
A producer will receive SURE payments if crop loss requirements and other eligibility provisions are met, including, but not limited to, production and marketing risks associated with the crops on the farm, payment limitation, AGI, and conservation compliance.