NOTICES
DEPARTMENT OF
AGRICULTURE
Guidelines for Distribution of Crop Insurance Assistance Funds under Act 57
[30 Pa.B. 1768] The Department of Agriculture (Department) hereby gives notice that pursuant to the authority granted it under section 5102(b) (3 P. S. § 2250.5102(b)) of Act 57 of 1999, known as The Drought, Orchard and Nursery Indemnity and Flood Relief Act (act) it has created the Pennsylvania Crop Insurance Program (State Program). The act allotted $5.6 million to the Department to help eligible Pennsylvania producers purchase Federal crop assurance.
The act established the application procedures and eligibility criteria which are reiterated in the State Program. In addition, the act directed the Department to supplement eligible producers in an amount up to 10% of the cost of their Federal crop insurance premiums and the total amount of all related fees for the years 2000 and 2001. The funds available for the State Program are limited to the $5.6 million allotted by the act. Therefore, if sufficient funds are not available to provide for up to 10% of the cost of the Federal crop insurance premiums and the total amount of all related fees for eligible producers, the act directs the Department to distribute the funds on a prorata basis.
The act authorizes the State program for the years 2000 and 2001 only. All funds for the State Program must be encumbered by June 30, 2001, unless otherwise authorized. The statutory language establishing the State Program is self-executing. The following restates the statutory procedures and standards under which crop insurance assistance will be awarded under the State Program, outlines the general administration of the State Program, and provides references to sources of further information or assistance.
Authority: The Department of Agriculture (Department) under the authority granted it under section 5102(b) (3 P. S. § 2250.5102(b)) of Act 57 of 1999, known as The Drought, Orchard and Nursery Indemnity and Flood Relief Act (3 P. S. § 2250.101 et seq.) has created the Pennsylvania Crop Insurance Assistance Program (State Program). The State Program has been developed and will be administered through a Memorandum of Understanding with the United States Department of Agriculture, Federal Crop Insurance Corporation (FCIC) and insurance providers approved to underwrite Federal crop insurance policies under the Federal Crop Insurance Act (7 U.S.C.A. § 1501 et seq.), individual contracts between the Department and the approved insurance providers and these guidelines.
Purpose: The purpose of the State Program is to provide financial assistance to eligible Pennsylvania producers to help defray the cost of purchasing Federal crop insurance for crop years 2000 and 2001. The purchase of Federal crop insurance is a condition of receiving Federal crop loss assistance under the 1999 Federal Crop Disaster Program and crop insurance assistance under the State Program.
Definitions: The following definitions are consistent with those contained in the act and are listed for clarity and as a service to the applicant.
Crop. An eligible crop defined by the United States Department of Agriculture-Farm Service Agency for the 1999 Federal Crop Disaster Program.
Department. The Department of Agriculture of the Commonwealth.
Eligible Producer. Under the Federal Crop Disaster Program, a person that:
(1) Operated a farm in this Commonwealth which suffered a crop loss of at least 35% due to the drought of 1999; and
(2) Is engaged in the business of producing crops within this Commonwealth.
Federal Crop Disaster Program. The United States Department of Agriculture-Farm Service Agency 1999 Crop Disaster Program.
State Program. The Pennsylvania Crop Insurance Assistance Program established under section 5102(b) of the act.
USDA. The United States Department of Agriculture.
USDA-FSA. The United States Department of Agriculture-Farm Service Agency.
A. Assistance Program: The following criteria address the State Program:
I. General: The State Program will provide financial assistance to eligible Pennsylvania producers to help defray the cost of purchasing Federal crop insurance for crop years 2000 and 2001.
(a) Eligibility. The act appropriates $5,600,000 to the Department to provide crop insurance assistance to eligible producers as defined in the act. To be eligible for the State Program, a Pennsylvania producer must meet the eligibility criteria of the act, purchase Federal crop insurance and qualify for assistance under the Federal Crop Disaster Program. A copy of the Pennsylvania Crop Insurance Assistance Program fact sheet which, presents an overview of the State Program is attached hereto as ''Exhibit A'' and made a part of these guidelines. The State Program eligibility criteria are based on criteria established by the Federal Crop Disaster Program. Pennsylvania producers who meet the eligibility requirements of the act and qualify under the Federal Crop Disaster Program will be eligible to receive assistance under the State Program. The Department will determine a producer's eligibility for crop insurance assistance under the State Program based on the criteria established by the act, these guidelines and the information contained in the producer's approved Federal Crop Disaster Program application and eligibility information released to the Department by the USDA-FSA.
(b) Payment. The act directs the Department to supplement eligible producers in an amount up to 10% of the cost of their crop insurance premiums and the total amount of all related fees. The $5,600,000 available under the State Program is in addition to any assistance available under the Federal Crop Disaster Program or the Federal Crop Insurance Act. At the close of the sign up period for the Federal Crop Disaster Program and upon a determination of all eligible producers under the State Program, the Department will provide a list of eligible producers to the FCIC. The FCIC will compile information regarding each eligible producer's crop insurance premium costs. The Department will make payment in an amount equal to up to 10% of the cost of all eligible producers' crop insurance premiums to FCIC. Each eligible producer's crop insurance billing statement will be reduced by an amount equal to up to 10% of that producer's gross premium cost. In addition, the Department will pay all related fees associated with an eligible producer's crop insurance policy. Payment for the fees will be made to the approved insurance company underwriting the eligible producer's crop insurance policy. The approved insurance company will deduct such fees from the eligible producer's crop insurance policy or if the eligible producer has already paid the fees, the approved insurance company will reimburse the eligible producer for those fees.
II. Funds Available Basis: There are limited funds available for the State Program. Crop insurance assistance payments under the State Program will be distributed to the extent funds are available. State Program crop insurance assistance payments will be distributed at the discretion of the Department under the criteria established by the Federal Crop Disaster Program, the act, the terms of the Memorandum of Understanding and the contracts entered into between the Department, the FCIC and the approved insurance providers and these guidelines. If sufficient funds are not available to provide for up to 10% of the cost of the crop insurance premiums and the total amount of all related fees, the Department will prorate the available funds among the eligible producers.
III. Applications.
(a) Application. The application procedure is the same as that for the Pennsylvania Drought Relief Program. A producer wishing to participate in the State Program must apply, in person, at a county USDA-FSA office, sign up for the Federal Crop Disaster Program and agree to purchase Federal crop insurance for crop years 2000 and 2001.
(b) Waiver of confidentiality form. When filling out an application for assistance under the Federal Crop Disaster Program, a producer must also fill out and sign a state ''Drought Relief Program Application and Waiver Of Confidentiality Form'' (form). The form was developed by the Department, in consultation with the USDA, and distributed to all USDA-FSA offices in the Commonwealth. A copy of the form is attached hereto as ''Exhibit B'' and made a part of these guidelines. The form authorizes the USDA and the Department to share the producer's eligibility information for purposes of administering the State Program and serves as the producer's application for crop insurance assistance under the State Program. (Important Note: The producer's signatures on the form must appear exactly as it appears on all USDA forms. The USDA will only release information to the Department if the signature appearing on the form matches the legal entity appearing on all USDA forms. Without this information the Department will be unable to process a producer's application for crop insurance assistance under the State Program.)
IV. Eligibility criteria.
(a) Sign-up Period. The State Program will follow the Federal Crop Disaster Program sign-up schedule, which began December 13, 1999, and ended February 25, 2000.
(b) Eligible producer. To be eligible for crop insurance assistance under the State Program a producer must:
1) Meet the eligibility criteria of and be approved to receive assistance under the Federal Crop Disaster Program.
2) Purchase Federal crop insurance for crop years 2000 and 2001.
3) Meet the definition of an ''Eligible Producer'' under the act.
4) Properly fill out and sign a state ''Drought Relief Program Application and Waiver of Confidentiality Form.''
5) Have applied for a Federal Crop Disaster Program grant and submitted the proper documentation to USDA-FSA by February 25, 2000.
(c) Review and processing of applications. Upon receipt of the ''Drought Relief Program Application and Waiver of Confidentiality Form'' and all necessary approval and eligibility information from the USDA-FSA, the Department will review and determine the applicants eligibility. The approved applicants' information will be forwarded to FCIC. FCIC will compile information regarding each eligible producer's crop insurance premium costs and the Department will pay FCIC an amount equal to up to 10% of the cost of the eligible producer's crop insurance premium costs.
(d) Approval Power. An application for crop insurance assistance under the State Program may be approved, approved with special conditions or rejected in accordance with the general conditions and criteria established by the act and these guidelines. The Department shall have final approval and denial authority with regard to all State Program crop insurance assistance applications.
V. Notice of Disposition of Application. After the Federal Crop Disaster Program and the Federal crop insurance sign up periods close and upon receiving and reviewing all applications, the Department will render a decision approving, approving with special conditions or denying each application. Applicants will be notified in writing of the Department's final decision. This notice will be sent by regular mail to the address indicated by the applicant on the application form.
VI. Payment schedule. The Department will make a payment directly to FCIC for all producers approved for crop insurance assistance under the State Program. The payment will cover up to 10% of the cost of the approved producer's crop insurance premium. Each eligible producer's crop insurance billing statement will be reduced by an amount equal to up to 10% of that producer's gross premium cost. In addition, the Department will pay all related fees associated with an eligible producer's crop insurance policy. Payment for the fees will be made to the approved insurance company underwriting the eligible producer's crop insurance policy. The approved insurance company will deduct such fees from the eligible producer's crop insurance policy or if the eligible producer has already paid the fees, the approved insurance company will reimburse the eligible producer for those fees.
VII. Additional Information. Additional information regarding the State Program may be obtained by contacting the Department at (717) 787-4737 or by logging on to the Department's website at www.pda.state.pa.us.
SAMUEL E. HAYES, Jr.,
Secretary
EXHIBIT A
Fact Sheet
Pennsylvania Crop Insurance Assistance Program Overview
The Commonwealth of Pennsylvania has created a Crop Insurance Assistance Program to help defray part of the cost of purchasing crop insurance in 2000 and 2001. The purchase of crop insurance is a condition for receiving federal crop loss assistance under the 1999 Federal Crop Disaster Program (1999 CDP).
The $5.6 million state program is in addition to any crop insurance assistance available under the federal Crop Insurance Program (CIP).
Who is Eligible?
Pennsylvania farmers who experienced a minimum of 35% crop loss and who are eligible for the 1999 CDP.
How Do I Apply?
The application procedure is the same as that for the Pennsylvania Drought Relief Program. To be considered, farmers must apply in person at the county USDA-FSA office and meet the eligibility criteria for the 1999 CDP. In addition, farmers must sign a PA Department of Agriculture (PDA) Drought Relief Program Application and Waiver of Confidentiality form, available at the county USDA-FSA office.
How Will My Payment be Determined?
If you qualify for a Crop Disaster Program payment under the federal program, PDA will provide a payment directly to the USDA-Risk Management Agency. The payment will cover up to 10% of the cost of the gross premium for crop insurance where applicable, plus the total amount of all related fees. If sufficient funds are not available to provide for up to 10% of the cost of the insurance premiums and the total amount of the related fees, the PA Department of Agriculture will prorate the available funds among the eligible producers.
What are the Eligibility Criteria?
The Pennsylvania program will follow the same eligibility criteria as the USDA-FSA 1999 CDP. Farmers must have a minimum of 35% crop loss to qualify.
When is the Sign-up Period?
The Pennsylvania program will follow the USDA-FSA 1999 CDP sign-up, which began December 13, 1999, and ends February 25, 2000. The insurance assistance remains available to eligible producers until the 2000 crop year sign-up period closes, which is approximately March 15 for most major crops. Check with your crop insurance agent regarding your specific crop closing dates.
Where Can I Obtain Additional Information?
For additional information regarding this state program, contact the PDA at (717) 787-4737 or our website at www.pda.state.pa.us.
January 15, 2000
EXHIBIT B
COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF AGRICULTURE
December 13, 1999
DROUGHT RELIEF PROGRAM
APPLICATION AND WAIVER OF CONFIDENTIALITY FORMDear Producer:
Under Act 57 of 1999, known as The Drought, Orchard and Nursery Indemnity and Flood Relief Act, the Commonwealth of Pennsylvania has created an emergency drought relief program in the form of crop loss assistance for producers who suffered crop loss due to the drought of 1999. To be considered, you must apply to the USDA-FSA and meet the eligibility criteria for the federal 1999 Crop Disaster Program. In addition, you must complete and sign this application, which authorizes the USDA-FSA to share your eligibility information with the Commonwealth of Pennsylvania, Department of Agriculture (PDA). If you qualify for a grant under the federal program, PDA will use the eligibility information to calculate your state crop loss assistance. The amount of your state grant, if any, will not exceed 75% of the amount you receive under the federal program. Payment of grant money under the Commonwealth's emergency drought relief program will be mailed directly to the address listed on the USDA-FSA eligibility records received by the PDA.
The United States Department of Agriculture and its agents and instrumentalities (USDA), gathered information as part of its administration of the 1999 Crop Disaster Program (1999 CDP) authorized by the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2000, and the Omnibus Consolidated Appropriations Act, 2000.
I, ___________________________ , hereby authorize USDA to release to the Commonwealth of Pennsylvania, Department of Agriculture, the following information gathered by USDA as part of the 1999 CDP:
1. The data contained on Forms CCC-547, CCC-547A; CCC-547B; and CCC-547C;
2. The amount of money disbursed to me by USDA under the 1999 CDP; and
3. Any other information the Commonwealth of Pennsylvania, Department of Agriculture requests for the purpose of administering its drought relief program and my application thereunder.
I understand that I am authorizing the release of information under the Privacy Act (5 USC § 552a).
(IMPORTANT NOTE--Your signature and all other information required below must appear exactly as it appears on all USDA forms. If it does not, the USDA will not release your information and the PDA will be unable to process your application for grant funds under the Commonwealth's emergency drought relief program.)
(Please type or print clearly.)
Name __________ County __________ Address __________ Soc. Security No. __________ __________ Phone Number __________ __________ __________ __________ Signature Date
[Pa.B. Doc. No. 00-567. Filed for public inspection March 31, 2000, 9:00 a.m.]
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