FAQ: To qualify for USDA's new crop disaster program, known as Supplemental Revenue Assistance or SURE, I have to buy private crop insurance. What else do I need to now about SURE in relation to my crop insurance decision?

Answer: Provided by Steve Johnson, Iowa State University Extension farm management specialist.

Yes, in order to be eligible for USDA's crop disaster program coverage, which is called Supplemental Revenue Assistance or SURE for short, you need to buy private crop insurance. The deadline to buy crop insurance for 2010 spring-planted crops is March 15.

Supplemental Revenue Assistance or SURE is a crop disaster payment program created in the 2008 Farm Bill. It takes the place of previous disaster programs administered by USDA. SURE is meant to supplement the crop insurance you buy from private companies, not replace it. SURE is a supplement to the amount you collect from private crop insurance, to help cover what the private insurance policy doesn't cover in the case of a crop revenue loss.

"Farmers can participate in SURE through 2012 if they buy crop insurance coverage each year on all insurable crops," explains Steve Johnson, an Iowa State University Extension farm management specialist. "For crops that are non-insurable—that is, private crop insurance isn't offered for them—the farmer will need to buy the Non-Insured Assistance Program or NAP coverage in order to qualify for SURE. That is, if those crops exceed 5% of the farm's total revenue."

You must buy crop insurance to be eligible for SURE

If a farmer doesn't purchase crop insurance on a crop that is considered a crop of economic significance (the crop is at least 5% of the farm's total revenue), then the farmer isn't eligible for a SURE benefit for that year.

You are urged to contact your county FSA office for details regarding maintaining your eligibility for SURE. Johnson offers the following summary of some of the key points regarding this program.

To meet "insured" eligibility for 2010 disaster programs, in the event that a crop disaster occurs, you have to pay a "buy in" fee and sign up at the FSA office prior to March 15. Applicable crops and NAP buy-in fees are as follows:

Applicable crops and NAP fees. The service fee is the lesser of $250 per crop or $750 per producer per county, not to exceed a total of $1,875 per producer with farming interests in multiple counties. FSA will collect all fees.

The buy-in provides eligibility for the Supplemental Revenue Assistance Program or SURE. SURE covers crop losses on the whole farm due to natural disasters when:

1) The county receives a disaster declaration from the U.S. Secretary of Agriculture;

2) The total loss of production for the farm is greater than 50% or more.

Payments are issued on 60% of the difference between the SURE program guarantee and total farm income.

The Livestock Forage Disaster Program or LFP is a part of the SURE program. The LFP provides assistance to ranchers in areas affected by drought or fire. It requires coverage of grazing acreage through NAP or a plan of insurance by the application closing date or sales closing date for grazing land incurring the losses for which assistance is requested.

Waiver of buy-in fees for producers. This exemption applies to producers in three categories: 1) socially disadvantaged farmers; 2) limited resource farmers; and 3) beginning farmer or rancher.

To be eligible for program benefits under SURE and LFP, producers with grazing interests must list and buy-in on those acres. Keep these three points in mind:

• Buy-in does NOT provide crop insurance or NAP coverage.

• Buy-in does provide supplemental disaster program assistance eligibility for current year.

• Minimum level of insurance coverage is considered 50% of yield and 55% of insurable price.

SURE's impact on level of insurance coverage. SURE has a revenue guarantee cap of 90% of coverage. So if an insured farmer buys a crop insurance policy with an 80% level of coverage and has a SURE claim, this amount will be multiplied times 115% SURE coverage. Thus, in this case the farmer will exceed the 90% cap on SURE.

That is true under some very strict assumptions, including the fact that the insurance settlement price equals the SURE settlement price, something which rarely occurs. So, in nearly all cases the purchase of higher levels of revenue insurance will increase your SURE potential. Thus, when farmers select their crop insurance product and level of coverage on or before March 15, they are also selecting their maximu potential coverage level for SURE.

Deadline is March 15 for 2010 spring-planted crops. Closing date for SURE for 2010 crop year is March 15 for spring seeded crops--corn, oats, soybeans, spring wheat, seed corn, sweet corn, peas, edible beans or other spring or summer seeded crops.

If private crop insurance isn't available, look into buying Catastrophic (CAT) or get a written agreement with a crop insurance agent. If your only choice appears to be a NAP policy, call your local FSA office immediately.

For any final details or information regarding maintaining your 2010 coverage for the SURE program, Johnson recommends you contact your local FSA office.