Supporting Prevented Plant Disaster Payments
AIPs (Approved Insurance Providers) are preparing to support the Prevented Plant (PP) supplemental disaster payments, which is providing assistance to producers who were prevented from planting eligible crops due to excess precipitation, flood, storm surge, and other calamities in the 2019 crop year. (This is WHIP, Wildlife and Hurricane Indemnity Program, passed by Congress this last summer)
AIPs will begin issuing disaster payment checks before the end of October 2019. RMA is determining eligibility, calculating the disaster payment, and providing the dollar amount to AIPs. They will issue a paper check to the same person(s) that received the MPCI PP indemnity payment and there will be no direct deposits. They are planning to include an insert with the payment providing a brief explanation and contact information relating to RMA Regional Offices.
Helpful Points To Know:
- Disaster payments are based on the PP indemnity payment amount sent to RMA. Any MPCI premium deductions from the indemnity will not impact the disaster payment amount.
- No current outstanding MPCI premium will be deducted from the disaster payments.
- Payments are not subject to the RMA high or large dollar review conditions because they are not an MPCI indemnity payment.
- We will not be updating systems to display or view the disaster payment amounts. This is in accordance with the information security rules associated with a disaster payment vs. an MPCI indemnity payment.
- AIPs will issue 1099s that reflect the disaster payment amount.
PP claim upward or downward revisions will result in a revised disaster payment amount calculated by RMA
Producers will be limited to $125,000 under WHIP+ for the 2018, 2019, and 2020 crop years combined if their average adjusted gross farm income is less than 75 percent of their average adjusted gross income (AGI) for 2015, 2016, and 2017. If at least 75 percent of the producer’s average AGI is derived from farming, ranching, or forestry related activities, the producer is eligible to receive up to $250,000 per crop year in WHIP+ payments, with a total combined limitation for payments for the 2018, 2019, and 2020 crop years of $500,000. In order to be eligible for the higher payment limitation, producers must submit FSA-896, Request for an Exception to the WHIP Payment Limitation of $125,000, accompanied by a certification from a certified public accountant or attorney that certifies the person or legal entity’s certification.