Quite a few insureds have been asking about the timing of the 2nd half of WHIP being paid. Here is what we know as of today.
WHIP has paid out approximately 211 million in the state of North Dakota for the years 2018 and 2019. The 2019 crop year was plagued with quality issues in wheat and corn prompting a commission, which we were a part of, to write a QLA (Quality Loss Adjustment) payment factor to be included with WHIP. No further money was allocated for QLA. Our understanding is that the 2nd half payment of WHIP will most likely be a factor of the 50% (i.e .95 of the 50%) and then what is left, if any, will be pro-rated out for the QLA applications.
As of today, there is a debate on allocation of the funds coming out of cotton producers. It has to do with cotton being included in QLA on the original WHIP. This has delayed the funding, as stakeholders voice their concern either pro or con. Secretary Vilsack does not seem to have this issue as a priority at the moment either, further delaying allocated funds.
Our office, being a stakeholder, has had numerous conversations on the matter and in short, our stance has been that we stand with all ag producers across the nation as long as it is not at the detriment to our producers.
In summary, we most definitely will be getting a 2nd half payment to WHIP (most likely factored at this time). If WHIP is factored there will be a bucket for QLA payment as well (how much is anyone’s guess). We do not know the total applications applied for at this time.
As always we will keep fighting on the behalf of our producers, and will update you with any changes.
