Emergency Assistance For Livestock, Honey Bees & Farm-Raised Fish Program (ELAP)

1. Emergency Assistance For Livestock, Honey Bees & Farm-Raised Fish Program (ELAP) Vincent H. Smith & James B. Johnson MSU Department of Agricultural Economics and Economics Collaborating Partners: RMA Billings Regional Office Fort Peck Community College Billings, MT January 28, 2010

2. Purpose of ELAP • ELAP is for losses NOT COVERED under other disaster assistance programs, specifically: • Livestock Forage Disaster Program (LFP) • Supplemental Revenue Assistance Payments Program (SURE) • Livestock Indemnity Program (LIP)

3. General Provisions of ELAP • ELAP has a risk management purchase requirement. • To be eligible for ELAP payments, producers on a farm or ranch must purchase insurance for each insurable crop excluding grazing land. • For non-insurable crops, producers must purchase NAP coverage when available, except grazing lands. • Persons without insurance or NAP coverage may be exempt from the risk management purchase requirement if they are socially disadvantaged, limited resource, or a beginning farmer or rancher.

4. General Provisions of ELAP • ELAP payments are limited to $100,000 per year per person or legal entity, a combined limit with LFP, SURE, and LIP. • ELAP relief is funded at $50,000,000 per calendar year nationally. If eligible requests exceed this maximum, payments are prorated.

5. Losses Identified as Likely Eligible for ELAP Assistance • LIVESTOCK PRODUCERS: • Grazing losses due to adverse weather or eligible loss conditions, including wildfires and hail on non-federal grazing lands. (Generally if the cause of loss is covered under LFP, such as drought being the cause, ELAP will not cover the loss.) • Loss of forage or feedstuffs raised by livestock producers for their livestock that is damaged or destroyed.

6. Losses Identified as Likely Eligible for ELAP Assistance • LIVESTOCK PRODUCERS, con’d.: • Cost of transportingadditional feed to eligible livestock. • Costs of purchasing additional feed above normal quantities to feed eligible livestock. • Payments for death loss above normal mortality rates for deaths not covered by LIP.

7. Losses Identified as Likely Eligible for ELAP Assistance • HONEY-BEE & FARM-RAISED FISH PRODUCERS: • Loss of feed intended for honeybees or farm-raised fish. • Honeybee colony or hive losses due to colony collapse disorder. • Losses due to fish deaths from weather or eligible loss conditions.

8. Losses Identified as Likely Not Eligible for ELAP Assistance • Livestock, honeybee or farm-raised fish losses that are not related to adverse weather or eligible loss conditions, as determined by the Deputy Administrator of the Farm Service Agency, are not covered under ELAP.

9. Examples of ELAP Compensation for Eligible Losses • There are specific are specific compensation procedures for each of the eight different types of losses that were identified. Several of the procedures call for compensation of 60 percent of total value of the loss, as calculated using Farm Service Agency procedure. Two types are illustrated: • Grazing Loss Due to Wildfire: • On May 15th a wildfire destroyed the grazing on 2,000 acres of private rangeland in Roosevelt County. The grazing period in this county is 199 days, May 1st through November 15th.

10. Examples of ELAP Compensation for Eligible Losses • Grazing Loss Due to Wildfire: • The fire caused a loss of 184 grazing days on the non-irrigated native grass rangeland with a rating of 19.5 acres per animal unit. Coefficients capacity used are from the LFP Handbook. But ELAP compensation losses due to fire on rangeland are limited to 180 days. • The ELAP payment calculation is: [(2,000 acres)/(19.5 acres per animal unit)] x [(180 grazing days lost)] x [($1.3347 per day grazing fee)] x [0.50 payment portion for such a loss] x [(1.00 producer’s portion of loss)] = $12,320.

11. Examples of ELAP Compensation for Eligible Losses • Honeybee Loss Due to Colony Collapse: • A Montana-based honeybee operator started the Montana pollination season with 1,000 colonies and ended the season with 200 colonies due to colony collapse disorder. It was documented that it will take $48,000 to replace the 800 colonies, or $60 per colony. • The ELAP payment calculation is: [($48,000)] x [0.60 payment portion for such a loss] x [(1.00 operator’s share of the loss)] = $28,800.

12. Summary • ELAP is for eligible losses NOT COVERED under the other disaster programs—LFP, SURE, and LIP. • ELAP has a risk management purchase requirement. • Eight common types of losses have been identified as likely eligible for ELAP assistance. • ELAP has been used in Montana to compensate for grazing lossesdue to wildfire on private grazing land and honeybee loss due to colony collapse disorder.

13. QUESTIONS?