Justification Memo

June 26, 2008

TO: Margaret Malanoski

Desk Officer

Office of Management and Budget

THROUGH: Ruth Brown

Department Clearance Officer

FROM: John Johnson

Deputy Administrator for Farm Programs

SUBJECT: Request for Emergency Approval of a New Information Collection Package –

2008 Supplemental Agricultural Disaster Assistance Programs

The Production, Emergencies and Compliance Division (PECD) of the Farm Service Agency (FSA), has been tasked by the Secretary of Agriculture with implementing the Supplemental Agricultural Disaster Assistance Programs of the 2008 Farm Bill. Specifically, section 12033 and 15101 add Section 901 (g) (4), “Waiver for 2008 Crop Year” and (d) (5) (C) “Waiver for 2008 Calendar Year” to the Trade Act of 1974 (19 U.S.C. 2101).

On June 18, 2008, the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) was enacted into Public Law 110-246. This Act amended the Trade Act of 1974 to create five new disaster programs, referred to as Supplemental Agricultural Disaster Assistance. To be eligible for four of the five new programs (excluding Livestock Indemnity Program), producers must purchase, for each crop; crop insurance for insurable crops or Noninsured Crop Disaster Assistance Program (NAP) coverage for noninsurable crops, as required. However, application deadlines for the 2008 crop year have nearly all passed. Therefore, for the 2008 crop year only, producers who were eligible to obtain crop insurance or NAP but did not, can “buy-in” or be “waived in” to be eligible. The 2008 Act allows producers 90 days from enactment to pay a “buy-in fee” at their administrative county FSA office. The 90 day deadline ends August 20, 2008.

The goals of the programs are to supplement producers who suffered qualifying disaster losses to their crops. PECD has developed forms CCC-752 (insurable crops) and CCC-753 (noninsurable crops) to be used in determining eligibility for these programs. The buy-in fee is based on what a producer would have paid for 2008 Catastrophic Risk Protection (CAT) or NAP coverage on eligible crops. The CAT fees are; $100 per crop, but not more than $300 per producer per county or $900 per producer for all crops in all counties. The NAP fees are; $100 per crop, but not more than $300 per producer per county or $900 per producer for all crops in all counties. Producers with both insurable and noninsurable crops must pay separate “buy-in fees” and submit separate forms due to the fact that the fee limits are separate and distinct for insurable crops and for NAP crops (maximum limit of $1800, for example).

PECD is requesting emergency approval of a new information collection package due to the 90 day window expiring August 20, 2008.