Federal Disaster Assistance & Crop Insurance Programs:

An Overview

Introduction

Agriculture producers constantly operate under high levels of risk. A significant portion of these high-risk levels may be attributed to a lack of control over the weather. Annually, varied locations across the United States find themselves in circumstances of drought, flooding, abnormal temperature patterns and other natural disasters— often leading to losses in the agriculture sector.

In an effort to provide support in the face of adverse weather conditions and other natural disasters, the USDA has been tasked to administer environmental and economic support programs to farmers and ranchers across the United States. These programs may be broken down into (1) crop insurance programs, (2) disaster support programs and (3) additional assistance programs.

For the purposes of this overview, programs offering only revenue assistance and support will be classified as “additional assistance programs.” To find a more detailed overview of revenue-support programs and commodity subsidies, please visit the NALC Farm Commodity Programs reading room.

Federal Crop Insurance

Federal crop insurance is designed to protect agriculture producers from losses due to natural disasters. “To qualify for coverage under a plan of insurance, the losses of the insured commodity must be due to drought, flood, or other natural disaster (as determined by the Secretary [of Agriculture]).” 7 U.S.C. § 1508(a)(1).

The crop insurance program can be traced back to the 1930’s and the dust bowl. The program was permanently authorized in the Agriculture Adjustment Act of 1938, and the Federal Crop Insurance Corporation (FCIC) was created the same year to administer the programs therein. Initially experimental, the program was expanded in the Federal Crop Insurance Act of 1980 (FCIA). The FCIA included additional crops and aquaculture services as eligible for insurance, though it continued to exclude livestock and stored grain from coverage. Though the FCIA did encourage more producers to participate in crop insurance programs, several ad-hoc programs were still required throughout the 90’s in response to unusual weather patterns. These supplemental programs led to the enactment of the Federal Crop Insurance Reform Act of 1994 and the creation of the USDA Risk Management Agency (RMA) in 1996. The FCIA is codified at U.S.C. §§ 1501-1524, with implementing regulations found at 7 C.F.R. §§ 400-499. A full history of crop insurance is published by the RMA here.

Since its creation in 1996, the RMA administers the actions of the FCIC. The FCIC is authorized under statute to “carry out the purposes of” federal crop insurance programs, including providing reinsurance of eligible private crop insurance policies. Additionally, federal crop insurance programs provide for subsidization of crop insurance premiums, lowering the cost of premiums and effectively making crop insurance more accessible for US agriculture producers.

Reinsurance and subsidized premiums are available for over 100 eligible commodities throughout the US. This protection is limited- however- only to those “covered perils” or “causes of loss” considered to be “natural disasters” in accordance with the FCIA. Some policies may also be expanded to insure against market losses, though crop insurance remains limited to actual damages for the insured cause of loss. Losses due to a producer’s “neglect or malfeasance,” failure to reseed “to the same crop in such areas and under such circumstances as it is customary to reseed,” or failure “to follow good farming practices” are not covered. 7 USC 1508(3)(a) Caselaw surrounding the topic continues to demonstrate that “bad faith” actions and failing to follow good farming practices.

Legal issues arising under the federal crop insurance program are diverse, intricate, and often complicated.  Producers, lenders, crop insurance companies, crop insurance agents, and others may heed the myriads of issues that can arise under federal crop insurance’s complex statutory, regulatory, judicial, and administrative structure.  Though a discussion of these issues is outside the scope of this overview, a publication discussing many legal issues that can arise in the federal crop insurance context—A Practitioner’s Guide to the Litigation of Federally Reinsured Crop Insurance Claims—is available here.

Pasture, Rangeland, and Forage Insurance Plan (PRF)

PRF is a index insurance plan that provides insurance for growers of forage for grazing and hay where losses are experienced as a result of lack of precipitation.

Losses are calculated based upon a rainfall index and are not directly associated with the actual on farm production or loss thereof. The index itself is based upon the National Ocean and Atmospheric Administration Climate Prediction Center (NOAA CPC) grid systems data.

PRF is a FCIC pilot program first made available in the 2007 crop year. For more information about PRF, a fact sheet may be accessed here.

Whole-Farm Revenue Protection (WFRP)

WFRP provides producers with the option for specially tailored, farm-wide risk management under one insurance policy.

Where standard crop insurance plans may be limited in coverage, WFRP plans offer protection for all insured commodities on a farming operation, including animals and animal products. WFRP policies are available for any farm with up to $17 million in insured revenue.

WFRP is a FCIC pilot program. For more information about PRF, a 2026 policy overview may be accessed here.

Endorsements and Special Provisions

Intended to supplement traditional crop insurance policies as available, a number of additional endorsements and special provisions are available to eligible producers.

Supplemental Coverage Option (SCO)

SCO offers an additional insurance option for producers expecting area-based losses smaller than those losses generally covered by standard crop insurance policies.

Producers seeking to participate in the SCO must purchase it as an endorsement to a standard crop insurance policy. The policy provides additional coverage to producers in exchange for a portion of the producer’s underlying crop insurance deductible.

SCO was permanently authorized by the 2014 Farm Bill. For more information about SCO, a fact sheet may be accessed here.

Enhanced Coverage Option (ECO)

ECO offers— like SCO (see above)— an additional insurance option for producers expecting smaller losses than those generally covered by standard crop insurance policies.

Producers seeking to participate in the ECO must purchase it as an endorsement to a standard crop insurance policy. Unlike SCO, ECO offers a higher level of coverage for potential losses. For the 2027 crop year, ECO will cover losses between 90%– 95% of expected crop value.

ECO was first authorized for the 2021 crop year. For more information about ECO, a fact sheet may be accessed here.

Stacked Income Protection Plan (STAX)

STAX offers county-based revenue insurance policies for producers of upland cotton.

STAX may be purchased as a stand-alone policy or as an endorsement to a standard crop insurance policy. STAX policies provide coverage for expected area revenue, and payments are triggered where the area revenue falls below 90% of the expected revenue, although lower levels of coverage may be elected in purchasing a STAX policy.

STAX was permanently authorized by the 2014 Farm Bill. For more information about STAX, a fact sheet may be accessed here.

Hurricane Insurance Protection – Wind Index (HIP-WI)

HIP-WI offers index-based coverage for producers located within an eligible range of the Atlantic Coast.

HIP-WI may be purchased as an endorsement to a standard crop insurance policy. The endorsement covers losses in the event of a hurricane, and producers will be required to select a coverage level between 1% and 100%. Payment under the policy will be dispersed where hurricane level winds from a named storm occur in the county of the policyholder or an adjacent county.

HIP-WI was first authorized for the 2020 crop year. For more information about HIP-WI, a fact sheet may be accessed here.

Disaster Assistance

To address the unexpected losses of natural disasters and other adverse weather events, the USDA has been authorized to provide support through a variety of programs and a variety of means.

Noninsured Crop Disaster Assistance Program (NAP)

NAP provides financial assistance to producers of crops that are not otherwise insurable under the federal crop insurance program. This program provides support to agriculture producers where low yields, loss of inventory, or prevented planting occurs due to natural disasters.

Unlike federal crop insurance which is administered by the RMA, NAP is administered by the FSA. NAP is permanently authorized and receives recurring funding through the Commodity Credit Corporation (CCC). The 2018 Farm Bill made some changes to NAP, such as the availability of “buy up” coverage, increased service fees, service fee waivers, and premium reductions for qualified military veterans. For additional information regarding NAP, please visit the USDA Farm Service Agency website here.

Emergency Farm Loans

Subject to several qualifications, emergency farm loans are made available to producers in counties designated as disaster areas by the President or Secretary of Agriculture. Primarily, these loans are low interest to help producers recover from production or physical losses.  Once a county is declared eligible, producers in contiguous counties also become automatically eligible.  Emergency farm loans are permanently authorized by Title III of the Consolidated Farm and Rural Development Act and are administered by the USDA Farm Service Agency.  For more information regarding emergency farm loans, please visit the USDA Farm Service Agency website here.

Commodity-Specific Programs

Several commodity-specific programs have been created and administered by the USDA through the FSA. The goal of these programs is to provide support to commodities otherwise not assisted under existing programs or to provide additional support for commodities of concern.

Dairy margin coverage (DMC)

DMC offers support to dairy producers where the difference between the US milk price and a national feed-cost value falls below a set benchmark.

Participation in DMC does require an administrative fee. The program covers losses where basis between milk price and feed price falls below the set benchmark and offers catastrophic coverage at no additional cost.

DMC was permanently authorized by the 2018 Farm Bill as a replacement for the Margin Protection Program for Dairy (MPP-Dairy) authorized by the 2014 Farm Bill. For more information about DMC, a fact sheet may be accessed here.

Tree Assistance Program (TAP)

TAP offers support to orchardists and nursery tree growers who are impacted by adverse weather and other natural disasters. The program helps producers to cover the costs of replanting and rehabilitating trees and bushes that produce an annual yield.

TAP was authorized by the 2014 Farm Bill and re-authorized by the 2018 Farm Bill with several changes. For more information about TAP, a fact sheet may be accessed here.

Livestock Indemnity Program (LIP)

LIP offers financial compensation to livestock producers who experience “abnormally high livestock death rates due to adverse weather, disease, and animal attack.”

Covered losses include those losses of the animal completely, losses of revenue through lower received market value or price, and losses of unborn or gestation-aged livestock. Producers are eligible for compensation of 75% of the market value of lost livestock, except those lost to predation, which are eligible for up to 100% of the market value of the loss.

LIP was permanently authorized by the 2014 Farm Bill. For more information about LIP, a fact sheet may be accessed here.

Livestock Forage Disaster Program (LFP)

LFP offers assistance to livestock producers who experience losses in forage quantity and quality due to drought.

Payments under LFP are limited to $125,000 per person or legal entity per crop year and are calculated based upon factors including the cost of feed for the livestock covered under the program, the average expected quality of the forage were the operation not to have experienced a drought, and the length of time that the county in which the forage would have been located has been experiencing a drought.

LFP was permanently authorized by the 2014 Farm Bill. For more information about LFP, a fact sheet may be accessed here.

Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP)

ELAP offers assistance to producers of livestock, honeybees, and farm-raised fish for losses due to disease, “most extreme weather events,” and water shortages not covered under LIP of LFP (see above).

This program serves as a “catch all” of sorts for producers suffering from circumstances that fail to qualify under other assistance programs. This includes— but is not limited to— losses in honeybee colonies, losses for bird predation of farm-raised fish, and additional costs incurred in loss mitigation, such as increased cost for feed transport under drought conditions.

ELAP was permanently authorized by the 2018 Farm Bill. For more information about ELAP, a fact sheet may be accessed here.

Disaster Set-Aside Program (DSA)

The DSA assists agriculture producers through allowing eligible producers to “set aside” one annual installment for each FSA direct loan the producer is in responsible for to the end of the loan term.

Though the DSA does not provide support through direct financial support, in allowing loan instalments to be “set aside” producers are able to regain their financial footing without the immediate pressure of loan repayment. Producers who have an existing FSA direct loan which payments were current or no less than 90 days due at the time of the disaster are eligible for this “set aside.”

The DSA was permanently authorized by the Consolidated Farm and Rural Development Act. For more information about the DSA, a fact sheet may be accessed here.

Emergency Conservation Program (ECP)

The ECP assists producers with the repair and restoration of farmland damaged and otherwise effected by natural disasters.

ECP provides cost-share assistance to producers to be used for the removal of debris, re-shaping and leveling of land, restoration of fences and other conservation structures and implementation of emergency water conservation measures during a severe drought. The purpose of the program is to assist producers in rehabilitating farmland and other conservation structures or practices.

Availability of ECP funds is subject to annual appropriations. For more information about the ECP, a fact sheet may be accessed here.

Ad-Hoc Disaster Programs

As needed, ad-hoc programs have been implemented to support agriculture producers. The following programs are in response to losses in the 2023 and 2024 crop years and have been authorized by the 2025 American Relief Act. Please note that the following programs are expected to expire, and as such producers seeking relief under these programs should be cautious of deadlines and the status of these programs.

2023/ 2024 Supplemental Disaster Relief Program (SDRP)

The SDRP was authorized to provide more than $16 billion in disaster relief payments for producers who suffered losses in calendar years 2023 and 2024.

SDRP is to be administered in two stages- the first of which is an application period for those with indemnified losses. The second stage is an application period for producers with non-indemnified losses. The application deadlines for both stages has been extended through fall of 2026.

The SDRP is an Ad-Hoc program and will expire. For up-to-date information, please visit the FSA SDRP information page.

2023/ 2024 On-Farm Stored Commodity Loss Program (OFSCLP)

The OFSCLP was authorized to provide more than $5 million to producers who suffered losses on eligible harvested commodities while stored in on-farm structures in the years 2023 and 2024.

To be eligible for relief, producers must have been in possession of eligible commodities that were store in an on-farm storage building or structure during the 2023 or 2024 crop year and have experienced losses regarding these stored commodities due to a natural disaster within that same time frame.

The OFSCLP is an Ad-Hoc program and the deadline to apply was January 23, 2026. For up-to-date information, please visit the FSA OFSCLP information page.

2023/ 2024 Milk Loss Program (MLP)

The MLP was authorized to provide up to $1.65 million to eligible dairy producers who suffered losses due to milk that was dumped or removed without compensation due to qualifying weather events in the years 2023 and 2024.

Producers are eligible for compensation where milk was dumped or removed as a result of a qualifying weather event that impacted the delivery or storage of milk. This includes power outages, impassable roads, and infrastructure losses among other circumstances.

The MLP is an Ad-Hoc program and sign-up expired January 23, 2026. For up-to-date information, please visit the FSA MLP information page.

Other Assistance Programs

The extent of federal assistance for agriculture producers is not limited to those losses which may be insured or occur as a result of natural disasters or other adverse weather events. The following programs provide support to producers that may be suffering losses as a consequence of natural disasters and thus are included here. For a more detailed overview of revenue-support programs and commodity subsidies, please visit our Farm Commodity Programs reading room.

Agriculture Risk Coverage (ARC)/ Price Loss Coverage (PLC)

ARC and PLC were created in the 2014 Farm Bill with the intention of providing price support for growers of select commodities. Both programs were reauthorized in the 2018 Farm Bill, providing coverage for 22 select commodities.

Both programs are administered by the USDA through the Farm Service Agency (FSA). ARC payments are triggered where the actual revenue of a farm with base acres falls below a guaranteed level. PLC are triggered in the instance that a market year average falls below the “effective reference price.”

The option of either ARC or PLC provides agricultural producers with the flexibility to serve their individual operation’s needs while offering financial stability through lowering market risk.

Unlike programs that base payments off of annual production, ARC and PLC are based on a farm’s enrolled base acreage and payment yields. Though base acres may be transferred, moved or re-allocated under certain conditions, since 2002 base acres could not be increased for farming operations without the purchase of additional farmland containing base acres. However, on May 26, 2026, the FSA announced that for the first time since 2002, eligible landowners will have the option to review and consider base acreage increases in preparation of enrollment or re-enrollment in ARC and PLC programs.

A Congressional primer of ARC and PLC programs is available here.

Prior Programs

2014 Farm Bills

The 2008 Farm Bill authorized and funded five disaster programs.  However, funding for these programs expired September 30, 2011.  Of the five programs, the Supplemental Revenue Assistance Payments (“SURE”) program was not reauthorized, but the remaining programs – TAP, LIP, LFP, and ELAP – were reauthorized in the multi-year comprehensive 2014 Farm Bill.  The four reauthorized programs applied retroactively to September 30, 2011.  For the latest updates regarding the Farm Bill, visit the Ag & Food Law Blog.

TAP allows eligible orchardists and nursery tree growers to receive payments to offset 70% of the costs associated with replanting or rehabilitating eligible trees, bushes, and vines damaged by natural disasters. LIP makes financial assistance available to livestock producers to help offset the costs of cattle deaths over normal mortality rates. LFP provides financial assistance to producers who suffered grazing losses due to drought or fire. ELAP is designed to provide financial assistance for losses not sufficiently covered under other disaster programs.

Outside of the 2014 Farm Bill, the 2018 Bipartisan Budget Act was passed in 2017, which created a new disaster assistance program to be administered by the USDA Farm Service Agency. 2017 WHIP helps producers recover from the effects of wildfires and hurricanes. For more information about 2017 WHIP, please visit the USDA Farm Service Agency website here.

2018 Farm Bills

The 2018 Farm Bill, which passed through Congress with the largest majority of any farm bill, established several notable improvements to the pre-existing crop insurance and disaster relief programs. The 2018 Farm Bill, also known as the Agricultural Improvement Act, strengthened its crop insurance programs by adding improvements to the Whole Farm Revenue Protection Policy (WRFP), providing farmers with more meaningful risk protection. Further, the 2018 Farm Bill directed more funding toward research to develop policies that address low-frequency catastrophic events like hurricanes. To view the 2018 Farm Bill, please visit the USDA Farmers Guide to 2018 Farm Bill Programs here.

Pandemic Assistance Programs

The COVID-19 pandemic created disruptions in agricultural supply chains, resulting in unexpected financial losses for several producers nationwide. In response to the economic crisis caused by the pandemic, Congress allocated funds to the USDA to aid producers who suffered financial losses due to the pandemic. Congress directed the USDA to implement assistance programs to provide direct assistance to producers. Aside from the Congressional funding, the USDA also funded assistance programs through the agency’s borrowing authority under the Commodity Credit Corporation (“CCC”) Charter Act. The USDA has the authority to borrow from the CCC to support agency-led programs that aid producers.

With this funding, the USDA implemented the Coronavirus Food Assistance Program (“CFAP-1”). Under this program, the USDA provides direct financial assistance to farmers and ranchers of eligible agricultural commodities who suffered unexpected financial losses due to the pandemic. Afterward, the USDA chose to fund another round of CFAP payments, known as CFAP-2. Under CFAP-2, USDA expanded eligibility to other commodities that were excluded from eligibility for CFAP-1 payments. With remaining funds from CFAP-1 and CFAP-2, USDA announced it would provide another round of CFAP funding to more producers under CFAP-Additional Assistance (“CFAP-AA”).

At the direction of the Biden Administration, the USDA examined the previous agricultural COVID-19 assistance programs. Upon completing this review, the USDA concluded the previous programs distributed aid inequitably between U.S. producer groups. Thus, to balance the distribution of COVID-related assistance and offer further aid to many producers, the USDA formed a new agency-led initiative known as Pandemic Assistance for Producers (“PAP”). The PAP initiative is broken down into four separate parts: (1) expanding producer assistance, (2) funding for existing pandemic-related programs, (3) continuing CFAP payments, and (4) reopening CFAP-2 applications. Under this four-part initiative, the USDA provides funding to a broader range of producers across the nation and established new financial assistance programs, such as the Pandemic Livestock Indemnity Program (“PLIP”), Pandemic Assistance for Timber Harvesters and Haulers Program (“PATHH”), Pandemic Market Volatility Assistance Program (“PMVAP”), and the Pandemic Cover Crop Program (“PCCP”). To view the pandemic-related assistance under the PAP initiative, click here.

Federal Regulatory Authority

In crop insurance/disaster assistance, administrative agencies such as USDA/FDA/EPA have been given authority by Congress to create regulations implementing the requirements of the federal law.  In 2024, the Supreme Court of the United States issued two rulings that are expected to have a major impact on how judges decide cases challenging those regulations and that agency authority.

Loper Bright Enters. v. Raimondo, 144 S. Ct. 2244 (2024) overruled the long-standing doctrine of deference established in Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984). Chevron deference was a two-step process that clarified how and when federal courts should defer to an agency regulation interpreting a statute.  Chevron only applied in situations where a court had determined that the statutory language the agency was interpreting was ambiguous.  If it was ambiguous, the court would consider whether the agency’s interpretation of the statutory language was “reasonable”.  If it was reasonable, the court was required to defer to the agency’s interpretation. If it was not, the court would overrule the interpretation.

Loper Bright formally overturned Chevron. In a 6-3 decision, the Supreme Court held that “courts may not defer to an agency interpretation of the law simply because a statute is ambiguous[.]” Following the ruling, courts are instead required to exercise independent judgment in determining whether an administrative agency has acted within its statutory authority.  Courts may still seek guidance from the agencies involved, but courts will no longer be required to defer to an agency’s interpretation of a statute.

In Corner Post, Inc. v. Bd. of Governors of the Fed. Rsrv. Sys., 144 S. Ct. 2440 (2024), the Supreme Court extended the period during which a party may file a lawsuit challenging federal agency actions. According to 28 U.S.C.S. § 2401(a), the six-year statute of limitations began to run when an administrative agency’s action was “final.”  In Corner Post, the Supreme Court ruled that an action becomes “final” when a plaintiff suffers an injury, rather than when a “final regulation” is released. This ruling expands the potential for plaintiffs to challenge federal agency rules and regulations that have been final for over six years.

While the full effect of these two rulings remains to be seen, it is highly likely that the agricultural industry will be impacted by the Supreme Court’s decisions. Importantly, the rulings fundamentally change how courts will resolve lawsuits challenging agency regulations for misinterpreting the agency’s statutory authority. Impacts are most likely to be felt in areas of the law, such as crop insurance/disaster assistance, dominated by statutes with relatively ambiguous language where Congress has relied on agency regulations to fill in specifics.

Updated June 6, 2026.