Louisiana Persistence on Disaster Assistance Finally Sees Action in Ag Committee

By Avery Davidson & Andy Brown

Louisiana Farm Bureau News

The U.S. House Agriculture Committee unanimously passed a resolution that could help Louisiana farmers and ranchers qualify for disaster assistance through the Wildfire and Hurricane Indemnity Program Plus, better known as WHIP+. The 2020 WHIP+ Reauthorization Act, with an Amendment in the Nature of a Substitute (ANS) qualifies both the 2020 and 2021 crop years for coverage. 

“The 2020 hurricanes were devastating to the majority of our state,” said Louisiana Farm Bureau President Jim Harper. “Before some had the chance to recover from Laura, here came Delta. Similarly, folks in North Louisiana were still putting the pieces back together from hurricane season when a winter freeze collapsed buildings and took down miles of power lines. Louisiana Farm Bureau has steadily beat the drum of our disaster needs with, and through, our congressional delegation. Now, thanks to the unwavering support of Representatives Julia Letlow, Clay Higgins, and all of our Louisiana allies, we finally have some bipartisan movement on meaningful agricultural disaster assistance beyond our general farm bill programs.” 

“We hope to use the 2018/2019 and now 2020/2021 ad hoc disaster needs as a learning moment for Congress to see that agricultural disaster damages aren’t being adequately protected through current programs,” Harper added. “While we are very thankful for the movement of this extension of WHIP+ into 2020 and 2021, and hope Congress sees it through a vote, we also have our eyes set on the bigger picture of the next Farm Bill and the House and Senate Ag Committees’ desire to look into better support for disaster programming.”

Louisiana 5th District Congresswoman Julia Letlow sits on the House Ag Committee and represented the state’s concerns following Hurricanes Laura, Delta and the 2021 ice storm.

“This is why it is key to have Rep. Julia Letlow on the House Ag Committee,” said Harper. “She and her staff jumped in from day one to make sure Louisiana’s hurts were felt all the way to the chairman and ranking member of the Ag Committee. And prior to her election, and even through this markup today, Rep. Clay Higgins voiced the 3rd district’s needs loud and clear, as well. That was key when our 5th district/Ag Committee seat was vacant. Mr. Higgins and his team did a great job working on particular needs like the On-Farm Storage Loss Program, which will be key for our rice farmers who suffered damage to their grain bins, or livestock producers who had collapsed hay barns.”

The American Farm Bureau Federation provided this summary of the ANS to the WHIP+ Reauthorization Act:

  • Causes of loss:

    • Maintains the causes of loss that were included for 2018 and 2019

    • Specifically refers to: smoke taint in wine grapes due to wildfires; high winds; derechos; excessive heat; freeze (including a polar vortex).

    • Expands the drought trigger from D3 on the drought monitor to a Secretarial drought designation (which is D2 for eight consecutive weeks), or more severe, and contiguous counties.

    • Includes losses due to other disruptions (including power outages or curtailments) associated with the effects of a qualifying disaster event.

  • Administrative Improvements:

    • Continues the requirement that participants in this program must purchase crop insurance coverage of at least 60%, or NAP where insurance isn’t available, for two years after receiving assistance.

    • Includes language intended to simplify the program, including by directing USDA to streamline the application process and to reduce the workload of county offices.

    • Use of net indemnities – under the existing WHIP+ rules, the payment calculation accounts for the actual value received and any gross crop insurance indemnity. The ANS would account for the producer-paid premium in the calculation.

    • Unharvested acres are treated in the same manner as under NAP.

    • Clarifies that all insured acreage shall be eligible, regardless of whether such acreage is the initial acreage or not.

    • On payment limitations, the ANS maintains the existing regulations, with some exceptions:

      • Specialty crops or higher value crops are subject to the 2017 WHIP payment limitations;

      • Average Adjusted Gross Income is based on the 2017 – 2019 tax years;

      • Limits are renewed for each of 2020 and 2021; and

      • CFAP specialty entity rules apply for operations structured as corporations, LLCs, limited partnerships, trusts, and estates.

    • Includes a mechanism for payments to be made to producers through sugar processors and dairy coops.

    • Continues the authority for USDA to provide payments in the form of block grants.

  • Provides for an authorization of appropriations of $8.5 billion over the 2020 and 2021 timeframe, along with a set aside of funds for administration of the program.

Louisiana Farm Bureau will continue working with the state’s congressional delegation to get this bill passed out of the House and through the Senate. 

American Farm Bureau, Louisiana Farm BureauAvery Davidson