WHIP+ Disaster Relief Act

UPDATE 4/23/2020: WHIP+ Disaster Relief Payment Info
Now that FSA has began to process WHIP+ applications there have been several questions coming in about the loss calculations.  Per the WHIP+ handbook, the RMA price is too be used.  The issue seems to be that for those with Revenue Protection policies where FSA is only using the initial spring price, which is higher than the fall price. This puts a greater value on your final production and decreases the WHIP+ indemnity.  We have calls in to the MN and ND state FSA offices as well as Collin Peterson’s office and are waiting for clarification. 

The Disaster Relief Act was passed by the President in June which included more than $3 billion in funding for disasters that impacted farmers and ranchers under the WHIP+ Program (Wildfire and Hurricane Indemnity Program Plus). The disaster funding will provide payments to producers to offset losses from hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms and wildfires that occurred in 2018 and 2019.

You may have heard about this program and wondered if it was something you could qualify for and if there would be enough funding to cover all the claims.   When we first looked at the WHIP+ program in September, it looked doubtful that we would have qualifying claims and even if we did, the funding to cover any 2019 losses looked bleak. Our thoughts were also echoed by the FSA offices that we spoke to about the program.   That was prior to the excessive rains/flooding and snowstorm we received hampering harvest with flooded fields leaving unharvested crops and acres of frozen potatoes and sugarbeets.  We are still questioning if these claims will be considered as part of this disaster bill  and where the funding will come from to pay all of the claims, but in a meeting with Collin Peterson, John Hoven and Under Secretary Northey, we were given an indication that they may be eligible and if the loss qualifies there should be adequate funding to pay 50% of the 2019 claim right away with the remaining balance to be possibly issued after January 1, 2020 if there is sufficient remaining funds.

Below is some information regarding that program that may help answer your questions.  We have also attached the WHIP+ FACT sheet that was just released along with a current list of the MN and ND counties and their qualifying years.

• WHIP+ will be available for eligible producers who have suffered eligible crop losses in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation (primary counties only).  With supporting documentation, producers outside of these counties are also eligible.   It is up to the state/county FSA office to determine the definition of flooding as this is one of the eligible disasters.  At this time, it appears that ND has a more liberal definition of flooding, but MN State FSA office has a more conservative definition to mean water from rivers/lakes that have come out of their banks. Once losses are submitted they will go before a county committee for approval.

• WHIP+ payment factors are dependent on your level of crop insurance coverage:
  

  Crop Insurance Coverage Level	WHIP+ Payment Factor
  No crop insurance or no NAP coverage	70
  Catastrophic coverage	75
  More than catastrophic coverage but less than 55%	77.5
  At least 55%, but less than 60%	80
  At least 60%, but less than 65%	82.5
  At least 65%, but less than 70%	85
  At least 70%, but less than 75%	87.5
  At least 75%, but less than 80%	92.5
  At least 80%	95

• The WHIP+ Payment is calculated by taking the expected value of the crop x the WHIP factor above, less the value of the crop harvested and the crop insurance indemnity received by the producer.  (If a producer was not able to harvest a crop, payments will be adjusted by an unharvest factor)  If a producer has crop insurance the price used to determine the expected value and the actual value is the crop insurance price.  See links below for WHIP+ Fact sheet & current listings of MN & ND disaster counties.

• Losses will qualify based on your current crop Insurance unit structure (i.e. Enterprise, Optional, or Basic Unit)

• 2018 losses will be paid at 100%.  For 2019, losses will be paid at 50% with additional payments (up to 50%) paid in 2020 if appropriated funds remain.

• As a condition of payment eligibility, producers must obtain crop insurance or NAP for 2 consecutive years at a minimum level of 60%

• Payment limit for WHIP+ is $125,000 per person or legal entity, however, if a producer can show that 75% of their income is derived from farming, that limit is increased to $250,000 per crop year.

• Signup for the 2018 and 2019 WHIP+ began on September 11, 2019.  No signup deadline has been announced.  Even though signup has begun, most FSA offices are not ready to handle the application process yet.  It would still be prudent to give them a call to get the application process going if you have a qualifying claim.

In anticipation of possible disaster application by you, claims are now being submitted to include snow/flooding and excess moisture.  Most unpaid claims have also been resubmitted to include these eligible losses.  If you would like a copy of your Crop Insurance Notice of Loss to take to FSA when applying for the WHIP+ program, please give us a call. 

According to the ND State FSA office, you do not need to have a crop insurance loss to have a WHIP+ claim as your WHIP+ payment factor is higher.  If you have a qualifying claim on a crop that does NOT have a crop insurance claim, you will need to file a NOL with FSA for that crop and provide verifiable acceptable production records to them.

Please feel free to give us a call if you have any questions.

Staff at ProAg Service & Ins.

Additional Resources
Whip+ Fact Sheet
https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2019/wildfire-and-hurricane-indemnity-program-plus_whip.pdf

Whip+ Calculation Example
https://www.proagservice.com/whip_calc_example_info-2-2/

ND & MN Disaster Counties
https://www.proagservice.com/mn_nd_disaster_counties_info-2-2-2/