Calculating disaster aid payments for the Hurricane Florence Agricultural Disaster Program of 2018

by | Feb 12, 2019

The first payments for Hurricane Disaster Aid were sent out Jan. 30. Since then, more than $54.8 million in payments have been sent and 70 percent of the aid applications have been processed.

In a previous blog we reviewed commonly asked questions about the Hurricane Florence Agricultural Disaster Program of 2018.

Today, we outline how payments are calculated:

Payment Calculations

The amount of the payment you receive is based essentially on four steps. 

First, you must be operating in an eligible county and your application must report your planted acreage or livestock numbers. Most often this is on FSA Form 578. 

Second, a task force in each county made up of FSA, Extension, NRCS, Soil and Water, Regional Agronomists and others established estimated losses for each commodity produced in an eligible county. 

Third, based on USDA data there is an established yield and price for each commodity. 

Finally, your payment is calculated based on a percentage of your loss. Your loss for each commodity is calculated as (planted acreage) x (average yield) x (average price) x (percent loss for the county). Your total payment will be roughly 20% of the sum of your total losses for each commodity reported. 

We are making payments as we verify applications. Because not all applications can be verified at one time, there will be two separate payments made. The first will represent a portion (half or more) and the second payment will be the balance. The second payment will be made once all applications in the program are verified for accuracy. 

Moreover, we are working through the process of verifying the accuracy of nearly 7,000 applications for assistance. We appreciate your patience as we process them as quickly as possible.