U.S. Code of Federal Regulations
Regulations most recently checked for updates: May 30, 2023
§ 1437.301 - Value loss.
(a) Special provisions are required to assess losses and calculate assistance for a few crops and commodities that do not lend themselves to yield loss situations. Assistance for these commodities is calculated based on the loss of value at the time of disaster. FSA determines which crops are value-loss crops, but unless otherwise announced, value-loss crops are those identified in §§ 1437.303 through 1437.309. Lost production of value loss crops is eligible for payment only as specified in this subpart.
(b) The crop year for all value loss crops, except ornamental nursery as specified in § 1437.305, is October 1 through September 30.
(c) Producers must file an application for coverage in accordance with § 1437.7, and must:
(1) Provide a report of the crop, commodity, and facility to FSA for the acreage or facility, in a form prescribed by FSA, no later than the beginning of the crop year.
(2) Maintain a verifiable inventory of the eligible crop throughout the crop year; and
(3) Provide an accurate accounting of the inventory, as required by FSA.
§ 1437.302 - Determining payments.
(a) Subject to all restrictions and the availability of funds, value loss payments for qualifying losses will be determined by:
(1) Multiplying the field market value of the crop before the disaster, or for buy-up coverage specified in § 1437.5(c), the lesser of the field market value of the crop before the disaster or the maximum dollar value for coverage sought, by 50, 55, 60, or 65 percent, as selected by the producer as specified in § 1437.5;
(2) Subtracting the sum of the field market value after the disaster and value of ineligible causes of loss from the result from paragraph (a)(1) of this section;
(3) Multiplying the result from paragraph (a)(2) of this section by the producer's share;
(4) Multiplying the result from paragraph (a)(3) of this section by 55 or 100 percent, as selected by the producer as specified in § 1437.5, plus whatever appropriate factor reflects savings from non-harvesting of the damaged crop or other factors as appropriate; and
(5) Subtracting the producer's share of any salvage value, if applicable.
§ 1437.303 - Aquaculture, including ornamental fish.
(a) Aquaculture is a value loss crop and will have NAP assistance calculated only in accord with restrictions set in this section. Eligible aquacultural species only include:
(1) Any species of aquatic organisms grown as food for human consumption as determined by CCC.
(2) Fish raised as feed for other fish that are consumed by humans; and
(3) Ornamental fish propagated and reared in an aquatic medium.
(b) The aquacultural facility must be:
(1) A commercial enterprise on private property;
(2) Owned or leased by the producer, with readily identifiable boundaries; and
(3) Managed and maintained using good aquacultural growing practices.
(c) Producers must:
(1) Ensure adequate and proper flood prevention, growing medium, fertilization or feeding, irrigation and water quality, predator control, and disease control; and
(2) Have control of the waterbed.
(d) Eligible aquacultural species must be:
(1) Placed in the facility and not be indigenous to the facility; and
(2) Kept in a controlled environment; and
(3) Planted or seeded in containers, wire baskets, net pens, on ropes, or similar device designed for the protection and containment of the seeded aquacultural species.
(e) For mollusks that are not planted or seeded in containers, net pens, on ropes, wire baskets, or similar device designed for the containment and protection of the mollusks, the only eligible cause of loss of mollusks or missing mollusk inventory will be a direct result of a National Oceanic and Atmospheric Administration-determined tropical storm, typhoon, or hurricane.
(f) In the crop year in which a notice of loss is filed, producers may be required, at the discretion of CCC, to provide evidence that the aquacultural species are produced in a facility in accordance with paragraphs (b), (c) and (d) of this section.
(g) If all other eligibility provisions of this part are determined by FSA to be satisfied, assistance will be provided to producers for eligible NAP aquaculture crop losses that are the direct result of drought.
§ 1437.304 - Floriculture.
(a) Floriculture, except for seed crops as specified in paragraph (d) of this section, is a value loss crop and is compensable only in accord with restrictions set in this section. Eligible floriculture is limited to commercial production of:
(1) Field-grown flowers, including flowers grown in containers or other growing medium maintained in a field setting according to industry standards, as determined by FSA; and
(2) Tubers and bulbs, for use as propagation stock of eligible floriculture plants; and
(3) Seed for propagation of eligible floriculture plants.
(b) Floriculture does not include flowering plants indigenous to the location of the floriculture facility or acreage.
(c) Eligible floriculture must be grown in a region or controlled environment conducive to the successful production of flowers, tubers, and bulbs, as determined by FSA.
(d) Claims on losses on the production of flower seed for propagation of eligible floriculture plants will not be treated under “value loss” rules, but under the rules for normal production low yield crops under subpart B of this part.
(e) The facility or acreage for eligible floriculture must be managed and maintained using good floriculture growing practices. At a minimum, producers are responsible for providing a controlled environment and must ensure adequate and proper fertilization, irrigation, weed control, insect and disease control, and rodent and wildlife control.
(f) In the crop year in which a notice of loss is filed, producers may be required, at the discretion of FSA, to provide evidence the floriculture is produced in accordance with paragraph (e) of this section.
(g) Flowers having any dollar value are counted as having full value for loss calculations. Damaged plants that are determined able to rejuvenate or determined to be merely stunted are counted as worth full value.
§ 1437.305 - Ornamental nursery.
(a) Eligible ornamental nursery stock is a value loss crop and is compensable only in accord with restrictions set out in this section. Eligible ornamental nursery stock is limited to field-grown and containerized decorative plants grown in a controlled environment for commercial sale.
(b) The property upon which the nursery stock is located must be owned or leased by the producer.
(c) The eligible nursery stock must be placed in the ornamental nursery facility and not be indigenous to the facility.
(d) The facility must be managed and cared for using good nursery growing practices for the geographical region. At a minimum producers must provide a controlled environment and ensure adequate and proper flood prevention, growing medium, fertilization, irrigation, insect and disease control, weed control, rodent and wildlife control, and over-winterization storage facilities.
(e) An ornamental plant having any value as an ornamental plant, or a damaged ornamental plant that may rejuvenate and re-establish value as an ornamental plant, will be considered as worth full value based on the age or size of the plant at the time of disaster.
(f) In the crop year in which a notice of loss is filed, producers may be required, at the discretion of FSA, to provide evidence the ornamental nursery is maintained in accordance with this section.
(g) For the 2010 and subsequent crops, the crop year for ornamental nursery is June 1 through May 31.
§ 1437.306 - Christmas tree crops.
(a) A Christmas tree is a value loss crop and may generate a claim for benefits under this part only if the tree was grown exclusively for commercial use as a Christmas tree, and only if other requirements of this section are met.
(b) The unit of measure for all Christmas tree crops is a plant.
(c) A Christmas tree having any value as a Christmas tree, or a damaged Christmas tree that may rejuvenate and re-establish value as a Christmas tree, will be considered as worth full value based on the age of the tree at the time of disaster.
§ 1437.307 - Mushrooms.
(a) Eligible mushrooms is a value loss crop and is only compensable in accord with the restrictions of this section. To be eligible, the mushrooms must be grown as a commercial crop in a facility with a controlled environment utilizing good mushroom growing practices. The facility must be located on private property either owned or leased by the producer.
(b) The controlled environment for eligible mushrooms must include primary and backup systems for:
(1) Temperature and humidity controls;
(2) Proper and adequate lighting; and
(3) Positive air pressurization and filtration.
(c) The growing medium must consist of a substrate (a habitat and nutrient base) sterilized by heat treatment.
(d) Good mushroom growing practices must be used, and they consist of proper and adequate insect and disease control and the maintenance of a sterile environment. Maintaining a sterile environment includes at a minimum:
(1) Adequate hygiene;
(2) Overall cleanliness;
(3) Isolation or minimum contact procedures;
(4) Use of footpaths; and
(5) Availability and frequent utilization of wash-down facilities.
(e) In the crop year in which a notice of loss is filed, producers may be required, at the discretion of FSA, to provide evidence the mushrooms are maintained in accordance with this section.
§ 1437.308 - Ginseng.
(a) Ginseng is a value loss crop and is compensable only as allowed in this section. Ginseng is eligible only if:
(1) The ginseng includes stratified seeds for use as propagation stock in a commercial ginseng operation or rootlet for commercial sale that are grown in a controlled, cultivatable environment on private property either owned or leased by the producer; and
(2) The ginseng is grown using good ginseng growing practices with all plant needs supplied and under control of the producer;
(b) Ginseng will not be eligible to generate benefits under this part if it:
(1) Is indigenous to the facility;
(2) Is grown solely for medicinal purposes; and
(3) Includes wild ginseng rootlet that is harvested and transplanted from woodland grown ginseng.
(c) Good ginseng growing practices must be followed, and include, but are not limited to:
(1) Adequate drainage;
(2) Proper and adequate shade;
(3) Accurate pH level;
(4) Adequate and timely fertilization, including an adequate supply to ensure nutrient reserves to the ginseng plants and customary application equipment;
(5) Adequate pest control, including but not limited to, weed, rodent, and wildlife control; and
(6) Disease control.
(d) Ginseng producers must:
(1) Provide a report of inventory of all ginseng, as determined by FSA;
(2) Provide production and sales records necessary to determine the value of eligible ginseng;
(3) Allow an FSA-certified loss adjustor to verify loss, including physically removing representative samples;
(4) Maintain and provide, as determined by FSA, adequate records of fertilization, and pest and disease controls used or put into place during the crop year; and
(5) Possess a valid food processing license issued by the applicable State Department of Agriculture or equivalent and subject to food regulations administered by the Food and Drug Administration.
(e) In the crop year in which a notice of loss is filed, producers may be required, at the discretion of FSA, to provide evidence the ginseng was produced in accordance with this section.
§ 1437.309 - Turfgrass sod.
(a) Turfgrass sod is a value loss crop and is the upper stratum of soil bound by mature grass and plant roots into a thick mat produced in commercial quantities for sale.
(b) Specific species, types or varieties of grass intended for turfgrass sod will be considered a separate crop without regard to other intended uses.
(c) The unit of measure for all turfgrass sod is a square yard.
(d) Turfgrass sod having any value will be considered as worth full value.
(e) In addition to the records required in § 1437.8, producers seeking payment must provide information to FSA regarding the average number of square yards per acre and all unharvested areas.
§ 1437.310 - Sea grass and sea oats.
(a) Sea grass and sea oats are value loss crops and eligibility will be limited to ornamental plants grown for commercial sale and seeds and transplants produced for commercial sale as propagation stock.
(b) An eligible commodity under this section intended for sale on a commercial basis as:
(1) An ornamental plant can produce a claim in the event of a loss due to a qualifying condition only in the same manner and subject to the same conditions as ornamental nursery stock under § 1437.305 and such claims will not, as such, be subject to the provisions of paragraphs (c) through (h) of this section, except to the extent that similar provisions apply to claims under § 1437.305.
(2) Propagation stock (seed or transplant) can produce a claim under this part but only in accord with the provisions that follow in this section and subject to other conditions on payment as may be imposed elsewhere in this part.
(c) For purposes of a loss calculation arising under paragraph (b)(2) of this section, the value of:
(1) Seed will be determined on a yield basis made in accordance with subpart B of this part and average market price established in accordance with § 1437.12.
(2) Transplant losses will be determined based on inventory that existed immediately before and after the disaster and average market price established in accordance with § 1437.12.
(d) Transplant producers must have up-to-date inventory and sales records and other documents, sufficient to document actual losses, as determined by FSA.
(e) The land, waterbed, or facility in which the eligible commodity was located at the time of loss must:
(1) Be owned or leased by the producer;
(2) Have readily identifiable boundaries; and
(3) Be managed and maintained using acceptable growing practices for the geographical region, as determined by FSA.
(f) The producer must have control of the land, waterbed, or facility and must ensure adequate and proper:
(1) Flood prevention;
(2) Growing medium;
(3) Fertilization or feeding;
(4) Irrigation and water quality;
(5) Weed control;
(6) Pest and disease control;
(7) Rodent and wildlife control; and
(8) Over-winterization facilities, as applicable.
(g) The eligible commodity must be:
(1) Grown in a region or controlled environment conducive to successful production, as determined by FSA; and
(2) Placed in the waterbed or facility in which the loss occurs and not be indigenous to the waterbed or facility.
(h) Eligible commodities having any dollar value after the disaster will be considered as having full value when making loss calculations. Also, damaged plants that do not have any value after the disaster but that can be rejuvenated or may, if not fully rejuvenated, reacquire value, will be counted as worth full value as well.
(i) In the crop year in which a notice of loss is filed, producers may be required, at the discretion of FSA, to provide evidence that the eligible commodity was produced in accordance with paragraphs (e), (f), and (g) of this section and other provisions of this part.