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Price Support
Asparagus Revenue Market Loss Program

 

 
Overview

 
USDA Farm Service Agency’s (FSA) Asparagus Revenue Market Loss Assistance Payment (ALAP) Program compensates producers for revenue losses resulting from imports during the 2004 through 2007 crop years. Eligible asparagus producers will receive a market loss payment based upon the marketing category of their 2003 crop of asparagus.

 
The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) authorizes the Commodity Credit Corporation (CCC) to provide up to $15 million in market loss payments to 2003-crop asparagus producers.

 
This fact sheet describes key ALAP provisions, which were detailed in a Federal Register notice published Feb. 4, 2011.
ALAP Limited Funding

 
The 2008 Farm Bill requires an allocation of the $15 million in CCC funds for the market loss payments as follows:

 
  • $7,500,000 for fresh-market asparagus production and;
  • $7,500,000 for processed or frozen market asparagus production.

 
A reserve of allocated funds, determined by CCC, will be retained for each marketing category to handle disputed claims and appeals.

 
Eligible Asparagus Producers

 
To qualify for ALAP, producers must:

 
  • Have produced and marketed asparagus in commercial quantities in the U.S. during both crop years 2003 and 2007, and;
  • Meet highly erodible land and wetland provisions.

 
Additional ALAP payment eligibility requirements will apply for the applicable marketing category that exceeds available funding.

 
Eligible Pounds of Asparagus Production
ALAP payments will be calculated based upon an eligible producer’s 2003 asparagus production quantity for fresh-marketed and/or process or frozen market asparagus.

 
ALAP Maximum Payment Rates

 
Maximum payment rates have been determined according to the following table:

 
Marketing Category
Maximum Payment Rate)
Processed or Frozen Market -Crop Asparagus
$1.08 per pound
Fresh-Crop Asparagus
$1.06 per pound

 

 
Marketing Category Exceeds Available Funding

 
  • If the total value of ALAP payments for a marketing category exceeds available funding, then the following will be applicable:
  • The applicable marketing category maximum payment rate will be factored;
  • ALAP payments are subject to a $100,000 payment limitation for the applicable marketing category;
  • Producer’s average adjusted gross income (AGI) must be less than $2.5 million for the three taxable years of 2003 to 2005 to be eligible for that marketing category ALAP payment type.

 
For further information please click the following link on the USDA’s Economic Research Service page.

 

 
Other ALAP Program Information

 
Related Topics
Bullet Asparagus Revenue Market Loss Program
Bullet Milk Income Loss Contract (MILC)
Bullet Trade Adjustment Assistance For Farmers (TAAF)
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Last Modified: 07/19/11 8:57:13 AM


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