Asparagus Growers Get $15 Million To Make Up For Import Losses

Asparagus growers who suffered losses resulting from Mexican and Peruvian imports during the 2004 through 2007 crop years can now get federal assistance. USDA Farm Service Agency’s (FSA) Asparagus Revenue Market Loss Assistance Payment (ALAP) Program will compensate eligible asparagus producers with a market loss payment based on the marketing category of their 2003 asparagus crop.

“America’s asparagus producers were financially affected by a substantial increase in asparagus imports,” said agriculture secretary Tom Vilsack. “This resulted in lower domestic production and a lower market share for U.S. producers. This program will provide assistance to American asparagus producers whose livelihoods were affected.”

The Food, Conservation, and Energy Act of 2008 authorizes the Commodity Credit Corporation (CCC) to provide up to $15 million in market loss payments to 2003-crop asparagus growers. The funds will be allocated evenly between fresh-market asparagus production and processed or frozen market asparagus production, with each market receiving $7.5 million. A reserve of allocated funds, determined by CCC, will be retained for each marketing category to handle disputed claims and appeals.

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.

ALAP payments will be calculated based on an eligible producer’s 2003 asparagus production quantity for fresh-market and/or process or frozen market asparagus. The maximum payment rate for processed or frozen market asparagus is $1.08 per pound, while fresh-market asparagus has a maximum payment rate of $1.06 per pound.

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.

Signup for the ALAP runs from February through April 8, 2011. To apply, asparagus producers must submit from CCC-895 (ALAP Program Application) to their local FSA county office. The form is available at FSA county offices or online at www.fsa.usda.gov/alap.

For more information, go to www.fsa.usda.gov.