Life of Application for Coverage, Cancellation, and Termination:
- This is a continuous Application for Coverage and will remain in effect for each crop year following the acceptance of the original Application for Coverage if the nonrefundable service fee is submitted by the application closing date. If the service fee is received after the application closing date, it will be returned to you, you will not have NAP coverage for the crop year, and you must submit a new Application for Coverage to obtain NAP coverage in a future crop year.
- You must have made an application for NAP on or before the application closing date for the crop/commodity in the county.
- You must be a person or legal entity as defined by FSA to be eligible for NAP coverage.
- After acceptance of the Application for Coverage, you may not cancel this coverage for the initial crop year. Thereafter, the Application for Coverage will continue in force for each succeeding crop year with timely payment of the applicable service fee and/or CCC-860.
- Either you or we may cancel this Application for Coverage after the initial crop year if either of the following occurs:
- By providing written justification explaining to the State Office why the cancellation needs to occur, on or before the application closing date, or
- The service fee (or CCC-860) is not paid (submitted) and received by FSA by the application closing date.
- If you die, disappear, or are judicially declared incompetent, or if you are an entity other than an individual and such entity is dissolved before coverage begins, the Application for Coverage will terminate as of the date of death, judicial declaration, or dissolution. If such event occurs after coverage begins for any crop year, the Application for Coverage will continue in force through the crop year and will terminate at the end of the NAP coverage period. Death of a partner in a partnership will dissolve the partnership unless the partnership agreement provides otherwise. If two or more persons having a joint interest are covered jointly, death of one of the persons will dissolve the joint entity. Any NAP payment will be paid to the person or persons determined to be beneficially entitled to the NAP payment.
- When obtaining NAP coverage, you must provide information regarding NAP coverage on any crop previously obtained at any other local FSA office, including the date such coverage was obtained and the amount of the service fee
- Any person may sign any document relative to NAP coverage on behalf of any other person covered by such an Application for Coverage, provided that the person has a properly executed power of attorney or such other legally sufficient document authorizing such person to sign on file in the county office before accepting a NAP Application for Coverage or other related documents according to 7 CFR 718.9. You are still responsible for the accuracy of all information provided on your behalf and may be subject to the consequences in section 32, and any other applicable consequences.
- If cancellation or termination of NAP coverage occurs for any reason including, but not limited to indebtedness, suspension, debarment, disqualification, cancellation by you or us or violation of the controlled substance provisions of the Food Security Act of 1985, a new Application for Coverage must be filed for the crop. NAP coverage will not be provided if you are ineligible under the contract or under any Federal statute or regulation.
- After the application closing date, you cannot change your elected NAP coverage level or your elections regarding organic, HMP, CMP, and direct market options.
- The nonrefundable service fee must be paid to FSA by the established application closing date.
- The administrative fee is $325 per crop/commodity per administrative county; $825 for you per administrative county, not to exceed a total of $1,950 for you. The service fee is based on:
- FSA administrative counties
- Each tax identification number
- Crop/commodity definition according to pay crop/pay type
- Planting periods.
- The service fee provisions of paragraphs (a) and (b) of this section do not apply if you meet the definition of a beginning farmer, limited resource farmer, socially disadvantaged farmer or rancher, or veteran farmer or rancher and have filed CCC-860 by the established application closing date.
- Service fees for applicable crops planted on acreage determined as native sod in Iowa, Minnesota, Montana, Nebraska, North Dakota, and South Dakota are equal to 200 percent of the amount specified in paragraph (b) of this section.