WORLD TRADE  
ORGANIZATION  G/AG/N/USA/59 
9 October 2007 
 (07-4323) 
Committee on Agriculture Original:   English 
 
 
 
NOTIFICATION  
 
 
The following submission, dated 4 October 2007, is being circulated at the request of the 
Delegation of the United States .  The notification concerns new or modified domestic support 
measures exempt from reduction ( Table DS:2 ). 
  G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:   Direct Payment Program   
 
(2) Domestic legislation reference:  Farm Security and Rural Investment Act of 2002, Public 
Law 107-171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 6.   
 
 The Direct Payment Program provides payments to eligible recipients on farms enrolled for 
the 2002 through 2007 crop years.  Payments are computed using the historical base acres and 
payment yields established for the farm.  Paymen ts are not tied to current or future production 
of specific crops, the amount of production, or the price of the crop.  Eligible producers are 
not confined to producing crops for which they  are receiving payments, and can choose not to 
produce any crop. 
 
 To be eligible for payments, owners, operators , landlords, tenants, or sharecroppers must:   
 
• share in the risk of producing a crop on b ase acres on a farm enrolled in the program, 
and be entitled to share in the crop availa ble for marketing from the base acres, or 
would have shared had a crop been produced;  
• annually report the use of the farm's cropland acreage;  
• comply with conservation and wetland protec tion requirements on all of their land;  
• comply with planting flexibility requirements;  
• use the base acres for agricultural or related activities; and  
• protect all base acres from erosion and control weeds.  
 
 Historical base acres and payment yields are established for the following commodities: 
barley; corn; grain sorghum, including dual purpo se varieties that can be harvested as grain; 
oats; canola, crambe, flax, mustard, rapeseed, safflower, sesame and sunflower, including oil 
and non-oil varieties; peanuts, beginning in 20 03; rice, excluding wild rice; soybeans; upland 
cotton; and wheat.  
 
 For each commodity, the direct payment for each crop year equals 85 per cent of the farm's 
base acreage times the farm's direct payment yield times the direct payment rate.  "Base 
acres" means, with respect to a covered comm odity on a farm, the number of historically 
planted acres of the crop established by the elec tion of the owner or owners of the farm.  
Direct payment yields for wheat, feed grains, cotton, and rice on a farm are the same as 
established under the prior Production Flexibility Contract (PFC) payment yields for the 
applicable crops on the farm.  For covere d commodities without PFC program payment 
yields, a direct payment yield was assigned using the PFC yield of similar farms.  The direct 
payment yield for oilseeds is calculated by mu ltiplying the 1998 through 2001 average yield 
for the oilseed times the historic yield ratio for the oilseed. 
  
(4) Cost of measure :  Approximately $5.2 billion annually for the crop years 2002-2007.  
Payments were smaller in crop year 2002 b ecause PFC payments had already been made.  G/AG/N/USA/59 
 Page 3 
 
 
   
(5) Date of entry into effect:  The Farm Security and Rural Invest ment Act of 2002, Public Law 
107-171, was signed into law on 13 May 2002.  Final program regulations were published in 
the Federal Register on 21 October 2002. 
 
(6) Period of application:  1 October 2002 to 30 September 2007. 
 
(7) Products to principally benefi t (if any individual product(s)):   Holders of base acres or 
other eligible recipients receive payments but  payments are not tied to current or future 
production or price of any commodity.  In additi on, no particular commodity benefits because 
there is no requirement to produce to receive a payment.   
 G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:   Termination of marketing quota programs for peanuts and 
compensation to peanut quota holders for loss of quota value (Peanut Quota Buyout) 
 
(2) Domestic legislation reference:  Farm Security and Rural Investment Act of 2002, Public 
Law 107-171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 6.   
 
 The marketing quota for peanuts is repealed .  Quota owners were eligible to receive 
compensation for the lost value of their quota in 5 annual installments during fiscal years 
(October - September) 2002-06, although most paym ents were made over a 3-year period.  An 
annual payment of $0.11 per pound of quota is ma de to eligible quota holders based on 2001 
quota levels.  Quota owners coul d opt to take the outstanding payment due to them in a lump 
sum.  Payments are not tied to current or futu re production or prices of peanuts or any other 
crop.  The peanut price support program was also terminated. 
 
(4) Cost of measure :  Approximately $1.2 billion. 
 
(5) Date of entry into effect:  The Farm Security and Rural Invest ment Act of 2002, Public Law 
107-171, was signed into law on 13 May 2002.  Final program regulations were published in 
the Federal Register on 9 October 2002. 
 
(6) Period of application:  1 October 2002 to 30 September 2006. 
 
(7) Products to principally benefit (if any individual product(s)):   Peanut quota holders 
receive payments but payments are not tied to future production or price of any commodity.  
In addition, no particular commodity benefits  because there is no requirement to produce to 
receive a payment.   
  G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Conservation Security Program (CSP) 
 
(2) Domestic legislation reference:   The Farm Security and Rural Investment Act of 2002, 
Public Law 107-171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in: Provisions are 
consistent with criteria in  Annex 2, paragraph 12. 
 
The CSP is a voluntary program that provides payments to producers for adopting or 
maintaining a wide range of management, vegeta tive, and land-based structural practices that 
address one or more resources of concern, su ch as soil, water, or wildlife habitat. 
All agricultural land (cropland a nd grazing land) is eligible.  
• Cropland must have been cropped in 4 of the 6 years prior to 2002.  
• Lands enrolled in the Conservation Reserv e Program, Wetlands Reserve Program, and 
Grassland Reserve Program are not eligible.  
• Forestland that is an incidental part of the agricultural operation may be included.  • Animal waste storage or treatment facilities are not eligible.  
Producers can participate at 1 of 3 tiers.  
Tier I
: Producer must address water quality and soil qu ality on at least part of the agricultural 
operation.  Contracts are for 5 years.  Tier I contract renewal requires broadening scope of 
practices or portion of the agricultural operation covered.   
Tier II : Producer must address water quality and so il quality on the entire operation and agree 
to treat an additional significant resource concer n by the end of the contract period.  Contracts 
are for 5-10 years and can be renewed.  
Tier III : Producer must fully address all resource concerns on the entire operation.  Contracts 
are for 5-10 years and can be renewed.  
CSP contract payments include one or more  of the following components subject to the 
described limits: 
 
• An annual per acre stewardship component for the benchmark conservation treatment.  This 
component is calculated separately for each la nd use based on eligible acres, the stewardship 
payment rate, and additional factors. 
 
• An annual existing practice component for maintaining existing conservation practices, 
calculated as 25 per cent of the stewardship paym ent to offset the cost of maintaining pre-
existing or new conservation practices. 
 
• A new practice component for additional pr actices on the watershed specific list.  New 
practice payments for limited resource farmers and beginning farmers will be made at not 
more than a 65-per cent cost-share rate.  New practice payments for all other contracts will be G/AG/N/USA/59 
Page 6  
 
  made at not more than a 50-per cent cost-share rate.  All new practice payments are limited to 
a $10,000 cumulative total for the contract. 
 
• An annual enhancement component for excep tional conservation effort and additional 
conservation practices or activities that provi de increased resource benefits beyond minimum 
requirements. 
Payment limits are:  $20,000 annually for tier I; $35,000 annually for tier II; and $45,000 
annually for tier III.  
(4) Cost of measure:  Authorized funding levels have changed multiple times.  Funding is 
provided through the Commodity Credit Corporation for eligible participants. 
 
(5) Date of entry into effect:  Public Law 107-171 was signed into law on 13 May 2002.  Interim 
final regulations and an a nnouncement for sign-up were published on 21 June 2004.  Final 
regulations were published in the Federal Register on 25 March 2005.  
 
(6) Period of application:  21 June 2004 to 30 September 2007.   Contracts can continue beyond 
30 September 2007, depending on their duration. 
 
(7) Products to principally benefit (if any individual product(s)):  All agricultural producers 
in selected watersheds are eligible to participate. 
  G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Conservation Reserve Program (CRP) 
 
(2) Domestic legislation reference:   The CRP was established in the Food Security Act of 1985, 
and amended in the Farm Security and Rural Investment Act of 2002, Public Law (PL) 107-
171, 13 May 2002.  
 
(3) Detailed description of measure with reference to criteria, i.e. those in: Provisions are 
consistent with criteria in  Annex 2, paragraph 12. 
 
The CRP is a voluntary program that provides technical and financial assistance to eligible 
farmers and ranchers to address soil, water, and related natural resource concerns on their 
lands in an environmentally beneficial and cost-effective manner.  The program provides 
assistance to farmers and ranchers and encourages environmental enhancement.  The program 
is funded through the Commodity Credit Corporation (CCC).  CRP is administered by the 
Farm Service Agency, with the Natural Res ources Conservation Service providing technical 
land eligibility determinations, conservati on planning and practice implementation. 
 
The CRP reduces soil erosion, reduces sedimentation and nutrient enrichment in streams and 
lakes, establishes wildlife hab itat, enhances forest and wetland resources, and sequesters 
carbon.  It encourages farmers to convert highl y erodible cropland or other environmentally 
sensitive acreage to vegetative c over, such as tame or native grasses, wildlife plantings, trees, 
filterstrips, or riparian buffers.  
 
The CCC makes annual rental payments based on th e agriculture rental value of the land, and 
it provides cost-share assistance for up to 50 per cent of the participant's costs in establishing 
approved conservation practices.  Participants enroll in CRP contracts for 10 to 15 years. 
 
(4) Cost of measure:  The CRP is limited to a maximum of 39,200,000 acres.  Funding is 
provided through the CCC for eligible recipients. 
 
(5) Date of entry into effect:  The Farm Security and Rural Inv estment Act of 2002, Public Law 
107-171, was signed into law on 13 May 2002. Final regulations were published in the 
Federal Register on 14 May 2004. 
 
(6) Period of application:  The CRP  is in effect through 31 December 2007.  Contracts can 
continue beyond 30 September 2007,  depending on their duration. 
 
(7) Products to principally benefit (if any individual product(s)):  None G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Grassland Reserve Program (GRP) 
 
(2) Domestic legislation reference:  The GRP is authorized by Sections 1238 N through Q of the 
Food Security Act of 1985 (Public Law 99-198)  as amended by Section 2401 of the Farm 
Security and Rural Investment Act of 2002, Public Law107-171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:   Provisions are 
consistent with criteria in Annex 2, paragraph 12.  
The GRP is established to assist owners, thr ough long-term contracts or easements, in 
restoring grassland and conserving rangeland,  pastureland, and other grassland while 
maintaining the land's suitability for grazing .  Restored, improved, or natural grassland, 
rangeland, and pasture, including prairie can be enrolled - up to 2 million acres.  Tracts must be at least 40 contiguous acres.  Waivers are available for smaller parcels in cases of 
exceptional acreage that meets purposes of the program. 
Eligible grassland can be enrolled under contract s of 10, 15, 20, or 30 years or under 30-year 
or permanent easements (or the maximum allowed by State law).  Not more than 60 per cent 
of funds can be used for 30-year contracts or 30-year and permanent easements.  Not more 
than 40 per cent are available for 10-, 15-, and 20-year contracts. 
For contracts, annual rental payments equa l 75 per cent of grazing value.  Permanent 
easements are to be purchased at fair market  value, less grazing value, while 30-year 
easements are to be purchased at 30 per cent of fa ir market value, less grazing value.  Cost 
sharing is up to 75 per cent of restoration costs on restored grassland, and up to 90 per cent on 
virgin grassland. 
(4) Cost of measure:  Funding is provided through the Comm odity Credit Corporation, for fiscal 
 years 2003-07, of up to $254 million.  
(5) Date of entry into effect:   Public Law 107-171 was signed into law on 13 May 2002.  Final 
regulations were pub lished on 6 March 2006. 
 
(6) Period of application:  1 October 2002 to 30 September 2007.  Contracts can continue 
beyond 30 September 2007, depending on their duration. 
 
(7) Products to principally benefit (if any individual product(s)): Grasslands and hay. 
  G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Environmental Quality Incentives Program (EQIP) Ground and 
Surface Water Conservation (GSWC) and Klamath River Basin Activities 
 
(2) Domestic legislation reference:   The Farm Security and Rural Investment Act of 2002, 
Public Law 107- 171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in  Annex 2, paragraph 12. 
 
 The GSWC portion of the EQIP is a voluntary pr ogram that provides assistance to farmers to 
conserve ground and surface water in their ag ricultural operations.  Through EQIP/GSWC, 
the Natural Resources Conservation Service (N RCS) provides assistance to producers to carry 
out eligible water conservation activities to improve groundwater and surface water 
conservation.  Activities may include improvi ng irrigation systems, enhancing irrigation 
efficiencies, converting to the production of less water intensive agricultural commodities, 
converting to dryland farming, improving the storage of water through such measures as 
water banking and ground water recharge, and mitigating th e effects of drought.  Activities 
must result in a net savings of groundwater or  surface water resour ces in the agricultural 
operation of the producer. 
 
 Cost-sharing may pay up to 75 per cent of the costs of certain water conservation practices, 
such as irrigation water management.  The EQIP cost share rates for limited resource 
producers and beginning farmers and ra nchers may be up to 90 per cent. 
(4) Cost of measure:  Provides Commodity Credit Corporation (CCC) funding, in addition to 
what is available for the regular EQIP program, for ground and surface water conservation 
activities.  Annual funding is authorized at:  
 • $25 million for fiscal year (FY) 2002,  
 • $45 million for FY 2003, and  
 • $60 million for FYs 2004-07.  
An additional $50 million in CCC funding is allocated to wate r conservation activities in the 
Klamath Basin in California and Oregon. 
(5) Date of entry into effect:  Public Law 107-171 was signed into law on 13 May 2002.   Final 
regulations for EQIP, which included the  Ground and Surface Water Conservation and 
Klamath River Basin Activities, we re published on 30 May 2003. 
 
(6) Period of application:  1 October 2002 to 30 September 2007. 
 
(7) Products to principally benefit (if any individual product(s)):  None 
 G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Environmental Quality Incentives Program (EQIP) Conservation 
Innovation Grants (CIG) 
 
(2) Domestic legislation reference:    The Farm Security and Ru ral Investment Act of 2002, 
Public Law 107- 171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in  Annex 2, paragraph 12. 
 
 CIG is a voluntary program intended to stimul ate the development and adoption of innovative 
conservation approaches and technologies while  leveraging the Federal investment in 
environmental enhancement and protection, in  conjunction with agricultural production.  
Under CIG, EQIP funds are used to award compe titive grants to non-Fe deral governmental or 
non-governmental organizations, Tribes, or individuals.  
 
 Funding for CIG is announced each year throug h a funding notice.  Funds for single- or multi-
year projects, not to exceed three years, w ill be awarded through a nationwide competitive 
grants process. CIG competitions emphasize pr ojects that have a goal of providing benefits 
over a large geographic area.  These projects may be watershed-based, regional, multi-State, 
or nationwide in scope.  The cost of a grant made under this program shall not exceed 50 per 
cent of the cost of the project. 
(4) Cost of measure:  Funding is done through the EQIP program.  The Chief of the Natural 
Resources Conservation Service determines the CI G funding level on an annual basis up to 
$20 million.  
(5) Date of entry into effect:  Public Law 107-171 was signed into law on 13 May 2002.  Final 
regulations were publishe d on 11 January 2005.   
 
(6) Period of application:  1 October 2004 – 30 September 2007. 
 
(7) Products to principally benefit (if any individual product(s)):  None 
  G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Agricultural Management Assistance (AMA) Program 
 
(2) Domestic legislation reference:  The AMA program is authorized under the Agricultural 
Risk Protection Act of 2000, Public Law 106-224,  and was amended by the Farm Security 
and Rural Investment Act of 2002, Public Law 107-171, 13 May 2002. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in  Annex 2, paragraph 12. 
 
 AMA provides cost-share payments to agri cultural producers to voluntarily address issues, 
such as water management, water quality, and er osion control by incorporating conservation 
practices into their farmi ng operations.  Producers may c onstruct or improve water 
management structures or irrigation structures; plant trees for windbreaks or to improve water 
quality; and mitigate risk through production diversification or resource conservation 
practices, including soil erosion control, integrat ed pest management, or transition to organic 
farming.  
 
 AMA is available in 15 states where participa tion in the Federal Crop Insurance Program is 
historically low.  They are: Connecticut, De laware, Maine, Maryland, Massachusetts, Nevada, 
New Hampshire, New Jersey, New York, Pennsyl vania, Rhode Island, Utah, Vermont, West 
Virginia, and Wyoming.  The Federal cost-share ra te is 75 per cent of the cost of an eligible 
practice, based on the per cent of actual cost, or per cent of actual cost with not-to-exceed limits, or flat rates.  Participants are paid based upon certification and verification of 
completion of the approved practice. 
 
(4) Cost of measure:  Funding is authorized at $20 million per year through fiscal year 2007 
(30 September 2007).   
 
(5) Date of entry into effect:   Public Law 107-171 was signed into law on 13 May 2002.  The 
AMA final regulation was published in the Federal Register on 9 April 2003. 
 
(6) Period of application:  1 October 2002 to 30 September 2007. 
 
(7) Products to principally benefit (if any individual product(s)): None. 
 G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Biomass Research and Development Act 
 
(2) Domestic legislation reference:   The Farm Security and Rural Investment Act of 2002, 
Public Law 107- 171, 13 May 2002, extended th e termination date of the Biomass Research 
and Development Act of 2000  to 30 September 2007. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:   Provisions are 
consistent with criteria in  Annex 2, paragraph 2. 
 
 The Biomass Research and Development Act of 20 00 directed the Secretaries of Agriculture 
and Energy to cooperate and to coordinate polic ies and procedures that promote research and 
development leading to the production of bio-b ased industrial products.  The Departments of 
Energy and USDA cooperate in funding joint research and development projects, working 
through a joint Biomass Research and Development Board. 
 
(4) Cost of measure: Provides $5 million of Commodity Credit Corporation funds for fiscal year 
2002 and $14 million annually for fiscal years 2003-07.  There are authorized to be 
appropriated $49 million annually for fiscal years 2002 – 2007. 
 
(5) Date of entry into effect: Public Law 107-171 was signed into law on 13 May 2002.  
 
(6) Period of application:  1 October 2002 to 30 September 2007. 
 
(7) Products to principally benefit (if any individual product(s)):  Various bio-based products.    G/AG/N/USA/59 
 Page 13 
 
 
  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Renewable Energy Development Pr ogram, Renewable Energy Systems 
and Energy Efficiency Improvements Grant, Guaranteed Loan, and Direct Loan Program 
 
(2) Domestic legislation reference: The Farm Security and Rural Investment Act of 2002, 
Public Law 107-171, 13 May 2002.  
 
(3) Detailed description of measure with reference to criteria, i.e. those in: Provisions are 
consistent with criteria in  Annex 2, paragraph 12. 
 
 To achieve goals related to renewable energy and environmenta l enhancements, the 
legislation establishes a loan, loan guarantee, and grant program to assist eligible farmers, 
ranchers, and rural small businesses in purchasi ng renewable energy systems and making 
energy efficiency improvements.  Grants sha ll not exceed 25 per cent of the cost of a funded 
activity, and the combined amount of a grant a nd loan (made or guaranteed) shall not exceed 
50 per cent of the costs of a funded activity. 
 
(4) Cost of measure:  Provides Commodity Credit Corporation funding of approximately 
$23 million annually for fiscal year (FY) 2003- 05, and $11 million annually for FY 2006-07. 
 
(5) Date of entry into effect: Public Law 107-171 was signed into law on 13 May 2002.  Final 
regulations were published on 18 July 2005. 
 
(6) Period of application:  1 October 2002 to 30 September 2007. 
 
(7) Products to principally benefit (if any individual product(s)):  None. 
 
 G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
  
(1) Full title of measure:  Tobacco Transition Payment Program (Tobacco Quota Buyout) 
 
(2) Domestic legislation reference: Title VI of the American Jobs Creation Act of 2004, The 
Fair and Equitable Tobacco Reform Act of 2004 (Public Law 108-357), 22 October 2004.  
 
(3) Detailed description of measure with reference to criteria, i.e. those in: Provisions are 
consistent with criteria in  Annex 2, paragraph 6. 
 
Eligible tobacco quota holders and producers w ill receive payments under this program in 10 
installments in each of the 2005 through 2014 fi scal years (FY).  Transition payments will be 
based on the Basic Quota Levels determined fo r each farm.  For quota holders, payments are 
based on ownership shares in the farm and for producers, payments are based on shares in the 
risk of producing quota tobacco on the farm during the years 2002, 2003 and 2004.  Payments 
are funded through assessments on tobacco produc t manufacturers and importers.  Payments 
are not based on current or future  tobacco production or price, and there is no requirement to 
produce any commodity.  The legislation also terminated the U.S. Department of 
Agriculture's tobacco price and income suppor t program at the end of the 2004 marketing 
season.  
 
(4) Cost of measure :  The total of payments to quota owners and producers is estimated at 
$9.6 billion, with approximately $540 million of  the total $10.14 billion maximum allowed 
assessments available to cover Commodity Credit Corporation losses on loan stocks and other 
eligible expenses. 
 
(5) Date of entry into effect:   Final regulations we re published 4 April 2005.  
 
(6) Period of application:  Fiscal years (October – September) 2005 -2014. 
 
(7) Products to principally benefit (if any individual product(s)): Tobacco quota holders and 
producers receive payments but payments are not tied to current or future production or price 
of tobacco or any other commodity.  In additi on, no particular commodity benefits because 
there is no requirement to produce to receive a payment.     G/AG/N/USA/59 
 Page 15 
 
 
  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Trade Adjustment Assistance (TAA) for Farmers 
 
(2) Domestic legislation reference:  Trade Act of 2002 (Public Law 107-210).  
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in A nnex 2, paragraph 2 (c).   
 
Under the TAA for Farmers program, USDA provides technical assistance and cash benefits to eligible producers if increased imports ar e found to contribute importantly to a price 
decline of at least 20 per cent in a current marketing year compared to a historical period.  
The TAA program covers farmers, ranchers, fi sh farmers, and fishermen competing with 
imported aquaculture products.  Only techni cal assistance is notified under Annex 2, 
paragraph 2; cash benefits are notified in Supporting Table DS:6 of the U.S. Domestic 
Support notifications. 
 
(4) Cost of measure :   Up to $90 million annually was author ized but only a small portion of that 
amount has been used for technical assistance. 
 
(5) Date of entry into effect:   Trade Act of 2002 (Public Law 107-210) was passed on 
6 August 2002.  Final regulations were published on 20 August 2003.   
 
(6) Period of application:   October 2002 – September 2007.   
 
(7) Products to principally benefit (if any individual product(s)):  All agricultural and fishery 
commodities are eligible to apply for benefits. 
 G/AG/N/USA/59 
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  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Sugar Beet Disaster Program 
 
(2) Domestic legislation reference:  Agricultural Assistance Act of 2003 (Public Law  108-7)  
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 8.   
 
The Sugar Beet Disaster Program provided payments to producers who suffered 2001- or 2002-crop year sugar beet production losses due to adverse weather conditions.  To be 
eligible, producers must have sustained at le ast a 35-per cent loss in sugar beet production. 
The loss must have been sustained due  to a weather-related condition.  
  
(4) Cost of measure :   The program was funded up to $60 million. 
 
(5) Date of entry into effect:  The Agricultural Assistance Act of 2003 (Public Law 108-7) was 
passed on 20 February 2003.  Final regu lations were publishe d on 26 June 2003. 
 
(6) Period of application:   Sign-up for the program be gan 15 September 2003, and ended 
31 October 2003.  The program ended after the funds were distributed. 
 
(7) Products to principally benefit (if any individual product(s)):  Sugar beets 
 
 
  G/AG/N/USA/59 
 Page 17 
 
 
  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Virginia Crop Losses, North Carolina Fruit and Vegetable Losses, 
under the Emergency Programs for Disaster Assistance, 2003-05 
 
(2) Domestic legislation reference:  The Military Construction Appropriations and Emergency
 Hurricane Supplemental Appropriations Act, 2005 (Public Law 108-324) 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 8.   
 
 Funds were made available for Virginia crop loss for hurricane and tropical storm damage in 
2003, and North Carolina crop loss for hurricane or tropical storm damage to fruits and 
vegetables in 2003.  Funds were additional to  payments under the Crop Disaster Program 
under the same legislation.  Producers who re ceived payments for 2004 hurricane crop losses 
under Section 32 of the Agricultural Act of 24 August 1935, were not eligible for payments 
under this program. 
  
 The damages were required to be in excess of  35 per cent of production.  As required by 
statute, the prices used to calculate disaster payments for crops insured by Federal Crop 
Insurance Coverage (FCIC) were the Actual Production History (APH) prices.  For crops not 
insured by FCIC, 5-year average market prices were used. 
 
(4) Cost of measure :   For Virginia, $50 million was made available and for North Carolina $3 
million was made available for specified crop losses. 
 
(5) Date of entry into effect:   Military Construction, Appropr iations and Emergency Hurricane 
Supplemental Appropriations Act, 2005 was enact ed on 13 October 2004.  Final regulations 
were published on 29 March 2005. 
 
(6) Period of application:   The program ended after the funds were distributed. 
 
(7) Products to principally benefit (if any individual product(s)):  Fruits, vegetables, other 
crops 
 
 
 
 
 
 
 
 
 
 G/AG/N/USA/59 
Page 18  
 
  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  Florida Citrus Disaster Program; the Florida Nursery Crop Disaster 
 Program; and the Florida Vegetable, Fruit and Tropical Fruit Disaster Program, October 2004  
(2) Domestic legislation reference:  Section 32 of the Agricultural  Adjustment Act of 
24 August 1935. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 8.   
 
Three USDA programs provided special disaster relief to producers who suffered from crop 
damage and tree losses and performed relate d cleanup in certain areas from Hurricanes 
Charley, Frances and/or Jeanne dur ing August and September of 2004.  
 Florida Citrus Disaster Program
:  Citrus producers were reimbursed on a per-acre basis for 
each eligible grove. Payments were based on th e severity of destruction in four tiers as 
determined by the path of the storms and da mage estimates.  The formula took into account 
various levels of losses (starting from losses exce eding 75 percent) correlating to the distance 
from the eyes of the hurricanes, the average production loss, tree loss, and rehabilitation and 
cleanup costs.  
Florida Nursery Crop Disaster Program:   Applicants for the program must have certified the 
number of nursery or fernery acres eligible for cleanup assistance. Cleanup consisted of 
debris removal and associated activity. Eligible  acres were those in which a minimum of $250 
per acre in expenses were needed to restore the area. 
Florida Vegetable, Fruit and Tropical Fruit Disaster Program (Includes Plasticulture):   T h e  
program provided assistance for vegetable, fruit and tropical fruit producers. A producer must 
certify to a minimum of 50 percent loss in production or plant population, as applicable, to be eligible for payments. Eligible disaster losses under this program were: plasticulture (fruit and 
vegetable); tropical fruit (carambola, longan, ly chee, and mangos); and vegetables (other than 
plasticulture).  
(4) Cost of measure :  Up to $420 million was made available. 
 
(5) Date of entry into effect :    Sign-up began in October 2004.   
 
(6) Period of application:   The program ended after the funds were distributed. 
 
(7) Products to principally benefit (if any individual product(s)): Florida fruits and vegetables 
and nursery crops. 
 
 
  G/AG/N/USA/59 
 Page 19 
 
 
  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
 
(1) Full title of measure:   Section 32 Disaster Assistance, January 2006, distributed through four 
new programs:  the Hurricane Indemnity Program  (HIP), the Tree Indemnity Program (TIP), 
the Livestock Indemnity Program (LIP), and the Feed Indemnity Program (FIP). 
 
(2) Domestic legislation reference:  Section 32 of the Agricultural  Adjustment Act of 
24 August 1935. 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 8.   
 
 To be eligible for this assistance, a producer 's loss must have occurred in one of 261 counties 
that received a primary presidential or secret arial disaster designation due to 2005 Hurricanes 
Dennis, Katrina, Ophelia, Rita or Wilma. 
Hurricane Indemnity Program - HIP provided payments to farmers who received crop 
insurance or Noninsured Crop Disaster Assistance Program (NAP) payments as a result of the 
hurricanes.  The payment was the lesser of two me thods based on:  1) actual crop insurance or 
NAP payments; or 2) actual production values adjusted for crop insu rance payments and 
expected values. 
Tree Indemnity Program  - TIP provided flat payments per acre for the re-planting and 
rehabilitation (such as pruning or staking) of perennial orchards, vines, and bushes that 
produce an annual crop, damaged as a result of the hurricanes. Loss levels were established 
by tiers of damage based on hurricane wind speed .  Timber losses were not included in this 
program.  
Feed Indemnity Program  - FIP provided payments to eligible owners and cash lessees of 
certain types of forage based livestock for feed  losses. The payment rate was equal to a set 
amount per type of livestock. 
Livestock Indemnity Program  - LIP provided payments to producers whose commercial 
livestock died as a direct result of the hurri canes.  To calculate program payments, the 
national payment rate established for each livest ock kind/type/weight range was multiplied by 
the number of applicable eligible livestock.  Separate payment rates were established for 
livestock owners and contract growers. 
 
(4) Cost of measure :  Up to $250 million. 
 
(5) Date of entry into effect:   In October 2005, the Secretary of Agriculture authorized the use 
of $250 million for crop disaster, livestock, and tr ee assistance.  Interim final regulations were 
published on 10 May 2006 and si gn-up began on 16 May 2006. 
 
(6) Period of application:   The program ended after the funds were distributed. 
 
(7) Products to principally bene fit (if any individual product(s)):  Crop, livestock, and tree 
crop producers. G/AG/N/USA/59 
Page 20  
 
  Table DS:2 
DOMESTIC SUPPORT: United States  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:  2005 Hurricanes Citrus, Fruit and Vegetable Disaster, Nursery, and 
Tropical Fruit Programs 
 
(2) Domestic legislation reference:  Emergency Agricultural Disaster Assistance Act of 2006, 
Public Law 109-234, enacted 15 June 2006 
 
(3) Detailed description of measure with reference to criteria, i.e. those in:  Provisions are 
consistent with criteria in Annex 2, paragraph 8.   
The four programs provided financial assistan ce to producers who suffered production losses 
for citrus crops and associated fruit-beari ng tree damage, other fruits and vegetables, 
commercial ornamental nursery and fernery pr oducts, and tropical fruit products, including 
related clean-up and rehabilitation costs that r esulted from hurricanes Katrina, Ophelia, Rita 
and Wilma in 2005.  Producers in certain counti es of Alabama, Arkansas, Florida, Louisiana, 
Mississippi, North Carolina, South Carolina, Tennessee and Texas were eligible for the 
program.  Loss and payment criteria varied for each program.  Eligible counties had to be 
declared natural disaster areas by either the President or the Secretary of Agriculture. 
(4) Cost of measure :   Up to $95 million was authorized. 
 
(5) Date of entry into effect:   Final regulations were published on 12 February 2007.  The sign-
up period ran from 11 December 2006 – 2 February 2007.  
 
(6) Period of application:   The program ended after the funds were distributed. 
 
(7) Products to principally benefit (if any individual product(s)):  Fruits, vegetables, tropical 
fruits, nursery products. 
 
__________