The 2018 Bipartisan Budget Act – 

What It Means for You

The Bipartisan Budget Act of 2018 calls for changes to several key U.S. Department of Agriculture 

(USDA) programs administered by the Farm Service Agency (FSA) including disaster assistance, 

dairy and cotton programs. The Act also calls for the creation of a new program to help farmers 

recover following the devastating wildfires and hurricanes that occurred in 2017. Congress made 

many of these changes to improve programs based on feedback from America’s farmers and 

ranchers. Learn more about the changes:

1

FACT SHEET

May 2018

Disaster Assistance:

2017 Wildfires and Hurricanes 

Indemnity Program (2017 WHIP)

USDA can help offset losses from 2017 hurricanes and 

devastating wildfires. The 2017 WHIP program:

• Covers crop, tree vine and bush losses in areas

 impacted by hurricanes and wildfires in 2017;

• Allows coverage of up to 95 percent of the loss for

 producers with crop insurance and up to 65 percent

 of the loss for producers who do not have insurance;

• Determines compensation based on your individual

 losses rather than an average of losses for a particular

 area (where data is available);

• May provide advance payments of up to 50 percent;

 and

• Requires you to obtain risk protection for the next

 two available crop years if you receive a payment.

More information on this program is available at 

www.fsa.usda.gov/whip. 

Emergency Assistance for Livestock, 

Honeybees and Farm-Raised Fish 

Program (ELAP)

ELAP provides financial assistance to eligible 

producers of livestock, honeybees and farm-raised fish 

for losses due to disease, certain adverse weather 

events or loss conditions, including blizzards and 

wildfires, as determined by the Secretary. The Act:

• Removes the annual $20 million funding cap

 effective with the 2017 and subsequent program

 years;

• Removes the Livestock Indemnity Program (LIP)

 from the combined ELAP, Livestock Forage Program

 (LFP) and LIP maximum per person and legal entity

 payment limitation for the 2017 and subsequent

 program years. (The $125,000 payment limitation

 still applies to ELAP and LFP combined).

If you were impacted by a natural disaster, you are 

encouraged to file claims with your local USDA 

service center. 

Farm Service Agency
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2018 BIPARTISAN BUDGET ACT - MAY 2018

Livestock Indemnity Program (LIP)

If you own livestock or are a contract grower, LIP 

provides benefits for livestock deaths in excess of 

normal mortality caused by adverse weather or by 

attacks by animals reintroduced into the wild by the 

Federal Government. The Act:

• Expands the program to cover financial losses

 sustained when livestock are not killed but are

 injured by an eligible cause of loss and sold for a

 reduced price;

• Removes $125,000 per person and legal entity

 payment limitation.

If you were impacted by a natural disaster, you are 

encouraged to file claims with your local USDA 

service center. 

Tree Assistance Program (TAP) 

TAP provides financial assistance to qualifying 

orchardists and nursery tree growers to replant or 

rehabilitate eligible trees, bushes and vines damaged 

by natural disasters. The Act: 

• Removes the per-person and legal entity program

 year payment limitation of $125,000; 

• Increases the acreage cap, which now makes

 growers eligible to be partly reimbursed for losses on

 up to 1,000 acres per program year, double the

 previous acreage.

If you were impacted by a natural disaster, you are 

encouraged to file claims with your local USDA 

service center. 

Emergency Conservation Program 

(ECP) 

ECP helps you repair damage to your farmlands 

caused by natural disasters. It also helps you to put in 

methods in place for water conservation during severe 

drought. The Act authorized $400 million in funding 

for this program.

If you were impacted by a natural disaster, you are 

encouraged to file claims with your local USDA 

service center. 
3 USDA is an equal opportunity provider, employer and lender.

2018 BIPARTISAN BUDGET ACT - MAY 2018

Agriculture Risk Coverage (ARC) 

Price Loss Coverage (PLC) Programs 

– Seed Cotton

The ARC and PLC programs assist agricultural 

producers by providing income support. The Act 

amended the 2014 Farm Bill by adding seed cotton as 

a covered commodity under the ARC and PLC 

programs, which means:

• Generic base acres will be allocated to either seed

 cotton or other covered commodities or as

 unassigned base acres;

• Unassigned base acres are not eligible for payments;

• Farm owners have the one-time opportunity to

 update the PLC yield of seed cotton;

• Current producers on farms with seed cotton base

 acres can elect either ARC or PLC;

• Producers can enroll farms with seed cotton base

 acres following the base allocation, yield update, and

 election periods.

If you have questions or are interested in participating 

in these programs, contact your local USDA service 

center. 

Safety Net Options

Margin Protection Program for Dairy 

(MPP-Dairy)

MPP-Dairy protects dairy producers by paying you 

when the difference between the national all-milk price 

and the national average feed cost (margin) falls below 

a certain dollar amount. The Act amended the 

program, which was originally part of the 2014 Farm 

Bill. The program was substantially changed. It now 

includes: 

• Reduced premiums by up to 80 percent for small and

 medium dairy farms.

 - Premiums for small and medium-size farms would

 be eliminated on $4.50 and $5 coverage levels and

 sharply reduced at all higher levels. 

 - The lower premium rates would apply to the first

 5 million pounds of a farm’s historical production,

 up from the current limit of 4 million pounds. 

• Waivers of administrative fees for socially

 disadvantaged, limited resource, beginning, and

 veteran producers; and 

• Payments calculated on a monthly rather than a

 bimonthly basis, meaning producers get paid more

 quickly and likely more often. 

You may participate in either MPP-Dairy or the Risk 

Management Agency’s Livestock Gross Margin 

(LGM) Dairy Insurance, but not both at the same 

time.