Reimbursement Transportation Cost 

Payment Program (RTCP) for Geographically 

Disadvantaged Farmers and Ranchers

Overview

The Consolidated Appropriations Act of 

2022 re-authorized the Reimbursement 

Transportation Cost Payment Program 

(RTCP) for geographically disadvantaged 

farmers and ranchers to reimburse 

producers for a portion of the cost to 

transport agricultural commodities or inputs 

used to produce an agricultural commodity. 

Funding

RTCP is subject to appropriated funding and 

rescissions may apply. The Consolidated 

Appropriations Act of 2022 authorized 

$3 million for fiscal year 2022. 

Who is Eligible?

Producers eligible for RTCP include 

geographically disadvantaged farmers and 

ranchers in an insular area. This includes 

farmers and ranchers from the following 

states, territories and areas: 

 Hawaii; 

 Alaska; 

 Commonwealth of Puerto Rico; 

 Guam; 

 American Samoa; 

 Commonwealth of the Northern 

Mariana Islands; 

 Federated States of Micronesia; 

 Republic of the Marshall Islands; 

 Republic of Palau; and 

 Virgin Islands of the United States. 

What is Eligible? 

The following agricultural commodities are 

eligible for the RTCP: 

 Aquaculture; 

 Feed; 

 Fiber; 

 Floriculture; 

 Horticulture, including trees; 

 Insects or products thereof; and 

 Livestock, including elk, reindeer, 

bison, horses and deer. 

How it Works Eligibility 

Requirements 

To be eligible for RTCP benefits, producers 

must: 

 Be a geographically disadvantaged 

farmer or rancher producing, 

marketing and transporting an 

agricultural commodity in an 

approved area; 

 Submit an application during the 

specified period applicable for each 

fiscal year; 

More 

Information 

For more information 

about FSA programs, 

contact the closest USDA 

service center or visit 

the FSA website at fsa.

usda.gov. To locate an 

FSA county office or 

USDA service center, 

visit farmers.gov/

servicelocator.

July 2022
RTCP FOR GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS 2

 Provide proof of the amount 

of costs incurred for the 

transportation of the agricultural 

commodity or input; 

 Comply with conservation and 

wetland protection requirements 

on all their land; 

 Be a person or legal entity with 

an average adjusted gross income 

that does not exceed $900,000; 

and 

 Be a citizen or a legal resident 

alien of the United States in 

accordance with 7 CFR Part 1400 

for foreign persons. 

 Note: Commercial fishermen are 

not eligible for RTCP benefits. 

Payment Calculation 

RTCP payments will be calculated 

based on the amount of costs incurred 

by the producer for transportation of 

the agricultural commodity or inputs 

during a fiscal year and multiplied by 

the applicable percentage of allowance 

(cost-of-living allowance or COLA) 

for the applicable fiscal year in the 

applicable area.

Example: A producer incurred 

transportation costs in Hawaii for 

fiscal year 2022 totaling $15,000. 

The fiscal year 2022 percentage of 

allowance in Maui County, Hawaii, is 

25 percent. $15,000 x 25 percent = 

$3,750. 

Note: RTCP payments are subject 

to an $8,000 per producer cap per 

fiscal year; and subject to a payment 

factor if program funding availability is 

exceeded in a fiscal year. 

Transportation Rates 

Types of transportation rates used to 

determine reimbursable amounts are 

as follows: 

 Actual Rate - is based on the 

actual transportation costs 

incurred by the applicant and 

must be determined, in all cases, 

from verifiable records. No other 

type of transportation rate is 

permitted under this option for 

the same request. 

 Fixed Rate - is established by the 

FSA state committee (STC) with 

Deputy Administrator for Farm 

Programs (DAFP) concurrence 

and reflects transportation rates 

applicable to certain agricultural 

commodities or inputs used 

to produce the agricultural 

commodity. 

 Set Rate – is established by the 

STC with DAFP concurrence 

and reflects a percent of the 

total cost used to represent the 

transportation cost incurred. 

This rate will only be used if the 

inputs do not have an established 

fixed rate or if a breakdown of 

the transportation costs is not 

available. 

Applicants who have certified 

their costs, and either a fixed or 

set transportation rate is used to 

determine the reimbursable amounts, 

are subject to a compliance spot 

check to provide verifiable proof that 

the transportation of the agricultural 

commodities or inputs occurred for 

the applicable fiscal year. 

Fiscal Year 2022 

Enrollment Period

Enrollments for fiscal year 2022 will 

begin July 11, 2022, and end Sept. 2, 

2022. Since RTCP benefits are based 

on transportation costs incurred during 

a fiscal year, producers will have until 

Nov. 4, 2022 to provide supporting 

documentation of their actual 

transportation costs to replace any 

certified amounts for fiscal year 2022. 

How to Apply

Applicants must file an application 

for benefits at the FSA service center 

that maintains the farm records for 

their business. To locate an FSA county 

office or service center, visit farmers.

gov/service-center-locator . 

Applicants located in the insular 

areas of the Pacific Basin must file 

an application for benefits directly 

with the Hawaii State and Pacific 

Basin Office. Applicants in the 

insular areas of the Pacific Basin may 

submit completed RTCP documents 

to the following address during 

the announced enrollment period. 

Hawaii State and Pacific Basin Farm 

Service Agency Office P.O. Box 50065 

300 Ala Moana Blvd, Rm 5-108 

Honolulu, HI 96850 Applications and 

other documents required for RTCP 

participation may be obtained by 

calling toll-free 1-888-709-8957.

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