Purchase of catastrophic risk protection is not required to be eligible for payments. Producers who do not purchase catastrophic insurance must sign a waiver that they will not be eligible for Federal disaster assistance programs. A Production Flexibility Contract can be obtained on eligible contract acreage of the cropland coming out from under a CRP contract. Payment rates for Production Flexibility Contracts on CRP lands will be determined according to the same procedures as for other Contract Acreage. Any commodity except fruits and vegetables can be grown on Contract Acreage.
Producers can also plant program crops on the farm's non-Contract Acreage.
A last minute change was made by the Congressional Conference to allow alfalfa production on Contract Acreage. In addition, unrestricted haying and grazing can occur on Contract Acreage. The 1996 FAIR Act continues a safety net, although lower than now. All production of the commodity from the participating farm is eligible for Nonrecourse Marketing Assistance Loans, not just the production from the Contract Acreage. A maximum loan rate is set for each commodity.