Hurricane Michael Fishery Disaster proposal · This proposal is submitted for the funding available...
Transcript of Hurricane Michael Fishery Disaster proposal · This proposal is submitted for the funding available...
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Hurricane Michael Fishery Disaster Funding Proposal
Project Narrative
INTRODUCTION
Hurricane Michael made
landfall near Mexico Beach,
Florida on October 10, 2018 as a
Category 5 hurricane with
maximum sustained winds of
160 mph. Hurricane Michael
was one of the strongest storms
on record to ever hit Florida and
has had a significant impact on
Florida's fishing industry in an
area of the state where fishing
is an important component of our economy and is a traditional activity. The force of Hurricane
Michael's impact on our commercial and recreational fisheries was significant. Florida’s
commercial fishing and seafood industry and recreational fishing sector in the impacted areas
had revenues of $1.1 billion. Saltwater anglers in West Florida spent $2 billion on fishing trips,
which directly supported 17,000 jobs. For-hire operations alone employed 2,700 workers. In
West Florida, the bait and tackle businesses and for-hire operations had combined revenues of
$1.1 billion and employed 15,600 workers in 2017.
Damages at St. Andrew’s Marina. Photo: Florida Sea Grant/Scott Jackson
Damages in Mexico Beach. Photo: Florida Sea Grant/Scott Jackson
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The description of damages to commercial fishermen, the seafood industry and for-hire and
recreational fishing businesses is informed by an on-the-ground rapid assessment conducted by
Florida Sea Grant with assistance from NOAA Fisheries during December 2018.
NOAA Fisheries conducted a phone survey with fishermen and fishing businesses in the Florida
Panhandle and Big Bend area in mid-December 2018 to quantify the damages from Hurricane
Michael. A total of 307 businesses and individuals (out of 1,004 contacted) participated in the
rapid assessment, which was completed over a two-week period. These estimates are
extrapolated from information collected from respondents. Overall, 62% of firms and 55% of
vessel owners that responded sustained damages. Total estimated damages to vessels and
businesses was $45.0 million with revenue losses estimated at $23.9 million.
The Florida Department of Agriculture and Consumer Services conducted a phone survey in
January of 2019 of all commercial aquaculture facilities in the counties impacted by Hurricane
Michael and found that 82% of the 112 farms in the damage area, both upland and marine,
experienced losses. Crop
mortality represented
93% of the economic
impact for shellfish
farms, which
experienced an average
revenue loss of $76,805
per farmer. The total
estimated damage to the
shellfish aquaculture
farmers in Bay, Gulf,
Franklin and Wakulla
counties was estimated
to be $6.5 million.
On October 23, 2018, Governor Scott requested that the US Department of Commerce Secretary Wilbur Ross declare a fishery disaster in Florida (Bay, Franklin, Gulf and Wakulla Counties). Secretary Ross declared a fishery disaster on October 31, 2018. NOAA Fisheries allocated $7,812,000 to the State of Florida to respond to the 2018 Hurricane Michael disaster. This proposal is submitted for the funding available to the State of Florida for the 2018 Hurricane Michael disaster.
FWC developed the following plan in consultation with fishing industry organizations and
individuals. The list of organizations consulted included the Organized Fishermen of Florida,
American Sportfishing Association, Southeastern Fisheries Association, Florida Sea Grant,
Florida Guides Association, Coastal Conservation Association Florida.
The following is a list of categories of projects that will strengthen the long-term economic and
environmental sustainability of Florida fisheries. These projects were developed in partnership
with leaders of the commercial fishing, wholesale dealer, charter fishing, as well as bait and
Aquaculture Damages at Alligator Harbor. Photo: Florida Sea Grant/Erik Lovestrand
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tackle communities. Methodologies for accountability for payments made to commercial
fishers, seafood wholesale dealers, charter captains, and bait and tackle operators will be
further developed with consultation and approval of the NOAA Fisheries Southeast Regional
Office prior to any payments being made.
*From NOAA Fisheries Hurricane Michael Fact Sheet. Aquaculture loss estimated by FDACS.
PROJECTS
The following allocations were taken from the rapid assessment conducted by NOAA following
the storm. Staffing and indirect costs are for part-time employees for up to two years to
administer projects.
The following projects include direct payouts commercial fishers, wholesale dealers, charter
captains, and shellfish aquaculturists to help them recoup a portion of lost revenue as well as
financial relief for incurred costs associated with lost vessels and/or facility damage. These
projects are proposed to provide some assurance that they can continue to contribute to
Florida’s valuable fishing industry.
Vessel/Facility Damage Revenue Loss Total Losses
Sector
*Vessel and Facility
Damage in millions of $
Percent of Total Allocation
*Revenue Loss in
millions $ Percent of Total Allocation
Total Losses in millions $
Percent of Total
Total Sector Allocation
Commercial Fishers
11.6 19% $1,475,751 9.3 15% $1,183,146 20.9 34% $2,658,897
Wholesale Dealers
11.3 19% $1,437,585 2.0 3% $254,440 13.3 22% $1,692,025
Charter Captain
9.2 15% $1,170,424 2.7 4% $343,494 11.9 19% $1,513,917
Marina Infrastructure
8.3 14% $1,055,926 8.3 14% $1,055,926
Aquaculture 6.5 11% $826,930 6.5 11% $826,930
Staffing and Indirect
$64,305
Total 40.4 63% $5,139,686 20.5 37% $2,608,010 55.1 $7,812,000
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Direct Payouts to Commercial Fishers-$2,658,897
Commercial Fisher Revenue Loss
Qualifications Documentation
Florida resident FWC will qualify based on information in licensing system
Applicant had a valid Saltwater Products License at time of storm
FWC will qualify based on information in licensing system
Applicant had landings in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and landings one year after storm
FWC will qualify based on information in trip ticket system
Landings must have been entered into FWC trip ticket system
FWC will qualify based on information in trip ticket system
Received no other compensation with the exception of loan(s) Applicant will self-certify
Applicant had less value in landings after storm than average of up to three years prior to storm
FWC will qualify based on information in trip ticket system
Loss of revenues was due to storm Applicant will self-certify
Commercial Fisher Vessel Damage
Qualifications Documentation
Florida resident FWC will qualify based on information in licensing system
Applicant had a valid Saltwater Products License at time of storm
FWC will qualify based on information in licensing system
Applicant had landings in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and landings one year after storm
FWC will qualify based on information in trip ticket system
Landings must have been entered into FWC trip ticket system
FWC will qualify based on information in trip ticket system
Vessel damage was due to storm Applicant will self-certify
Some or all of losses were uninsured Applicant will self-certify
Damages were evaluated by independent party
Insurance adjuster claim damages report is to be available upon request and documents are to be maintained for at least three years after payment for this project
A project is proposed to provide direct payouts to commercial fishermen impacted by revenue loss to help the sustainability of this crucial component of the fishery. Fishermen in the Counties most impacted by Hurricane Michael (Bay, Franklin, Gulf and Wakulla Counties), on average, sustained damages of $18,400 per vessel in addition to an estimated combined facilities and business insured and uninsured loss of $11.6 million. This is in addition to the estimated $9.3 million loss in revenues. Many of the commercial fishermen in Bay County were out of work due to damaged or lost vessels. The Gulf County commercial fishery was devastated with facility damage, vessel damage, and loss revenue. One of the large wholesale
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dealers in the county had no way to produce ice for over a week. In Franklin County, most vessels were moved inland and avoided any significant damage, but loss of power affected revenues. Commercial fishers continue to be important economic engines of the community and essential components of the fishing industry.
This program is proposed to pay commercial fishers (SPL holders) financially impacted by
Hurricane Michael. Applications will be sent to all license holders who have current
addresses on file who meet initial eligibility requirements, which include residing in the
State of Florida, possessing a valid SPL, and having reported landings in eligible Counties
(Bay, Gulf, Franklin or Wakulla) both before (not to exceed three years) and one year after
Hurricane Michael made landfall in Florida. The landings must have been reported in FWC’s
trip ticket system. For SPL holders who also hold a commercial wholesale dealer (WD)
license, landings sold to themselves will be removed from this project. Since these “self-
sold” landings will be utilized in the proposed Direct Payouts to Commercial Wholesale
Dealers project, they will be removed from this project to prohibit applicants from receiving
financial relief twice for the same landings.
Additionally, applicants will be able to request financial relief from incurred costs associated
with uninsured vessel damage. Vessel reimbursement qualifications are still being
determined and will be done in consultation with the NOAA Fisheries Southeast Regional
Office. Applicants will be required to attest to the accuracy of the landings reported and
information they provide on the application and declaring that they were financially
affected as a commercial fisher by Hurricane Michael. Applications will be mailed to entities
using the active mailing address on file with the FWC License and Permitting database and
advertised for a one-month period. If the applicant has an email address on file with FWC,
they will be notified by email when the application has been mailed. Applicants will be
allowed to submit their application either electronically or by mail. A postmarked deadline
will be utilized to provide a fair submission process. While the application submission
window is open, applicants will be able to contact FWC regarding any disputes with the
reported landings data. A team of FWC employees with access to FWC’s trip ticket database
will work with applicants to resolve any disputes.
Payouts will be processed for submitted applications that have reported landings in at least
one of the four Counties at least one year prior to Hurricane Michael making landfall and
after the storm. Pre-storm landings data will still go back as far as three years. This landings
requirement ensures the paid applicant was an active commercial fisher before and after
Hurricane Michael. Applications will be sent to SPL holders that meet the initial
requirements listed above. This is done to allow the SPL holder to review their landings FWC
has recorded, ensuring they are accurate and if not, dispute potential inaccuracies.
Therefore, some SPL holders will receive an application, but not be eligible to receive a
payout. This disclosure will be stated on the application.
Individual payouts will be calculated based on total losses identified from applicants.
Revenue losses will be calculated based on the decrease in landings from the averaged years
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before the storm (not to exceed three years) compared to the one year after the storm.
Payments will be made on a pro-rated basis, based on the amount of funds available for this
project.
Direct Payouts to Commercial Wholesale Dealers-$1,692,025
Wholesale Dealer Revenue Loss
Qualifications Documentation
Florida resident FWC will qualify based on information in licensing system
Applicant had a valid Seafood Wholesale Dealer's License at time of storm
FWC will qualify based on information in licensing system
Applicant had saltwater product purchases in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and saltwater product purchases one year after storm
FWC will qualify based on information in trip ticket system
Saltwater product purchases must have been entered into FWC trip ticket system
FWC will qualify based on information in trip ticket system
Applicant had loss of revenue after the storm as compared to up to a three year average before the storm
FWC will index losses based on trip tickets that have been submitted
Losses in revenues were the result of the storm Applicant will self-certify
Seafood Wholesale Dealer Facility Damage or Vessel Damage
Qualifications Documentation
Florida resident FWC will qualify based on information in licensing system
Applicant had a valid Seafood Wholesale Dealer's License at time of storm
FWC will qualify based on information in licensing system
Applicant had saltwater product purchases in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and saltwater product purchases one year after storm
FWC will qualify based on information in trip ticket system
Saltwater product purchases must have been entered into FWC trip ticket system
FWC will qualify based on information in trip ticket system
Facility must be one inspected by FDACS
FWC will quality based on information in FDACS Wholesale Dealer Inspection database
Facility and/or vessel damage was due to storm Applicant will self-certify
Some or all of losses were uninsured Applicant will self-certify
Damages were evaluated by independent party
Insurance adjuster claim damages report is to be available upon request and documents are to be maintained for at least three years after payment for this project
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This project is proposed to ensure sustainability and resiliency of commercial wholesale dealers.
Commercial fishers holding a saltwater products license can only legally sell their product to a
licensed wholesale dealer. Seafood processors and dealers sustained estimated damages of
$11.3 million of insured and uninsured vessel/facilities damages and reported a loss of
revenues of $2.0 million. Anyone wishing to sell a saltwater product to the public must possess
a retail dealer’s license. Therefore, commercial fishers, wholesale dealers, and retail dealers are
dependent upon each other to provide the public with wholesome, healthy Florida seafood.
The proposed project includes direct payouts to wholesale dealers to ensure the public’s
continued access to Florida seafood.
For the proposed direct payouts to seafood commercial wholesale dealers (WD License
holders) financially impacted by Hurricane Michael applications will be sent to all WD
licensees who have current addresses on file who meet initial eligibility requirements, which
includes a physical location in the State of Florida, possessing a valid WD license or Shellfish
Processing Certificate, and having reported saltwater product purchases in eligible Counties
(Bay, Gulf, Franklin, or Wakulla) both before (not to exceed three years) and one year after
Hurricane Michael made landfall in Florida. The saltwater product purchases must have
been reported in FWC’s trip ticket system or the Florida Department of Agriculture and
Consumer Services (FDACS) shellfish processing plant production report system. Applicants
will be required to provide their business’ revenue both before (not to exceed three years)
and after the storm on an October 10 – October 9 timeframe.
Additionally, the applicant will be able to request financial relief from incurred costs
associated with uninsured vessel and/or facility damage. Vessel reimbursement
qualifications are still being determined and will be done in consultation with the NOAA
Fisheries Southeast Regional Office. Facility damage reimbursement will be done at a 50%
match for uninsured repair made to facilities from October 11, 2018 – December 31, 2019
and will only be eligible for applicants whose facility has been inspected by FDACS.
Applicants would need to certify that reimbursements would be made on uninsured
damages or improvements to the facility or equipment; and would need to supply proof of
costs of repairs or improvements. Applicants would also have to certify that they have
received no other governmental financial assistance, except government loans, for the
repair or improvement to their facility. Applicants will be required to attest to the accuracy
of the information they provide on the application and declaring that they were financially
affected as a commercial wholesale dealer by Hurricane Michael. FWC will index loss
revenues based on trip tickets sales submitted by the wholesale dealers. Applications will be
mailed to entities using the active mailing address on file with the FWC License and
Permitting database and advertised for a one-month period. If the applicant has an email
address on file with FWC, they will be notified by email when the application has been
mailed. Applicants will be allowed to submit their application either electronically or by
mail. A postmarked deadline will be utilized to provide a fair submission process. While the
application submission window is open applicants will be able to contact FWC regarding any
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questions regarding the project.
Individual payouts will be calculated based on total losses (revenue indexed from trip ticket
sales, vessel damage, facility damage) identified from applicants. Revenue losses will be
calculated based on the decrease in trip ticket sales before the storm, not to exceed three
years, compared to the one year after the storm. Payments will be made on a pro-rated
basis, based on the amount of funds available for this project.
Direct Payouts to Licensed Charter/For-Hire Businesses-$1,513,917
Charter Fishing Business Revenue Loss
Qualifications Documentation
Florida resident FWC will qualify based on information in licensing system
Applicant resided in Bay, Gulf, Franklin, or Wakulla County during storm
FWC will qualify based on information in licensing system
Applicant had a valid Charter License at time of storm FWC will qualify based on information in licensing system
Applicant had loss of revenue after the storm as compared to up to a three year average before the storm
Income tax forms for up to two years after the storm and three years prior to the storm will be available upon request. These records will be maintained for at least three years after payment from FWC.
Losses in revenues were the result of the storm Applicant will self-certify
Charter Fishing Business Vessel Damage
Qualifications Documentation
Florida resident FWC will qualify based on information in licensing system
Applicant resided in Bay, Gulf, Franklin, or Wakulla County during storm
FWC will qualify based on information in licensing system
Applicant had a valid Charter License at time of storm FWC will qualify based on information in licensing system
Vessel damage was due to storm Applicant will self-certify
Some or all of losses were uninsured Applicant will self-certify
Damages were evaluated by independent party
Insurance adjuster claim damages report is to be available upon request and documents are to be maintained for at least three years after payment for this project
This direct payout program is proposed for charter captains to ensure continued viability of this
industry. For-hire insured and uninsured damages to vessels/facilities were estimated to be
$9.2 million, while loss in revenue was estimated to be $2.7 million. The charter fishing industry
is an important economic component of many communities, providing access to fishing
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opportunities for tourists and residents. Many of these businesses were disrupted because of
the storm, and direct payouts to these captains will help ensure their continued service to
recreational fishers.
Direct payouts are proposed to be made to minimize the impact that Hurricane Michael may
have had on licensed charter captains’ revenues to help ensure that they can continue to
provide their services to recreational fishers in Florida in the future. Applications will be sent to
all licensed charter holders who were registered in Bay, Franklin, Gulf or Wakulla County and
have current addresses on file between October 2017 to October 2018. Applicants must
provide their revenue generated from their charter business both before (not to exceed three
years) and one year after the storm on an October 10 – October 9 timeframe. Applicants will be
required to attest to the accuracy of the information they provide on the application and
declaring that they were financially affected as a charter/for-hire business by Hurricane
Michael, as well as certifying that they will produce documents, such as income tax forms, for
the time period specified if requested by FWC and/or NOAA for up to three years after
receiving payment.
Additionally, the applicant will be able to request financial relief from incurred costs associated
with uninsured vessels. Vessel reimbursement qualifications are still being determined and will
be done in consultation with the NOAA Fisheries Southeast Regional Office. Applications will be
mailed to entities using the active mailing address on file with the FWC License and Permitting
database, derived originally from the Bay, Franklin, Gulf and Wakulla County Tax Collector’s
Offices, and advertised for a one-month period. If the applicant has an email address on file
with FWC, they will be notified by email when the application has been mailed. Applicants will
be allowed to submit their application either electronically or by mail. A postmarked deadline
will be utilized to provide a fair submission process. While the application submission window is
open applicants will be able to contact FWC regarding any questions regarding the project. This
project relies on truthful income-related information being provided by the applicants.
Therefore, the application will clearly state that the applicant must be prepared to show proof
of the charter-generated income they attested to on their application, such as tax return
documents, if FWC and/or NOAA requests such information.
Individual payouts will be calculated based on total losses identified from applicants.
Payments will be made on a pro-rated basis, based on the amount of funds available for this
project.
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Marina Infrastructure-$1,055,926
Marina Infrastructure Damage
Qualifications Documentation
Marina must be located in Bay, Gulf, Franklin, or Wakulla County No documentation needed
Marina must have received damage during storm Applicant will self-certify
Some or all of losses were uninsured Applicant will self-certify
Damages were evaluated by independent party
Insurance adjuster claim damages report is to be available upon request and documents are to be maintained for at least three years after payment for this project
Access to fishing from marinas is important to Florida’s fishing economy. As Hurricane Michael
made landfall in Florida, public fishing access infrastructure at marinas was damaged. In Bay
County, some infrastructure suffered a complete loss. Private entities that manage this
infrastructure have requested assistance in repairing or rebuilding crucial infrastructure,
allowing for normal operations to continue. In many cases, other means of recovery have been
denied or have failed, causing these operations to be totally or partially inactive. Estimated
damage to the infrastructure outlined is estimated to be at least $8.3 million.
This program is proposed to reimburse marina operators for up to a 50% match for uninsured
repair and improvements made to facilities from October 10, 2018 through December 31, 2019.
Successful grant applicants will be those with physical addresses within Bay, Franklin, Gulf, or
Wakulla County. Mailing address information for marinas will be queried with the assistance of
the four Counties. Applicants would need to certify that reimbursements would be made on
uninsured damages or improvements to the facility or equipment; and would need to supply
proof of costs of repairs or improvements, as well as be able to produce such documents for
these facilities if requested by FWC and/or NOAA for up to three years after receiving payment.
Applicants would also have to certify that they have received no other governmental financial
assistance, except government loans for the repair or improvement to their facility. Payments
will be made on a pro-rated basis, based on the amount of funds available for this project. A
team of FWC employees would be utilized to evaluate grantee eligibility.
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Direct Payouts for Shellfish Aquaculturists-$826,930
Crop Loss Revenue Reimbursement and Equipment Cost-Share Program-Administered by the Florida Department of Agriculture and Consumer Services
Qualifications Documentation
Applicant had a valid Aquaculture Certificate of Registration at time of storm
No documentation needed
Applicant currently possesses a valid Aquaculture Certificate of Registration (FY20-21)
No documentation needed
Applicant possesses a State-Owned Sovereignty Submerged Land Aquaculture Lease or Authorized User Acknowledgement for a parcel located in Gulf, Bay, Franklin or Wakulla counties.
No documentation needed
Applicant completed a 2018 Internal Audit of a State-Owned Sovereignty Submerged Land Aquaculture Lease
No documentation needed
Applicants, possessing an Inperpetuity lease or a certified shellfish hatchery or nursery, provide revenue loss documentation.
U.S. Department of Treasury, Internal Revenue Service annual income tax return (Form 1040) for 2018 and up to five years before and one year after the storm.
Applicant incurred crop losses due to the storm. Applicant will self-certify
Applicant possessed an active United States Department of Agriculture Noninsured Crop Disaster Assistance Program (NAP) policy
Applicant will self-certify
This project will be coordinated with the Florida Department of Agriculture and Consumer
Services through a contract with FWC. A crop loss revenue reimbursement program is
proposed to provide economic recovery of the marine aquaculture industry in Bay, Franklin,
Gulf, and Wakulla counties which was heavily impacted by Hurricane Michael. Based on a
Hurricane Michael damage assessment survey conducted in January 2019 by the Florida
Department of Agriculture and Consumer Services Division of Aquaculture (FDACS), 82%
certified shellfish farmers in those counties sustained an average direct loss of $76,800 per
leaseholder, with 93% of damages due to crop loss. The timing of the hurricane was
especially damaging for the shellfish farms due the bi-annual crop cycle of oyster farms in
the Florida panhandle which have mainly, high-value market-ready product during October.
In addition, the revenue loss was especially damaging for this new industry in the process of
building production, where a majority of farms were less than 3-years old and an entire
growing season of revenue was lost. While equipment losses were only 7% of total
damages, this figure does not account for labor investment required to retrieve, clean, and
reinstall displaced gear, lines, anchors and markers.
This program is proposed to pay shellfish leaseholders for crop losses incurred due to Hurricane Michael. Applications will be sent to all entities who have valid Aquaculture Certificates of Registration who meet initial eligibility requirements, which includes holding a current, holding an Aquaculture Submerged Land Lease or Authorized User Acknowledgement with FDACS at
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the time of Hurricane Michael (FY18-19) and currently (FY20-21) for the same parcel, and incompletion of a 2018 Internal Audit of an Existing Sovereignty Submerged Land Shellfish Aquaculture Lease, which is required for all bottom and water column leaseholders and includes planting of shellfish products along with valid receipts. In perpetuity leaseholders and shellfish nurseries and hatcheries must have held an Aquaculture Certificate of Registration at the time of Hurricane Michael and must hold a current, valid Aquaculture Certificate of Registration, provide cultch planting and/or sales receipts and demonstrate a decrease in revenues in 2019, compared to the previous three years in lieu of the 2018 audit which isn’t required for this lease or farm type. Applications will be mailed to entities using the active mailing address on file within the FDACS Submerged Land Leasing database and advertised for a one-month period. If the applicant has an email address on file with FDACS, they will also be notified by email when the application has been mailed. Applicants will be allowed to submit their application either electronically or by mail. A postmarked deadline will be utilized to provide a fair submission process. Individual reimbursements for eligible shellfish aquaculture farmers will be calculated as
follows. Applicants will be reimbursed at a proportional loss value of the total funding
amount. Each lease’s loss value will be determined by crops planted minus crops harvested,
as reported in the 2018 Audits, following deductions for average mortality and per piece
value, as established by the U.S. Department of Agriculture Farm Service Agency (USDA FSA)
Noninsured Crop Disaster Assistant Program (NAP) policy during the 2019 federal crop year.
While most shellfish farmers in Bay, Gulf, Franklin and Wakulla counties were either
ineligible or not covered by NAP insurance, some farmers did receive NAP and/or Wildfire
and Hurricane Indemnity Program (WHIP) payments. FDACS will coordinate with USDA FSA
to verify individual NAP and WHIP claims to ensure that any insurance payments are
deducted from individual payouts. Applicants will be required to attest that they
experienced crop loss due to Hurricane Michael and disclose any NAP policy claims. A team
of FDACS staff will be utilized to evaluate applicant eligibility and FWC will mail the checks
for this direct payout program.