Answers to some frequently asked questions...
Questions
Answers
What does the CAIS program do?
The CAIS program protects farm operations from both large and small income declines by combining stabilization assistance (formerly NISA) and disaster assistance (formerly OFIDP) into one program.
CAIS is built on the philosophy that governments and producers share in the cost of replacing lost income. For smaller losses, producers and governments share the burden equally. As margins decline the share of government funds increases to 80 percent of the margin decline.
How does the CAIS program cover my losses?
The CAIS program covers or protects a producer's historical income or margin. CAIS calculates a reference margin for each producer. If the producer's margin in the program year falls below the reference margin a payment is triggered. Government funds are paid out based on the level of protection you have chosen and the size of the margin decline.
Payment calculations are divided into three tiers, with Tier 3 representing the deepest loss and the highest level of government support. Payments are calculated based on paying out funds for the largest portion of your loss first (Tier 3), and then adding payments for smaller losses (Tier 2 and Tier 1) based on the coverage level selected.
If your margin declines, government funds are paid based on any portion of your decline that falls within Tier 3 first. Payments are made at a rate of 80 cents on every dollar of margin decline in this tier.
Based on your level of coverage, and after covering your margin declines within Tier 3, government payments will be made to cover the loss occurring in Tier 2. Payments are made at a rate of 70 cents on every dollar of margin decline in this tier.
Based on your level of coverage, and after covering your margin declines within Tier 2 and Tier 3, government payments will then be made to cover the loss occurring within Tier 1. Payments are made at a rate of 50 cents on every dollar of margin decline in this tier.
