Farmers and ranchers have asked the National Flood Insurance Program to begin distributing flood insurance payments to the first of its $5 billion flood relief funds, the National Farmers Union said Tuesday.
The $5.8 billion, five-year flood-insurance program will be funded by a 2.2 percent levy on farmers and rancher households with a farm income between $50,000 and $100,000.
The tax would also apply to farmers and ranching families that have a combined income of at least $100 million.
“The first-time taxpayers who are eligible to receive flood insurance will be the first to get the payments,” said John Henson, president of the National Union of Farmers.
“If you don’t have an acreage under $500,000, you can get some relief from this flood insurance program, too.
The more acres you have, the more you can afford.
That’s where the interest rate will be reduced,” Henson said.
The flood insurance tax would not apply to properties owned by people with disabilities, elderly and veterans, or small businesses.
In its announcement, the NFU said the money would be distributed to the “tens of millions of taxpayers who already have flood insurance coverage and who are struggling to make ends meet.”
The program is funded by $3.5 billion in federal flood-aid, and $3 billion in state and local taxes.
It has a $250,000 threshold for eligibility.
It was approved by Congress last week.
The NFU also said it had begun negotiations with the state and federal governments to create an online tool to help flood-affected homeowners, and that the agency had “made progress” in working with states and other agencies.
The National Flood Relief Act of 2017 would also provide funds for flood relief for homeowners and small businesses with incomes of at $50 to $100.
The National Farmers union has been working with several groups to build a flood insurance application website.
The group has asked the NFS to provide the application information and the information for farmers and their families to help build the site.
The group also is seeking help with marketing the flood-relief program.
