Oriental Fruit Fly Crop Loss Program — USDA Payments for Florida Quarantine Losses

Legal Authority

• Commodity Credit Corporation charter authority — CCC funds emergency assistance programs for producers adversely affected by government actions including quarantine restrictions; the statutory foundation for the OFF Program
• 7 U.S.C. § 1961 et seq. — Farm disaster loan and emergency assistance authority underlying FSA programs generally
• 7 CFR Part 756 — FSA implementing regulation for program year 2015; establishes eligibility (quarantine-caused loss, not fly damage), payment calculation methodology, $125,000 payment limit per person/entity, three-year record retention requirement, and fraud disqualification procedures

Key Mechanics

The Oriental Fruit Fly (OFF) Program compensates producers who suffered economic losses because a USDA quarantine in Miami-Dade County, Florida restricted movement and sale of their crops — compensating for government-imposed quarantine losses, not physical crop damage from the pest itself. Eligibility requires documentation that the loss was a direct result of the quarantine restriction. FSA calculates payments using documented yield losses multiplied by established crop prices, reduced by any insurance or other indemnity payments already received for the same loss. The maximum payment is $125,000 per person or legal entity for program year 2015, with attribution through related entities following standard USDA payment limitation rules. Producers who received OFF payments face no future crop insurance purchase requirement — unlike some disaster programs, OFF participation imposed no forward insurance mandate. Recipients must retain production records, sales documentation, and FSA correspondence for three years from final payment for audit purposes. The program is closed to new enrollment; Part 756 regulations remain in force to govern audits, compliance reviews, and outstanding payment actions. Fraudulent misrepresentation of losses triggers full repayment and potential criminal referral under 18 U.S.C. § 1001.

Current Rule (2026)

What This Rule Does

The Oriental fruit fly (Bactrocera dorsalis) is one of the world's most damaging agricultural pests, attacking hundreds of fruit, vegetable, and ornamental crops. When the pest was detected in Miami-Dade County, Florida, USDA imposed a quarantine restricting movement of produce out of the affected area. Because the quarantine prevented affected farmers from selling or moving their crops, USDA created the Oriental Fruit Fly (OFF) Program to compensate producers for losses caused by the government-imposed quarantine restriction — not crop damage by the fly itself, but the economic loss from being unable to move or sell quarantined produce.

Seven CFR Part 756 governs payment eligibility, application procedures, payment limits, and compliance requirements for the 2015 program year. The program is a one-time loss indemnification — it was bounded to the quarantine period and its regulations remain in force to govern outstanding payments, audits, and compliance reviews.

Key Provisions

• § 756.1 — The program compensates eligible producers who lost crops because of the Oriental fruit fly quarantine in Miami-Dade County, Florida; eligibility turns on whether the producer suffered an economic loss as a direct result of the quarantine, not on whether the fly damaged their crops
• § 756.2 — Definitions: "eligible crop" means any crop the producer was growing that was subject to the quarantine restrictions; "eligible loss" means the reduction in revenue or inability to sell or move product caused by the quarantine; "producer" means a person or business with a financial stake in the crop
• § 756.3 — § 756.7 — Application: producers must file a claim with their local FSA county office within the program's enrollment period; claims must be supported by production records, sales records, and documentation of the crop's status during the quarantine; FSA county offices verify eligibility and calculate payment amounts based on established crop prices and documented losses
• § 756.10 — Producers approved for OFF Program payments are not required to purchase NAP (Noninsured Crop Disaster Assistance Program) coverage or crop insurance for the quarantined crops in future years as a condition of having received OFF payments
• § 756.11 — Payment calculation: FSA calculates the payment based on the producer's documented yield loss and the applicable established price for the crop; payments are reduced by any insurance or other indemnity payments already received for the same loss
• § 756.12 — Payment limitation: for program year 2015, the maximum payment to any person or legal entity is $125,000; the limit covers direct payments and payments made through related entities, following the standard USDA payment limitation attribution rules
• § 756.13 — Special rules for estates and trusts: a receiver managing a bankrupt producer's estate and a trustee managing a trust are treated as having the legal authority of the underlying producer; minors who are eligible producers may receive payments through their legal guardians
• § 756.14 — Fraud: producers who knowingly misrepresent their losses, use schemes to inflate payments, or otherwise cheat the program are ineligible for all program benefits; USDA will pursue recovery and may refer the matter for criminal prosecution
• § 756.15 — Death or incapacity: if a producer dies, is declared mentally incompetent, or disappears before receiving payment, FSA may make payment to the estate, legal guardian, or successor in interest following applicable state law
• § 756.16 — Records: producers selected for FSA spot-checks must provide revenue reports, crop production records, and other supporting documentation; records must be maintained for three years from the date of final payment

How It Affects You

The Oriental Fruit Fly Program is closed to new enrollment — it covered the specific 2015 quarantine episode in Miami-Dade County. If your operation participated, the remaining obligations are:

Record retention: Keep production records, sales documentation, and any correspondence with FSA for three years from your final payment date. FSA can conduct spot-check audits during that window.

No insurance mandate: Unlike some disaster programs that require recipients to carry crop insurance going forward, OFF Program payments did not impose that condition (§ 756.10). You remain free to make your own insurance decisions for affected crops in future years.

Payment limits: The $125,000 limit applies per person or legal entity, attributing payments through related entities using standard USDA rules. If you received payments through multiple related operations, the aggregate cap applies.

Fraud recovery: FSA will pursue full repayment from producers who misrepresented their losses. Criminal prosecution is available for knowingly false claims under 18 U.S.C. § 1001.

Broader context: The OFF Program illustrates how USDA compensates farmers for losses caused by government quarantine actions — as distinct from crop insurance (market risk) or NAP (natural disaster). The Section 32 and Commodity Credit Corporation authorities that fund these emergency programs are available for future pest quarantine episodes, making the OFF Program a template for how USDA would respond to a similar future quarantine.

Statutory Authority

This rule implements:

• Commodity Credit Corporation charter authority — CCC funds emergency assistance programs for producers adversely affected by government actions; no specific statutory citation appears in the Part, indicating FSA relied on general CCC/farm emergency authority
• 7 U.S.C. § 1961 et seq. — Farm disaster loan and emergency assistance authority underlying FSA programs generally

Recent Rulemakings

No amendments since original promulgation. Program year 2015 regulations are final; no subsequent years were authorized for the OFF Program.

Pending Action