Missouri District 4 - FSA Drought Assistance Update

August 2012

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Missouri District 4 - FSA Drought Assistance Update

The Farm Service Agency has made the following programs available to help producers deal with the current drought. 

District 4 Offices

1405 Hwy 65 N, Suite A
Carrollton, MO  64633

104 S JFK Ave
Keytesville, MO  65261

17066 Highway 87
Boonville, MO  65233

1306 N 2nd Street
Clinton, MO  64735

743 State Route DD
Fayette, MO  65248

727 PCA Road Suite A
Warrensburg, MO  64093

120 W 19th Street
Higginsville, MO  64037

1407 W 32nd Street
Sedalia, MO  65301

2995 County Rd 1325
Moberly, MO  65270

500 Wollard Blvd.
Richmond, MO  64085

704 N Miami
Marshall, MO  65340

Emergency Conservation Program (ECP)

This program provides cost-share assistance to alleviate immediate water needs for livestock affected by drought.  Cost-share of 50% is available for permanent measures, 75% for temporary measures.  The total cost of eligible items must be at least $1,000.  Constructing or cleaning out ponds is not eligible because it will not address the immediate need for water.  Assistance for livestock used for purposes other than food or fiber is not eligible.  There must have been an adequate water source available prior to the drought which is now inadequate due to the drought.  All counties in District 4 have been approved for ECP, or have an application awaiting approval.  Contact your local FSA office for more details.

Emergency Haying or Grazing of Eligible Conservation Reserve Program (CRP) Acres

At the request local county committees, the Missouri State Committee has approved all counties in District 4 for Emergency Haying and Grazing of eligible Conservation Reserve Program (CRP) acres due to drought conditions.  This authorization is in addition to Managed Haying and Grazing of CRP, which is always available to participants, provided eligibility criteria is met. 
It’s important for CRP participants to remember that this authorization is not a free release of CRP.  Those interested in taking advantage of Emergency Haying and Grazing must apply prior to beginning any haying or grazing activity on their CRP acres.  While the payment reduction for Emergency Haying and Grazing is 10 percent of the annual rental payment for the acres involved, versus Managed Haying and Grazing’s 25 percent reduction, there are actually more stipulations for participants under Emergency Haying and Grazing provisions than under Managed.
Participants interested in utilizing Managed or Emergency Haying and Grazing must contact their FSA office prior to any haying or grazing activities taking place.  Click here for a general comparison of managed and emergency haying and grazing provisions.  For more detailed provisions and restrictions, consult your local FSA office.

Emergency Loans

Every county in FSA District 4 has received a 2012 Secretarial Disaster Declaration for drought, making all qualified farm operators in the designated areas eligible for low interest emergency (EM) loans from USDA’s Farm Service Agency (FSA), provided eligibility requirements are met.

Farmers in eligible counties have eight months from the date of the declaration to apply for loans to help cover part of their actual losses.  FSA will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. 
Loans for physical losses must be used to replace or repair damage to buildings, fences or to compensate the farmer for losses of basic livestock, stored crops, or supplies on hand, equipment, etc., that was lost due to the disaster.   Loans for production losses may also be used to buy feed, seed, fertilizer, livestock or to make payments on real estate or chattel debts.  Generally, loans for production losses cannot be approved until crops have completed their production cycle or have been harvested. 
In order to qualify, a farmer must have suffered a 30% loss in production or an actual physical loss that was essential to the successful operation of the farm.  Applicants must also be unable to obtain credit elsewhere.  You will need to know what your total production is for 2012 in order to calculate your loss.  Therefore, crop producers will need to wait until those calculations are completed before applying.  Livestock producers can apply now. 
But remember that you must apply within 8 months of the disaster declaration. For counties in District 4, applications based on this drought declaration will be accepted through March 18, 2013.  To apply, contact your local FSA office to schedule an appointment with a farm loan officer.