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USDA expects to reverse the trend of declining CRP enrollment
The U.S. Department of Agriculture (USDA) has accepted 2.8 million acres in offers from agricultural producers and private landowners for enrollment into the Conservation Reserve Program (CRP) in 2021. This year, almost 1.9 million acres in offers have been accepted through the General CRP Signup, and USDA’s Farm Service Agency (FSA) has accepted over 897,000 acres for enrollment through the Continuous Signup. The Continuous Signup remains open and CRP Grasslands Signup closed last week, so USDA expects to enroll more acres into all of CRP than the 3 million acres that are expiring.
The 4-million-acre shortfall in CRP would have had the following impacts:
- More than 359,000 acres less annual forage under CRP Grasslands;
- A loss of 1,500,000 acres of quality wildlife and pollinator less habitat for wildlife;
- 20% fewer apiaries in major production regions meeting critical forage thresholds;
- A loss of more than 4 million upland game and other grassland birds;
- About 90 million pounds of nitrogen entering waterways;
- Over 30 million tons of soil eroded, leading to increased pollution and sedimentation in streams and rivers; and
- Foregone sequestration of more than 3 million metric tons of CO2.
Like other USDA conservation programs, CRP is a voluntary program that has a variety of options that can be tailored to the specific conservation issues of a state or region and desires of the landowner. The options run the gamut from working lands such as CRP Grasslands to partnerships with states and private entities to target a specific joint concern such as water quality or quantity.
Continuous CRP Signup
Continuous CRP allows USDA to target the most sensitive land like highly erodible land, the most environmentally beneficial land like wetlands and buffers along streams and rivers, or locally identified critical habitat like State Acres For Wildlife. This targeted approach also reduces the whole-farm type enrollment in CRP that was more common when it first began and helps meet the conservation goals while maintaining the majority of the land in production agriculture. FSA has accepted offers from over 37,000 producers to enroll more than 897,000 acres through the Continuous Signup. This is double the enrollment from last year and three times the enrollment from 2018 and 2019. FSA expects this process to be completed by the end of September so contracts may start on October 1, 2021.
The growth in the targeted enrollment through Continuous Signup is due to a recommitment of USDA to incentives and partnerships that brought in nearly 1.4 million acres in 2016 and 2017. These efforts have also included the expansion of the Clean Lakes, Estuaries, and Rives Initiative 30-year (CLEAR30) from two regions to nationwide as well as moving State Acres for Wildlife Enhancement (SAFE) practices from the General to the Continuous signup. This year, offers for 20,000 acres have been submitted for CLEAR30 and 296,000 acres in SAFE practices.
General CRP Signup
FSA opened the General CRP Signup 56 in January 2021 and extended the original deadline to July 23, 2021, to enable producers to consider FSA’s new improvements to the program, which included higher rental payments and more incentivized environmental practices.
Additionally, FSA introduced a new Climate-Smart Practice Incentive to increase carbon sequestration and reduce greenhouse gas emissions. This incentive provides a 3%, 5% or 10% incentive payment based on the predominate vegetation type for the practices enrolled – from grasses to trees to wetland restoration.
Through CRP, producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. In addition to the other well-documented benefits, lands enrolled in CRP is playing a key role in mitigating impacts from climate change.
A full list of changes to CRP, including those to the Continuous and General Signups, can be found in our “What’s New with CRP” fact sheet.
More Information
In April, USDA announced several changes to CRP to increase participation while improving climate-related and other environmental benefits. CRP sequesters carbon while preserving topsoil, mitigating greenhouse gas emissions, reducing nitrogen runoff, and providing healthy habitat for wildlife.
The 2018 Farm Bill established a nationwide acreage limit for CRP, with the total number of acres that may be enrolled capped at 25 million acres in 2021 and growing to 27 million by 2023.
Under the Biden-Harris Administration, USDA is engaged in a whole-of-government effort to combat the climate crisis and conserve and protect our nation’s lands, biodiversity, and natural resources, including our soil, air, and water. Through conservation practices, USDA aims to enhance economic growth and create new streams of income for farmers, ranchers, producers, and private foresters. Successfully meeting these challenges will require USDA and our agencies to pursue a coordinated approach alongside USDA stakeholders, including state, local, and tribal governments.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
USDA to Provide Pandemic Assistance to Livestock Producers for Animal Losses
Did you know the cooling effect of a young, healthy tree is the same as having 10 air conditioners operating 20 hours every day? In addition to their cooling power, trees provide other benefits. Trees growing along the banks of rivers and streams keep the soil and nutrients on your land and ensure the water running off is cleaner downstream. These same trees also help prevent floods by slowing down water during periods of heavy rain. As the water slows, it helps recharge underground aquifers that supply fresh water for drinking wells and irrigation.
A native deciduous tree planted in the right location can keep your house or barn temperature regulated. To maximize your energy savings, plant your large deciduous trees on the east, west and northwest of your building. Doing so can help you reduce your air conditioning needs by 30 percent and heating needs by 20-50 percent depending on your location.
USDA’s Natural Resources Conservation Service works with farmers and ranchers to plant trees as part of conservation work. For more information, contact your local County USDA Service Center or visit nrcs.usda.gov.
USDA’s Farm Service Agency (FSA) announced that organic producers and handlers can apply for USDA funds to assist with the cost of receiving and maintaining organic certification through the Organic Certification Cost Share Program (OCCSP). Applications for eligible certification expenses paid between Oct. 1, 2020, and Sept. 30, 2021, are due Nov. 1, 2021.
OCCSP provides cost-share assistance to producers and handlers of agricultural products for the costs of obtaining or maintaining organic certification under the USDA’s National Organic Program. Eligible producers include any certified producers or handlers who have paid organic certification fees to a USDA-accredited certifying agent. Producers can be reimbursed for expenses including application fees, inspection costs, fees related to equivalency agreement and arrangement requirements, travel expenses for inspectors, user fees, sales assessments and postage.
For 2021, OCCSP will reimburse 50 percent of a certified operation’s allowable certification costs, up to a maximum of $500 for each of the following categories or “scopes:”
- crops
- wild crops
- livestock
- processing/handling
- State organic program fees.
Organic farmers and ranchers may apply through an FSA county office or a participating state agency.
More Information
To learn more about organic certification cost share, please visit the OCCSP webpage, visit usda.gov/organic, or contact your local USDA Service Center.
Cover crops can get you there
Whether your field goals are improved soil health, better water quality or livestock forage, planting cover crops can help meet the conservation and economic goals you’ve set for your operation. In fact, properly managed cover crops can help you score multiple field goals at the same time. You can learn more about cover crops through this short video and by contacting your local Colorado NRCS field office.
USDA’s Farm Service Agency (FSA) has implemented pre-authorized debit (PAD) for Farm Loan Program (FLP) borrowers. PAD is a voluntary and alternative method for making weekly, bi-weekly, monthly, quarterly, semi-annual or annual payments on loans.
PAD payments are pre-authorized transactions that allow the National Financial and Accounting Operations Center (NFAOC) to electronically collect loan payments from a customer’s account at a financial institution.
PAD may be useful if you use nonfarm income from regular wages or salary to make payments on loans or adjustment offers or for payments from seasonal produce stands. PAD can only be established for future payments.
To request PAD, customers, along with their financial institution, must fill out form RD 3550-28. This form has no expiration date, but a separate form RD 3550-28 must be completed for each loan to which payments are to be applied. A fillable form can be accessed on the USDA Rural Development (RD) website at rd.usda.gov/publications/regulations-guidelines. Click forms and search for “Form 3550-28.”
If you have a “filter” on the account at your financial institution, you will need to provide the financial institution with the following information: Origination ID: 1220040804, Agency Name: USDA RD DCFO.
PAD is offered by FSA at no cost. Check with your financial institution to discuss any potential cost. Preauthorized debit has no expiration date, but you can cancel at any time by submitting a written request to your local FSA office. If a preauthorized debit agreement receives three payment rejections within a three-month period, the preauthorized debit agreement will be cancelled by FSA. The payment amount and due date of your loan is not affected by a cancellation of preauthorized debit. You are responsible to ensure your full payment is made by the due date.
For more information about PAD, contact your local County USDA Service Center or visit fsa.usda.gov.
Apply through October 29, 2021
Intermediary lenders can now apply for loans through the new Heirs’ Property Relending Program (HPRP). The U.S. Department of Agriculture (USDA) is accepting applications today through October 29, 2021, and cooperatives, credit unions and nonprofit organizations are encouraged to apply for these competitive loans, which ultimately will help agricultural producers and landowners resolve heirs’ land ownership and succession issues.
Through HPRP, FSA loans up to $5 million at a 1% interest rate to eligible lenders. Then, those eligible lenders will reloan funds to heirs to help resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan.
How to Apply
Intermediary lenders should apply by the October 29, 2021 deadline using the HPRP application form (FSA-2637), which can be submitted to FSA by mail:
FSA Deputy Administrator for Farm Loan Programs
Loan Making Division
STOP 0522
1400 Independence Avenue, S.W.
Washington, DC 20250
Additionally, FSA will host a webinar on September 15 at 2 p.m. ET for interested lenders, who can register or learn more on the FSA Outreach and Education webpage.
Eligible Lenders Intermediary lenders must:
- be certified as a community development financial institution, and
- have experience and capability in making and servicing agricultural and commercial loans that are similar in nature.
If applications exceed the amount of available funds, FSA will prioritize applicants that both:
- have at least 10 years or more of experience with socially disadvantaged farmers; and
- are located in states that have adopted a statute consisting of enactment or adoption of the Uniform Partition of Heirs Property Act (UPHPA). A list of these states is available at gov/heirs/relending.
More Information
Frequently asked questions (including those in Spanish, Thai and Chinese), the August 3, 2021 overview webinar, and other resources can be found on farmers.gov/heirs/relending.
After the loans are announced, USDA will distribute information for heirs on how to apply. Information for heirs is also on farmers.gov/heirs/relending.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
USDA Sets October 12 Deadline for CFAP 2
The U.S. Department of Agriculture (USDA) is updating the Coronavirus Food Assistance Program 2 (CFAP 2) for contract producers of eligible livestock and poultry and producers of specialty crops and other sales-based commodities. CFAP 2, which assists producers who faced market disruptions in 2020 due to COVID-19, is part of USDA’s broader Pandemic Assistance for Producers initiative. Additionally, USDA’s Farm Service Agency (FSA) has set an Oct. 12 deadline for all eligible producers to apply for or modify applications for CFAP 2.
Assistance for Contract Producers
The Consolidated Appropriations Act, 2021, provides up to $1 billion for payments to contract producers of eligible livestock and poultry for revenue losses from Jan. 1, 2020, through Dec. 27, 2020. Contract producers of broilers, pullets, layers, chicken eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail may be eligible for assistance. This update includes eligible breeding stock and eggs of all eligible poultry types produced under contract.
Payments for contract producers were to be based on a comparison of eligible revenue for the periods of Jan. 1, 2019, through Dec. 27, 2019, and Jan. 1, 2020, through Dec. 27, 2020. Today’s changes mean contract producers can now elect to use eligible revenue from the period of Jan. 1, 2018, through Dec. 27, 2018, instead of that date range in 2019 if it is more representative. This change is intended to provide flexibility and make the program more equitable for contract producers who had reduced revenue in 2019 compared to a normal production year. The difference in revenue is then multiplied by 80% to determine a final payment. Payments to contract producers may be factored if total calculated payments exceed the available funding and will be made after the application period closes.
Additional flexibilities have been added to account for increases to operation size in 2020 and situations where a contract producer did not have a full period of revenue from Jan. 1 to Dec. 27 for either 2018 or 2019. Assistance is also available to new contract producers who began their farming operation in 2020.
Updates for Sales-Based Commodities
USDA is amending the CFAP 2 payment calculation for sales-based commodities, which are primarily comprised of by specialty crops, to allow producers to substitute 2018 sales for 2019 sales. Previously, payments for producers of sales-based commodities were based only on 2019 sales, with 2019 used as an approximation of the amount the producer would have expected to market in 2020. Giving producers the option to substitute 2018 sales for this approximation, including 2018 crop insurance indemnities and 2018 crop year Noninsured Disaster Assistance Program (NAP) and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments, provides additional flexibility to producers of sales-based commodities who had reduced sales in 2019.
Grass seed has also been added as an eligible sales commodity for CFAP 2. A complete list of all eligible sales-based commodities can be found at farmers.gov/cfap2/commodities. Producers of sales-based commodities can modify existing applications.
Applying for Assistance
Newly eligible producers who need to submit a CFAP 2 application or producers who need to modify an existing one can do so by contacting their local FSA office. Producers can find their local FSA office by visiting farmers.gov/service-locator. Producers can also obtain one-on-one support with applications by calling 877-508-8364. All new and modified CFAP 2 applications are due by the Oct. 12 deadline.
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