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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 farmers.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.
If you received a payment under the Wildfires and Hurricanes Indemnity Program+ (WHIP+) or the Quality Loss Adjustment Program (QLA) for crop production and/or quality losses occurring in 2018, 2019, or 2020 crop years, you are required to meet linkage requirements by obtaining federal crop insurance or Non-Insured Crop Disaster Assistance Program (NAP) coverage at the 60/100 level, or higher, for both the 2022 and 2023 crop years.
When applying for WHIP+ or QLA, form FSA-895 (Crop Insurance and/or NAP Coverage Agreement) was submitted acknowledging the requirement to obtain federal crop insurance, if available, or NAP coverage if federal crop insurance is not available. The coverage requirement is applicable to the physical location county of the crop that received WHIP+ and/or QLA benefits.
Producers should not delay contacting their federal crop insurance agent or local county FSA Office to inquire about coverage options, as failure to obtain the applicable coverage by the sales/application closing date will result in the required refund of WHIP+ benefits received on the applicable crop, plus interest. You can determine if crops are eligible for federal crop insurance or NAP by visiting the RMA website.
For more information, contact your Bolivar County USDA Service Center at 662-846-1448 or visit fsa.usda.gov.
USDA is investing up to $50 million in cooperative agreements to support historically underserved farmers and ranchers with climate-smart agriculture and forestry. The Racial Justice and Equity Conservation Cooperative Agreements are available to entities and individuals for two year projects that expand the delivery of conservation assistance to farmers who are beginning, limited resource, socially disadvantaged, and veteran farmers.
The projects should help historically underserved farmers and ranchers in implementing natural resources conservation practices that:
- Improve soil health;
- Improve water quality;
- Provide habitat for local wildlife species of concern;
- Improve the environmental and economic performance of working agricultural land; and
- Build and strengthen local food projects that provide healthy food and economic opportunities.
Projects should remove barriers to access and reach historically underserved groups through a combination of program outreach and technical assistance in managing natural resources that address one or more of the following four NRCS priority areas:
- Addressing local natural resource issues;
- Using climate-smart agriculture practices and principles;
- Encouraging existing and new partnerships; and
- Developing state and community-led conservation leadership for historically underserved agricultural producers, including educating and training students for careers in natural resources management.
Entities and individuals who provide outreach assistance to historically underserved groups are eligible, including:
- Native American tribal governments and organizations
- Nonprofit organizations
- Private and public institutions of higher education
- Individuals
Applications must be received by 11:59 p.m. Eastern Standard Time on October 25, 2021. See the grants.gov announcement for details and application instructions.
A USDA Conservation Innovation Grant (CIG) project is trying to reimagine how carbon markets can work with and for small landholders. The Family Forest Carbon Program (FFCP), led by the American Forest Foundation (AFF) and The Nature Conservancy, bases carbon payments on specific forest management practices that have been scientifically shown to increase the amount of carbon that gets removed from the atmosphere and stored in the trees and soil. The project’s goal is to facilitate the participation of nearly 300 million acres of family-owned American forests in carbon markets.
While the FFCP is still in its early stages, it has been successfully piloted in the Central Appalachian Region. The program has about 50 contracts with landowners, representing over 6,000 acres of forested land. This led to more funding, with the tech giant Amazon gifting about $7.5 million to the project in April 2020. According to the AFF, if 20% of U.S. family forest acres adopted practices that optimized carbon sequestration, about 3.5 gigatons of carbon dioxide equivalent would be sequestered by the end of the century.
CIG is a competitive program that supports the development of new tools, approaches, practices, and technologies to further natural resource conservation on private lands. Through creative problem solving and innovation, CIG partners work to address our nation's water quality, air quality, soil health and wildlife habitat challenges, all while improving agricultural operations.
For more details on how USDA’s Natural Resources Conservation Service is working with landholders to promote natural climate solutions, view the Can Family-Owned Forests Help the U.S. Achieve a Low-Carbon Future page.
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