Manager's Message
FSA Notes – Scott Newberg, County Executive Director
It seems that each year the Holiday Season sneaks up on me and here we are with Christmas just a few days away. As we look back on 2021, we know we had our challenges with Mother Nature and the lack of rain received but we move forward into 2022 with anticipation of a new year upon us.
Your FSA office is turning the page of the new year right along with you. There are some new programs that have been recently announced. I encourage you to take a few moments and get up to speed of the FSA news listed below in order to not miss out on a program that could be a benefit to you.
All the best to you and your family this Holiday Season!
~ Scott, Sheryl, Marilyn, Melissa, Sabrina, Karen, Mary and Jodi
Organic and Transitional Education and Certification Program (OTECP)
Are you a producer or handler of agricultural commodities that are certified organic or are you transitioning your operation to certified organic? You may be eligible for financial assistance to cover expenses paid during the 2020, 2021, and 2022 fiscal years through USDA’s Organic and Transitional Education and Certification Program (OTECP). This new program is part of USDA’s Pandemic Assistance for Producers initiative. For more detailed information, check out the article further down in the bulletin. The deadline to file an application is Feb. 4, 2022.
Need to upgrade a piece of equipment for handling your commodities? Check out our FSFL Program
Grain carts and trucks, semi-trailers (hopper, live bottom, end dump), bulk tanks, baggers, bale wrappers, skid steers, sugar beet carts, and augers are just a few pieces of farm equipment that can be purchased using the FSFL program with FSA along with our traditional bins, dryers and airflow systems. Terms range from 3 to 12 years with very favorable interest rates (0.75% - 1.50%) currently. This is a great program to take advantage of! However, it does have some steps involved so plan accordingly when looking into your project. Contact our office for more details at 320.235.3540.
Dairy Producers
Recently, USDA announced the availability of Supplemental Dairy Margin Coverage. Dairy producers can purchase buy-up coverage for 75% of the difference between their actual 2019 production and established DMC production history (not to exceed a combined total of 5 million pounds). The enrollment period for Supplemental DMC and 2022 DMC coverage will be Dec. 13, 2021 – Feb. 18, 2022. Please notify the FSA office of changes to your operation along with a record of your 2019 milk marketing.
Livestock Forage Program (LFP)
Due to the drought of 2021, Kandiyohi County has been authorized to implement the Livestock Forage Disaster Program (LFP). Signup for LFP continues through Jan. 31, 2022. If you had pasture loss due to drought conditions you may be eligible for a payment. Contact our office for more details.
Farm Records & Other Changes
Producers who are buying, selling, or renting different land need to notify the County Office as soon as possible after the transaction. Please provide a copy of the recorded deed for any purchased land. Also, if you will be renting new land, we will need a copy of the lease before we can add you to the farm and/or give you any information about the farms such as maps, base acres, yields, etc. FSA is not notified by the courthouse of these sales. Updating records now will save you time later.
ARCPLC
The ARCPLC farm program signup began on Oct. 18, 2021 and will run through Mar. 15, 2022. You can make your election and enrollment now and if you decide to change it, you have until the deadline to revise your application. Along with this enrollment, you have the choice to change your election choices on the farm. For more information on the programs to elect your farms into, please go to ARC/PLC Program. Knowing we will have a heavy spring workload, we encourage you to reach out to our office at your earliest convenience on getting your farms signed up for the 2022 ARCPLC farm program. Remember, you can always change your election right up to the Mar. 15, 2022 deadline.
~ Scott
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Important Dates and Deadlines
Dec. 24 - USDA offices are closed in observance of Christmas Day
Dec. 31 - Noninsured Crop Disaster Assistance Program closing deadline for honey and maple sap.
Dec. 31 - USDA offices are closed in observance of New Year’s Day
Deadlines through the Winter Months
Jan. 2 - Deadline to report total number of honeybee colonies to FSA
Jan. 15 - Annual acreage reporting deadline for Apples
Jan. 17 - USDA offices are closed for the Birthday of Martin Luther King Jr.
Jan. 31 - Deadline to apply for Livestock Forage Disaster Program (LFP)
Jan. 31 - Deadline to apply for water and feed transportation assistance through ELAP Jan. 31 - Deadline to apply for Loan or LDP for Mohair, Unshorn Pelts (LDP Only) or Wool
Feb. 4 - Deadline to apply for Organic and Transitional Education and Certification Program (OTECP)
Feb. 18 - Deadline for Dairy Margin Coverage and Supplemental Dairy Margin Coverage Program
Feb. 25 - Deadline for Spot Market Hog Pandemic Program
Coming up this Spring
Mar. 15 - Enrollment/Election Period ends for 2022 ARC/PLC Program
Mar. 15 - Deadline to Purchase 2022 NAP Coverage for Spring-Seeded Crops
Mar. 31 - Deadline to Apply for a Commodity Loan for 2021-Crop Wheat, Barley, Oats, Canola, Honey and Flax
May 31 - Deadline to Apply for a Commodity Loan for 2021 Crop Year - Corn, Soybeans, Sunflowers, & Dry Peas
Farm Loan Program Interest Rates
2.000% - Farm Operating Loans, Direct
3.000% - Farm Ownership Loans, Direct
2.500% - Farm Ownership, Joint Financing
1.500% - Farm Ownership Loans, Beginning Farmer Down Payment
Farm Storage Facility Loan Program Interest Rates
0.750% - Farm Storage Facility Loans, 3-Year
1.125% - Farm Storage Facility Loans, 5-Year
1.500% - Farm Storage Facility Loans, 7-Year
1.625% - Farm Storage Facility Loans, 10-Year
1.625% - Farm Storage Facility Loans, 12-Year
December 2021 Commodity Loan Interest Rates
1.125% - Commodity Loans
The U.S. Department of Agriculture (USDA) will provide pandemic assistance to cover certification and education expenses to agricultural producers who are certified organic or transitioning to organic. USDA will make $20 million available through the new Organic and Transitional Education and Certification Program (OTECP) as part of USDA’s broader Pandemic Assistance for Producers initiative, which provides new, broader and more equitable opportunities for farmers, ranchers and producers.
During the COVID-19 pandemic, certified organic and transitional operations faced challenges due to loss of markets, and increased costs and labor shortages, in addition to costs related to obtaining or renewing their organic certification, which producers and handlers of conventionally grown commodities do not incur. Transitional operations also faced the financial challenge of implementing practices required to obtain organic certification without being able to obtain the premium prices normally received for certified organic commodities.
Eligible Expenses
OTECP funding is provided through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Certified operations and transitional operations may apply for OTECP for eligible expenses paid during the 2020, 2021 and 2022 fiscal years. For each year, OTECP covers 25% of a certified operation’s eligible certification expenses, up to $250 per certification category (crop, livestock, wild crop, handling and State Organic Program fee). This includes application fees, inspection fees, USDA organic certification costs, state organic program fees and more.
Crop and livestock operations transitioning to organic production may be eligible for 75% of a transitional operation’s eligible expenses, up to $750, for each year. This includes fees charged by a certifying agent or consultant for pre-certification inspections and development of an organic system plan.
For both certified operations and transitional operations, OTECP covers 75% of the registration fees, up to $200, per year, for educational events that include content related to organic production and handling in order to assist operations in increasing their knowledge of production and marketing practices that can improve their operations, increase resilience and expand available marketing opportunities. Additionally, both certified and transitional operations may be eligible for 75% of the expense of soil testing required under the National Organic Program (NOP) to document micronutrient deficiency, not to exceed $100 per year.
Applying for Assistance
Signup for 2020 and 2021 OTECP will be Nov. 8, 2021, through Feb. 4, 2022. Producers apply through their local Farm Service Agency (FSA) office and can also obtain one-on-one support with applications by calling 877-508-8364. Visit farmers.gov/otecp to learn more.
Additional Organic Support
OTECP builds upon USDA’s Organic Certification Cost Share Program (OCCSP) which provides cost share assistance of 50%, up to a maximum of $500 per scope, to producers and handlers of agricultural products who are obtaining or renewing their certification under the NOP. This year’s application period for OCCSP ended Nov. 1, 2021.
Additionally, USDA’s Risk Management Agency announced improvements to the Whole-Farm Revenue Program including increasing expansion limits for organic producers to the higher of $500,000 or 35%. Previously, small and medium size organic operations were held to the same 35% limit to expansion as conventional practice producers. Also, producers can now report acreage as certified organic, or as acreage in transition to organic, when the producer has requested an organic certification by the acreage reporting date.
To learn more about USDA’s assistance for organic producers, visit usda.gov/organic.
As USDA looks for long-term solutions to build back a better food system, the Department is committed to delivery of financial assistance to farmers, ranchers and agricultural producers and businesses who have been impacted by COVID-19 market disruptions. Since USDA rolled out the Pandemic Assistance for Producers initiative in March, the Department has provided support to America’s farmers and ranchers including:
For more details, please visit www.farmers.gov/pandemic-assistance.
FSA Began Taking Applications on Dec. 15
The U.S. Department of Agriculture (USDA) announced a new program to assist hog producers who sold hogs through a negotiated sale during the period in which these producers faced the greatest reduction in market prices due to the COVID-19 pandemic. The Spot Market Hog Pandemic Program (SMHPP) is part of USDA’s Pandemic Assistance for Producers initiative and addresses gaps in previous assistance for hog producers. USDA’s Farm Service Agency (FSA) will accept applications Dec. 15, 2021 through Feb. 25, 2022.
SMHPP provides assistance to hog producers who sold hogs through a negotiated sale from Apr. 16, 2020 through Sept. 1, 2020. Negotiated sale, or negotiated formula sale, means a sale of hogs by a producer to a packer under which the base price for the hogs is determined by seller-buyer interaction and agreement on a delivery day. USDA is offering SMHPP as packer production was reduced due to the COVID-19 pandemic due to employee illness and supply chain issues, resulting in fewer negotiated hogs being procured and subsequent lower market prices.
The Department has set aside up to $50 million in pandemic assistance funds through the Coronavirus Aid, Relief and Economic Security (CARES) Act for SMHPP.
SMHPP Program Details
Eligible hogs include hogs sold through a negotiated sale by producers between April 16, 2020, and Sept. 1, 2020. To be eligible, the producer must be a person or legal entity who has ownership in the hogs and whose production facilities are located in the United States, including U.S. territories. Contract producers, federal, state and local governments, including public schools and packers are not eligible for SMHPP. SMHPP payments will be calculated by multiplying the number of head of eligible hogs, not to exceed 10,000 head, by the payment rate of $54 per head. FSA will issue payments to eligible hog producers as applications are received and approved.
Applying for Assistance
Eligible hog producers can apply for SMHPP starting Dec. 15, 2021, by completing the FSA-940, Spot Market Hog Pandemic Program application. Additional documentation may be required. Visit farmers.gov/smhpp for a copy of the Notice of Funds Availability, information on applicant eligibility and more information on how to apply. Applications can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means. To find your local FSA office, visit farmers.gov/service-locator. Hog producers can also call 877-508-8364 to speak directly with a USDA employee ready to offer assistance.
The Farm Loan team in McLeod County is already working on operating loans for spring 2022 and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year.
Microloans are a simplified loan program that will provide up to $50,000 for both Farm Ownership and Operating Microloans to eligible applicants. These loans, targeted for smaller and non-traditional operations, can be used for operating expenses, starting a new operation, purchasing equipment, and other needs associated with a farming operation. Loans to beginning farmers and members of underserved groups are a priority.
Other types of loans available include:
Marketing Assistance Loans allow producers to use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. These loans provide cash flow to the producer and allow them to market the crop when prices may be more advantageous.
Farm Storage Facility Loans can be used to build permanent structures used to store eligible commodities, for storage and handling trucks, or portable or permanent handling equipment. A variety of structures are eligible under this loan, including bunker silos, grain bins, hay storage structures, and refrigerated structures for vegetables and fruit. A producer may borrow up to $500,000 per loan.
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