Revised-Illinois February 2022 FPAC Newsletter

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US Department of Agriculture

Illinois February FPAC Newsletter  -  February 2022

In This Issue:


Message from the State Executive Director

Please be mindful that agricultural producers who have not yet enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for the 2022 crop year have until March 15, 2022, to sign a contract.  USDA offers these two safety net programs to provide vital income support to farmers experiencing substantial declines in crop prices or revenues. 

Producers can elect coverage and enroll in ARC-County or PLC, which are both crop-by-crop, or ARC-Individual, which is for the entire farm.  Although election changes for 2022 are optional, producers must enroll through a signed contract each year.  Also, if a producer has a multi-year contract on the farm and makes an election change for 2022, it will be necessary to sign a new contract.    

If an election is not submitted by the March 15, 2022, deadline, the election remains the same as the 2021 election for crops on the farm.

I would also like to remind producers with some additional important deadlines in February:

*The Spot Market Hog Pandemic Program (SMHPP) which is part of USDA’s Pandemic Assistance for Producers initiative and addresses gaps in previous assistance for hog producers.  FSA is accepting applications December 15, 2021 through February 25, 2022. 

And for March:

* Dairy Margin Coverage Program runs from December 13, 2021 to March 25, 2022 and enables producers to get coverage through this important safety-net program for another year as well as get additional assistance through the new Supplemental DMC.

* Final date to request a 2021 crop wheat Marketing Assistance Loan is March 31, 2022.

I would also like to reaffirm that all county FSA offices, in Illinois are staffed onsite and remotely, and will continue to work with agricultural producers via telephone, email and other digital tools.  Please reach out to your local FSA office to set up an appointment now. 

Sincerely,
Scott Halpin
State Executive Director


USDA Provides Additional Pandemic Assistance to Hog Producers

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 December 15, 2021 through February 25, 2022. 

SMHPP provides assistance to hog producers who sold hogs through a negotiated sale from April 16, 2020 through September 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 September 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 December 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 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.


USDA Announces Conservation Reserve Program Signups for 2022

CRP Stream Crossing

Agricultural producers and landowners can sign up soon for the Conservation Reserve Program (CRP), a cornerstone conservation program offered by the U.S. Department of Agriculture (USDA) and a key tool in the Biden-Harris ministration effort to address climate change and achieve other natural resource benefits.  The General CRP signup will run from January 31 to March 11, and the Grassland CRP signup will run from April 4 to May 13. 

Producers and landowners enrolled 4.6 million acres into CRP signups in 2021, including 2.5 million acres in the largest Grassland CRP signup in history.   There are currently 22.1 million acres enrolled, and FSA is aiming to reach the 25.5-million-acre cap statutorily set for fiscal year 2022.   

CRP Signups 

General CRP helps 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.  

Meanwhile, Grassland CRP is a working lands program, helping landowners and operators protect grassland, including rangeland and pastureland and certain other lands, while maintaining the areas as working grazing lands.  Protecting grasslands contributes positively to the economy of many regions, provides biodiversity of plant and animal populations and provides important carbon sequestration benefits to deliver lasting climate outcomes.  

Alongside these programs, producers and landowners can enroll acres in Continuous CRP under the ongoing sign up, which includes projects available through the Conservation Reserve Enhancement Program (CREP) and State Acres for Wildlife Enhancement (SAFE).  

Climate Benefits 

Last year, FSA enacted a Climate-Smart Practice Incentive for CRP General and Continuous signups, to better target CRP on addressing climate change.  This incentive aims to increase carbon sequestration and reduce greenhouse gas emissions. CRP’s climate-smart practices include establishment of trees and permanent grasses, development of wildlife habitat and wetland restoration.  The Climate-Smart Practice Incentive is annual, and the amount is based on the benefits of each practice type.   

Additionally, in order to better target the program toward climate outcomes, USDA invested $10 million last year in the CRP Monitoring, Assessment and Evaluation (MAE) program to measure and monitor the soil carbon and climate resilience impacts of conservation practices over the life of new CRP contracts.  This will enable the agency to further refine the program and practices to provide producers tools for increased climate resilience.   

More Information on CRP 

Landowners and producers interested in CRP should contact their local USDA Service Center to learn more or to apply for the program -- for General CRP before the March 11 deadline, and for Grassland CRP before the May 13 deadline.  Service Center staff continue to work with agricultural producers via phone, email, and other digital tools.  Due to the pandemic, some USDA Service Centers are open to limited visitors.  Additionally, fact sheets and other resources are available at fsa.usda.gov/crp

Signed into law in 1985, CRP is one of the largest voluntary private-lands conservation programs in the United States.  It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production.  The program has evolved over the years, providing many conservation and economic benefits.  

About the Conservation Reserve Program    

CRP is one of the world’s largest voluntary conservation programs, with an established track record of preserving topsoil, sequestering carbon, reducing nitrogen runoff and providing healthy habitat for wildlife.        

In exchange for a yearly rental payment, agricultural producers enrolled in the program agree to remove environmentally sensitive land from production and plant species that will improve environmental health and quality.  In general, land is enrolled in CRP for 10 to 15 years, with the option of re-enrollment. FSA offers multiple CRP signups, including the general signup and continuous signup, as well as Grassland CRP and pilot programs focused on soil health and clean water. In 2021, producers and landowners enrolled more than 5.3 million acres in CRP signups, surpassing USDA’s 4-million-acre goal.       

Earlier this year, USDA announced updates to CRP including higher payment rates, new incentives for environmental practices, and a more targeted focus on the program’s role in climate change mitigation.  This included a new Climate-Smart Practice Incentive for CRP general and continuous signups that aims to increase carbon sequestration and reduce greenhouse gas emissions.  Climate-Smart CRP practices include establishment of trees and permanent grasses, development of wildlife habitat, and wetland restoration. Download the “What’s New” fact sheet  to learn more about CRP updates.  


Maintaining Good Credit History

Farm Service Agency (FSA) loans require applicants to have a satisfactory credit history.  A credit report is requested for all FSA direct farm loan applicants.  These reports are reviewed to verify outstanding debts, see if bills are paid timely and to determine the impact on cash flow.

Information on your credit report is strictly confidential and is used only as an aid in conducting FSA business.

Our farm loan staff will discuss options with you if you have an unfavorable credit report and will provide a copy of your report.  If you dispute the accuracy of the information on the credit report, it is up to you to contact the issuing credit report company to resolve any errors or inaccuracies.

There are multiple ways to remedy an unfavorable credit score:

  • Make sure to pay bills on time
    • Setting up automatic payments or automated reminders can be an effective way to remember payment due dates.
  • Pay down existing debt
  • Keep your credit card balances low
  • Avoid suddenly opening or closing existing credit accounts

FSA’s farm loan staff will guide you through the process, which may require you to reapply for a loan after improving or correcting your credit report.

For more information on FSA farm loan programs, contact your local County USDA Service Center or visit fsa.usda.gov.


Producers with Crop Insurance to Receive Premium Benefit for Cover Crops

RMA

Agricultural producers who have coverage under most crop insurance policies are eligible for a premium benefit from the U.S. Department of Agriculture (USDA) if they planted cover crops during the 2022 crop year.  To receive the benefit from this year’s Pandemic Cover Crop Program (PCCP), producers must report cover crop acreage by March 15, 2022.  

PCCP, offered by USDA’s Risk Management Agency (RMA), helps farmers maintain their cover crop systems, despite the financial challenges posed by the pandemic and is part of USDA’s Pandemic Assistance for Producers initiative, a bundle of programs to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions.  

PCCP provides premium support to producers who insured their crop with most insurance policies and planted a qualifying cover crop during the 2022 crop year.  The premium support is $5 per acre, but no more than the full premium amount owed.   

< Pandemic Cover Crop Program > 


USDA Offers Options for Signing and Sharing Documents Online

Farmers and ranchers working with USDA’s Farm Service Agency or Natural Resources Conservation Service can now sign and share documents online in just a few clicks.  By using Box or OneSpan, producers can digitally complete business transactions without leaving their homes or agricultural operations.  Both services are free, secure, and available for multiple FSA and NRCS programs.

Box is a secure, cloud-based site where FSA or NRCS documents can be managed and shared.  Producers who choose to use Box can create a username and password to access their secure Box account, where documents can be downloaded, printed, manually signed, scanned, uploaded, and shared digitally with Service Center staff.  This service is available to any FSA or NRCS customer with access to a mobile device or computer with printer connectivity.

OneSpan is a secure eSignature solution for FSA and NRCS customers.  Like Box, no software downloads or eAuthentication is required for OneSpan.  Instead, producers interested in eSignature through OneSpan can confirm their identity through two-factor authentication using a verification code sent to their mobile device or a personalized question and answer.  Once identity is confirmed, documents can be reviewed and e-signed through OneSpan via the producer’s personal email address.  Signed documents immediately become available to the appropriate Service Center staff.

Box and OneSpan are both optional services for customers interested in improved efficiency in signing and sharing documents with USDA, and they do not replace existing systems using eAuthentication for digital signature.  Instead, these tools provide additional digital options for producers to use when conducting business with FSA or NRCS.

USDA Service Center staff are available to help producers get started with Box and OneSpan through a few simple steps.  Please visit farmers.gov/service-locator to find your local office and let Service Center staff know you’re interested in signing and sharing documents through these new features.  In most cases, one quick phone call will be all that is needed to initiate the process.

Visit farmers.gov/mydocs to learn more about Box and OneSpan, steps for getting started, and additional resources for conducting business with USDA online.

To learn more about program flexibilities and Service Center status during the coronavirus pandemic, visit farmers.gov/coronavirus.


NRCS Announces 2022 RCPP Application Cutoff Date: Working Lands, Water and Wildlife Partnership Project

USDA Natural Resources Conservation Service (NRCS) will offer Regional Conservation Partnership Program (RCPP) funding for the Working Lands, Water and Wildlife Partnership Project throughout Illinois.  Illinois NRCS has partnered with the Conservation Fund to help producers address resource concerns of inadequate habitat for wildlife, water quality, and long-term protection of farmland.    

Landowners can apply for assistance through RCPP to implement practices such as silvopasture establishment, tree/shrub establishment, and cover crops.  Landowners can also receive a rental payment to help offset lost income while transitioning to organic farming or installing tree and berry crops.  Funding is also available for landowners interested in protecting and preserving their farmland through an entity-held easement that will keep the land in agriculture.

The focus of the Working Lands, Water and Wildlife Partnership project is to improve water quality, increase wildlife habitat, and preserve farmland in the following 26 counties: Boone, Cass, Champaign, DeKalb, Ford, Iroquois, Jackson, Jo Daviess, Kane, Kankakee, Kendall, LaSalle, Lee, Madison, Mason, McHenry, McLean, Ogle, Perry, Peoria, Piatt, Tazewell, Vermilion, Will, Winnebago, and Woodford.     

Financial assistance from NRCS will be available to producers in portions of Illinois with land in the above-mentioned counties.  While applications are accepted throughout the year, interested producers should submit a signed application (NRCS-CPA-1200 form) to the local NRCS field office or through the http://www.farmers.gov website using their account.  Submit by the cutoff date of March 4, 2022, to ensure applications are considered for 2022 funding.

Farmers can obtain a blank application form from the local office or visit the Illinois NRCS website.  Producers who wish to use Farmers.gov, can sign in or create a new account by clicking on “Sign up” in the upper right of the website.  To see if you are eligible to participate in the program, contact your local NRCS field office or visit the Illinois NRCS website at www.il.nrcs.usda.gov.


Farm Storage Facility Loans

FSA’s Farm Storage Facility Loan (FSFL) program provides low-interest financing to producers to build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.

The low-interest funds can be used to build or upgrade permanent facilities to store commodities.  Eligible commodities include corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as whole grain, pulse crops (lentils, chickpeas and dry peas), hay, honey, renewable biomass, fruits, nuts and vegetables for cold storage facilities, floriculture, hops, maple sap, rye, milk, cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and aquaculture (excluding systems that maintain live animals through uptake and discharge of water).  Qualified facilities include grain bins, hay barns and cold storage facilities for eligible commodities.

Loans up to $50,000 can be secured by a promissory note/security agreement and loans between $50,000 and $100,000 may require additional security.  Loans exceeding $100,000 require additional security.

Producers do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.

To learn more about the FSA Farm Storage Facility Loan, visit www.fsa.usda.gov/pricesupport  or contact your local FSA county office.   To find your local FSA county office, visit http://offices.usda.gov.  


Linkage Requirements for Payments Received Under WHIP+ and/or QLA

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 local County USDA Service Center or visit fsa.usda.gov. 


Environmental Review Required Before Project Implementation

The National Environmental Policy Act (NEPA) requires Federal agencies to consider all potential environmental impacts for federally-funded projects before the project is approved.

For all Farm Service Agency (FSA) programs, an environmental review must be completed before actions are approved, such as site preparation or ground disturbance. These programs include, but are not limited to, the Emergency Conservation Program (ECP), Farm Storage Facility Loan (FSFL) program and farm loans.  If project implementation begins before FSA has completed an environmental review, the request will be denied.  Although there are exceptions regarding the Stafford Act and emergencies, it’s important to wait until you receive written approval of your project proposal before starting any actions.

Applications cannot be approved until FSA has copies of all permits and plans.  Contact your local FSA office early in your planning process to determine what level of environmental review is required for your program application so that it can be completed timely.


Is the Noninsured Crop Disaster Assistance Program Right for You?

Farmers and ranchers rely on crop insurance to protect themselves from disasters and unforeseen events, but not all crops are insurable through the USDA’s Risk Management Agency. The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides producers another option to obtain coverage against disaster for these crops.  NAP provides financial assistance to producers of non-insured crops impacted by natural disasters that result in lower yields, crop losses, or prevents crop planting.

Commercially produced crops and agricultural commodities for which crop insurance is not available are generally eligible for NAP.   Eligible crops include those grown specifically for food, fiber, livestock consumption, biofuel or biobased products, or be commodities such as value loss crops like Christmas trees and ornamental nursery, honey, maple sap, and many others.  Contact your FSA office to see which crops are eligible in your state and county. 

Eligible causes of loss include drought, freeze, hail, excessive moisture, excessive wind or hurricanes, earthquake, flood.  These events must occur during the NAP policy coverage period, before or during harvest, and the disaster must directly affect the eligible crop.  For guidance on causes of loss not listed, contact your local FSA county office.

Interested producers must apply for coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office where their farm records are maintained.  These must be filed by the application closing date.  Closing dates vary by crop, so it is important to contact your local FSA office as soon as possible to ensure you don’t miss an application closing date. 

At the time of application, each producer will be provided a copy of the NAP Basic Provisions, which describes how NAP works and all the requirements you must follow to maintain NAP coverage.  NAP participants must provide accurate annual reports of their production in non-loss years to ensure their NAP coverage is beneficial to their individual operation. 

Producers are required to pay service fees which vary depending on the number of crops and number of counties your operation is located in.  The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties.  Premiums also apply when producers elect higher levels of coverage with a maximum premium of $15,750 per person or legal entity depending on the maximum payment limitation that may apply to the NAP covered producer.  The service fee can be waived for beginning, qualifying veteran, and limited resource farmers and rancher.  These farmers and ranchers can also receive a 50 percent reduction in the premium.

For more detailed information on NAP, download the NAP Fact Sheet.  To get started with NAP, we recommend you contact your local USDA service center.


Applying for Youth Loans

Youth

The Farm Service Agency (FSA) makes loans to youth to establish and operate agricultural income-producing projects in connection with 4-H clubs, FFA and other agricultural groups.  Projects must be planned and operated with the help of the organization advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience.  The maximum loan amount is $5,000.

Youth Loan Eligibility Requirements:

  1. Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands) or a legal resident alien
  2. Be 10 years to 20 years of age
  3. Comply with FSA’s general eligibility requirements
  4. Be unable to get a loan from other sources
  5. Conduct a modest income-producing project in a supervised program of work as outlined above
  6. Demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor.  The project supervisor must recommend the youth loan applicant, along with providing adequate supervision.

For help preparing the application forms, contact your local County USDA Service Center or visit fsa.usda.gov. 


USDA Opens 2022 Signup for Dairy Margin Coverage, Expands Program for Supplemental Production

ny dairy freestall usda flickr

As part of the Biden-Harris Administration’s ongoing efforts to support dairy farmers and rural communities, the U.S. Department of Agriculture (USDA) opened signup for the Dairy Margin Coverage (DMC) program and expanded the program to allow dairy producers to better protect their operations by enrolling supplemental production.  This signup period – which runs from December 13, 2021 to March 25, 2022 – enables producers to get coverage

As part of the Biden-Harris Administration’s ongoing efforts to support dairy farmers and rural communities, the U.S. Department of Agriculture (USDA) opened signup for the Dairy Margin Coverage (DMC) program and expanded the program to allow dairy producers to better protect their operations by enrolling supplemental production.  This signup period – which runs from December 13, 2021 to March 25, 2022 – enables producers to get coverage through this important safety-net program for another year as well as get additional assistance through the new Supplemental DMC.

Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production.  Now, they will be able to retroactively receive payments for that supplemental production.  Additionally, USDA’s Farm Service Agency (FSA) updated how feed costs are calculated, which will make the program more reflective of actual dairy producer expenses.  

Supplemental DMC Enrollment 

Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketings which will result in additional payments.   Producers will be required to provide FSA with their 2019 Milk Marketing Statement. 

Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Participating dairy operations with supplemental production may receive retroactive supplemental payments for 2021 in addition to payments based on their established production history.  

Supplemental DMC will require a revision to a producer’s 2021 DMC contract and must occur before enrollment in DMC for the 2022 program year.  Producers will be able to revise 2021 DMC contracts and then apply for 2022 DMC by contacting their local USDA Service Center.  

DMC 2022 Enrollment 

After making any revisions to 2021 DMC contracts for Supplemental DMC, producers can sign up for 2022 coverage.  DMC provides eligible dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed falls below a certain level.  So far in 2021, DMC payments have triggered for January through October for more than $1.0 billion.  

For DMC enrollment, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms and pay the $100 administrative fee.  The fee is waived for farmers who are considered limited resource, beginning, socially disadvantaged, or a military veteran.   To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool

Updates to Feed Costs   

USDA is also changing the DMC feed cost formula to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay.   FSA will calculate payments using 100% premium alfalfa hay rather than 50%.   The amended feed cost formula will make DMC payments more reflective of actual dairy producer expenses.   

Additional Dairy Assistance  

This announcement is part of a broader package to help the dairy industry respond to the pandemic and other challenges.   USDA is also amending Dairy Indemnity Payment Program (DIPP) regulations to add provisions for the indemnification of cows that are likely to be not marketable for longer durations, as a result, for example, of per- and polyfluoroalkyl substances.  FSA also worked closely with USDA's Natural Resources Conservation Service to target assistance through the Environmental Quality Incentives Program) and other conservation programs to help producers safely dispose of and address resource concerns created by affected cows.  Other recent dairy announcements include $350 million through the Pandemic Market Volatility Assistance Program and $400 million for the Dairy Donation Program. 

Additional details on these changes to DMC and DIPP can be found in a rule that will be published soon in the Federal Register.   This rule also included information on the new Oriental Fruit Fly Program as well as changes to FSA conservation programs.  A copy of the rule is available here

More Information   

To learn more or to participate in DMC or DIPP, producers should contact their local USDA Service Center. Service Center staff continue to work with agricultural producers via phone, email and other digital tools.  Because of the pandemic, some are open to limited visitors.  Producers should contact their Service Center to set up an in-person or phone appointment.  Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus

 


Double Cropping

Each year, state committees review and approve or disapprove county committee recommended changes or additions to specific combinations of crops.

Double-cropping is approved when two specific crops have the capability to be planted and carried to maturity for the intended use, as reported by the producer, on the same acreage within a crop year under normal growing conditions.  The specific combination of crops recommended by the county committee must be approved by the state committee.

Double-cropping is approved in Illinois on a county-by-county basis.  Contact your local FSA Office for a list of approved double-cropping combinations for your county. 

A crop following a cover crop terminated according to termination guidelines is approved double cropping and these combinations do not have to be approved by the state committee.


FSA Outlines MAL and LDP Policy

The 2018 Farm Bill extends loan authority through 2023 for Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs).

MALs and LDPs provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool and honey.  MALs provide you with interim financing after harvest to help you meet cash flow needs without having to sell your commodities when market prices are typically at harvest-time lows.  A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available.  Marketing loan provisions and LDPs are not available for sugar and extra-long staple cotton.

FSA is now accepting requests for 2021 MALs and LDPs for all eligible commodities after harvest.  Requests for loans and LDPs shall be made on or before the final availability date for the respective commodities.

Commodity certificates are available to loan holders who have outstanding nonrecourse loans for wheat, upland cotton, rice, feed grains, pulse crops (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds.  These certificates can be purchased at the posted county price (or adjusted world price or national posted price) for the quantity of commodity under loan, and must be immediately exchanged for the collateral, satisfying the loan.  MALs redeemed with commodity certificates are not subject to Adjusted Gross Income provisions.

To be considered eligible for an LDP, you must have form CCC-633EZ, Page 1 on file at your local FSA Office before losing beneficial interest in the crop.  Pages 2, 3 or 4 of the form must be submitted when payment is requested.

Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.

Adjusted Gross Income (AGI) provisions state that if your total applicable three-year average AGI exceeds $900,000, then you’re not eligible to receive an MLG or LDP.   You must have a valid CCC-941 on file to earn a market gain of LDP.  The AGI does not apply to MALs redeemed with commodity certificate exchange.

For more information and additional eligibility requirements, contact your local County USDA Service Center or visit fsa.usda.gov. 


Transitioning Expiring CRP Land to Beginning, Veteran or Underserved Farmers and Ranchers

CRP contract holders are encouraged to transition their Conservation Reserve Program (CRP) acres to beginning, veteran or socially disadvantaged farmers or ranchers through the Transition Incentives Program (TIP).  TIP provides annual rental payments to the landowner or operator for up to two additional years after the CRP contract expires.

CRP contract holders no longer need to be a retired or retiring owner or operator to transition their land.  TIP participants must agree to sell, have a contract to sell, or agree to lease long term (at least five years) land enrolled in an expiring CRP contract to a beginning, veteran, or socially disadvantaged farmer or rancher who is not a family member.

Beginning, veteran or social disadvantaged farmers and ranchers and CRP participants may enroll in TIP beginning two years before the expiration date of the CRP contract.  The TIP application must be submitted prior to completing the lease or sale of the affected lands.  New landowners or renters that return the land to production must use sustainable grazing or farming methods.

For more information, contact your local County USDA Service Center or visit fsa.usda.gov.


Update Your Records

FSA is cleaning up our producer record database and needs your help. Please report any changes of address, zip code, phone number, email address or an incorrect name or business name on file to our office.  You should also report changes in your farm operation, like the addition of a farm by lease or purchase.  You should also report any changes to your operation in which you reorganize to form a Trust, LLC or other legal entity. 

FSA and NRCS program participants are required to promptly report changes in their farming operation to the County Committee in writing and to update their Farm Operating Plan on form CCC-902.


Unauthorized Disposition of Grain

If loan grain has been disposed of through feeding, selling or any other form of disposal without prior written authorization from the county office staff, it is considered unauthorized disposition.  The financial penalties for unauthorized dispositions are severe and a producer’s name will be placed on a loan violation list for a two-year period.  Always call before you haul any grain under loan.


Maintaining the Quality of Farm-Stored Loan Grain

Bins are ideally designed to hold a level volume of grain.  When bins are overfilled and grain is heaped up, airflow is hindered and the chance of spoilage increases.

Producers who take out marketing assistance loans and use the farm-stored grain as collateral should remember that they are responsible for maintaining the quality of the grain through the term of the loan.


February Interest Rates and Important Dates

February Interest Rates & Important Dates


Illinois/ FPAC

3500 Wabash Ave.
Springfield, Illinois 62711
Phone: 217-241-6600
Fax: 217-855-800-1760
Natural Resources Conservation Service
2118 W. Park Court
Champaign, Illinois 61821
217-353-6600

Farm Service Agency
State Executive Director
Scott Halpin

Risk Management Agency
Regional Director
Brian Frieden

Natural Resources Conservation Service
State Conservationist
Ivan Dozier