Illinois-March 2022 FPAC Newsletter

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US Department of Agriculture

Illinois March FPAC Newsletter  -  March 2022

In This Issue:


Message from the State Executive Director

As USDA moves forward, I am very pleased to announce that beginning Monday, March 14, 2022, FSA County Offices will be opened for walk ins with no masking required.  Please be mindful that this is subject to change.

While you are gearing up for spring planting, and checking things off your TO DO list, I'd like to ask that you please check your records and see if you have enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for the 2022 crop year.  You only 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 of a few other very important deadlines for March:

FSA deadline for certification of eligible cover crop acres for Pandemic Cover Crop Program is March 15, 2022.

The USDA’s Risk Management Agency (RMA) reminds Illinois producers that:     

       •  The final date to apply for crop insurance coverage on spring planted                                   crops is March 15, 2022.

  • Also the final date for growers to apply for coverage under the Whole-Farm Revenue Protection policy and the new Micro Farm Program is March 15, 2022.
  • Current policyholders who wish to make changes to their existing coverage also have until the March 15, 2022, sales closing date to do so.
  • Final date to request a 2021 crop wheat Marketing Assistance Loan is March 31, 2022.

And an FSA program deadline for April: *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 April 15, 2022

Always remember to take that extra step in your everyday routine and stay safe on and around the farm.

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 April 15, 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.


Using FSA Direct Farm Ownership Loans for Construction

Farm Loan Programs

The USDA Farm Service Agency’s (FSA) Direct Farm Ownership loans are a resource to help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations.

There are three types of Direct Farm Ownership Loans: regular, down payment and joint financing.  FSA also offers a Direct Farm Ownership Microloan option for smaller financial needs up to $50,000.

Direct Farm Ownership Loans can be used to construct, purchase or improve farm dwellings, service buildings or other facilities, and to make improvements essential to an operation.

Applicants must provide FSA with an estimate of the total cost of all planned development that completely describe the work, prior to loan approval and must show proof of sufficient funds to pay for the total cost of all planned development at or before loan closing.  In some instances, applicants may be asked to provide certified plans, specifications or contract documents.  The applicant cannot incur any debts for materials or labor or make any expenditures for development purposes prior to loan closing with the expectation of being reimbursed from FSA funds.

Construction and development work may be performed either by the contract method or the borrower method.  Under the contract method, construction and development contractors perform work according to a written contract with the applicant or borrower.  If applying for a direct loan to finance a construction project, the applicant must obtain a surety bond that guarantees both payment and performance in the amount of the construction contract from a construction contractor.

A surety bond is required when a contract exceeds $100,000.  An authorized agency official determines that a surety bond appears advisable to protect the borrower against default of the contractor or a contract provides for partial payments in excess of the amount of 60 percent of the value of the work in place.

Under the borrower method, the applicant or borrower will perform the construction and development work.  The borrower method may only be used when the authorized agency official determines, based on information from the applicant, that the applicant possesses or arranges to obtain the necessary skill and managerial ability to complete the work satisfactorily and that such work will not interfere with the applicant’s farming operation or work schedule.

Potential applicants should visit with FSA early in the initial project planning process to ensure environmental compliance.

For more eligibility requirements and information about FSA Loan programs, contact your [local County USDA Service Center or visit fsa.usda.gov.


FSA Offers Joint Financing Option on Direct Farm Ownership Loans

The USDA Farm Service Agency’s (FSA) Direct Farm Ownership loans can help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations.

There are three types of Direct Farm Ownership Loans: regular, down payment and joint financing. FSA also offers a Direct Farm Ownership Microloan option for smaller financial needs up to $50,000.

Joint financing allows FSA to provide more farmers and ranchers with access to capital. FSA lends up to 50 percent of the total amount financed.  A commercial lender, a State program or the seller of the property being purchased, provides the balance of loan funds, with or without an FSA guarantee.  The maximum loan amount for a joint financing loan is $600,000, and the repayment period for the loan is up to 40 years.

The operation must be an eligible farm enterprise. Farm Ownership loan funds cannot be used to finance nonfarm enterprises and all applicants must be able to meet general eligibility requirements.  Loan applicants are also required to have participated in the business operations of a farm or ranch for at least three years out of the 10 years prior to the date the application is submitted.  The applicant must show documentation that their participation in the business operation of the farm or ranch was not solely as a laborer.

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


Crop Insurance Deadline Nears in Illinois for Spring Planted Crops, Whole-Farm Revenue Protection, and Micro Farm Program

RMA

 

The USDA’s Risk Management Agency (RMA) reminds Illinois producers that March 15, 2022, is the final date to apply for crop insurance coverage on spring planted crops. March 15 is also the final date for growers to apply for coverage under the Whole-Farm Revenue Protection policy and the new Micro Farm Program.  Current policyholders who wish to make changes to their existing coverage also have until the March 15 sales closing date to do so.

Federal crop insurance is critical to the farm safety net.  It helps producers and owners manage revenue risks and strengthens the rural economy.   Producers may select from several coverage options, including yield coverage, revenue protection, and area risk policies.  More information on available coverage, by state and county, can be found in the Actuarial Information Browser on the RMA website.

RMA encourages producers to visit their crop insurance agent, prior to March 15, 2022 with questions and to learn specific details for the 2022 crop year.

RMA is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through Approved Insurance Providers (AIPs) to deliver services, including processing policies, claims and agreements.  RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers.  On farmers.gov, you can find more information on USDA’s response and relief for producers and use other tools and resources.

Crop insurance is sold and delivered solely through private crop insurance agents.   A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator.   Learn more about crop insurance and the modern farm safety net at rma.usda.gov.

USDA touches the lives of all Americans each day in so many positive ways.  Under 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 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. 


FSA is Accepting CRP Continuous Enrollment Offers

The Farm Service Agency (FSA) is accepting offers for specific conservation practices under the Conservation Reserve Program (CRP) Continuous Signup.

In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and to plant species that will improve environmental health and quality.  The program’s long-term goal is to re-establish valuable land cover to improve water quality, prevent soil erosion, and reduce loss of wildlife habitat. Contracts for land enrolled in CRP are 10-15 years in length.

Under continuous CRP signup, environmentally sensitive land devoted to certain conservation practices can be enrolled in CRP at any time.  Offers for continuous enrollment are not subject to competitive bidding during specific periods.  Instead they are automatically accepted provided the land and producer meet certain eligibility requirements and the enrollment levels do not exceed the statutory cap.

For more information, including a list of acceptable practices, contact your local County USDA Service Center or visit fsa.usda.gov/crp.


Noninsured Crop Coverage Helps Producers Manage Risks

The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) helps you manage risk through coverage for both crop losses and crop planting that was prevented due to natural disasters.  The eligible or “noninsured” crops include agricultural commodities not covered by federal crop insurance.   

You must be enrolled in the program and have purchased coverage for the eligible crop in the crop year in which the loss incurred to receive program benefits following a qualifying natural disaster.

NAP Buy-Up Coverage Option

NAP offers higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price.  Buy-up levels of NAP coverage are available if the producer can show at least one year of previously successfully growing the crop for which coverage is being requested.

Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production.

NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. 

Buy-up coverage is not available for crops intended for grazing.

NAP Service Fees

For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. 

NAP Enhancements for Qualified Military Veterans

Qualified veteran farmers or ranchers are eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria.

Beginning, limited resource and targeted underserved farmers or ranchers remain eligible for a waiver of NAP service fees and premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.

For NAP application, eligibility and related program information, contact your local County USDA Service Center or visit fsa.usda.gov/nap. 


Maintaining the Quality of Farm-Stored Loan Grain

Silos

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.


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

 


USDA Fruit, Vegetable and Wild Rice Planting Rules Unchanged in 2018 Farm Bill

Fruit, vegetable and wild rice producers will continue to follow the same rules for certain Farm Service Agency (FSA) programs.

If you intend to participate in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, you are subject to an acre-for-acre payment reduction when fruits and nuts, vegetables or wild rice are planted on payment acres of a farm.  Payment reductions do not apply to mung beans, dry peas, lentils or chickpeas.  Planting fruits, vegetables or wild rice on acres not considered payment acres will not result in a payment reduction.  Farms that are eligible to participate in ARC/PLC but are not enrolled for a particular year may plant unlimited fruits, vegetables and wild rice for that year but will not receive ARC/PLC payments. Eligibility for succeeding years is not affected.

Planting and harvesting fruits, vegetables and wild rice on ARC/PLC acreage is subject to the acre-for-acre payment reduction when those crops are planted on more than 15 percent of the base acres of an ARC enrolled farm using the county coverage or PLC, or more than 35 percent of the base acres of an ARC enrolled farm using the individual coverage.

Fruits, vegetables and wild rice that are planted in a double-cropping practice will not cause a payment reduction if the farm is in a double-cropping region as designated by the USDA’s Commodity Credit Corporation.


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. 

Fruit, vegetable and wild rice producers will continue to follow the same rules for certain Farm Service Agency (FSA) programs.

If you intend to participate in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, you are subject to an acre-for-acre payment reduction when fruits and nuts, vegetables or wild rice are planted on payment acres of a farm.   Payment reductions do not apply to mung beans, dry peas, lentils or chickpeas.  Planting fruits, vegetables or wild rice on acres not considered payment acres will not result in a payment reduction.  Farms that are eligible to participate in ARC/PLC but are not enrolled for a particular year may plant unlimited fruits, vegetables and wild rice for that year but will not receive ARC/PLC payments.  Eligibility for succeeding years is not affected.

Planting and harvesting fruits, vegetables and wild rice on ARC/PLC acreage is subject to the acre-for-acre payment reduction when those crops are planted on more than 15 percent of the base acres of an ARC enrolled farm using the county coverage or PLC, or more than 35 percent of the base acres of an ARC enrolled farm using the individual coverage.

Fruits, vegetables and wild rice that are planted in a double-cropping practice will not cause a payment reduction if the farm is in a double-cropping region as designated by the USDA’s Commodity Credit Corporation.

Fruit, vegetable and wild rice producers will continue to follow the same rules for certain Farm Service Agency (FSA) programs.

If you intend to participate in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, you are subject to an acre-for-acre payment reduction when fruits and nuts, vegetables or wild rice are planted on payment acres of a farm. Payment reductions do not apply to mung beans, dry peas, lentils or chickpeas.  Planting fruits, vegetables or wild rice on acres not considered payment acres will not result in a payment reduction.  Farms that are eligible to participate in ARC/PLC but are not enrolled for a particular year may plant unlimited fruits, vegetables and wild rice for that year but will not receive ARC/PLC payments.  Eligibility for succeeding years is not affected.

Planting and harvesting fruits, vegetables and wild rice on ARC/PLC acreage is subject to the acre-for-acre payment reduction when those crops are planted on more than 15 percent of the base acres of an ARC enrolled farm using the county coverage or PLC, or more than 35 percent of the base acres of an ARC enrolled farm using the individual coverage.

Fruits, vegetables and wild rice that are planted in a double-cropping practice will not cause a payment reduction if the farm is in a double-cropping region as designated by the USDA’s Commodity Credit Corporation.


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.


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. 


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.


The Importance of Responding to NASS Surveys

USDA’s National Agricultural Statistics Service (NASS) conducts hundreds of surveys every year and prepares reports covering virtually every aspect of U.S. agriculture.

If you receive a survey questionnaire, please respond quickly and online if possible.

The results of the surveys help determine the structure of USDA farm programs, such as soil rental rates for the Conservation Reserve Program and prices and yields used for the Agriculture Risk Coverage and Price Loss Coverage programs.  This county-level data is critical for USDA farm payment determinations.  Survey responses also help associations, businesses and policymakers advocate for their industry and help educate others on the importance of agriculture.

NASS safeguards the privacy of all respondents and publishes only aggregate data, ensuring that no individual operation or producer can be identified.

NASS data is available online at nass.usda.gov/Publications and through the searchable Quick Stats database.  Watch a video on how NASS data is used at youtube.com/watch?v=m-4zjnh26io&feature=youtu.be.


A Message from the State Conservationist

Are you a livestock operator in Illinois who’s ‘into’ rotational grazing, forage innovations, and pasture management? If so, you might recognize the name MATT BUNGER.  Matt Bunger was recently recognized as the Pastureland Conservationist of the Year at the American Forage and Grassland Council (AFGC) event.  The National Pastureland Award is given each year to recognize employees of USDA’s Natural Resources Conservation Service (NRCS) who show outstanding service to NRCS, to their clients, and to science through development and implementation of sound technology transfer on grazing land resources.

Matt has more than 33 years of service with NRCS with over 15 years as a Grazing Specialist.  He currently serves as the Illinois State Grazing Lands Specialist.  During his career Matt worked with agricultural groups and public agencies to build the grazing infrastructure in Illinois.  In addition, Matt’s influence extends beyond Illinois borders as he helped create and update grazing conservation practice standards, guidance documents, and training curriculum used throughout the region.  If you’ve been involved with the Pasture Project or attended a pasture walk or field event for grazing or pasture, you probably know Matt.  He’s been a mainstay speaker at State and Regional grazing conferences for years.  He goes to great lengths to support and promote the benefits of grazing for clean water and healthy soils as well as profitability strategies designed for beef, dairy, and other livestock operations.  Matt has connected and built NRCS partnerships with countless people and customers to the betterment of our planet’s natural resources.

Illinois NRCS is grateful to have such an outstanding advocate for grazing over the years.  Matt’s conservation efforts and impact on the landscape will be recognized for years to come.  Congratulations again, Matt Bunger.

If you are interested in exploring some new strategies or solutions for your grazing operation, let NRCS provide both the technical and financial help you need.  Contact your USDA Service Center today and say you want to talk about conservation grazing ideas.


March Interest Rates and Important Dates

March 2022 Interest Rates and 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