In This Issue:
The Farm Service Agency’s (FSA) Farm Storage Facility Loan (FSFL) program provides low-interest financing to help you build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.
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, loans between $50,000 and $100,000 may require additional security, and loans exceeding $100,000 require additional security.
You 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.
For more information, contact your local County USDA Service Center or visit fsa.usda.gov/pricesupport.
USDA’s Natural Resources Conservation Service (NRCS) is announcing several new and expanded opportunities for climate smart agriculture in 2022. Updates include nationwide availability of the Environmental Quality Incentives Program (EQIP) Conservation Incentive Contracts option, a new and streamlined EQIP Cover Crop Initiative, and added flexibilities for producers to easily re-enroll in the Conservation Stewardship Program (CSP). These improvements to NRCS’ working lands conservation programs, combined with continued program opportunities in all states, are part of the Biden-Harris Administration’s broader effort to support climate-smart agriculture.
New Partnership Announced
NRCS is announcing a new partnership with Farmers For Soil Health, an initiative of the United Soybean Board, National Corn Growers Association and National Pork Board. Farmers For Soil Health works to advance use of soil health practices – especially cover crops – on corn and soybean farms. The initiative has a goal of doubling the number of corn and soybean acres using cover crops to 30 million acres by 2030. Other partners include the National Association of Conservation Districts, Soil Health Institute, and The Sustainability Consortium.
EQIP Cover Crop Initiative
To complement the new partnership, NRCS is investing $38 million through the new targeted Cover Crop Initiative in 11 states to help agricultural producers mitigate climate change through the widespread adoption of cover crops. States include Arkansas, California, Colorado, Georgia, Iowa, Michigan, Mississippi, Ohio, Pennsylvania, South Carolina and South Dakota. States were selected for this initial pilot based on their demonstrated demand for additional support for the cover crop practice.
Sign-up dates will be determined at the state-level, and applications will be selected for funding by Feb. 11, 2022. The initiative is aimed at improving soil health through a targeted, rapid, and streamlined application and contract approval process. NRCS will continue to build on this framework and streamlined application process to support farmers and ranchers across the country.
Cover crops offer agricultural producers a natural and inexpensive climate solution through their ability to sequester atmospheric carbon dioxide into soils. Cover crops can provide an accelerated, positive impact on natural resource concerns. In fiscal 2021, NRCS provided technical and financial assistance to help producers plant 2.3 million acres of cover crops through EQIP.
EQIP Conservation Incentive Contracts
Conservation Incentive Contracts address priority resource concerns, including sequestering carbon and improving soil health in high-priority areas. Through these contracts, NRCS works with producers to strengthen the quality and condition of natural resources on their operations using management practices, such as irrigation water management, drainage water management, feed management and residue and tillage management that target resource concerns, including degraded soil and water quality, available water and soil erosion.
Conservation Incentive Contracts offer producers annual incentive payments to implement management practices as well as conservation evaluation and monitoring activities to help manage, maintain and improve priority natural resource concerns within state high-priority areas and build on existing conservation efforts. Download our “Conservation Incentive Contracts” fact sheet for a list of practices.
CSP Re-Enrollment Option
NRCS updated CSP to allow an agricultural producer to immediately re-enroll in the program following an unfunded application to renew an existing contract. Previously, if a CSP participant did not re-enroll the year their contract expired, they were ineligible for the program for two years.
This ineligibility was imposed on CSP participants even if their failure to sign a renewal contract was due to the unavailability of funds, which is beyond their control. USDA is now waiving this two-year ineligibility restriction for all CSP applications.
This year, producers renewed 2,600 CSP contracts covering 3.4 million acres. Applicants with unfunded fiscal 2022 CSP renewals will receive letters this month, notifying them they are automatically eligible to apply for future CSP funding opportunities, rather than needing to wait two years to reapply.
How to Apply
NRCS accepts applications for conservation programs – including EQIP and CSP – year-round, however you should apply by state-specific, signup dates to be considered for each year’s funding. To apply, you should contact your closest UDSA service center.
In this Ask the Expert, Jack Carlile, Farm Loan Manager for the USDA Farm Service Agency (FSA), answers questions about farm operating loans and when producers should apply in order to secure funds for the current crop year.
As the Farm Loan Manager for the Cherokee County Service Center, Jack is responsible for managing the loan making and loan servicing activities for five counties in northeast Oklahoma. His office provides services for over 650 farm loan customers. Jack was raised on a cross bred cow/calf operation that his grandparents started. Over the years, each generation has added to the operation by purchasing additional pasture. The operation also grows and bales their own hay. Jack’s agriculture background and degree in agriculture economics from Oklahoma State University help him better understand the financing needs of his producers.
Who can apply for FSA Farm Loans?
Anyone can apply for FSA’s loan programs. Applications will be considered on basic eligibility requirements. To apply for a loan, you must meet the following general eligibility requirements including:
- Be a U.S. citizen or qualified alien.
- Operator of a family farm or ranch.
- Have a satisfactory credit history.
- Unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs.
- Not be delinquent on any federal debts.
What can I purchase with operating loans?
Farm Operating Loans are traditionally used for purchasing capital items such as farm machinery, equipment, or livestock. Loan funds can also be used to help pay typical operating expenses for farming and ranching operations. For example, a rancher may use an operating loan to purchase forage for his cattle to feed them through the winter or a row crop producer may use an operating loan for paying for inputs like seed or fertilizer.
What is the maximum loan amount and terms?
The maximum loan amount for a Direct Farm Operating Loan is $400,000. Direct loans are made and serviced by FSA.
Producers can also apply for Guaranteed Operating Loans that are made by your commercial lender, and guaranteed against loss by FSA. The maximum loan amount for a Guaranteed Farm Operating Loan is $1,825,000. Loan terms for operating loans range from one to seven years.
How do I apply?
If you’re interested in applying for a farm loan, you can pick up an application by visiting your local FSA office. Visit farmers.gov to find the USDA Service Center nearest you.
When applying for a loan, you will need a business plan, which must include:
- Your mission, vision, and goals for your farm or ranch.
- Your current assets and liabilities.
- Marketing Plan (what your operation will produce and where you will market and sell your products.)
- Whether the amount of income your operation generates will be enough to pay your business and family living expenses.
When should I apply for an operating loan?
I would recommend beginning the application process a few months in advance of needing the funds to allow time for the request to be processed, and for any necessary security checks and searches to be completed. That allows time for the funds to be available for your use when most needed.
Where can I find more information?
To learn more about FSA loans visit farmers.gov/loans or fsa.usda.gov/farmloans. Fact sheets and application packages are also available at your USDA Service Center. To learn more about other types of FSA loans or to find the right loan for your operation, use the Farm Loan Discovery Tool by visiting farmers.gov/loans/farm-loan-discovery-tool.
Hog producers who sold hogs through a spot market sale during the COVID-19 pandemic now have until April 15, 2022, to submit their applications for the U.S. Department of Agriculture’s (USDA) Spot Market Hog Pandemic Program (SMHPP). SMHPP, which is part of USDA’s Pandemic Assistance for Producers initiative, originally had a deadline to submit applications by Feb. 25, 2022.
SMHPP assists hog producers who sold hogs through a spot market sale from April 16, 2020, through Sept. 1, 2020, the period during which these producers faced the greatest reduction in market prices due to the pandemic. USDA is offering SMHPP in response to a reduction in packer production and supply chain issues due to the COVID-19 pandemic, which resulted in fewer negotiated hogs being procured and subsequent lower market prices. USDA’s Farm Service Agency (FSA) began accepting applications for SMHPP on Dec. 15, 2021.
In response to stakeholder feedback and our analysis of the program to date, USDA will be making adjustments to clarify the definition of a spot market sale and to hog eligibility, while including documentation requirements to prevent erroneous payments. USDA will also be announcing those updates soon and wants to assure hog producers that there will be ample time to submit their applications for assistance.
Applying for Assistance
Eligible hog producers can apply for SMHPP by completing the FSA-940, Spot Market Hog Pandemic Program application. Visit farmers.gov/smhpp to learn more.
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 their local FSA office, producers can visit farmers.gov/service-locator. Hog producers can also call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Contact your 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.
The U.S. Department of Agriculture (USDA) encourages producers and landowners to enroll in the Grassland Conservation Reserve Program (CRP) starting next week through May 13, 2022. Grassland CRP provides a unique opportunity for farmers, ranchers, and agricultural landowners to keep land in agricultural production and supplement their income while improving their soils and permanent grass cover. The program had its highest enrollment in history in 2021 and is part of the Biden-Harris Administration’s broader effort to equip producers with the tools they need to help address climate change and invest in the long-term health of our natural resources.
Grassland CRP is a federally funded voluntary working lands program. Through the program, USDA’s Farm Service Agency (FSA) provides annual rental payments to landowners to maintain and conserve grasslands while allowing producers to graze, hay, and produce seed on that land. Maintaining the existing permanent cover provides several benefits, including reducing erosion, providing wildlife habitat and migration corridors, and capturing and maintaining carbon in the soil and cover.
FSA provides participants with annual rental payments and cost-share assistance. The annual rental rate varies by county with a national minimum rental rate of $13 per acre for this signup. Contract duration is 10 or 15 years.
Grassland CRP National Priority Zones
Because Grassland CRP supports not only grazing operations but also biodiversity and conserving environmentally sensitive land such as that prone to wind erosion, FSA created two National Priority Zones in 2021: the Greater Yellowstone Migration Corridor and Dust Bowl Zone. As part of the Biden-Harris Administration’s focus on conservation in important wildlife corridors and key seasonal ranges, for this year’s signup, FSA is expanding the Greater Yellowstone Wildlife Migration Corridor Priority Zone to include seven additional counties across Montana, Wyoming, and Utah, to help protect the big-game animal migration corridor associated with Wyoming elk, mule deer, and antelope.
Offers within one of these National Priority Zones will receive an additional 15 ranking points and $5 per acre if at least 50% of the offer is located in the zone.
Alongside Grassland CRP, producers and landowners can also 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).
Broadening Reach of Program
As part of the Agency’s Justice40 efforts, producers and landowners who are historically underserved, including beginning farmers and military veterans, will receive 10 additional ranking points to enhance their offers.
Additionally, USDA is working to broaden the scope and reach of Grassland CRP by leveraging the Conservation Reserve Enhancement Program (CREP) to engage historically underserved communities. CREP is a partnership program that enables states, Tribal governments, non-profit, and private entities to partner with FSA to implement CRP practices and address high priority conservation and environmental objectives. Interested entities are encouraged to contact FSA.
More Information on CRP
Landowners and producers interested in Grassland CRP should contact their local USDA Service Center to learn more or to apply for the program before the May 13 deadline. 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. The working lands signup announced today demonstrates how much it has evolved from the original program that was primarily intended to control soil erosion and only had the option to take enrolled land out of production. The program has expanded over the years and now supports a greater variety of conservation and wildlife benefits, along with the associated economic benefits.
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.
USDA has several fiscal year 2022 assistance opportunities for agricultural producers and private landowners for key programs, such as the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Agricultural Conservation Easement Program (ACEP), Regional Conservation Partnership Program (RCPP) and Agricultural Management Assistance (AMA) program.
Through conservation programs, USDA’s Natural Resources Conservation Service (NRCS) provides technical and financial assistance to help producers and landowners make conservation improvements on their land that benefit natural resources, build resiliency and contribute to the nation’s broader effort to combat the impacts of climate change.
Applying for Assistance
NRCS accepts applications for its conservation programs year-round. State Technical Committees, composed of representatives from conservation and agricultural-related organizations, work with NRCS to set state-specific, ranking dates to evaluate applications for funding. These dates account for producer needs, staff workload and ensure potential participants have ample opportunity to apply. Producers should apply by their state’s ranking dates to be considered for funding in the current cycle.
Funding is provided through a competitive process. State-specific, ranking dates for all programs are available. Applications received after ranking dates will be automatically deferred to the next funding period.
Program Options
EQIP provides cost share assistance for producers to use 170-plus conservation practices to address a wide variety of resource concerns. Within EQIP, Conservation Incentive Contracts allow producers to further target priority resource concerns. CSP helps producers take their conservation activities to the next level through comprehensive conservation and advanced conservation activities. ACEP helps producers enroll wetlands, grasslands and farmlands into easements for long-term protection. Additionally, through RCPP, producers and landowners can work with partners who are co-investing with NRCS on targeted projects.
Historically Underserved Producer Benefits
Special provisions are also available for historically underserved producers. For EQIP, historically underserved producers are eligible for advance payments to help offset costs related to purchasing materials or contracting services up front. In addition, historically underserved producers can receive higher EQIP payment rates (up to 90% of average cost). NRCS sets aside EQIP, CSP and ACEP funds for historically underserved producers.
Conservation Practices and Climate
NRCS conservation programs play a critical role in USDA’s commitment to partnering with farmers, ranchers, forest landowners and local communities to deliver climate solutions that strengthen agricultural operations and rural America. States may prioritize a variety of voluntary conservation practices through these NRCS programs, including those that support climate-smart agriculture and forestry (CSAF).
In fiscal year 2022, EQIP and CSP will provide targeted funding for CSAF practices, and Conservation Incentive Contracts – a new EQIP program – will be available nationwide with an emphasis on CSAF practices. Building on these efforts, NRCS will also prioritize climate investments through ACEP, RCPP and Conservation Innovation Grants.
Producers, landowners and forest managers interested in applying for assistance should contact the NRCS at their local USDA Service Center.
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