|
June 7, 2022: USDA-NRCS Public Conservation Virtual Meeting
June 10, 2022: Deadline to Submit applications for funding through the Partnerships for Climate-Smart Commodities
June 13, 2022: Deadline to submit New or Modified Proposals for State Acres for Wildlife Enhancement Program (SAFE)
June 20, 2022: USDA Service Centers Closed in Observance of Juneteenth
July 4, 2022: USDA Service Centers Closed in Observance of Independence Day
July 15, 2022: Acreage Reporting Deadline for Barley, Corn Dry Beans, Forage Seeding, Grain Sorghum, Green Peas, Mint, Oats, Onions, Popcorn, Potatoes, Soybeans, Sweet Corn and Whole Farm Revenue
The U.S. Department of Agriculture (USDA) will allow Conservation Reserve Program (CRP) participants who are in the final year of their CRP contract to request voluntary termination of their CRP contract following the end of the primary nesting season for fiscal year 2022. Participants approved for this one-time, voluntary termination will not have to repay rental payments, a flexibility implemented this year to help mitigate the global food supply challenges caused by the Russian invasion of Ukraine and other factors. Today, USDA also announced additional flexibilities for the Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP).
FSA is mailing letters to producers with expiring acres that detail this flexibility and share other options, such as re-enrolling sensitive acres in the CRP Continuous signup and considering growing organic crops. Producers will be asked to make the request for voluntary termination in writing through their local USDA Service Center.
If approved for voluntary termination, preparations can occur after the conclusion of the primary nesting season. Producers will then be able to hay, graze, begin land preparation activities and plant a fall-seeded crop before October 1, 2022. For land in colder climates, this flexibility may allow for better establishment of a winter wheat crop or better prepare the land for spring planting.
Organic Considerations
Since CRP land typically does not have a recent history of pesticide or herbicide application, USDA is encouraging producers to consider organic production. USDA’s Natural Resources Conservation Service (NRCS) provides technical and financial assistance to help producers plan and implement conservation practices, including those that work well for organic operations, such as pest management and mulching. Meanwhile, FSA offers cost-share for certification costs and other fees.
Other CRP Options
Participants can also choose to enroll all or part of their expiring acres into the Continuous CRP signup for 2022. Important conservation benefits may still be achieved by re-enrolling sensitive acres such as buffers or wetlands. Expiring water quality practices such as filter strips, grass waterways, and riparian buffers may be eligible to be reenrolled under the Clean Lakes, Estuaries, and Rivers (CLEAR) and CLEAR 30 options under CRP. Additionally, expiring continuous CRP practices such as shelterbelts, field windbreaks, and other buffer practices may also be re-enrolled to provide benefits for organic farming operations.
If producers are not planning to farm the land from their expiring CRP contract, the Transition Incentives Program (TIP) may also provide them two additional annual rental payments after their contract expires on the condition that they sell or rent their land to a beginning or veteran farmer or rancher or a member of a socially disadvantaged group.
Producers interested in the Continuous CRP signup, CLEAR 30, or TIP should contact FSA by Aug. 5, 2022.
NRCS Conservation Programs
USDA also encourages producers to consider NRCS conservation programs, which help producers integrate conservation on croplands, grazing lands and other agricultural landscapes. EQIP and CSP can help producers plant cover crops, manage nutrients and improve irrigation and grazing systems. Additionally, the Agricultural Conservation Easement Program (ACEP), or state or private easement programs, may be such an option. In many cases, a combination of approaches can be taken on the same parcel. For example, riparian areas or other sensitive parts of a parcel may be enrolled in continuous CRP and the remaining land that is returned to farming can participate in CSP or EQIP and may be eligible to receive additional ranking points.
Other Flexibilities to Support Conservation
Additionally, NRCS is also offering a new flexibility for EQIP and CSP participants who have cover cropping including in their existing contracts. NRCS will allow participants to either modify their plans to plant a cover crop (and instead shift to a conservation crop rotation) or delay their cover crop plans a year, without needing to terminate the existing contract. This will allow for flexibility to respond to market signals while still ensuring the conservation benefits through NRCS financial and technical assistance for participating producers.
More Information
Producers and landowners can learn more about these options by contacting FSA and NRCS at their local USDA Service Center.
USDA touches the lives of all Americans each day in so many positive ways. In 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.
Current loan rates as of June 1, 2022.
Farm Loan Interest Rates:
| Farm Operating - Direct |
3.625% |
| Farm Operating - Microloan |
5.000% |
| Farm Ownership - Direct |
3.750% |
| Farm Ownership - Microloan |
5.000% |
| Farm Ownership - Direct, Joint Financing |
2.500% |
| Farm Ownership - Down Payment |
1.500% |
| Emergency - Amount of Actual Loss |
3.750% |
Farm Storage Facility Loans (FSFL):
| 3-year FSFL |
2.875% |
| 5-year FSFL |
2.875% |
| 7-year FSFL |
3.000% |
| 10-year FSFL |
2.875% |
| 12-year FSFL |
3.000% |
Please visit the Farm Loan Program webpage for more information.
Agriculture Secretary Tom Vilsack announced that the first round of funding through the new Partnerships for Climate-Smart Commodities received over 450 proposals ranging from $5 million to $100 million each. The deadline for these large-scale proposals closed on Friday, May 6, 2022. The applications USDA received came from over 350 groups, including nonprofit, for-profit and government entities; farmer cooperatives; conservation, energy and environmental groups; state, tribal and local governments; universities (including minority serving institutions); small businesses and large corporations. The applications covered every state in the nation as well as tribal lands, D.C. and Puerto Rico, which demonstrates the tremendous geographic scope of this need.
Proposals in the first funding pool include large-scale pilot projects that emphasize the greenhouse gas benefits of climate-smart commodity production and include direct, meaningful benefits to a representative cross-section of production agriculture, including small and/or historically underserved producers.
Prior to the first deadline, a detailed informational webinar on all aspects of the funding opportunity was shared with over 1,000 registrants and was recorded and posted on USDA’s website for many more to view. USDA also hosted six meet and greet webinars with a unique opportunity for partners from all backgrounds to connect and share or seek expertise for the funding opportunity. These participant lists from the meet and greet webinars are also posted on USDA’s website to allow for additional connections.
Over the next few months, USDA will evaluate these applications for completeness and rank them based on the technical criteria provided in the funding opportunity. Awards for the first round of funding are anticipated later this summer.
Second Funding Pool Deadline
The deadline for the second round of funding is on Friday, June 10, 2022, at 11:59 p.m. Eastern. This funding pool includes proposals from $250,000 to $4,999,999 that emphasize the enrollment of small and/or underserved producers, and/or monitoring, reporting and verification activities developed at minority-serving institutions.
More Information
Information on how to apply, frequently asked questions, and additional information, including resources to support your application are available on the Partnerships for Climate-Smart Commodities webpage on usda.gov.
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.
All producers are encouraged to contact their local FSA office for more information on the final planting date for specific crops. The final planting dates vary by crop, planting period and county so please contact your local FSA office for a list of county-specific planting deadlines. The timely planting of a crop, by the final planting date, may prevent loss of program benefits.
|
