In This Issue:
Pennsylvania in August!
We are moving closer to the end of a mostly hot and dry summer in many parts of Pennsylvania. Here in the state office, we are watching the U.S. Drought Monitor and are keeping an eye on affected areas throughout the state. Five facts about the U.S. Drought Monitor are offered in an article below.
It’s been a busy month of local county fairs, community events, large ag events, and roundtable meetings. I have had the opportunity to get to several events throughout the state to meet farmers, policy makers, and state agricultural leaders to talk about the programs that the Farm Service Agency has to offer and re-introduce myself to the agriculture community as your new FSA State Executive Director.
Earlier this month I attended Ag Progress Days, which was a fantastic opportunity to hear from farmers and some of the agricultural organizations in our state. Being a produce farmer myself in Monroe County, it was great to spend time with farmers from throughout the Commonwealth and connect on the opportunities and struggles of the day-to-day operations of our farms. Discussions focused on the programs that Farm Service Agency offers and how farmers navigate these federal programs.
Pennsylvania Fun Fact: Pennsylvania is 2nd in the country with direct-to-consumer sales. And with over 366 farmers markets across Pennsylvania, we have a lot to celebrate! And we did – August 7-13 was National Farmers Market Week. Make sure to support your local farmers and local farmers markets when you can.
Farm Service Agency serves all farmers and producers in Pennsylvania! The dedicated men and women of our Agency strive to equitably serve all - through the delivery of effective, efficient agricultural programs achieving the mission of FSA in our Commonwealth. Pennsylvania agriculture is diverse and we at FSA offer you programs and services to meet those diverse needs. Take a moment to visit the useful topics throughout our website. We are here to serve, so please feel free to contact your local county office or our state office here in Harrisburg.
From our farm gate to yours – Heidi Secord
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Dairy producers have until Sept. 1, 2022, to pay premiums for the Dairy Margin Coverage (DMC) Program. With monthly DMC program triggers well above the $9.50 per hundredweight (cwt) coverage level, there have been no indemnity payments distributed through the USDA’s Farm Service Agency (FSA) through June 2022. In prior years, producers were able to deduct annual DMC premiums from indemnity payments, but that’s not the case this year.
Approximately 75% of calendar year 2022 DMC and Supplemental DMC premiums have not been paid as the payment deadline of Sept. 1 approaches.
Failure to pay the DMC premium by the deadline may affect a dairy operation’s ability to participate in the DMC program in future years. Contact your local FSA office for more information. For more information visit the FSA dairy programs webpage or the online dairy decision tool.
This is likely no surprise to you, but drought persists across the western U.S. and is intensifying in some areas. No geographic area is immune to the potential of drought at any given time. The U.S. Drought Monitor provides a weekly drought assessment, and it plays an important role in USDA programs that help farmers and ranchers recover from drought.
Fact #1 - Numerous agencies use the Drought Monitor to inform drought-related decisions.
The map identifies areas of drought and labels them by intensity on a weekly basis. It categorizes the entire country as being in one of six levels of drought. The first two, None and Abnormally Dry (D0), are not considered to be drought. The next four describe increasing levels of drought: Moderate (D1), Severe (D2), Extreme (D3) and Exceptional (D4).
While many entities consult the Drought Monitor for drought information, drought declarations are made by federal, state and local agencies that may or may not use the Drought Monitor to inform their decisions. Some of the ways USDA uses it to determine a producer’s eligibility for certain drought assistance programs, like the Livestock Forage Disaster Program and Emergency Haying or Grazing on Conservation Reserve Program acres and to “fast-track” Secretarial drought disaster designations.
Fact #2 - U.S. Drought Monitor is made with more than precipitation data.
When you think about drought, you probably think about water, or the lack of it. Precipitation plays a major role in the creation of the Drought Monitor, but the map’s author considers numerous indicators, including drought impacts and local insight from over 450 expert observers around the country. Authors use several dozen indicators to assess drought, including precipitation, streamflow, reservoir levels, temperature and evaporative demand, soil moisture and vegetation health. Because the drought monitor depicts both short and long‐term drought conditions, the authors must look at data for multiple timeframes. The final map produced each week represents a summary of the story being told by all the pieces of data. To help tell that story, authors don’t just look at data. They converse over the course of the map-making week with experts across the country and draw information about drought impacts from media reports and private citizens.
Fact #3 - A real person, using real data, updates the map.
Each week’s map author, not a computer, processes and analyzes data to update the drought monitor. The map authors are trained climatologists or meteorologists from the National Drought Mitigation Center at the University of Nebraska-Lincoln (the academic partner and website host of the Drought Monitor), the National Oceanic and Atmospheric Administration and USDA. The author’s job is to do what a computer can’t – use their expertise to reconcile the sometimes-conflicting stories told by each stream of data into a single assessment.
Fact #4 - The Drought Monitor provides a current snapshot, not a forecast.
The Drought Monitor is a “snapshot” of conditions observed during the most recent week and builds off the previous week’s map. The map is released on Thursdays and depicts conditions based on data for the week that ended the preceding Tuesday. Rain that falls on the Wednesday just before the USDM’s release won’t be reflected until the next map is published. This provides a consistent, week‐to‐week product and gives the author a window to assess the data and come up with a final map.
Fact #5 – Your input can be part of the drought-monitoring process.
State climatologists and other trained observers in the drought monitoring network relay on-the-ground information from numerous sources to the US Drought monitor author each week. That can include information that you contribute.
The Drought Monitor serves as a trigger for multiple forms of federal disaster relief for agricultural producers, and sometimes producers contact the author to suggest that drought conditions in their area are worse than what the latest drought monitor shows. When the author gets a call like that, it prompts them to look closely at all available data for that area, to see whether measurements of precipitation, temperature, soil moisture and other indicators corroborate producer-submitted reports. This is the process that authors follow whether they receive one report or one hundred reports, although reports from more points may help state officials and others know where to look for impacts.
There are multiple ways to contribute your observations:
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Talk to your state climatologist - Find the current list at the American Association of State Climatologists website.
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Email - Emails sent to droughtmonitor@unl.edu inform the USDM authors.
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Become a CoCoRaHS observer - Submit drought reports along with daily precipitation observations to the Community Collaborative Rain, Hail & Snow Network.
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Submit Condition Monitoring Observer Reports (CMOR) - go.unl.edu/CMOR.
For more information, read our Ask the Expert blog with a NDMC climatologist or visit farmers.gov/protection-recovery.
The U.S. Department of Agriculture (USDA) announced another installment (phase) in assistance to commodity and specialty crop producers impacted by natural disaster events in 2020 and 2021. More than 18,000 producers will soon receive new or updated pre-filled disaster applications to offset eligible crop losses. Approximately $6.4 billion has already been distributed to 165,000 producers through USDA’s Farm Service Agency’s (FSA) Emergency Relief Program (ERP).
FSA will begin mailing pre-filled applications in late August to producers who have potentially eligible losses and:
- Received crop insurance indemnities for qualifying 2020 and 2021 disaster events after May 2, 2022.
- Received crop insurance indemnities associated with Nursery, Supplemental Coverage Option (SCO), Stacked Income Protection Plan (STAX), Enhanced Coverage Option (ECO) and Margin Protection (MP) policies.
- New primary policyholders not included in the initial insured producer Phase 1 mailing from May 25, 2022, because their claim records had not been filled.
- Certain 2020 prevent plant losses related to qualifying 2020 disaster events that had only been recorded in crop insurance records as related to 2019 adverse weather events and, as such, were not previously provided in applications sent earlier this year.
- New Substantial Beneficial Interest (SBI) records, including SBIs where tax identification numbers were corrected.
Producers are expected to receive assistance direct deposited into their bank account within three business days after they sign and return the pre-filled application to the FSA county office and the county office enters the application into the system.
Before applying any program payment factors or eligibility criteria, it is estimated that this next installment (phase) may generate about $756 million in assistance.
Emergency Relief Payments to Date
This emergency relief under ERP complements ERP assistance recently provided to more than 165,000 producers who had received crop insurance indemnities and Noninsured Crop Disaster Assistance Program (NAP) payments for qualifying losses. USDA has processed more than 255,000 applications for ERP, and to date, has made approximately $6.4 billion in payments to commodity and specialty crop producers to help offset eligible losses from qualifying 2020 and 2021 natural disasters. Also, earlier this year, staff processed more than 100,000 payments through the Emergency Livestock Relief Program (ELRP) and paid eligible producers more than $601.3 million for 2021 grazing losses within days of the program announcement.
Phase Two
The second phase of both ERP and ELRP will be aimed at filling gaps and provide assistance to producers who did not participate in or receive payments through the existing risk management programs that are being leveraged for phase one implementation. USDA will keep producers and stakeholders informed as program details are made available.
More Information
In addition, on Aug. 18, 2022, USDA published a technical correction to the Notice of Funds Availability for ERP and ELRP to clarify how income from the sale of farm equipment and the provision of production inputs and services to farmers, ranchers, foresters, and farm operations are to be considered in the calculation of average adjusted gross farm income. Producers whose average adjusted gross farm income is at least 75% of the producer’s the average Adjusted Gross Income can gain access to a higher payment limitation.
ERP and the previously announced ELRP are authorized by the Extending Government Funding and Delivering Emergency Assistance Act, which President Biden signed into law in 2021. The law provided $10 billion to help agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters experienced during calendar years 2020 and 2021.
For more information on ERP and ELRP eligibility, program provisions for historically underserved producers as well as Frequently Asked Questions, producers can visit FSA’s Emergency Relief webpage. A new public-facing dashboard on the ERP webpage has information on ERP payments that can be sorted by crop type – specialty or non-specialty– specific commodities and state. FSA will update the dashboard every Monday.
Additional USDA disaster assistance information can be found on farmers.gov, including the Disaster Assistance Discovery Tool, Disaster-at-a-Glance fact sheet and Farm Loan Discovery Tool. For FSA and Natural Resources Conservation Service programs, producers should contact their local USDA Service Center. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent.
Agricultural producers and handlers who are certified organic, along with producers and handlers who are transitioning to organic production, can now apply for the U.S. Department of Agriculture’s (USDA) Organic and Transitional Education Certification Program (OTECP) and Organic Certification Cost Share Program (OCCSP), which help producers and handlers cover the cost of organic certification, along with other related expenses. Applications for OTECP and OCCSP are both due October 31, 2022.
OTECP covers:
· Certification costs for organic producers and handlers (25% up to $250 per category).
· Eligible expenses for transitional producers, including fees for pre-certification inspections and development of an organic system plan (75% up to $750).
· Registration fees for educational events (75% up to $200).
· Soil testing (75% up to $100).
Meanwhile, OCCSP covers 50% or up to $500 per category of certification costs in 2022.
This cost share for certification is available for each of these categories: crops, wild crops, livestock, processing/handling and State organic program fees.
Producers can receive cost share through both OTECP and OCCSP. Both OTECP and OCCSP cover costs incurred from October 1, 2021, to September 30, 2022. Producers have until October 31, 2022 to file applications, and FSA will make payments as applications are received.
To apply, producers and handlers should contact the Farm Service Agency (FSA) at their local USDA Service Center. As part of completing the OCCSP applications, producers and handlers will need to provide documentation of their organic certification and eligible expenses. Organic producers and handlers may also apply for OCCSP through participating State agencies.
Additional details can be found on the OTECP and OCCSP webpages.
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The U.S. Department of Agriculture (USDA) is updating its farm loan programs to better support current borrowers, including historically underserved producers. These improvements are part of USDA’s commitment to increase equity in all programs, including farm loans that provide important access to capital for covering operating expenses and purchasing land and equipment.
The 2018 Farm Bill authorized FSA to provide equitable relief to certain direct loan borrowers, who are non-compliant with program requirements due to good faith reliance on a material action of, advice of, or non-action from an FSA official. Previously, borrowers may have been required to immediately repay the loan or convert it to a non-program loan with higher interest rates, less favorable terms, and limited loan servicing.
Now, FSA has additional flexibilities to assist borrowers in such situations. If the agency provided incorrect guidance to an existing direct loan borrower, the agency may provide equitable relief to that borrower. FSA may assist the borrower by allowing the borrower to keep their loans at current rates or other terms received in association with the loan which was determined to be noncompliant or the borrower may receive other equitable relief for the loan as the Agency determines to be appropriate.
USDA encourages producers to reach out to their local loan officials to ensure they fully understand the wide range of loan and servicing options available that can assist them in starting, expanding or maintaining their operation.
Additional Updates
Equitable relief is one of several changes authorized by the 2018 Farm Bill that USDA has made to the direct and guaranteed loan programs. Other changes that were previously implemented include:
- Modifying the existing three-year farming experience requirement for Direct Farm Ownership loans to include additional items as acceptable experience.
- Allowing socially disadvantaged and beginning farmer applicants to receive a guarantee equal to 95%, rather than the otherwise applicable 90% guarantee.
- Expanding the definition of and providing additional benefits to veteran farmers.
- Allowing borrowers who received restructuring with a write down to maintain eligibility for an Emergency loan.
- Expanding the scope of eligible issues and persons covered under the agricultural Certified Mediation Program.
Additional information on these changes is available in the March 8, 2022 rule on the Federal Register.
More Background
FSA has taken other recent steps to increase equity in its programs. Last summer, USDA announced it was providing $67 million in competitive loans through its new Heirs’ Property Relending Program to help agricultural producers and landowners resolve heirs’ land ownership and succession issues. FSA also invested $4.7 million to establish partnerships with organizations to provide outreach and technical assistance to historically underserved farmers and ranchers, which contributed to a fourfold increase in participation by historically underserved producers in the Coronavirus Food Assistance Program 2 (CFAP 2), a key pandemic assistance program, since April 2021.
Additionally, in January 2021, Secretary Vilsack announced a temporary suspension of past-due debt collection and foreclosures for distressed direct loan borrowers due to the economic hardship imposed by the COVID-19 pandemic.
Producers can explore available loan options using the Farm Loan Discover Tool on farmers.gov (also available in Spanish) or by contacting their local USDA Service Center. 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. Producers can contact their local Service Center to set up an in-person or phone appointment to discuss loan options.
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Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture (USDA) plans to provide up to $200 million in assistance for specialty crop producers who incur eligible on-farm food safety program expenses to obtain or renew a food safety certification in calendar years 2022 or 2023. USDA’s new Food Safety Certification for Specialty Crops (FSCSC) program will help to offset costs for specialty crop producers to comply with regulatory requirements and market-driven food safety certification requirements, which is part of USDA’s broader effort to transform the food system to create a more level playing field for small and medium producers and a more balanced, equitable economy for everyone working in food and agriculture.
Specialty crop operations can apply for assistance for eligible expenses related to a 2022 food safety certificate issued on or after June 21, 2022, beginning June 27, 2022. USDA is delivering FSCSC to provide critical assistance for specialty crop operations, with an emphasis on equity in program delivery while building on lessons learned from the COVID-19 pandemic and supply chain disruptions. Vilsack made the announcement from Hollis, N.H., where he toured a local, family-owned farm and highlighted USDA’s efforts to help reduce costs for farmers and support local economies by providing significant funding to cut regulatory costs and increase market opportunities for farmers in New Hampshire and across the nation.
Program Details
FSCSC will assist specialty crop operations that incurred eligible on-farm food safety certification and related expenses related to obtaining or renewing a food safety certification in calendar years 2022 and 2023. For each year, FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing their certification, as well as a portion of their related expenses.
To be eligible for FSCSC, the applicant must be a specialty crop operation; meet the definition of a small business or very small business; and have paid eligible expenses related to the 2022 (issued on or after June 21, 2022) or 2023 certification.
Specialty crop operations may receive assistance for the following costs:
- Developing a food safety plan for first-time food safety certification.
- Maintaining or updating an existing food safety plan.
- Food safety certification.
- Certification upload fees.
- Microbiological testing for products, soil amendments and water.
- Training.
FSCSC payments are calculated separately for each category of eligible costs. A higher payment rate has been set for socially disadvantaged, limited resource, beginning and veteran farmers and ranchers. Details about the payment rates and limitations can be found at farmers.gov/food-safety.
Applying for Assistance
The FSCSC application period for 2022 is June 27, 2022, through January 31, 2023, and the application period for 2023 will be announced at a later date. FSA will issue payments at the time of application approval for 2022 and after the application period ends for 2023. If calculated payments exceed the amount of available funding, payments will be prorated.
Interested specialty crop producers can apply by completing the FSA-888, Food Safety Certification for Specialty Crops Program (FSCSC) application. The application, along with other required documents, can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means.
Producers can visit farmers.gov/food-safety for additional program details, eligibility information and forms needed to apply.
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