|
Greetings! While you may have been watching your favorite football team win on Saturday, October 1st, or doing one of the many jobs there are to choose from on the farm in the fall – our federal government quietly moved to a new fiscal year. While we don’t have a budget in place yet for the 2023-year, Congress did approve a continuing resolution to keep the government running until December and President Biden signed that resolution. That was good news for all of us. Our county office staff were busy preparing for the “roll over” from one year to the next and making sure we had CRP approvals with signatures before October 1st. Our FSA loan officers, and loan personnel have been busy wrapping up farm visits.
Occasionally, I hear ag producers grumble about government – too invasive, too slow, unnecessary programs, and, in general, “a waste of taxpayer dollars”. Recently I did some research on payments to ND producers from those taxpayer funds. Did you know that for the five program years of 2017 to 2021, ND farmers and ranchers received a little over $6.052 billion dollars through CRP, price support and disaster programs? The leading program in that five-year period was the Emergency Relief Program that paid out $1.116B for years 2020 & 2021. ARC/PLC payments are a close second at $1.105B. (FYI - ERP payments received in 2022 were attributed to the program years of 2020 and 2021.)
It is vital for the national security of our country to be able to produce our own food, fuel and fiber. Making sure our farmers and ranchers, just 2% of our population, can maintain their viability to produce that food, fuel and fiber is essential. Because of that, I whole heartedly support these program payments and I encourage you to think about the positive impact these payments have had in our rural communities and state and the big part they have played in many ag operations bottom lines.
Be safe this month as you continue with harvest. We need you!
Take care,
- Marcy Svenningsen
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 County USDA Service Center or visit fsa.usda.gov/crp.
If you’ve suffered excessive livestock death losses and grazing or feed losses due to recent wildfires, you may be eligible for disaster assistance programs through the USDA Farm Service Agency (FSA).
The Livestock Indemnity Program (LIP) offers payments to you for livestock death losses in excess of normal mortality due to adverse weather and the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) provides emergency relief for losses due to feed or water shortages, disease, adverse weather, or other conditions, which are not adequately addressed by other disaster programs.
To participate in LIP, you will be required to provide verifiable documentation of death losses resulting from an eligible adverse weather event, and you must submit a notice of loss to your local FSA office within 30 calendar days of when the loss of livestock is apparent. To participate in ELAP, you must submit a notice of loss to your local FSA office within 30 calendar days of when the loss is apparent and should maintain documentation and receipts.
You should record all pertinent information regarding livestock losses due to the eligible adverse weather or loss condition, including:
- Documentation of the number, kind, type, and weight range of livestock that have died, supplemented if possible by photographs or video records of ownership and losses;
- Rendering truck receipts by kind, type and weight - important to document prior to disposal;
- Beginning inventory supported by birth recordings or purchase receipts;
- Documentation from Animal Plant Health Inspection Service, Department of Natural Resources, or other sources to substantiate eligible death losses due to an eligible loss condition;
- Documentation that livestock were removed from grazing pastures due to an eligible adverse weather or loss condition;
- Costs of transporting livestock feed to eligible livestock, such as receipts for equipment rental fees for hay lifts and snow removal;
- Feed purchase receipts if feed supplies or grazing pastures are destroyed;
- Number of gallons of water transported to livestock due to water shortages.
For more information on these programs and documentation requirements, contact your County USDA Service Center or visit fsa.usda.gov/disaster.
FSA offers direct farm ownership and direct farm operating loans to producers who want to establish, maintain, or strengthen their farm or ranch. Direct loans are processed, approved and serviced by FSA loan officers.
Direct farm operating loans can be used to purchase livestock and feed, farm equipment, fuel, farm chemicals, insurance, and other costs including family living expenses. Operating loans can also be used to finance minor improvements or repairs to buildings and to refinance some farm-related debts, excluding real estate.
Direct farm ownership loans can be used to purchase farmland, enlarge an existing farm, construct and repair buildings, and to make farm improvements.
The maximum loan amount for direct farm ownership loans is $600,000 and the maximum loan amount for direct operating loans is $400,000 and a down payment is not required. Repayment terms vary depending on the type of loan, collateral and the producer's ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years.
Please contact your local FSA office for more information or to apply for a direct farm ownership or operating loan.
FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender's normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.
Guaranteed farm ownership loans can be used to purchase farmland, construct or repair buildings, develop farmland to promote soil and water conservation or to refinance debt.
Guaranteed operating loans can be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance and other operating expenses.
FSA can guarantee farm ownership and operating loans up to $2,037,000. Repayment terms vary depending on the type of loan, collateral and the producer's ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years.
For more information on guaranteed loans, contact your local County USDA Service Center or visit fsa.usda.gov.
USDA’s Commodity Credit Corporation makes available nonrecourse marketing assistance loans on certain crop year 2022 commodities. These loans can be requested via mail, fax, email or by calling the office to make an appointment to complete a loan application (CCC-666).
A commodity loan application must be filed at the county office that maintains the farm records for the farm that produced the commodity for the loan. The 2022 crop commodity loan rates are available at any county FSA office, or online at: http://www.fsa.usda.gov and clicking on the “Price Support” link.
Lien searches are required for all applicants and spouses in order to identify prior lien holders. County Offices update CCC-10’s by verifying an individual’s name according to their driver’s license. Lien waivers are required from all lien holders before the commodity loan can be disbursed.
To be eligible for loan the commodity must meet the applicable commodity definition in the Official United States Standards and specific commodity eligibility requirements for a nonrecourse loan. Test weight and moisture levels can impact the eligibility for nonrecourse loans. If there are known quality problems producers should contact their local county FSA office to discuss available loan options.
Farm-stored loans are available in approved storage structures that provide safe storage for the commodity through the maturity date of the loan.
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.
If you received a payment under the Emergency Relief Program (ERP) for crop production losses occurring in 2020, 2021, or 2022 calendar years due to qualifying events occurring in calendar years 2020 or 2021, you are required to purchase crop insurance or NAP, as may be applicable for the crop, at a coverage level equal to or greater than 60 percent for insurable crops (60/100); or at the catastrophic level (50/55) or higher for NAP crops, for the next two available crop years. You can determine if crops are eligible for federal crop insurance or NAP by visiting the RMA website.
The next two available crop years are determined from the date you received your ERP payment. Example: Producer G received ERP benefits for 2021 rye losses and received an ERP payment in June of 2022. The sales closing date to purchase insurance for the 2023 crop year is September 30, 2022. Based on the date Producer G received ERP benefits, and the sales closing date for the crop, the next 2 available crop years for Producer G are 2023 and 2024.
The coverage requirement is applicable to the crop and the specific physical location of that crop. Please refer to your ERP application (FSA-520) to identify crops for which you received an ERP payment. Questions about physical location can be directed to your local county FSA office.
Failure to meet the linkage requirement will require you to refund ERP payments received on the applicable crop(s), plus interest.
The Non-Insured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters (includes native grass for grazing).
Eligible producers must have purchased NAP coverage for 2022 crops. A notice of loss must be filed on form CCC-576, Notice of Loss, the earlier of 15 days of the occurrence of the disaster or when losses become apparent or 15 days of the final harvest date. Prevented planting acreage must be reported no later than 15 calendar days after the final planting date as established by FSA. Contact your local FSA office for a list of final planting dates by crop.
Producers abandoning or destroying a crop with NAP coverage must notify FSA prior to the destruction of the acreage.
Producers of hand-harvested crops must notify FSA of damage or loss through the administrative County Office within 72 hours of the date of damage or loss first becomes apparent. This notification can be provided by filing a CCC-576, email, fax or phone. Producers who notify the County Office by any method other than by filing the CCC-576 are still required to file a CCC-576, Notice of Loss, within the required 15 calendar days.
Eligible crops must be commercially produced agricultural commodities for which crop insurance is not available, including perennial grass forage and grazing crops, fruits, vegetables, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup, bioenergy, and industrial crops.
For more information on NAP, contact your local FSA office or visit www.fsa.usda.gov/nap.
Farmers and ranchers rely on crop insurance to protect themselves from disasters and unforeseen events, but not all crops are insurable through the USDA’s Risk Management Agency. The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides producers another option to obtain coverage against disaster for these crops. NAP provides financial assistance to producers of non-insured crops impacted by natural disasters that result in lower yields, crop losses, or prevents crop planting.
Commercially produced crops and agricultural commodities for which crop insurance is not available are generally eligible for NAP. Eligible crops include those grown specifically for food, fiber, livestock consumption, biofuel or biobased products, or be commodities such as value loss crops like Christmas trees and ornamental nursery, honey, maple sap, and many others. Contact your FSA office to see which crops are eligible in your state and county.
Eligible causes of loss include drought, freeze, hail, excessive moisture, excessive wind or hurricanes, earthquake, flood. These events must occur during the NAP policy coverage period, before or during harvest, and the disaster must directly affect the eligible crop. For guidance on causes of loss not listed, contact your local FSA county office.
Interested producers must apply for coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office where their farm records are maintained. These must be filed by the application closing date. Closing dates vary by crop, so it is important to contact your local FSA County Office as soon as possible to ensure you don’t miss an application closing date.
At the time of application, each producer will be provided a copy of the NAP Basic Provisions, which describes how NAP works and all the requirements you must follow to maintain NAP coverage. NAP participants must provide accurate annual reports of their production in non-loss years to ensure their NAP coverage is beneficial to their individual operation.
Producers are required to pay service fees which vary depending on the number of crops and number of counties your operation is located in. The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums also apply when producers elect higher levels of coverage with a maximum premium of $15,750 per person or legal entity depending on the maximum payment limitation that may apply to the NAP covered producer. The service fee can be waived for beginning, qualifying veteran, and limited resource farmers and rancher. These farmers and ranchers can also receive a 50 percent reduction in the premium.
For more detailed information on NAP, download the NAP Fact Sheet. To get started with NAP, we recommend you contact your local USDA service center.
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.
If you have experienced delays in receiving Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) payments, Loan Deficiency Payments (LDPs) and Market Gains on Marketing Assistance Loans (MALs), it may be because you have not filed form CCC-941, Adjusted Gross Income Certification.
If you don’t have a valid CCC-941 on file for the applicable crop year you will not receive payments. All farm operator/tenants/owners who have not filed a CCC-941 and have pending payments should IMMEDIATELY file the form with their recording county FSA office. Farm operators and tenants are encouraged to ensure that their landowners have filed the form.
FSA can accept the CCC-941 for 2018, 2019, 2020, 2021, 2022 and 2023. Unlike the past, you must have the CCC-941 certifying your AGI compliance before any payments can be issued.
Many Farm Service Agency (FSA) programs require all program participants, either individuals or legal entities, to be “actively engaged in farming.” This means participants provide a significant contribution to the farming operation, whether it is capital, land, equipment, active personal labor and/or management. For entities, each partner, stockholder or member with an ownership interest, must contribute active personal labor and/or management to the operation on a regular basis that is identifiable and documentable as well as separate and distinct from contributions of any other member. Members of joint operations must have a share of the profits or losses from the farming operation commensurate with the member’s contributions to the operation and must make contributions to the farming operation that are at risk for a loss, with the level of risk being commensurate with the member’s claimed share on the farming operation.
Joint operations comprised of non-family members or partners, stockholders or persons with an ownership in the farming operation must meet additional payment eligibility provisions. Joint operations comprised of family members are exempt from these additional requirements. For 2016 and subsequent crop years, non-family joint operations can have one member that may use a significant contribution of active personal management exclusively to meet the requirements to be determined “actively engaged in farming.” The person or member will be defined as the farm manager for the purposes of administering these management provisions.
Non-family joint operations may request to add up to two additional managers for their farming operation based on the size and/or complexity of the operation. If additional farm managers are requested and approved, all members who contribute management are required to complete form CCC-902MR, Management Activity Record. The farm manager should use the form to record management activities including capital, labor and agronomics, which includes crop selection, planting decisions, acquisition of inputs, crop management and marketing decisions. One form should be used for each month and the farm manager should enter the number of hours of time spent for each activity under the date of the month the actions were completed. The farm manager must also document if each management activity was completed on the farm or remotely.
The records and supporting business documentation must be maintained and timely made available for review by the appropriate FSA reviewing authority, if requested.
If the farm manager fails to meet these requirements, their contribution of active personal management to the farming operation for payment eligibility purposes will be disregarded and their payment eligibility status will be re-determined for the applicable program year.
In some instances, additional persons or members of a non-family member joint operation who meet the definition of farm manager may also be allowed to use such a contribution of active personal management to meet the eligibility requirements. However, under no circumstances may the number of farm managers in a non-family joint operation exceed a total of three in any given crop and program year.
Livestock inventory records are necessary in the event of a natural disaster, so remember to keep them updated.
When disasters strike, the USDA Farm Service Agency (FSA) can help you if you’ve suffered excessive livestock death losses and grazing or feed losses due to eligible natural disasters.
To participate in livestock disaster assistance programs, you’ll be required to provide verifiable documentation of death losses resulting from an eligible adverse weather event and must submit a notice of loss to your local FSA office within 30 calendar days of when the loss of livestock is apparent. For grazing or feed losses, you must submit a notice of loss to your local FSA office within 30 calendar days of when the loss is apparent and should maintain documentation and receipts.
You should record all pertinent information regarding livestock inventory records including:
- Documentation of the number, kind, type, and weight range of livestock
- Beginning inventory supported by birth recordings or purchase receipts.
For more information on documentation requirements, contact your County USDA Service Center or visit fsa.usda.gov.
If you’re enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, you must protect all cropland and noncropland acres on the farm from wind and water erosion and noxious weeds. By signing ARC county or individual contracts and PLC contracts, you agree to effectively control noxious weeds on the farm according to sound agricultural practices. If you fail to take necessary actions to correct a maintenance problem on your farm that is enrolled in ARC or PLC, the County Committee may elect to terminate your contract for the program year.
The term “sodbusting” is used to identify the conversion of land from native vegetation to commodity crop production after December 23, 1985. As part of the conservation provisions of the Food Security Act of 1985, if you’re proposing to produce agricultural commodities (crops that require annual tillage including one pass planting operations and sugar cane) on land that has been determined highly erodible and that has no crop history prior to December 23, 1985, that land must be farmed in accordance with a conservation plan or system that ensures no substantial increase in soil erosion.
Eligibility for many USDA programs requires compliance with a conservation plan or system on highly erodible land (HEL) used for the production of agricultural commodities. This includes Farm Service Agency (FSA) loan, disaster assistance, safety net, price support, and conservation programs; Natural Resources Conservation Service (NRCS) conservation programs; and Risk Management Agency (RMA) Federal crop insurance.
Before you clear or prepare areas not presently under production for crops that require annual tillage, you are required to file Form AD-1026 “Highly Erodible Land Conservation and Wetland Conservation Certification,” with FSA indicating the area to be brought into production. The notification will be referred to NRCS to determine if the field is considered highly erodible land. If the field is considered HEL, you are required to implement a conservation plan or system that limits the erosion to the tolerable soil loss (T) for the predominant HEL soil on those fields.
In addition, prior to removing trees or conducting any other land manipulations that may affect wetlands, remember to update form AD-1026, to ensure you remain in compliance with the wetland conservation provisions.
Prior to purchasing or renting new cropland acres, it is recommended that you check with your local USDA Service Center to ensure your activities will be in compliance with the highly erodible land and wetland conservation provisions.
For additional information on highly erodible land conservation and wetland conservation compliance, contact your local USDA Service Center.
The U.S. Department of Agriculture (USDA) is offering virtual workshops – on Oct. 11, Oct. 13, Nov. 15, and Dec. 13 – for agricultural producers and stakeholders to learn about the latest updates and improvements to the Whole-Farm Revenue Protection (WFRP) and the Micro Farm insurance options, two of the most comprehensive risk management options available. These insurance options are especially important to specialty crop, organic, urban, and direct market producers, and this is part of the USDA’s Risk Management Agency (RMA) efforts to increase participation in these options and crop insurance overall.
RMA will host these workshops for agricultural producers via Microsoft Teams events:
RSVP is not required. Attendees will have a chance to submit written questions during the event. Learn more.
Farm Operating Loans: Direct: 3.875%
Farm Ownership Loans: Direct: 4.125%
Farm Ownership Loans (Down Payment): 1.500%
Emergency Loans: 3.750%
Farm Storage Facility Loan, 3 year: 3.625%
Farm Storage Facility Loan, 5 year: 3.375%
Farm Storage Facility Loan, 7 year: 3.375%
Farm Storage Facility Loan, 10 year: 3.125%
Farm Storage Facility Loan, 12 year: 3.375%
Commodity Loans: 4.625%
October 31, 2022: Applications due for the Organic and Transitional Education Certification Program (OTECP) and Organic Certification Cost Share Program are (OCCSP)
November 15, 2022: 2023 Aronia and June Berries NAP Coverage
November 15, 2022: Acreage Reporting Deadline for Fall-Seeded Small Grains December 1, 2022: 2023 Grapes NAP Coverage
December 9, 2022: Deadline to enroll in 2023 DMC Coverage
December 31, 2022: 2023 Honey NAP Coverage
January 30, 2023: 2022 ELAP Application for Payment Deadline
January 30, 2023: 2022 LFP Application for Payment Deadline
March 1, 2023: 2022 LIP Application for Payment Deadline
Ongoing – Continuous CRP Signup
|
