In This Issue:
At this time of year most of us come to the Thanksgiving table as families, friends, communities, and a nation in gratitude. What most people overlook is that it’s the family farmer who really brings us all together. We gather over a meal that represents the year-round hard work of our family farmers. Farmers are working harder than ever to keep farms viable and to help knit communities together through the provision of healthy local and regional food and as an economic bedrock for rural communities. This is an important time of the year to recognize their efforts and to do all we can to support them.
Thanksgiving is also the perfect backdrop for a family conversation about the folks who grow your food. We hope these conversations continue throughout the year and time is taken to learn more about the farms and farmers in our region. Dig in and make a concerted effort to share and listen to farmers stories. Understand the challenges and frustrations, and the amazing successes that are happening in the local food system and on our Pennsylvania family farms. Our stories bring us together!
Please join me this November by being grateful – not just for the food on your table, but also for the family farmers throughout the state and the nation, who wake up early every day to ensure that we have a food system that works for us, our communities, and our country!
Also, many thanks go to the good work of our county office employees who diligently help farmers to stay on their land and continue farming. On average 80% of our employees are farmers themselves. They understand and they work every day to provide excellent service to all. I know many of you share my sentiment, as you have expressed those to me while I have been visiting county offices the past 11 months. For those I have not met or spoken to yet, I hope you can agree they deserve our “thanks” and that you will share such sentiment with them next time you are in the office.
So, this November, be sure to give thanks for good food, grown by dedicated local and regional farmers, who also actively steward the farmland of which we depend on.
From our farm gate to yours,
Heidi Secord
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 Dairy producers can now enroll for 2023 coverage through the Dairy Margin Coverage (DMC) Program, an important safety net program from the U.S. Department of Agriculture (USDA) that helps producers manage changes in milk and feed prices. Last year, USDA’s Farm Service Agency (FSA) took steps to improve coverage, especially for small- and mid-sized dairies, including offering a new Supplemental DMC program and updating its feed cost formula to better address retroactive, current and future feed costs. These changes continue to support producers through this year’s signup, which begins today and ends Dec. 9, 2022.
DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.
So far in 2022, DMC payments to more than 17,000 dairy operations have triggered for August for more than $47.9 million. According to DMC margin projections, an indemnity payment is projected for September as well. At $0.15 per hundredweight for $9.50 coverage, risk coverage through DMC is a relatively inexpensive investment.
DMC offers different levels of coverage, even an option that is free to producers, aside from a $100 administrative fee. Limited resource, beginning, socially disadvantaged or a military veteran farmers or ranchers are exempt from paying the administrative fee, if requested. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.
Supplemental DMC
Last year, USDA introduced Supplemental DMC, which provided $42.8 million in payments to better help small- and mid-sized dairy operations that had increased production over the years but were not able to enroll the additional production. Supplemental DMC is also available for 2023.
Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds.
For producers who enrolled in Supplemental DMC in 2022, the supplemental coverage will automatically be added to the 2023 DMC contract that previously established a supplemental production history.
Producers who did not enroll in Supplemental DMC in 2022 can do so now. Producers should complete their Supplemental DMC enrollment before enrolling in 2023 DMC. To enroll, producers will need to provide their 2019 actual milk marketings, which FSA uses to determine established production history.
DMC Payments
Additionally, FSA will continue to calculate DMC payments using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses. These updated feed calculations use 100% premium alfalfa hay rather than 50%. The benefits of these feed cost adjustments were realized in the recent August 2022 margin payment as current high feed and premium hay costs were considered in payment calculations.
More Information
In addition to DMC, USDA offers other risk management tools for dairy producers, including the Dairy Revenue Protection (DRP) plan that protects against a decline in milk revenue (yield and price) and the Livestock Gross Margin (LGM) plan, which provides protection against the loss of the market value of livestock minus the feed costs. Both DRP and LGM livestock insurance policies are offered through the Risk Management Agency. Producers should contact their local crop insurance agent for more information.
For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.
At USDA, we are committed to helping farmers complete loan applications, environmental reviews, and other paperwork free of charge. One-on-one support is available at more than 2,300 USDA Service Centers nationwide. USDA’s Farm Service Agency and Natural Resources Conservation Service staff are usually co-located at these Service Centers and can help guide farmers to the best USDA assistance based on their unique goals, whether it is loans, conservation programs, or insurance.
Service Center staff can guide farmers through the process of preparing and submitting required paperwork on their own, with no need to hire a paid preparer. Language translation service is available in all USDA Service Centers, so one-on-one assistance with a Service Center employee can be translated in real time for farmers requiring it. And while some program and loan applications do have an administrative fee for filing, there is never a charge for preparation services provided by USDA staff.
Farmers who work with the USDA Service Center can:
- Establish their farm by registering for a farm number, which is required for USDA programs and assistance.
- Learn how to meet conservation compliance provisions.
- Verify eligibility for USDA programs.
- Discuss their business and conservation goals.
- Create a conservation plan.
- Fill out and file loan and program applications.
We are committed to delivering USDA programs and services to America’s farmers and ranchers while taking safety measures in response to COVID-19. We encourage you to check the status of your local USDA Service Center and make an appointment to discuss your business needs.
Are you a military veteran interested in farming? USDA offers resources to help you:
- Fund Your Operation: USDA’s Farm Service Agency offers a variety of funding opportunities to help agricultural producers finance their businesses. Certain funds are targeted for veterans and beginning farmers and ranchers.
- Conserve Natural Resources: USDA’s Natural Resources Conservation Service offers conservation programs and expert one-on-one technical assistance to strengthen agricultural operations now and into the future. Veterans may be eligible for a cost share of up to 90 percent and advance payments of up to 50 percent to cover certain conservation practices.
- Manage Risks: USDA is here to help you prepare for and recover from the unexpected. Veterans who are beginning farmers may be eligible for reduced premiums, application fee waivers, increased insurance coverage, and other incentives for multiple USDA programs that support risk management.
USDA wants to ensure that veterans transitioning to agriculture have the resources needed to succeed. While USDA offices are currently closed to visitors because of the pandemic, Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. To conduct business, please contact your local USDA Service Center. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus. If you’re a new farmer, you can also reach out to your state Beginning Farmer and Rancher Coordinator.
We’re excited to unveil our new website, which was designed for you, whether you’re a farmer, rancher or forest landowner who uses Natural Resources Conservation Service (NRCS) conservation programs or one of our partners who helps us deliver on the conservation mission.
The new NRCS site has been designed to support and enhance our mission by delivering relevant, timely, customer-focused information in an easy-to-navigate platform.
Key features include:
- It’s been designed using the U.S. Web Design System, so you’ll see a certain “family resemblance” among USDA and other federal websites, including farmers.gov.
- It’s accessible (or 508 conformant), meaning the site is designed for use by people with disabilities.
- It’s mobile responsive, meaning that it should work on a phone or tablet at easily as on a desktop computer.
Be sure to check out our:
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Guides and Instructions- Search by resource type, NRCS program, natural resource concern, and state.
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Getting Assistance- Learn more about available technical and financial assistance and how you can get support online as well as with the NRCS at your local Service Center.
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Conservation by State- Find information on NRCS programs, services and other information in your state.
If you can’t find something that you used to find on our website, contact us and we can help.
The U.S. Department of Agriculture (USDA) launched a new online tool to help farmers and ranchers better navigate the farm loan application process. This uniform application process will help to ensure all farm loan applicants receive equal support and have a consistent customer experience with USDA’s Farm Service Agency (FSA) regardless of their individual circumstances.
USDA experiences a high rate of incomplete or withdrawn applications, particularly among underserved customers, due in part to a challenging and lengthy paper-based application process. The Loan Assistance Tool is available 24/7 and gives customers an online step-by-step guide that supplements the support they receive when working in person with a USDA employee, providing materials that may help an applicant prepare their loan application in one tool.
Farmers can access the Loan Assistance Tool by visiting farmers.gov/farm-loan-assistance-tool and clicking the ‘Get Started’ button. From here they can follow the prompts to complete the Eligibility Self-Assessment and start the farm loan journey. The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser, and is fully functional on mobile devices. It does not work in Internet Explorer.
The Loan Assistance Tool is the first of multiple farm loan process improvements that will be available to USDA customers on farmers.gov in the future. Other improvements and tools that are anticipated to launch in 2023 include:
- A streamlined and simplified direct loan application, reduced from 29 pages to 13 pages.
- An interactive online direct loan application that gives customers a paperless and electronic signature option, along with the ability to attach supporting documents such as tax returns.
- An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.
Background
USDA provides access to credit to approximately 115,000 producers who cannot obtain sufficient commercial credit through direct and guaranteed farm loans. With the funds and direction Congress provided in Section 22006 of the Inflation Reduction Act, USDA is taking action to immediately provide relief to qualifying distressed borrowers whose operations are at financial risk while working on making transformational changes to loan servicing so that borrowers are provided the flexibility and opportunities needed to address the inherent risks and unpredictability associated with agricultural operations.
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