Land, then, is not merely soil; it is a fountain of energy flowing through a circuit of soils, plants, and animals.
– Aldo Leopold
Happy New Year, this is the time we start ‘anew’ with our thoughts, actions and for us, programs. As you become busy again with your life, those of reflecting on last year’s trials and tribulations, and plan on this coming years efforts, please let us know if you need any help. This is an important time, the new Farm Bill is coming out and it will affect not only farmers, but many Americans. I highlighted some upcoming highlights of the 2023 Farm Bill I read from an article (see below). The new Farm Bill will govern how we deliver programs to you over the next five years.
As important as the Farm Bill is, equally important are the yearly tasks that farmers need to do to be able to be eligible for farm programs. Please continue to read on below information on Annual review of payment eligibility, Policy Updates for Acreage Reporting and Farmers Can Now Enroll in 2023 Agriculture Risk Coverage and Price Loss Coverage Programs for some highlights.
In this message I have included some very important information that I hope you can take advantage of. To be realistic, it's not an ‘easy read’ and we in the offices are still getting up to speed on the details and will be attending an intensive training week later this month.
But I wanted to give all of our producers who might find these two new efforts of help in addressing the impacts of drought and the pandemic. I also promised to send out a shout to our livestock growers on a survey being done for future SARE grants, this will be the last part of my message.
Thanks for reading and please, do not hesitate to connect with our offices if you have questions. We often hear from producers who missed a program deadline and often our hands are tied to help at that point.
Best,
Eric
If you have ANY questions, please contact the County Office (see contact information below).
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USDA 2023 FARM Bill
(These comments are excerpted from an article by Kent Thiesse is a government farm programs analyst and a vice president at MinnStar Bank in Lake Crystal, Minn. He may be reached at (507) 726-2137 or kent.thiesse@minnstarbank.com.)
The 2023 crop year will be the final year for the current Farm Bill, which is set to expire on Sept. 30, 2023 — unless there is an extension.
A Farm Bill is one of the most comprehensive pieces of legislation passed by Congress. Passage of a new Farm Bill is very complex, with programs ranging from farm commodity programs to food and nutrition programs, from conservation programs to rural development programs, and several more.
Following are a few insights on the 12 Titles included in the current Farm Bill:
Title II: Conservation — The current Farm Bill set the maximum Conservation Reserve Program acres at 27 million acres, with additional focus on the Grassland Reserve Program. The Farm Bill also set the maximum CRP rental rates at 90 percent of the average Farm Service Agency “prevailing” rental rates for Continuous CRP contracts and at 85 percent for General CRP. There will likely be considerable support for expansion of the maximum CRP acres, as well as for increasing the maximum annual CRP rental rates to incentivize enrollment into the CRP program. The large 2022 Inflation Reduction Act contained several provisions which provided added funding for the Environmental Quality Incentives Program and the Conservation Stewardship Program, which are part of the Conservation Title.
Title V: Credit — This Title sets parameters and provides funding for the FSA direct and guaranteed loan programs, which have become quite important to farm operators and ag lenders. The direct FSA farm ownership loans are especially important to provide beginning farmers low interest loans to purchase farmland. Recently, there have been greater efforts to reach underserved farmers and ranchers with the FSA loan programs.
Title X: Horticulture — USDA funding for farmers markets and other local food programs, as well as for the national organic certification program, are provided under this Title. The last Farm Bill legitimized industrial hemp as an agricultural commodity, thus making hemp eligible for crop insurance and other USDA programs. However, this did not affect federal regulations for hemp raised for marijuana production.
Both the U.S. Senate and U.S. House Ag Committees held hearings on a new Farm Bill during 2022 and more hearings will likely be planned early in the new Congressional session in 2023. The Congressional leadership has been very committed with plans to have a new Farm Bill completed by Sept. 30, 2023, with very little talk of an extension to the current Farm Bill. Ultimately, there will likely be a compromise reached, and a new five-year Farm Bill will be passed. However, given the political division that currently exists in Congress, a one-year extension of the current Farm Bill is certainly a possibility by the end of 2023.
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Annual review of payment eligibility
All participants of FSA programs who request program benefits are required to submit a completed CCC-902 (Farming Operation Plan) and CCC-941 Average Gross Income (AGI) Certification and Consent to Disclosure of Tax Information to be considered for payment eligibility and payment limitation applicable for the program benefits.
Participants are not required to annually submit new CCC-902s for payment eligibility and payment limitation purposes unless a change in the farming operation occurs that may affect the determination of record. A valid CCC-902 filed by the participant is considered to be a continuous certification used for all payment eligibility and payment limitation determinations applicable for the program benefits requested. Participants are responsible for ensuring that all CCC-902 and CCC-941 and related forms on file in the county Office are correct at all times.
Participants are required to timely notify the county office of any changes in the farming operation that may affect the determination of record by filing a new or updated CCC-902 as applicable. Changes that may require a NEW determination include, but are not limited to, a change of: Shares of a contract, which may reflect: A land lease from cash rent to share rent, land lease from share rent to cash rent (subject to the cash rent tenant rule), A modification of a variable/fixed bushel-rent arrangement.
The size of the producer’s farming operation by the addition or reduction of cropland that may affect the application of a cropland factor. The structure of the farming operation, including any change to a member's share. The contribution of farm inputs of capital, land, equipment, active personal labor, and/or active personal management. Farming interests not previously disclosed on CCC-902 including the farming interests of a spouse or minor child.
Financial status that may affect the 3-year average for the determination of average AGI or other changes that affects eligibility under the average adjusted gross income limitations. Participants are encouraged to file or review these forms within the deadlines established for each applicable program for which program benefits are being requested.
Policy Updates for Acreage Reporting
The USDA Farm Service Agency (FSA) recently made several policy updates for acreage reporting for cover crops, revising intended use, late-filed provisions, grazing allotments as well as updated the definitions of “idle” and “fallow.” Cover crop types can be chosen from the following four categories: Cereals and other grasses, legumes, brassicas and other broadleaves, or Mixtures.
Acreage Reports: In order to maintain program eligibility and benefits, producers must timely file acreage reports.
Failure to file an acreage report by the crop acreage reporting deadline may result in ineligibility for future program benefits. FSA will not accept acreage reports provided more than a year after the acreage reporting deadline.
For more information, contact the County FSA office (see contact information below).
Farmers Can Now Enroll in 2023 Agriculture Risk Coverage and Price Loss Coverage Programs
Agricultural producers can now change election and enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage programs for the 2023 crop year, two key safety net programs offered by the U.S. Department of Agriculture (USDA Producers can elect coverage and enroll in ARC-County (ARC-CO) or PLC, which provide crop-by-crop protection, or ARC-Individual (ARC-IC), which protects the entire farm.
Although election changes for 2023 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm and makes an election change for 2023, they must sign a new contract. If producers do not submit their election by the March 15 deadline, their election remains the same as their 2022 election for crops on the farm. Farm owners cannot enroll in either program unless they have a share interest in the farm. For more information, contact the County FSA office (see contact information below).
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Providing relief for producers impacted by disaster and the pandemic.
SAN JUAN, P.R., January 9, 2023 — Today, at the American Farm Bureau Federation annual convention, Agriculture Secretary Tom Vilsack announced several major developments at the U.S. Department of Agriculture that will benefit farmers, ranchers and producers across the nation.
“At USDA, our goal is to provide all farmers, including new and underserved producers, with the opportunity to receive the assistance they need to continue farming, to build and maintain their competitive-edge, and to access more, new, and better markets,” said Vilsack, who spoke at the American Farm Bureau Federation annual convention today. “Working together we can ensure American agriculture is as resilient as ever and will do so by implementing a holistic approach to emergency assistance, by lowering input costs through investments in domestic fertilizer production, and by promoting competition in agricultural markets.”
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New Programs to fill gaps in 2020/2021 Natural Disaster Assistance (Emergency Relief Program (ERP) Phase 2) and 2020 Pandemic Assistance (Pandemic Assistance Revenue Program (PARP).
USDA is announcing two new programs that wrap-up and fill remaining gaps in previous natural disaster and pandemic assistance. To be eligible for ERP Phase Two, producers must have suffered a decrease in allowable gross revenue in 2020 or 2021 due to necessary expenses related to losses of eligible crops from a qualifying natural disaster event. Assistance will be primarily to producers of crops that were not covered by Federal Crop Insurance or NAP, since crops covered by Federal Crop Insurance and NAP were included in the assistance under ERP Phase One.
To be eligible for PARP, an agricultural producer must have been in the business of farming during at least part of the 2020 calendar year and had a 15% or greater decrease in allowable gross revenue for the 2020 calendar year, as compared to a baseline year.
The ERP Phase 2 and PARP application period is open from January 23rd through June 2nd, 2023.
For more information, producers should contact the USDA FSA County Office (see contact information below) or reference the
ERP Phase Two Fact Sheet,
PARP Fact Sheet,
or the ERP Phase Two-PARP Comparison Fact Sheet.
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Tri-State (CT, MA, RI) SARE Professional Development Program
The Tri-State (CT, MA, RI) SARE Professional Development Program is planning activities for the next three years – through 2026. The project will focus on training agricultural service providers as well as farmers in CT, MA and RI on sustainable livestock production practices. Specific content areas will be determined based on the feedback and needs of those who participate in this survey and attend the workshops. Although voluntary, it would be appreciated if livestock producers could complete a 5-minute anonymous needs assessment by Thursday, February 2nd (linked it here).
Please reach out directly to Rachel Bespuda, Project Director, Tri-State SARE Project (rachel.bespuda@uconn.edu) with any questions or comments. Thank you for your time!
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