I know that this has been a very difficult year, and many farmers, ranchers and other Ag producers across the state have suffered big time because of the drought that gripped a large portion of our state for most of the Summer and Fall seasons. I know that many people who raised row crops have received compensation for some losses either through crop insurance or through NAP coverage for non-traditional crops that may have been negatively impacted by the drought. For livestock producers, we had several FSA programs that helped those who suffered through the drought, with the Livestock Forage program (LFP) being the one that seemed to help the largest number of producers. All in all, we had almost 25,000 producers in Missouri who received compensation from LFP, and we distributed almost $147 million to those producers.
Now we have switched our attention to other Disaster Relief programs, with two of the major ones at this time being the Emergency Relief Program (ERP) Phase Two, and the Pandemic Assistance Relief Program (PARP). These two programs are designed to help producers who suffered losses due to the COVID Pandemic. Several weeks ago, we sent 7 of our staff members to Dallas to be trained on these, and a few other programs. Two weeks ago, we held a statewide FSA training, where these 7 folks trained our County office people from across the state on the ins and outs of these programs.
As many of you know, ERP, Phase One was implemented several months ago, and it provided financial assistance over and above what crop insurance paid to producers who mainly suffered a significant crop revenue loss during the 2020 and 2021 Pandemic years. Quite a few producers in Missouri received benefits from this program, and much of the financial information for this program was provided by crop insurance agents to the producers. Also, those producers who raised non-traditional crops that were not covered by crop insurance, but had NAP coverage, also benefitted from ERP, Phase One. The ERP, Phase Two program that has just recently been released, is designed for producers who did not have any crop insurance or NAP coverage, and did not benefit from ERP, Phase One. Something that makes this program different is that producers must provide all of their own financial revenue information when applying for ERP, Phase Two. For many of the Disaster Relief and other FSA programs, we have a data base with much of the producer financial info that is needed for the program application. Again, that is not the case with ERP. Phase Two, and each producer will be responsible for obtaining that information from your CPA, your tax preparer or whomever might have that info. As with Phase One, Phase Two benefits are based on losses during the 2020 and 2021 years.
In terms of the PARP program, it is also a Pandemic Assistance Relief program, and to qualify for it, a Producer must have had a total farm revenue loss of at least 15% in the year 2020, in comparison to the total farm revenue in your base year, which is either 2018 or 2019. While ERP, Phase Two is mainly a crop revenue loss program, PARP can apply to both crops and livestock. PARP is also a revenue-based program.
Be sure and check with your local FSA Service Center, as the staff there will be able to give you detailed information about these and other FSA programs and services.
CLICK HERE to view the What's Happening Today at MO FSA video, where Joe Aull, SED, discusses ERP & PARP with Kendra McKinnis, Pettis County, CED.
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General CRP Signup to open February 27
Agriculture Secretary Tom Vilsack announced that agricultural producers and private landowners can begin applying for the Conservation Reserve Program (CRP) General signup starting February 27 through April 7, 2023. CRP is a cornerstone voluntary conservation program offered by the U.S. Department of Agriculture (USDA) and a key tool in the Biden-Harris administration’s effort to address climate change and help agricultural communities invest in the long-term well-being of their land and natural resources.
Producers and landowners enrolled more than 5 million acres into CRP through signups in 2022, building on the acceptance of more than 3.1 million acres in the largest Grassland CRP signup in history. There are currently 23 million acres enrolled in CRP, with 1.9 million set to expire this year. USDA’s Farm Service Agency (FSA) is aiming to reach the 27-million-acre cap statutorily set for fiscal year 2023.
General CRP
General CRP helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. Additionally, General CRP includes a Climate-Smart Practice Incentive to help increase carbon sequestration and reduce greenhouse gas emissions by helping producers and landowners establish trees and permanent grasses, enhance wildlife habitat, and restore wetlands.
Continuous CRP
Under Continuous CRP, producers and landowners can enroll in CRP throughout the year. Offers are automatically accepted provided the producer and land meet the eligibility requirements and the enrollment levels do not exceed the statutory cap. The Climate-Smart Practice Incentive is also available in the Continuous signup.
FSA offers several additional enrollment opportunities within Continuous CRP, including the Clean Lakes Estuaries and Rivers Initiative (CLEAR30), the State Acres for Wildlife Enhancement (SAFE) Initiative, the Farmable Wetlands Program (FWP), and the Conservation Reserve Enhancement Program (CREP). The CLEAR30 Initiative, which was originally piloted in twelve states in the Great Lakes and Chesapeake Bay watershed, has been expanded nationwide, allowing producers and landowners to enroll in 30-year CRP contracts for water quality practices. Under this administration, FSA also moved SAFE practices back to the Continuous CRP signup, giving producers and landowners more opportunities to participate in the initiative. Through the FWP, producers and landowners can enroll land in CRP as part of their efforts to restore previously farmed wetlands and wetland buffers, to improve both vegetation and water flow.
This administration has also made significant improvements to CREP, which leverages federal and non-federal funds to target specific State, regional or nationally significant conservation concerns. Specifically, USDA made significant improvements to CREP to reduce barriers and make the program more accessible to a broad range of producers and new types of partners.
These updates included flexibility for partners to provide matching funds in the form of cash, in-kind contributions, or technical assistance, along with an investment in additional staff to work directly with partners. Through CREP, for the first time ever, three Tribal Nations are now partnering with USDA to help conserve, maintain, and improve grassland productivity, reduce soil erosion, and enhance wildlife habitat.
Grassland CRP
FSA will announce the dates for Grassland CRP signup in the coming weeks. Grassland CRP is a working lands program, helping landowners and operators protect grassland, including rangeland and pastureland and certain other lands, while maintaining the areas as working grazing lands.
Protecting grasslands contributes positively to the economy of many regions, provides biodiversity of plant and animal populations, and provides important carbon sequestration benefits to deliver lasting climate outcomes.
How to Sign Up
Landowners and producers interested in CRP should contact their local USDA Service Center to learn more or to apply for the program before their deadlines.
Producers with expiring CRP acres can use the Transition Incentives Program (TIP), which incentivizes producers who sell or enter a long-term lease with a beginning, veteran, or socially disadvantaged farmer or rancher who plans to sustainably farm or ranch the land.
More Information
Signed into law in 1985, CRP is one of the largest voluntary private-lands conservation programs in the United States. It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production. The program has evolved over the years, providing many conservation and economic benefits.
Apply by March 27, 2023
USDA is making available up to $7.5 million for grants through its Office of Urban Agriculture and Innovative Production (OUAIP). The competitive grants will support the development of urban agriculture and innovative production projects through two categories, Planning Projects and Implementation Projects. News Release here
Recipients include projects in 27 states, including Missouri, and one territory
USDA is investing more than $9.4 million in 45 cooperative agreements that support innovative, scalable waste management plans to reduce and divert food waste from landfills. The Compost and Food Waste Reduction (CFWR) cooperative agreements, which are funded by the American Rescue Plan Act, are part of USDA’s broad support for urban agriculture through its Office of Urban Agriculture and Innovative Production (OUAIP). The projects will be implemented between 2023 and 2025. News Release here
New form will be available starting March 1, 2023
The U.S. Department of Agriculture (USDA) has developed a simplified direct loan application to provide improved customer experience for producers applying for loans from the Farm Service Agency (FSA). The simplified direct loan application enables producers to complete a more streamlined application, reduced from 29 to 13 pages. Producers will also have the option to complete an electronic fillable form or prepare a traditional, paper application for submission to their local FSA farm loan office. The paper and electronic versions of the form will be available starting March 1, 2023.
Approximately 26,000 producers submit a direct loan application to the FSA annually, but there is a high rate of incomplete or withdrawn applications, due in part to a challenging and lengthy paper-based application process. Coupled with the Loan Assistance Tool released in October 2022, the simplified application will provide all loan applicants access to information regarding the application process and assist them with gathering the correct documents before they begin the process. This new application will help farmers and ranchers submit complete loan applications and reduce the number of incomplete, rejected, or withdrawn applications.
In October 2022, USDA launched the Loan Assistance Tool, an online step-by-step guide that provides materials to help an applicant prepare their farm 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. The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser. A version compatible with mobile devices is expected to be available by the summer. It does not work in Internet Explorer.
The simplified direct loan application and Loan Assistance Tool are the first of multiple farm loan process improvements that will be available to USDA customers on farmers.gov in the future. Other improvements that are anticipated to launch in 2023 include:
- 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.
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 took action in October 2022 to provide relief to qualifying distressed borrowers 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.
Soon, all direct loan borrowers will receive a letter from USDA describing the circumstances under which additional payments will be made to distressed borrowers and how they can work with their FSA local office to discuss these options. Producers can explore all available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center.
The Missouri Custom Rates survey is routinely used by landowners, farmers, custom operators and government agencies. This survey is conducted every three years to update prices.
University of Missouri Extension is asking all persons involved in providing or using custom farming activities to fill out this survey. Your responses will benefit the agricultural community of Missouri as it efficiently produces food, fuel and fiber.
The online survey contains many questions but is organized so that respondents can quickly locate the questions specific to their business. Completing the survey should be quick and easy. While the survey is formatted for phones, it is best taken on a computer where entering numbers is simpler.
To take the survey go to http://muext.us/customrate. Choose the broad categories of custom activity for which you will provide information and enter your values for individual activities.
Deadline for Calendar Year 2022 Applications is Jan. 31, 2023
The U.S. Department of Agriculture (USDA) reminds specialty crop producers of available assistance to help cover certain costs of complying with regulatory and market-driven food safety certification requirements. Applications for the Food Safety Certification for Specialty Crops (FSCSC) program for eligible 2022 costs are due by Jan. 31, 2023. USDA’s Farm Service Agency (FSA) will accept applications for 2023 costs from Feb. 1, 2023, to Jan. 31, 2024.
FSA is making available up to $200 million through the FSCSC program, which is part of USDA’s broader effort to transform the food system to create a more level playing field for small-scale agricultural operations and a more balanced, equitable economy for everyone working in food and agriculture.
USDA first announced and opened this program for signup in 2022, delivering 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.
Program Details
FSCSC assists specialty crop operations that incurred eligible on-farm food safety certification and expenses related to obtaining or renewing a food safety certification in calendar years 2022 and 2023 for certifications issued on or after June 21, 2022. For each year, FSCSC covers a percentage of the specialty crop operation’s eligible costs 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.
- Have paid eligible expenses related to 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.
FSA calculates FSCSC payments for each category of eligible costs. FSA set a higher payment rate for underserved farmers and ranchers, which includes socially disadvantaged, limited resource, beginning and veteran producers who have a CCC-860 on file with FSA.
FSA will issue payments at the time of application approval for 2022 and after the application period ends for 2023. The 2023 application period opens Feb. 1, 2023, and closes Jan. 31, 2024. If calculated payments exceed the amount of available funding, payments will be prorated.
Applying for Assistance
Interested specialty crop producers can apply by completing the application, FSA-888. 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/service-locator to find their local FSA office. Specialty crop producers can also call 877-508-8364 to speak directly with a USDA employee ready to assist.
Producers can visit farmers.gov/food-safety for additional program details, eligibility information and forms needed to apply.
Farm loan borrowers who have pledged real estate as security for their Farm Service Agency (FSA) direct or guaranteed loans are responsible for maintaining loan collateral. Borrowers must obtain prior consent or approval from FSA or the guaranteed lender for any transaction that affects real estate security. These transactions include, but are not limited to:
- Leases of any kind
- Easements of any kind
- Subordinations
- Partial releases
- Sales
Failure to meet or follow the requirements in the loan agreement, promissory note, and other security instruments could lead to nonmonetary default which could jeopardize your current and future loans.
It is critical that borrowers keep an open line of communication with their FSA loan staff or guaranteed lender when it comes to changes in their operation. For more information on borrower responsibilities, read Your FSA Farm Loan Compass.
The Farm Loan team is already working on operating loans for spring 2023 and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year.
Microloans are a simplified loan program that will provide up to $50,000 for both Farm Ownership and Operating Microloans to eligible applicants. These loans, targeted for smaller and non-traditional operations, can be used for operating expenses, starting a new operation, purchasing equipment, and other needs associated with a farming operation. Loans to beginning farmers and members of underserved groups are a priority.
Other types of loans available include:
Marketing Assistance Loans allow producers to use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. These loans provide cash flow to the producer and allow them to market the crop when prices may be more advantageous.
Farm Storage Facility Loans can be used to build permanent structures used to store eligible commodities, for storage and handling trucks, or portable or permanent handling equipment. A variety of structures are eligible under this loan, including bunker silos, grain bins, hay storage structures, and refrigerated structures for vegetables and fruit. A producer may borrow up to $500,000 per loan.
Policy changes will help more producers recover from natural disasters
The U.S. Department of Agriculture (USDA) made updates to several conservation, livestock and crop disaster assistance programs to give more farmers, ranchers, and tribes the opportunity to apply for and access programs that support recovery following natural disasters. Specifically, USDA’s Farm Service Agency (FSA) expanded eligibility and enhanced available benefits for a suite of its programs. These updates will provide critical assistance to producers who need to rebuild and recover after suffering catastrophic losses of production and infrastructure due to natural disasters.
FSA has updated the following programs: The Emergency Conservation Program (ECP), the Emergency Forest Restoration Program (EFRP), the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish (ELAP), the Livestock Forage Disaster Program (LFP), the Livestock Indemnity Program (LIP) and the Noninsured Crop Disaster Assistance Program (NAP).
Conservation Disaster Assistance Updates
FSA updated ECP to:
- Allow producers who lease Federally owned or managed lands, including tribal trust land, as well as State land the opportunity to participate.
- Provide advance payments, up to 25% of the cost, for all ECP practices before the restoration is carried out, an option that was previously only available for fence repair or replacement. The cost-share payment must be spent within 60 days.
Additionally, Congress also authorized the Federal government to pay 100% of the ECP and EFRP cost for damage associated with the Hermit’s Peak/Calf Canyon Fire in New Mexico. This fire burned over 340,000 acres from April 2022 to June 2022 and was the largest wildfire in recorded history in New Mexico. ECP and EFRP cost-share assistance is typically capped at 75%. This policy change for 100% cost-share applies only to those locations impacted by the Hermit’s Peak/Calf Canyon Fire.
ECP and EFRP provide financial and technical assistance to restore conservation practices like fencing, damaged farmland or forests.
Livestock Disaster Assistance Updates
FSA also expanded eligible livestock under ELAP, LFP and LIP. Specifically, horses maintained on eligible grazing land are eligible for ELAP, LFP and LIP. Many family farms and ranches use their forage to raise horses to augment their other agriculture endeavors. FSA recognizes that animals maintained in a commercial agriculture operation, add value to the operation and could be available for marketing from the farm. FSA regulations have been updated to include these animals as eligible livestock
Horses and other animals that are used or intended to be used for racing and wagering remain ineligible.
Ostriches are also now eligible for LFP and ELAP. FSA is making this change because ostriches satisfy more than 50% of their net energy requirement through the consumption of growing forage grasses and legumes and are therefore considered “grazing animals”.
This change for ostriches is effective for the 2022 program year for both LFP and ELAP. ELAP requires a notice of loss to be filed with FSA within 30 days of when the loss is first apparent. Because this deadline may have passed for 2022, FSA is extending the deadline for filing notices of loss through March 31, 2023.
LIP and ELAP reimburses producers for a portion of the value of livestock, poultry and other animals that died as a result of a qualifying natural disaster event or for loss of grazing acres, feed and forage. LFP provides benefits for grazing losses due to drought and eligible wildfires on federally managed lands.
Noninsured Crop Disaster Assistance
NAP provides financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occur due to natural disasters. Basic NAP coverage is equivalent to the catastrophic level risk protection plan of insurance coverage, which is based on the amount of loss that exceeds 50% of expected production at 55% of the average market price for the crop.
Previously, to be eligible for NAP coverage, a producer had to submit an application (Form CCC-471) for NAP coverage on or before the application closing date. For 2022, if a producer has a Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification (Form CCC-860) on file with FSA, it will serve as an application for basic coverage for all eligible crops having a 2022 application closing date and all NAP-related service fees for basic coverage will be waived for these producers.
FSA will notify all eligible producers who already have the CCC-860 certification form on file of their eligibility for NAP basic coverage for 2022. To potentially receive NAP assistance, producers who suffered losses due to natural disasters in 2022 should file an acreage report as well as a notice of loss with the FSA at their local Service Center.
Producers who are interested in obtaining NAP coverage for 2023 and subsequent years should also contact their local FSA county office for information on eligibility, coverage options and applying for coverage.
Reporting Losses
Producers impacted by a natural disaster should report losses and damages and file an application with their FSA county office. Timelines for reporting losses and applying for payments differ by program.
For LIP and ELAP, producers will need to file a Notice of Loss for livestock and grazing or feed losses within 30 days and honeybee losses within 15 days. For LFP, producers must provide a completed application for payment and required supporting documentation to their FSA office within 30 calendar days after the end of the calendar year in which the grazing loss occurred.
For NAP, producers should contact their local FSA office for guidelines on submitting a notice of loss and filing an acreage certification.
More Information
The updates to these programs build on other Biden-Harris administration efforts to improve disaster assistance programs, including additional flexibility in obtaining Noninsured Crop Disaster Assistance Program (NAP) basic coverage for socially disadvantaged, beginning, limited resource and veteran farmers and ranchers.
Previous enhancement to the ELAP provide program benefits to producers of fish raised for food and other aquaculture species as well as cover above normal expenses for transporting livestock to forage and grazing acres and transport feed to livestock impacted by qualifying drought. And earlier updates to the LIP payment rates better reflect the true market value of non-adult beef, beefalo, bison and dairy animals.
Yesterday, FSA announced it would begin accepting applications for the Emergency Relief Program (ERP) Phase Two and the new Pandemic Assistance Revenue Program (PARP) on Jan. 23, 2023, through June 2, 2023. ERP Phase Two is designed to fill gaps in the delivery of program benefits not covered in ERP Phase One and improves equity in program delivery to underserved producers. PARP will help address gaps in previous pandemic assistance, which was targeted at price loss or lack of market access, rather than overall revenue losses. Learn more in the Jan. 9, 2023 news release.
Additional Resources
On farmers.gov, the Disaster Assistance Discovery Tool, Disaster Assistance-at-a-Glance fact sheet, and Farm Loan Discovery Tool can help producers and landowners determine program or loan options. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent. For FSA and Natural Resources Conservation Service programs, contact the local USDA Service Center.
CRP contract holders are encouraged to transition their Conservation Reserve Program (CRP) acres to beginning, veteran or socially disadvantaged farmers or ranchers through the Transition Incentives Program (TIP). TIP provides annual rental payments to the landowner or operator for up to two additional years after the CRP contract expires.
CRP contract holders no longer need to be a retired or retiring owner or operator to transition their land. TIP participants must agree to sell, have a contract to sell, or agree to lease long term (at least five years) land enrolled in an expiring CRP contract to a beginning, veteran, or socially disadvantaged farmer or rancher who is not a family member.
Beginning, veteran or social disadvantaged farmers and ranchers and CRP participants may enroll in TIP beginning two years before the expiration date of the CRP contract. The TIP application must be submitted prior to completing the lease or sale of the affected lands. New landowners or renters that return the land to production must use sustainable grazing or farming methods.
For more information, contact your local county USDA Service Center or visit fsa.usda.gov.
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.
A multi-agency guide for USDA assistance for underserved farmers and ranchers is now available. If you are a farmer or rancher and are a minority, woman, veteran, beginning, or limited resource producer, you can use this booklet to learn about assistance and targeted opportunities available to you. This includes programs offered through the Farm Service Agency, Natural Resources Conservation Service, and Risk Management Agency. Download the guide here. The guide is also available in Spanish, Hmong, Korean, Vietnamese, Thai and Chinese on farmers.gov/translations.
2022 has come to an end, which means it’s time to start thinking about what you want to work on in the new year. Setting resolutions can be hard, but we’re here to help!
If you would like to make a #ConservationResolution for 2023, here are some options to consider:
- Incorporate cover crops into your operation.
- Extend your growing season by using a high tunnel.
- Improve your soil health by utilizing no-till practices.
- Provide recreational opportunities and wildlife habitat by restoring wetlands.
- Reduce input costs by focusing on nutrient management.
- Protect topsoil and groundwater quality by devoting environmentally sensitive agricultural land to conservation benefits instead of farming.
Resolutions can be daunting and hard to stick to, but here are some tips for how to make them successful.
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Make a plan- To get started on your #ConservationResolutions, we recommend you stop by your local USDA service center, so we can discuss your vision for your land. The Natural Resources Conservation Service (NRCS) can provide you with free technical assistance and or advice.
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Don’t do it alone– USDA’s conservation programs available through NRCS and the Farm Service Agency (FSA) give you the tools and resources to protect environmentally sensitive land and restore grasslands, wetlands, and forests, which leads to cleaner water and air, healthier soil, and enhanced wildlife habitat. We can also help with financial assistance to help you achieve your #ConservationResolutions
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See what other landowners are doing -Learn about the benefits of conservation practices directly from the farmers, ranchers, and forest landowners applying them with our series of 90-second videos. Explore the different types of conservation practices by watching our Conservation at Work series. You can also read producer profiles on farmer.gov.
In January, we’ll be highlighting different #ConservationResolutions that can help protect our natural resources. Follow along to start yours!
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). Signup began Oct. 17, 2022, and producers have until March 15, 2023, to enroll in these two programs. Additionally, USDA’s Farm Service Agency (FSA) has started issuing payments totaling more than $255 million to producers with 2021 crops that have triggered payments through ARC or PLC.
2023 Elections and Enrollment
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, 2023 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.
Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.
Web-Based Decision Tools
In partnership with USDA, the University of Illinois and Texas A&M University offer web-based decision tools to assist producers in making informed, educated decisions using crop data specific to their respective farming operations. Tools include:
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Gardner-farmdoc Payment Calculator, a tool available through the University of Illinois allows producers to estimate payments for farms and counties for ARC-CO and PLC.
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ARC and PLC Decision Tool, a tool available through Texas A&M that allows producers to obtain basic information regarding the decision and factors that should be taken into consideration such as future commodity prices and historic yields to estimate payments for 2022.
2021 Payments and Contracts
ARC and PLC payments for a given crop year are paid out the following fall to allow actual county yields and the Market Year Average prices to be finalized. This month, FSA processed payments to producers enrolled in 2021 ARC-CO, ARC-IC and PLC for covered commodities that triggered for the crop year.
For ARC-CO, producers can view the 2021 ARC-CO Benchmark Yields and Revenues online database, for payment rates applicable to their county and each covered commodity. For PLC, payments have triggered for rapeseed and peanuts.
For ARC-IC, producers should contact their local FSA office for additional information pertaining to 2021 payment information, which relies on producer-specific yields for the crop and farm to determine benchmark yields and actual year yields when calculating revenues.
By the Numbers
In 2021, producers signed nearly 1.8 million ARC or PLC contracts, and 251 million out of 273 million base acres were enrolled in the programs. For the 2022 crop year signed contracts surpassed 1.8 million, to be paid in the fall of 2023, if a payment triggers.
Since ARC and PLC were first authorized by the 2014 Farm Bill and reauthorized by the 2018 Farm Bill, these safety-net programs have paid out more than $34.9 billion to producers of covered commodities.
Crop Insurance Considerations
ARC and PLC are part of a broader safety net provided by USDA, which also includes crop insurance and marketing assistance loans.
Producers are reminded that ARC and PLC elections and enrollments can impact eligibility for some crop insurance products.
Producers on farms with a PLC election have the option of purchasing Supplemental Coverage Option (SCO) through their Approved Insurance Provider; however, producers on farms where ARC is the election are ineligible for SCO on their planted acres for that crop on that farm.
Unlike SCO, the Enhanced Coverage Option (ECO) is unaffected by an ARC election. Producers may add ECO regardless of the farm program election.
Upland cotton farmers who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan (STAX) on their planted cotton acres for that farm.
More Information
For more information on ARC and PLC, visit the ARC and PLC webpage or contact your local USDA Service Center.
If you have sheep or goats, you may be eligible for loan deficiency payments (LDPs) from the USDA’s Farm Service Agency (FSA).
LDPs are marketing tools that are available during for sheared wool and mohair and for unshorn lamb pelts in 2023. Please sign and return the CCC-633EZ, Page 1, Loan Deficiency (LDP) Payment Agreement and Request before shearing and before selling the lambs
MALs are an additional marketing tool to help producers meet cash flow needs without selling commodities when market prices are at harvest-time lows. Producers who are eligible for marketing loans, but choose to forgo the loan, are eligible for LDPs if the posted county price falls below the county loan rate.
Producers can purchase a commodity certificate that may be exchanged for the outstanding loan collateral. Daily LDP rates are available online at fsa.usda.gov.
Rules related to payment limitations, actively engaged in farming and cash-rent tenant no longer apply to LDPs.
For more information, contact your local county USDA Service Center or visit fsa.usda.gov/pricesupport.
The Farm Service Agency’s (FSA) Farm Storage Facility Loan (FSFL) program provides low-interest financing to help you build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.
Eligible commodities include corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as whole grain, pulse crops (lentils, chickpeas and dry peas), hay, honey, renewable biomass, fruits, nuts and vegetables for cold storage facilities, floriculture, hops, maple sap, rye, milk, cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and aquaculture (excluding systems that maintain live animals through uptake and discharge of water). Qualified facilities include grain bins, hay barns and cold storage facilities for eligible commodities.
Loans up to $50,000 can be secured by a promissory note/security agreement, loans between $50,000 and $100,000 may require additional security, and loans exceeding $100,000 require additional security.
You do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.
For more information, contact your local county USDA Service Center or visit fsa.usda.gov/pricesupport.
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