Today marks one year since I was appointed as the State Executive Director in Alaska. It has been an interesting and enjoyable ride. Learning as many program details as possible; traveling around the State to meet with producers, lawmakers and others engaged in the agriculture industry; and working to keep the office functioning throughout a pandemic, wild weather, and staff changes, every day has brought something new.
Speaking of staff changes, in January we welcomed Elizabeth “Liz” Rand as our new Program Technician in our Northern County office. And this week Shelby Johnson has vacated the County Executive Director (CED) position in the Southern County office and accepted the position of Agriculture Program Specialist. We’re accepting applications for the vacant CED position now – please help us spread the word. This job announcement can be found by searching usajobs.gov or by clicking this link.
Earlier this month we announced the availability of ELAP Forage Transportation funding due to the extreme weather and feed shortages experienced throughout Alaska in 2022. Please take the time to review the fact sheet linked here and information in this newsletter and don’t hesitate to contact staff if you have questions. We hope the availability of this program will provide some financial relief to those impacted.
If you weren’t already aware, 2023 is a “Farm Bill year” and members of our Congressional delegation are seeking input on ways to improve, modify and enhance programs offered through the Farm Bill in Alaska. The Farm Bill is the single largest piece of Legislation that impacts our agriculture industry and provides funding for all programs offered through USDA. I encourage you to become engaged in the Farm Bill process either through direct correspondence with our Delegation or through an advocacy group such as the Alaska Farm Bureau or Alaska Food Policy Council.
As the days lengthen and the snow begins to disappear, I can’t help but look forward to the upcoming season. I’m so thankful to our many Alaska producers, farmers, ranchers, and wild harvesters who provide such incredible bounty to our State. Cheers to a great year ahead.
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The USDA Farm Service Agency (FSA) encourages you to review available USDA crop risk protection options, including federal crop insurance and Noninsured Crop Disaster Assistance Program (NAP) coverage, before the crop deadline of March 15th.
Federal crop insurance covers crop losses from natural adversities such as drought, hail and excessive moisture. NAP covers losses from natural disasters on crops for which no permanent federal crop insurance program is available.
The following crops in Alaska have a NAP application deadline of March 15th:
Spring planted annual crops (vegetables)
You can determine if crops are eligible for federal crop insurance or NAP by visiting the RMA website.
NAP offers higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production. NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production.
For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties.
If a producer has a Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification (Form CCC-860) on file with FSA, it may serve as an application for basic coverage for all eligible crops beginning with crop year 2022 and all NAP-related service fees for basic coverage will be waived for these producers.
Federal crop insurance coverage is sold and delivered solely through private insurance agents. Agent lists are available at all USDA Service Centers or at USDA’s online Agent Locator. You can use the USDA Cost Estimator to predict insurance premium costs.
For more information on NAP, service fees, sales deadlines, contact your Northern County USDA Service Center at (907)895-4242 ext 150 or the Southern County FSA Office at (907)761-7773 or visit fsa.usda.gov.
The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) has authorized policy exceptions to the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) for Alaska livestock producers. These exceptions extend ELAP feed and forage transportation eligibility to counties that were impacted by an early growing season drought, followed by excessive moisture at harvest in 2022, resulting in an increased need for feed or forage transportation.
ELAP assistance provided through the policy exceptions is limited to specific counties in Alaska that suffered from the drought like conditions, followed by excessive moisture in 2022 and for which there was a shortage of local or regional feed availability.
Eligible counties include: All Alaska Boroughs
ELAP provides assistance to owners of livestock, and producers of honeybees and farm-raised fish for feed and death losses due to an eligible natural disaster event.
Eligibility and Loss Documentation
Eligible livestock producers will be reimbursed for 60% of feed transportation costs above what would have been incurred in a normal year. Producers qualifying as underserved (socially disadvantaged, limited resource, beginning or military veteran) will be reimbursed for 90% of the feed transportation cost above what would have been incurred in a normal year. To be eligible for ELAP assistance, livestock must be intended for grazing.
Although producers will self-certify losses and expenses to FSA, producers are encouraged to maintain good records and retain receipts and related documentation associated with the costs of transporting feed and forage to eligible livestock in the event these documents are requested for review by the local FSA County Committee.
Important ELAP Deadlines
The deadline for producers to file a notice of loss and application for payment with FSA for calendar year 2022 and 2023 feed or forage transportation due to the 2022 eligible events is June 14, 2023.
For general ELAP details, view the ELAP Livestock Fact Sheet.
More Information
On farmers.gov, the Disaster Assistance Discovery Tool, Disaster Assistance-at-a-Glance fact sheet (PDF, 1.4 MB) 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 NRCS programs, they should contact their local USDA Service Center.
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 Pandemic Assistance Revenue Program (PARP) will assist eligible producers of agricultural commodities who experienced revenue decreases in calendar year 2020 compared to 2018 or 2019 due to the COVID-19 pandemic. 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.
USDA's Farm Service Agency will accept PARP applications from January 23, 2023, through June 2, 2023.
Eligible and Ineligible Commodities
For PARP, eligible agricultural commodities include crops, aquaculture, livestock, livestock byproducts, or other animals or animal byproducts that are produced as part of a farming operation and are intended to be commercially marketed. This includes only commodities produced in the United States or those produced outside the United States by a producer located in the United States and marketed inside the United States.
The following commodities are not eligible for PARP:
· Wild free-roaming animals.
· Horses and other animals used or intended to be used for racing or wagering.
· Aquatic species that do not meet the definition of aquaculture.
· Cannabis sativa L. and any part of that plant that does not meet the definition of hemp.
· Timber.
Program Eligibility
PARP payments will be made on a whole-farm basis, not commodity-by-commodity. 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 must have experienced a 15 percent decrease in allowable gross revenue in 2020, as compared to either:
· The 2018 or 2019 calendar year, as elected by the producer, if they received allowable gross revenue during the 2018 or 2019 calendar years, or
· The producer’s expected 2020 calendar year allowable gross revenue, if the producer had no allowable gross revenue in 2018 or 2019.
PARP payments will be issued after the application period ends on June 2, 2023. For more information on determining allowable gross revenue visit farmers.gov/coronavirus/pandemic-assistance/parp or review the PARP fact sheet.
More Information
To apply for PARP, contact your local USDA Service Center.
Farmers can use USDA farm ownership microloans to buy and improve property. These microloans are especially helpful to beginning or underserved farmers, U.S. veterans looking for a career in farming, and those who have small and mid-sized farming operations.
Microloans have helped farmers and ranchers with operating costs, such as feed, fertilizer, tools, fencing, equipment, and living expenses since 2013.
Microloans can also help with farmland and building purchases and soil and water conservation improvements. FSA designed the expanded program to simplify the application process, expand eligibility requirements and expedite smaller real estate loans to help farmers strengthen their operations. Microloans provide up to $50,000 to qualified producers and can be issued to the applicant directly from the USDA Farm Service Agency (FSA).
To learn more about the FSA microloan program, contact your Northern County USDA Service Center at (907)895-4242 ext 150 or the Southern County FSA Office at (907)761-7773 or visit fsa.usda.gov/microloans.
Signup begins January 23 for additional emergency relief from the U.S. Department of Agriculture (USDA) through the Emergency Relief Program (ERP) Phase Two.
To be eligible for 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. Eligible crops include both traditional insurable commodities and specialty crops that are produced in the United States as part of a farming operation and are intended to be commercially marketed. This also includes losses of eligible on-farm stored commodities. ERP Phase 2 applicants will use the following tax years when selecting allowable gross revenue:
· Benchmark years: 2018 and/or 2019; estimated for new producers with no 2018 or 2019 revenue or adjusted if the benchmark years are not representative of the disaster year due to a change in operation size.
· Disaster years: 2020 and/or 2021. The allowable gross revenue for the specific disaster year will be based on the tax year applicable to that revenue (2020, 2021 or 2022).
The ERP tool assists producers in calculating allowable gross revenue, as well as adjusted revenue for the benchmark years 2018 and 2019, and allowable gross revenue for representative tax years 2020-2022 which represent disaster years 2020 and 2021. Once producers complete the allowable gross revenue entries, they are able to print forms FSA-521 and FSA-521A through this tool.
The ERP Phase 2 and PARP application period is open from January 23 through June 2 2023.
For more information on payment calculations, payment limitations or how to determine allowable gross revenue, please reference the ERP Phase 2 fact sheet.
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