In This Issue:
 By Bob Andrzejczak, Evan Madlinger, and Alexander Sereno,
Fifty years after the creation of National Agriculture Day, America’s farmers, ranchers and private forestland owners find themselves on the front lines of climate change. They are uniquely positioned to deliver solutions by implementing climate-smart production practices that conserve natural resources, build healthier soils, reduce greenhouse gas emissions, and sequester carbon.
National Agriculture Day is a day to recognize the producers who are the best stewards of our land. America's producers are not only providing food, forage, and fiber for today - they are also investing in climate solutions that will ensure a prosperous agricultural future for generations to come. They are growing a climate for tomorrow, for our state, our nation and our world.
Here in New Jersey, there are 16,556 agricultural producers operating 9,883 farms on 734,084 acres of productive land. The average size of an agricultural operation in New Jersey is 74 acres. Our major ag products are grains, vegetables, fruit, and nursery and the total market value is almost 1.1 billion dollars. These producers are important to New Jersey’s economy and our environment.
USDA is growing a climate for success for all people involved in farming, ranching and private forest land management. We are working to create an equitable and climate-smart food and agriculture economy built to support both rural and urban communities and empower New Jersey producers –who feed the world; improve the health, nutrition, and quality of life of all Americans; and yield healthy lands, forests, and clean water. From crop insurance to farm loans, and from conservation to disaster assistance, USDA programs are helping producers conserve natural resources and keep families farming for future generations.
For example, in New Jersey, Dan Lyness, owner and operator of Spring Run Dairy in Hunterdon County, used USDA loans and programs to build a new 50 cow tie-stall barn, purchased equipment, and started a dairy while implementing conservation practices to improve his land and safeguard the local environment. Read more about Dan and the loans and programs that assisted him here: https://www.farmers.gov/blog/fridays-on-the-farm-fresh-milk-with-side-conservation.
At the national level, the Inflation Reduction Act (IRA) represents the single largest investment in climate and clean energy solutions in American history. This is a historic, once-in-a-generation investment and opportunity for this country and for the rural, suburban, and urban agricultural communities that USDA serves.
The IRA will help producers stay on the farm, prevent producers from becoming ineligible for future assistance. It provides $3.1 billion for USDA to provide relief for distressed borrowers with at risk agricultural operations, $2.2 billion in financial assistance for farmers who have experienced discrimination in USDA’s farm lending programs,
The IRA will also promote climate-smart agriculture by increasing access to conservation assistance. It directs approximately $20 billion to support USDA’s conservation programs that yield climate-related benefits while building resilience in agricultural operations.
USDA is committed to implementing the Inflation Reduction Act quickly and effectively to give farmers, ranchers, and private forestland owners the tools and resources they need to keep their operations productive and on climate change’s front lines.
But USDA can only succeed in its mission to help American agriculture thrive—and can only live up to President Lincoln's description of it as the "People's Department"—if it ensures that the Americans who need its services most receive them. Equity is not an add-on or extra; it is central to the Department’s mission.
Equity is a component in all we do at USDA. We ensure that the programs we support and the investments we make are available to everyone and we take special steps to ensure that underserved and small and medium-sized producers can participate in our programs and prosper as a result of our work.
USDA is working across its agencies to support urban producers in their efforts to not only grow fresh, healthy produce, but also help create jobs, beautify their neighborhoods, and increase access to fresh, healthy food in areas where grocery stores are scarce.
On National Agriculture Day and every day, USDA is committed to ensuring our programs and investments reach all producers, including underserved producers who haven’t always had the opportunity to benefit from the many resources USDA has to offer. We are committed to ensuring producers have the tools and resources they need to be part of the climate solution. Please join us in thanking our nation’s producers and wishing them a happy National Agriculture Day!
Bob Andrzejczak is the State Executive Director for USDA’s Farm Service Agency; Evan Madlinger is the Acting State Conservationist for USDA’s Natural Resources Conservation Service; Alexander Sereno is the RMA Regional Office Director, serving New Jersey. Learn more about USDA programs at farmers.gov.
 Filing taxes can be challenging, especially if you are new to USDA programs or running a farm business, or if you are trying to forecast your farm’s tax bill.
To support farmers and ranchers, USDA is partnering with tax experts from across the country to connect producers to information and resources related to taxes and USDA program payments, including those from the Inflation Reduction Act for distressed borrowers. RSVP for webinars or use the new tax estimator tool.
LEARN MORE at farmers.gov/taxes.
 Are you a farmer, rancher or forest manager? Please share your vital feedback with USDA by taking a nationwide survey at farmers.gov/survey! The survey is completely anonymous, will take about 10 minutes to complete, is available in multiple languages, and will be open until March 31, 2023. The survey focuses on gathering feedback about the Farm Service Agency, Natural Resources Conservation Service and Risk Management Agency.
All farmers, ranchers and forest managers are encouraged to take the survey. USDA would especially like to hear from prospective customers: those who don’t know about USDA or have yet to work with USDA, and those who were unable to participate in the past. The survey will help USDA enhance support, improve programs and services, increase access, and advance equity for new and existing customers.
The USDA's Natural Resources Conservation Service (NRCS) in New Jersey is now accepting applications for the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP) through additional funding provided by the Inflation Reduction Act (IRA), through March 31.
These funds will provide direct climate mitigation benefits for producers to advance conservation through practices like cover cropping, conservation tillage, wetland restoration, prescribed grazing, nutrient management, tree planting and more.
In administering the IRA climate investments, USDA will also support other environmental co-benefits, including – among other things – water conservation, wildlife habitat improvements, and reducing runoff.
A complete list of eligible practices and activities can be found here: Inflation Reduction Act Practice and Activity List
For more information, see the complete news release here.
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NRCS NJ will fund $275,000 through Conservation Innovation Grants (CIG) for the development of new tools, approaches, practices and technologies to further conservation on New Jersey private lands. USDA is accepting proposals through May 23, 2022.
Interested in applying? Learn more at our webinar scheduled for March 31 at 1 pm.
To join, click here.
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Beginning January 23, 2023, agricultural producers can begin to apply for two new important programs for revenue losses, from 2020 and 2021 natural disasters or the COVID-19 pandemic. Both programs equitably fill gaps in earlier assistance.
First, you may be eligible for assistance through the Emergency Relief Program (ERP) Phase Two if you experienced revenue losses from eligible natural disasters in 2020 and 2021. ERP Phase Two is for producers who didn’t receive assistance from ERP Phase One.
You may also be eligible for the Pandemic Assistance Revenue Program (PARP) if you experienced revenue losses in calendar year 2020. PARP is addressing gaps in previous pandemic assistance, which was targeted at price loss or lack of market access, rather than overall revenue losses.
Applications for both new programs are due June 2, 2023, and you can apply for both programs during your same appointment with USDA’s Farm Service Agency (FSA).
Historically, FSA programs have been designed to make direct payments to producers based on a single disaster event or for a single commodity loss. For many of you, this may be the first revenue-based program that you’ve applied for with FSA.
Why revenue-based programs?
ERP Phase Two and PARP take a much more holistic approach to disaster assistance, ensuring that producers not just make it through a single growing season but have the financial stability to invest in the long-term well-being of their operations and employees.
In general, ERP Phase Two payments are based on the difference in allowable gross revenue between a benchmark year, representing a typical year of revenue for the producer and the disaster year – designed to target the remaining needs of producers impacted by qualifying natural disasters and avoid duplicative payments. ERP Phase Two revenue loss is based on tax years.
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 decrease in revenue for the 2020 calendar year, as compared to a typical year. PARP revenue loss is based on calendar years.
How to Apply
In preparation for enrollment, producers should gather supporting documentation including:
- Schedule F (Form 1040); and
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Profit or Loss from Farming or similar tax documents for tax years 2018, 2019, 2020, 2021 and 2022 for ERP and for calendar years 2018, 2019 and 2020 for PARP.
Producers should also have, or be prepared to have, the following forms on file for both ERP and PARP program participation:
- Form AD-2047, Customer Data Worksheet (as applicable to the program participant);
- Form CCC-902, Farm Operating Plan for an individual or legal entity;
- Form CCC-901, Member Information for Legal Entities (if applicable); and
- Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification.
- Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, as certain existing permanent and ad-hoc disaster programs provide increased benefits or reduced fees and premiums.
Most producers, especially those who have previously participated in FSA programs, will likely have these required forms on file. However, those who are uncertain or want to confirm should contact FSA at their local USDA Service Center.
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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.
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Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool and honey. MALs provide you with interim financing after harvest to help you meet cash flow needs without having to sell your commodities when market prices are typically at harvest-time lows. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available. Marketing loan provisions and LDPs are not available for sugar and extra-long staple cotton.
FSA is now accepting requests for 2022 MALs and LDPs for all eligible commodities after harvest. Requests for loans and LDPs shall be made on or before the final availability date for the respective commodities.
March 31 - MAL and LDP Deadline for prior year harvested corn, soybeans and other oilseeds, grain sorghum, and pulse crops
Commodity certificates are available to loan holders who have outstanding nonrecourse loans for wheat, upland cotton, rice, feed grains, pulse crops (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds. These certificates can be purchased at the posted county price (or adjusted world price or national posted price) for the quantity of commodity under loan, and must be immediately exchanged for the collateral, satisfying the loan. MALs redeemed with commodity certificates are not subject to Adjusted Gross Income provisions.
To be considered eligible for an LDP, you must have form CCC-633EZ, Page 1 on file at your local FSA Office before losing beneficial interest in the crop. Pages 2, 3 or 4 of the form must be submitted when payment is requested.
Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.
Adjusted Gross Income (AGI) provisions state that if your total applicable three-year average AGI exceeds $900,000, then you’re not eligible to receive an MLG or LDP. You must have a valid CCC-941 on file to earn a market gain of LDP. The AGI does not apply to MALs redeemed with commodity certificate exchange.
Click here for additional information: https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/mal_ldp_fact_sheet.pdf
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