It finally feels like spring. Snow has mostly melted and now we need the fields to dry out for spring planting.  As you prepare to get ready for spring and the rush that comes along with it, please review the updates in this bulletin as there is some important information on new programs.

Emergency Grain Storage Facility Assistance Program (EGSFP) - Do you need grain storage? Have you been thinking that grain storage will assist your operation? Maybe you are planning to add some grain storage in the next few years. We have the program for you. The Emergency Grain Storage Facility Assistance Program (EGSFP) has recently been announced. This program will provide cost-share assistance of 75% or 90% (historically underserved producers) up to $125,000 for grain storage, drying, augers. All producers who raised an eligible commodity in an eligible county in 2022 (Otter Tail and Wilkin Counties) are eligible as long as you can demonstrate a need for additional grain storage, and plan to farm for at least 3 more years. If you produced an eligible commodity in Otter Tail or Wilkin County or any other eligible county, you are eligible for this program even if the farm is administered in a different county. Please read the article later in this bulletin which will provide more details about the program including a map of eligible counties. If you are thinking of adding storage, act NOW and apply for assistance through this program. You did not need to suffer damage to your storage facility in 2022 to be eligible. This program is first come first serve.

Conservation Reserve Program (CRP)  The Continuous CRP Signup is now underway for new offers. Under the continuous CRP signup, environmentally sensitive land devoted to certain conservation practices can be enrolled in CRP at any time. Offers for continuous enrollment are not subject to competitive bidding during specific periods. Instead they are automatically accepted provided the land and producer meet certain eligibility requirements and the enrollment levels do not exceed the statutory cap. A new practice established under the 2018 Farm Bill is CP43 Prairie Strips which could be used on perimeter of fields to replace conservation issues with headlands, irrigation corners, and salinity areas on cropland.

For Continuous Signup, participants may submit offers to re-enroll land now through July 31, 2023. Participants offering new land only can submit offers anytime. Approved re-enrolled contracts will begin on October 1, 2023 and approved new land contracts can begin on the first day of the month following contract approval.

Farm Records & Other Changes – Producers who are buying, selling, or renting different land must notify the County Office as soon as possible after the transaction.  Please provide a copy of the recorded deed for any purchased land. Also, if you will be renting new land, we will need a copy of the lease before we can add you to the farm and/or give you information about the farm such as maps, base acres, yields, etc.  FSA is not notified by the county courthouse of these sales. Updating records now will save you time during program signups. If you have changed your bank or bank account, please provide FSA with your updated account as to not miss payments in the future.

Revenue Loss Assistance Programs – Emergency Relief Program (ERP) Phase 2 is a tax year-based certification program that provides assistance for producers that suffered a loss in revenue due to necessary expenses associated with losses of eligible crops (excluding crops intended for grazing), due in whole or in part, to a qualifying disaster event that occurred in the 2020 or 2021 calendar year.  Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions. In general, ERP phase two payments are to be based on the difference in certain farm revenue between a typical year of revenue (2018 or 2019) and the disaster year. Signup will be from January 23 to June 2, 2023.

The second program will be the Pandemic Assistance Revenue Program (PARP). USDA is providing critical support to producers impacted by the effects of the COVID-19 outbreak through the Pandemic Assistance Revenue Program (PARP). PARP provides direct financial assistance to producers of agricultural commodities who suffered at least a 15% loss in gross revenue in calendar year 2020 due to the COVID-19 pandemic. Payments to eligible producers will be based upon a comparison of the producer’s gross revenue from 2020 compared to either 2018 or 2019, as elected by the producer. The Farm Service Agency (FSA) is accepting applications for PARP from January 23 to June 2, 2023.

For additional information: Emergency Relief Program (ERP) and Pandemic Assistance Relief Program (PARP).  Information on these programs may be found by clicking the links below or visiting farmers.gov.    

Need to upgrade a piece of equipment for handling your commodities?  Check out our FSFL Program – Grain carts and trucks, semi-trailers (hopper, live bottom, end dump), bulk tanks, baggers, bale wrappers, skid steers, sugar beet carts, augers, and liquified petroleum tanks are just a few pieces of farm equipment that can be purchased using the FSFL program with FSA along with our traditional bins, dryers and airflow systems. Terms range from 3 to 12 years with very favorable interest rates (3.875% - 4.375%) currently. This is a great program to take advantage of!  However, it does have some steps involved so plan accordingly when looking into your project.  Contact our office for more details.

Historically Underserved Producers (Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher) – Underserved producers are encouraged to register their status with FSA, using 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. Producers who have not previously certified to their status  may submit a new CCC-860 (using the 1-11-23 version) to be eligible for additional program benefits.

Leon Johnson, CED

Today, 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.

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 
• 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.   

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.   

Yes, FSA is stepping outside of the box. 

FSA is a big proponent of agricultural producers having a say in the design, implementation and delivery of the programs that directly impact their livelihoods. We also believe that some of the most creative and useful ideas for program and process improvements come from the FSA employees who administer this assistance through our network of more than 2,100 county offices. We want to thank producers across the country, along with the entire FSA workforce, for not just thinking outside of the box but also providing their input to make sure that we can improve and enhance our programs and our approach to assistance to better and more efficiently serve all producers who need our help. 

Please visit your local USDA Service Center for more information on ERP Phase Two, PARP and our full portfolio of conservation, prices support, safety-net, credit and disaster assistance programs.  

The USDA Farm Service Agency’s (FSA) Direct Farm Ownership loans can help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations.

There are three types of Direct Farm Ownership Loans: regular, down payment and joint financing. FSA also offers a Direct Farm Ownership Microloan option for smaller financial needs up to $50,000.

Joint financing allows FSA to provide more farmers and ranchers with access to capital. FSA lends up to 50 percent of the total amount financed. A commercial lender, a State program or the seller of the property being purchased, provides the balance of loan funds, with or without an FSA guarantee. The maximum loan amount for a joint financing loan is $600,000, and the repayment period for the loan is up to 40 years.

The operation must be an eligible farm enterprise. Farm Ownership loan funds cannot be used to finance nonfarm enterprises and all applicants must be able to meet general eligibility requirements. Loan applicants are also required to have participated in the business operations of a farm or ranch for at least three years out of the 10 years prior to the date the application is submitted. The applicant must show documentation that their participation in the business operation of the farm or ranch was not solely as a laborer.

For more information about farm loans, contact the loan team at the West Otter Tail County USDA Service Center at 218-739-4694or visit fsa.usda.gov.