In This Issue:
A Message from FSA Administrator Zach Ducheneaux
In January, we announced two new programs designed to assist producers who experienced revenue losses from 2020 and 2021 natural disasters or the COVID-19 pandemic. These programs are revenue-based and feel a little different from our regular programs, but the goal is to better support farmers.
Both the Emergency Relief Program (ERP) Phase Two and the Pandemic Assistance Revenue Program (PARP) offer a holistic approach to disaster assistance and provide economic support for producers who bear the financial brunt of circumstances beyond their control.
Both programs have a sign up deadline of June 2, 2023 so don't delay!
With the rollout of any new program, there is a learning curve for producers and employees alike. ERP Phase Two and PARP are no exception. To encourage producer participation in these valuable programs, I’m going to do my best to debunk some myths and misconceptions surrounding ERP Phase Two and PARP.
With a June 2, 2023, deadline to apply for both programs, it’s important that we clear up confusion about how to apply, what documents are required for participation, insurance requirements and related misinformation making its way across the countryside.
Now, let’s do some myth-busting.
Myth #1 – You need to submit a completed tax return to FSA to apply for ERP Phase Two or PARP.
While these programs are based on revenue losses, you do not need a tax return, completed or otherwise, to apply for assistance. In fact, we have an ERP Phase 2 tool and PARP tool that walk you through the process step by step.
We understand that you may have questions for your certified public accountant or tax preparer, who was likely been hard to reach prior to the April 18 Internal Revenue Service tax deadline but we encourage you to download the program decision tools and get started. You’ll probably discover that you already have on hand much of the information you need.
The following supporting materials will help you:
- 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.
The only reason you might have to provide your tax returns to FSA is in the event of a spot check or a request from the FSA County Committee.
Myth #2 – You cannot receive an ERP Phase Two payment if you received a payment under Phase One.
It’s possible that you can still receive ERP Phase Two benefits if you received an ERP Phase One payment. There is also a possibility that your Phase Two payment may be offset.
Myth #3 – ERP Phase Two was intended to be an additional payment to those who received payment under Phase One.
ERP Phase Two was never designed or intended to be an additional payment. Instead, it was intended to assist those producers who did not receive relief in Phase One.
Click here to read the full blog and view a producer testimonial on the application process.
It’s that time of year again, and we want to showcase your planting season on social media and blogs. To participate, just send us a photo and a bit of information. Learn more: https://www.farmers.gov/blog/share-your-plant-2023-stories
The New Jersey Farm Service Agency currently has openings for a Farm Loan Officer, Farm Loan Officer Trainee as well as a Temporary Program Technician. Loan positions are being announced with a potential duty station at our Columbus or Vineland offices, while the program technician position will be out of our Frenchtown office.
Please visit www.USAJobs.gov for the loan positions:
Those interested in the program technician position, which closes 5/15, should reach out directly to the Frenchtown CED, Laura LaFevre at Laura.LaFevre@usda.gov.
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Agricultural producers in New Jersey should complete their crop acreage reports after planting and should make appointments with their Farm Service Agency (FSA) office before the applicable deadline. We encourage producers to report farms as they are planted and avoid waiting till the deadline.
An acreage report documents a crop grown on a farm or ranch and its intended uses. Filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planted acreage, can prevent the loss of benefits.
The following acreage reporting dates remain in New Jersey for 2023:
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July 15 - corn, soybeans, spring feed grains, forage, CRP, hemp & most other crops
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August 15 - processing beans
The following exceptions apply to acreage reporting dates:
- If the crop has not been planted by the acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed.
- If a producer acquires additional acreage after the acreage reporting date, then the acreage must be reported no later than 30 calendar days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office.
Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP-covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins
To file a crop acreage report, you will need to provide:
Crop and crop type or variety. Intended use of the crop.
Number of acres of the crop. Map with approximate boundaries for the crop.
Planting date(s). Planting pattern, when applicable.
Producer shares. Irrigation practice(s).
Acreage prevented from planting, when applicable.
Producers should also report crop acreage they intended to plant, but due to natural disaster, were unable to plant. Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by FSA and USDA’s Risk Management Agency.
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The U.S. Department of Agriculture (USDA) announced that agricultural producers and private landowners can begin applying for the Grassland Conservation Reserve Program (CRP) signup starting April 17 through May 26, 2023. Among CRP enrollment opportunities, Grassland CRP is unique as a working lands program, allowing producers and landowners to continue grazing and haying practices while protecting grasslands and promoting plant and animal biodiversity and conservation.
Protecting grasslands with CRP not only benefits participants with annual rental payments and cost share assistance; it also contributes positively to the economy of many regions, builds biodiversity, and provides important carbon sequestration benefits to deliver lasting climate outcomes.
More than 2.4 million acres were enrolled through the 2022 Grassland CRP Signup from agricultural producers and private landowners. That signup – the highest ever for the program– reflects the continued success and value of investments in voluntary, producer-led, working lands conservation programs. The current total participation in Grassland CRP is 6.3 million acres, which is part of the 23 million acres enrolled in CRP opportunities overall.
Since 2021, the USDA’s Farm Service Agency (FSA), which administers all CRP programs, has made several improvements to Grassland CRP to broaden the program’s reach, including:
- Creating two National Priority Zones to put focus on environmentally sensitive land such as that prone to wind erosion.
- Enhanced offers with 10 additional ranking points to producers and landowners who are historically underserved, including beginning farmers and military veterans.
- Leverage the Conservation Reserve Enhancement Program (CREP) to engage historically underserved communities Tribal Nations in the Great Plains
Other CRP Signups
General CRP
General CRP signup closed on April 7. The program 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 State Acres for Wildlife Enhancement (SAFE) Initiative, the Farmable Wetlands Program (FWP), and the Conservation Reserve Enhancement Program (CREP). Also available is the Clean Lakes Estuaries and Rivers Initiative CLEAR30 Initiative, which was originally piloted in twelve states but has been expanded nationwide, allowing producers and landowners to enroll in 30-year CRP contracts for water quality practices.
How to Sign Up
Landowners and producers interested in Grassland CRP, or any other CRP enrollment option, should contact their local USDA Service Center to learn more or to apply for the program before their deadlines.
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The Counties listed below were declared a disaster due to drought that began in August 2022. Under this designation, if you have operations in any primary or contiguous county, you are eligible to apply for low interest emergency loans and the Disaster Set-Aside Program.
Primary Disaster Counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Salem, Somerset, Sussex, Warren.
Contiguous Disaster Counties: Bergen, Essex, Passaic, Union
Emergency loans help you recover from production and physical losses due to drought, flooding and other natural disasters or quarantine.
You have eight months from the date of the declaration to apply for emergency loan assistance. FSA will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. You can borrow up to 100 percent of actual production or physical losses, to a maximum amount of $500,000.
The current Emergency Loan rate is 3.750%
The deadline to apply for drought related disasters in the counties listed above is August 21, 2023
Additional information, deadlines, and disaster declarations are available on the New Jersey FSA website at https://www.fsa.usda.gov/state-offices/New-Jersey/index#disaster_declaration
Click here for more information about emergency loans: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/emergency-farm-loans/index or contact your local USDA Service Center. Visit farmers.gov/service-locator to find your local USDA Service Center
Disaster Set-Aside Program for Farm Loan Borrowers
Farm Service Agency (FSA) borrowers with farms located in designated primary or contiguous disaster areas who are unable to make their scheduled FSA loan payments should consider the Disaster Set-Aside (DSA) program.
DSA is available to producers who suffered losses as a result of a natural disaster and relieves immediate and temporary financial stress. FSA is authorized to consider setting aside the portion of a payment/s needed for the operation to continue on a viable scale.
Borrowers must have at least two years left on the term of their loan in order to qualify.
Borrowers have eight months from the date of the disaster designation to submit a complete application. The application must include a written request for DSA signed by all parties liable for the debt along with production records and financial history for the operating year in which the disaster occurred. FSA may request additional information from the borrower in order to determine eligibility.
All farm loans must be current or less than 90 days past due at the time the DSA application is complete. Borrowers may not set aside more than one installment on each loan.
The amount set-aside, including interest accrued on the principal portion of the set-aside, is due on or before the final due date of the loan.
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The U.S. Department of Agriculture (USDA) launched a new online tool to help farmers and ranchers better navigate the farm loan application process. This uniform application process will help to ensure all farm loan applicants receive equal support and have a consistent customer experience with USDA’s Farm Service Agency (FSA) regardless of their individual circumstances.
USDA experiences a high rate of incomplete or withdrawn applications, particularly among underserved customers, due in part to a challenging and lengthy paper-based application process. The Loan Assistance Tool is available 24/7 and gives customers an online step-by-step guide that supplements the support they receive when working in person with a USDA employee, providing materials that may help an applicant prepare their 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. From here they can follow the prompts to complete the Eligibility Self-Assessment and start the farm loan journey. The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser, and is fully functional on mobile devices. It does not work in Internet Explorer.
The Loan Assistance Tool is the first of multiple farm loan process improvements that will be available to USDA customers on farmers.gov in the future. Other improvements and tools that are anticipated to launch in 2023 include:
- A streamlined and simplified direct loan application, reduced from 29 pages to 13 pages.
- 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.
Background
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 is taking action to immediately provide relief to qualifying distressed borrowers whose operations are at financial risk 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.
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Each year, state committees review and approve or disapprove county committee recommended changes or additions to specific combinations of crops.
Double-cropping is approved when two specific crops have the capability to be planted and carried to maturity for the intended use, as reported by the producer, on the same acreage within a crop year under normal growing conditions. The specific combination of crops recommended by the county committee must be approved by the state committee.
Double-cropping is approved in New Jersey on a county-by-county basis. Click here for a list of approved double-cropping combinations for your county.
A crop following a cover crop terminated according to termination guidelines is approved double cropping and these combinations do not have to be approved by the state committee.
More Information
For questions, please contact your local FSA office. To locate your local FSA office visit farmers.gov/service-center-locator.
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Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants
REAP provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.
Open for Fiscal Years 2023 & 2024 Application Windows: June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024
To learn more visit: https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency/nj or click here to download the fact sheet.
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The U.S. Department of Agriculture (USDA) today announced the official kick-off of the implementation phase for projects funded through the $3.1 billion Partnerships for Climate-Smart Commodities effort. Project partners are beginning work on formal implementation of the climate-smart production practices, marketing, and quantification, monitoring, reporting and verification of greenhouse gas benefits that are funded through the effort as agreements are finalized on a rolling basis. As projects get underway, today USDA is launching the Partnerships for Climate-Smart Commodities Learning Network (Partnerships Network), a collaboration of all the project partners, which will generate key lessons-learned as projects are implemented. Learn More
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