September Updates from New York FSA

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New York FSA Newsletter - September 13, 2023

Dates to Remember

Oct 2

Noninsured Crop Disaster Assistance Program (NAP)  Coverage Deadline for all perennial grasses, alfalfa, clover, and mixed forage; all small grains such as barley, oats, wheat, and rye; and value loss crops (aquaculture, Christmas trees, finfish, floriculture, ginseng root, ginseng seed, mollusk, mushrooms, and turf grass sod)

Oct 2

Acreage Reporting Deadline for value loss/controlled environment crops for subsequent year (except nursery). Includes Mollusk, Christmas trees, floriculture and turf grass sod.

Oct 9

All Offices Closed for Federal Holiday

Oct 16

Deadline to Apply for the Milk Loss Program

Oct 31

Organic Certification Cost-Share Program Deadline

Oct 31

Deadline to apply for Inflation Reduction Act Section 22007 – Discrimination Financial Assistance Program

Nov 15

Acreage Reporting Deadline for Fall Seeded Small Grains

Nov 20

Noninsured Crop Disaster Assistance Program (NAP) Coverage Deadline for perennial fruits and nuts, strawberries, asparagus, ginger, horseradish, and rhubarb 

Ongoing

Conservation Reserve Program (CRP) - Continuous Enrollment


From the State Executive Director

Barber

Fall is in the air, with cooler temperatures and corn harvest just around the corner. Here at FSA we just announced a new Milk Loss Program (MLP), which provides assistance for eligible dairies for milk that was dumped, without compensation, from the commercial milk market due to qualifying weather events or the consequences of those weather events, that inhibited delivery or storage of milk during calendar years 2020, 2021 and 2022. This is great news for New York farms, who often suffer winter storms that prevent milk from being picked up. The Milk Loss Program sign-up started Monday and runs through October 16. Call you local FSA office to apply.

In August, Secretary Vilsack signed a disaster designation for essentially all New York counties from the May late frost/freeze event we experienced. If your farm experienced at least a 30% loss of a crop, you are now eligible for a low interest Emergency Loan. The loan rate on these loans is 3.75%. Please reach out to your local FSA office if you need a loan to get your operation through to next season. Furthermore, if you suffered more recent damage from weather related events like hail or rain, make sure you report those losses to your FSA office so we know if there is a need to request another disaster declaration.

With all this talk about weather, if you don’t currently have crop insurance, or FSA’s program for un-insurable crops called NAP (Noninsured Crop Disaster Assistance Program), it’s definitely worth looking into getting coverage for the 2024 season. The coverage deadline for perennial grasses and small grains as well as value-loss crops like Christmas trees and mushrooms is October 2. As the weather gets more unpredictable, risk management programs like these become essential to help cover your losses.

I wish you all a safe and productive harvest season,
Jim Barber


USDA Announces Milk Loss Assistance for Dairy Operations Impacted by 2020, 2021 and 2022 Disaster Events

USDA announced Milk Loss Program (MLP) assistance for eligible dairy operations for milk that was dumped or removed, without compensation, from the commercial milk market due to qualifying weather events and the consequences of those weather events that inhibited delivery or storage of milk (e.g., power outages, impassable roads, infrastructure losses, etc.) during calendar years 2020, 2021 and 2022. Administered by the Farm Service Agency (FSA), signup for MLP begins Sept. 11 and runs through Oct. 16, 2023.   

Background   

On Dec. 29, 2022, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43), providing $10 billion for crop losses, including milk losses due to qualifying disaster events that occurred in calendar years 2020 and 2021.  Additionally, the Disaster Relief Supplemental Appropriations Act, 2023 (Pub. L. 117-328) provides approximately $3 billion for disaster assistance for similar losses that occurred in calendar year 2022.   

Eligibility 

MLP compensates dairy operations for milk dumped or removed without compensation from the commercial milk market due to qualifying disaster events, including droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), and smoke exposure that occurred in the 2020, 2021 and 2022 calendar years. Tornadoes are considered a qualifying disaster event for calendar year 2022 only.  

The milk loss claim period is each calendar month that milk was dumped or removed from the commercial market. Each MLP application covers the loss in a single calendar month.  Milk loss that occurs in more than one calendar month due to the same qualifying weather event requires a separate application for each month.   

The days that are eligible for assistance begin on the date the milk was removed or dumped and for concurrent days milk was removed or dumped. Once the dairy operation restarts milk marketing, the dairy operation is ineligible for assistance unless after restarting commercial milk marketing, additional milk is dumped due to the same qualifying disaster event. The duration of yearly claims is limited to 30 days per year for 2020, 2021 and 2022. 

How to Apply 

To apply for MLP, producers must submit: 

  • FSA-376, Milk Loss Program Application
  • Milk marketing statement from the:
    • Month prior to the month milk was removed or dumped.
    • Affected month.
  • Detailed written statement of milk removal circumstances, including the weather event type and geographic scope, what transportation limitations occurred and any information on what was done with the removed milk.
  • Any other information required by the regulation.

If not previously filed with FSA, applicants must also submit all the following items within 60 days of the MLP application deadline: 

  • Form AD-2047, Customer Data Worksheet.  
  • Form CCC-902, Farm Operating Plan for an individual or legal entity.   
  • Form CCC-901, Member Information for Legal Entities (if applicable).   
  • Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs (if applicable).   
  • Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, (if applicable).
  • A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the MLP producer and applicable affiliates.  

Most producers, especially those who have previously participated in FSA programs, will likely have these required forms already on file. However, those who are uncertain or want to confirm the status of their forms can contact their local FSA county office.   

MLP Payment Calculation 

The final MLP payment is determined by factoring the MLP payment calculation by the applicable MLP payment percentage.  

The calculation for determining MLP payment is:  

  • ((Base period per cow average daily milk production x the number of milking cows in a claim period x the number of days milk was removed or dumped in a claim period) ÷ 100) x pay price per hundredweight (cwt.).

For MLP payment calculations, the milk loss base period is the first full month of production before the dumping or removal occurred. 

The MLP payment percentage will be 90% for underserved producers, including socially disadvantaged, beginning, limited resource, and veteran farmers and ranchers and 75% for all other producers.      

To qualify for the higher payment percentage, eligible producers must have a CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, form on file with FSA for the 2022 program year.       

Adjusted Gross Income (AGI) limitations do not apply to MLP, however the payment limitation for MLP is determined by the person’s or legal entity’s average adjusted gross farm income (income derived from farming, ranching and forestry operations). Specifically, a person or legal entity, other than a joint venture or general partnership, cannot receive, directly or indirectly, more than $125,000 in payments under MLP if their average adjusted gross farm income is less than 75% of their average AGI or more than $250,000 if their adjusted gross farm income is at least 75% of their average AGI.      

More Information 

In other FSA dairy safety-net support, Dairy Margin Coverage (DMC) program payments have triggered every month, January through July, for producers who obtained coverage for the 2023 program year. July 2023’s income over feed margin of $3.52 per hundredweight (cwt.) is the lowest margin since DMC program benefits to dairy producers started in 2019. To date, FSA has paid more than $1 billion in DMC benefits to covered dairy producers for the 2023 program year.  

Additionally, FSA closed the Organic Dairy Marketing Assistance Program (ODMAP) application period on Aug. 11.

On farmers.gov, the Disaster Assistance Discovery ToolDisaster Assistance-at-a-Glance fact sheet and Loan Assistance 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.


Financial Assistance Application Process Opens for USDA Farm Loan Borrowers Who Have Faced Discrimination

USDA announced the opening of the financial assistance application process for eligible farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021. Section 22007 of the Inflation Reduction Act (IRA) directs USDA to provide this assistance. Since the law’s passage, USDA has worked diligently to design the program in accordance with significant stakeholder input. 

The program website, 22007apply.gov, is now open. The website includes an English- and Spanish-language application that applicants can download or submit via an e-filing portal, information on how to obtain technical assistance in-person or virtually, and additional resources and details about the program. 

Farmers, ranchers, and forest landowners who experienced discrimination by USDA in its farm loan programs prior to January 1, 2021 and/or are currently debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination that occurred prior to January 1, 2021, are eligible for this program.  

To apply, borrowers have the option to apply via the e-filing portal at 22007apply.gov or submit paper-based forms via mail or in-person delivery to the program’s local offices. The application process closes October 31, 2023. Under the planned timeline, applications will be reviewed in November and December, with payments reaching recipients soon thereafter. Importantly, applicants should know that the application process is not on a first come, first served, basis. All applications received or postmarked before the October 31 deadline will be considered. 

To support producers throughout the application process, USDA is ensuring that organizations with extensive experience conducting outreach to farm organizations are able to support individuals who may be eligible for the program. These groups include AgrAbilityFarmer Veteran CoalitionFarmers’ Legal Action GroupFederation of Southern CooperativesIntertribal Agriculture CouncilLand Loss Prevention ProgramNational Young Farmers Coalition, and Rural Coalition.  

Vendors operating four regional hubs are also providing technical assistance and working closely with these and other community-based organizations to conduct outreach using digital and grassroots strategies, to ensure potential applicants are informed about the program and have the opportunity to apply. These hubs are operating a network of brick-and-mortar program offices and will conduct extensive outreach about the program. Windsor Group serves farmers in the eastern regions of the U.S. and Analytic Acquisitions serves the western regions. A national administrator, Midtown Group, is responsible for program oversight and integrity, and will lead a national call-center, operate the application website - 22007apply.gov, which is now open – and review and process applications and payments. All vendors have experience in professional services, supporting government contracts, and complex program operations.   

In standing up this program, USDA has become aware of some lawyers and groups spreading misleading information about the discrimination assistance process, pressuring people to sign retainer agreements, and asking people to fill out forms with private and sensitive information. As of today, the official application process has begun and filling out an application is free. 

No attorneys’ fees will be paid to applicants or their counsel by USDA or by any other agency or department of the United States. The amount of financial assistance will not be increased for those claimants who are represented by an attorney. Applicants are not required to retain an attorney. USDA, the national administrator, and the regional hub vendors will neither recommend that any applicant retain counsel or retain a specific attorney or law firm, nor discourage an applicant from obtaining counsel or using a specific attorney or law firm. For more information, read our fact sheet about the program timeline and ways to protect against possible scams. 


Is the Noninsured Crop Disaster Assistance Program Right for You?

flickr alfalfa

Farmers and ranchers rely on crop insurance to protect themselves from disasters and unforeseen events, but not all crops are insurable through the USDA’s Risk Management Agency. The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides producers another option to obtain coverage against disaster for these crops. NAP provides financial assistance to producers of non-insurable crops impacted by natural disasters that result in lower yields, crop losses, or prevents crop planting.

Commercially produced crops and agricultural commodities for which crop insurance is not available are generally eligible for NAP. Eligible crops include those grown specifically for food, fiber, livestock consumption, biofuel or biobased products, or value loss crops such as aquaculture, Christmas trees, ornamental nursery, and others. Contact your local FSA office to see which crops are eligible in your state and county. 

Eligible causes of loss include drought, freeze, hail, excessive moisture, excessive wind or hurricanes, earthquake and flood. These events must occur during the NAP policy coverage period, before or during harvest, and the disaster must directly affect the eligible crop. For guidance on causes of loss not listed, contact your local FSA county office.

Interested producers apply for NAP coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office where their farm records are maintained. These must be filed by the application closing date, which varies by crop. Contact your local FSA office to verify application closing dates and ensure coverage for eligible NAP crops.

At the time of application, each producer acknowledges they have received the NAP Basic Provisions, which describes NAP requirements  for coverage. NAP participants must report crop acreage shortly after planting and provide verifiable or reliable crop production records when required by FSA.

Producers are required to pay service fees which vary depending on the number of crops and number of counties your operation is located in. The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums also apply when producers elect higher levels of coverage with a maximum premium of $15,750 per person or legal entity.

A producer’s certification on Form CCC-860 Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification may serve as an application for basic NAP coverage for all eligible crops beginning with crop year 2022.  These producers will have all NAP-related service fees for basic coverage waived, in addition to a 50 percent premium reduction if higher levels of coverage are elected.

For more detailed information on NAP, download the NAP Fact Sheet. To get started with NAP, we recommend you contact your local USDA service center.


Environmental Review Required Before Project Implementation

flickr bulldozer

The National Environmental Policy Act (NEPA) requires Federal agencies to consider all potential environmental impacts for federally funded projects before the project is approved.

For all Farm Service Agency (FSA) programs, an environmental review must be completed before actions are approved, such as site preparation or ground disturbance. These programs include, but are not limited to, the Emergency Conservation Program (ECP), Farm Storage Facility Loan (FSFL) program and farm loans. If project implementation begins before FSA has completed an environmental review, the request will be denied. Although there are exceptions regarding the Stafford Act and emergencies, it’s important to wait until you receive written approval of your project proposal before starting any actions.

Applications cannot be approved until FSA has copies of all permits and plans. Contact your local FSA office early in your planning process to determine what level of environmental review is required for your program application so that it can be completed timely.


Ask the Expert: A Q&A on Farm Storage Facility Loans

colorful produce usda flickr

In this Ask the Expert, Toni Williams answers questions about how Farm Storage Facility Loans (FSFLs) provide low-interest financing to help producers build or upgrade commodity storage facilities. Toni is the Agricultural Program Manager for FSFLs at the Farm Service Agency (FSA).

Toni has worked for FSA for more than 32 years and is responsible for providing national policy and guidance for Farm Storage Facility Loans.

What are Farm Storage Facility Loans?

Farm Storage Facility Loans provide low-interest financing for eligible producers to build or upgrade facilities to store commodities.

The FSFL program was created in May 2000 to address an existing grain shortage. Historically, FSFLs benefitted grain farmers, but a change in the 2008 Farm Bill extended the program to fruit and vegetable producers for cold storage. An additional change extended the program to washing and packing sheds, where fresh produce is washed, sorted, graded, labeled, boxed up, and stored before it heads to market. Since May 2000, FSA has made more than 40,000 loans for on-farm storage.

Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage. Drying and handling and storage equipment including storage and handling trucks are also eligible. Eligible facilities and equipment may be new or used, permanently affixed or portable.

To read the full blog visit farmers.gov/blog/ask-the-expert-qa-on-farm-storage-facility-loans-with-toni-williams.


FSA Offers Joint Financing Option on Direct Farm Ownership Loans

crp usda flickr

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 your local USDA Service Center or visit fsa.usda.gov.


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. 

For more information, contact your local USDA Service Center or visit fsa.usda.gov.


Organic Certification Cost Share Program Assists Organic Producers Recover Costs Associated with Organic Certification

Organic Veggie Stand - USDA Flickr

The U.S. Department of Agriculture (USDA) will cover up to 75% of the costs associated with organic certification, up to $750 per category, through the Organic Certification Cost Share Program (OCCSP). USDA’s Farm Service Agency (FSA) encourages agricultural producers and handlers to apply for OCCSP by Oct. 31, 2023, for expenses incurred from Oct. 1, 2022, through Sept. 30, 2023.  

 As part of USDA’s broader effort to support organic producers and in response to stakeholder feedback, this year FSA increased the cost share to the maximum amount allowed by statute.   

Cost Share for 2023  

The cost share provides financial assistance for organic certification, and producers and handlers are eligible to receive 75% of the costs, up to $750, for crops, wild crops, livestock, processing/handling and state organic program fees (California only).  

Producers have until Oct. 31, 2023, to file applications, and FSA will make payments as applications are received.    

How to Apply  

To apply, organic producers and handlers should contact their local USDA Service Center. As part of completing the OCCSP application, producers and handlers will need to provide documentation of their organic certification and eligible expenses.   

Organic producers and handlers may also apply for OCCSP through department of agriculture. Additional details can be found on the OCCSP webpage.     


RMA Announces Changes to Whole Farm Revenue Protection and Micro Farm Policies

USDA announced that it is improving crop insurance options for small and diversified farmers through improvements to the Whole-Farm Revenue Protection (WRFP) and Micro Farm insurance plans. These updates are part of USDA’s Risk Management Agency (RMA) efforts to increase participation and access to crop insurance.

Improvements to WFRP for the 2024 policy year include:

  • Allowing all eligible producers to qualify for 80% and 85% coverage levels.
  • Allowing producers to purchase catastrophic coverage level policies for individual crops with WFRP.
  • Expanding yield history to a 10-year maximum (from 4 years) for all crops not covered by another federal crop insurance policy.
  • Making the policy more affordable for single commodity producers.
  • Allowing producers to customize their coverage by choosing whether WFRP will consider other federal crop insurance policies as primary insurance when calculating premium and revenue to count during claim time. 

Improvements to Micro Farm for the 2024 policy year include:

  • Moving the sales closing date to a less busy time of year to help agents dedicate time to marketing the program. This is important specifically for producers that are purchasing Micro Farm for the first time as it provides additional time for agents to assist growers with important risk management decisions.
  • Allowing producers to purchase other Federal crop insurance with Micro Farm.
  • Allowing vertically integrated entities to be eligible for Micro Farm.
  • Making the Expanding Operations feature available with Micro Farm. 

About WFRP and Micro Farm:

WFRP and Micro Farm policies provide a risk management safety net for all commodities grown on a farm under one policy. Both policy options were designed to meet the needs of specialty, organic (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets. The Micro Farm insurance plan is tailored for any farm with up to $350,000 in approved revenue, and WFRP covers any farm with up to $17 million in insured revenue. RMA introduced Micro Farm in 2021.

Currently, producers hold 1,784 WFRP policies covering $2.17 billion in liabilities, and they hold 93 Micro Farm policies covering $6.15 million in liabilities. 

More Information

Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov or by contacting your RMA Regional Office.

Farm Service Agency
New York State Office

441 S. Salina St.
Syracuse, NY 13202

Phone: 315-477-6300
http://www.fsa.usda.gov/ny

State Executive Director:
Jim Barber

jim.barber2@usda.gov 

Farm Program Chief:
Jenifer Dean

jenifer.dean@usda.gov

Farm Loan Chief:
John Liddington

john.liddington@usda.gov

New York FSA State Committee

Norman Greig - Chairperson
Larry Eckhardt
Jill Gould
Julian Mangano
Michael McMahon


Current Interest Rates

Farm Storage Facility Loans:
3 yr - 4.5%​ ​
5 yr - 4.25%​ ​
7 yr - 4.125%​ ​​​
10 yr - 4.125%​ ​ ​​
12 yr - 4.125%​ ​
 ​

Commodity Loans: 6.375%

Farm Loan Programs:
Farm Operating: 5.125%
Farm Ownership: 5.000%
Conservation Loans: 5.000%
Direct Down Payment: 1.50%
Joint Financing: 3.000%

 

To find contact information for your local New York office click here.