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 Tool, Disaster 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.

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 for New Jersey for 2024:

• October 2: value loss crops (except nursery) for 2024.
• November 15, 2022: fall planted small grains
• January 2, 2023: Honey (colonies)

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.

The United States Department of Agriculture's (USDA) Natural Resources Conservation Service (NRCS) in New Jersey is now accepting FY2024 applications for the Environmental Quality Incentives Program (EQIP), climate-smart practices through EQIP funded by the Inflation Reduction Act (IRA), the Agricultural Management Assistance (AMA) program, and the Regional Conservation Partnership Program (RCPP). 

While NRCS accepts applications year-round, New Jersey producers and landowners should apply by October 20, 2023 to be considered for funding in the current cycle. 

Learn more....

USDA announced that it is expanding crop insurance options with a new Grapevine insurance program, which will provide coverage for loss of grafted vines caused by natural perils such as freeze or fire. The new program also will complement the Grape crop insurance program that covers the fruit growing on the vine.

The Grapevine insurance program is based on the Tree Based Dollar Amount of Insurance (TDO) Plan and includes an Occurrence Loss Option that provides coverage for smaller losses, at an additional premium, for producers with buy-up coverage.

It is classified as a “mortality policy,” paying losses when the vine is dead or so badly damaged it will not recover in the following 12 months. The program covers freeze, fire, hail, flood, and failure of the irrigation water supply caused by an unavoidable, naturally occurring event. Producers using Freeze Protection practices in their operation that are recognized by industry experts can also benefit from lower premium costs under the program.

The program will be available in select counties in California, Idaho, Michigan, New York, Ohio, Oregon, Pennsylvania, Texas, and Washington for the 2024 crop year. The deadline for signing up for insurance is Nov. 1, 2023.

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.

The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) helps you manage risk through coverage for both crop losses and crop planting that was prevented due to natural disasters. The eligible or “noninsured” crops include agricultural commodities not covered by federal crop insurance.   

You must be enrolled in the program and have purchased coverage for the eligible crop in the crop year and county in which the loss incurred to receive program benefits following a qualifying natural disaster.

 The next closing deadline for New Jersey is September 30th for Aquaculture, Christmas Trees, Flowers, Grass (SOD), Garlic, Grass (Hay), Mixed Forage, Rye, Teff.  New Jersey coverage deadlines: by closing date or by crop .

NAP Buy-Up Coverage Option

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. Buy-up levels of NAP coverage are available if the producer can show at least one year of previously successfully growing the crop for which coverage is being requested.

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.   

Buy-up coverage is not available for crops intended for grazing.

NAP Service Fees

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. 

NAP Enhancements for Qualified Military Veterans

Qualified veteran farmers or ranchers are eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria.

Beginning, limited resource and targeted underserved farmers or ranchers remain eligible for a waiver of NAP service fees and premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.”

For NAP application, eligibility and related program information, contact your USDA Service Center or visit fsa.usda.gov/nap

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.     

The Inflation Reduction Act provides $2.2 billion in financial assistance for farmers, ranchers, and forest landowners who experienced discrimination in USDA’s farm lending programs prior to January 1, 2021.

USDA has become aware of some lawyers and groups spreading misleading information about this process, pressuring people to sign retainer agreements, and asking people to fill out forms with private and sensitive information.

Application forms for this program are not yet available and the application filing period has not started. Before the application process opens, USDA will publish a list of trusted community organizations located across the country that will provide FREE help completing applications.

Please beware of organizations seeking to file your application for a fee. Filing an application for the program will be FREE. You will not need a lawyer to file an application for this program. If you feel the need for legal advice, seek the assistance of a trusted, licensed attorney.

Beware of solicitations by mail, email, or phone calls from individuals claiming to be connected to USDA. USDA will not solicit you for information.

The most up-to-date information on this program will be posted at www.farmers.gov/22007, a USDA website. Please check there for any concerns or reach out to your local FSA office. To find your local office, visit farmers.gov/service-locator.

If you believe there is an organization conducting a scam related to this process, please contact the USDA Office of the Inspector General (OIG) or any other appropriate authorities. The USDA OIG hotline can be accessed online at https://usdaoig.oversight.gov/hotline and by phone at (800) 424-9121.