In This Issue:
As we embark on the holiday celebrations and gatherings with our families, I would like to thank the FSA State Committee and the FSA employees for assisting me in administering programs to the producers and partner organizations/stakeholders. All the while striving, to preserve and promote, American agriculture in the state of Illinois. I am beyond grateful to you all, thank you!
I am quickly approaching my 2nd year anniversary as the FSA State Executive Director. As I reminisce on my time, I have witnessed both growth and change in the agency. We were able to provide our customers with another level of technology and service as we navigated the pandemic. Whether, in person at our service centers or assisting online, having the flexibility to continue to conduct business is a great benefit to accommodate busy schedules. The FSA staff has fully adapted to virtual meetings and having producers sign documents online, while getting back to business as usual in our traditional work environment.
When I arrived at FSA, attendance at outside events and activities was somewhat limited. I have since had the opportunity to attend an increasing number of agricultural meetings, events, and conferences, which has been a great opportunity to initially meet or reconnect with many of you.
U.S. Secretary Vilsack recently announced that USDA began issuing more than $223 million in Pandemic Assistance Revenue Program (PARP) payments. These payments help producers who suffered a decrease in allowable gross revenue due to the COVID-19 pandemic for the 2020 calendar year. As of this week 98% of the PARP payments have been processed and issued to Illinois producers and 94% nationwide.
USDA also recently announced a one-year extension of the 2018 farm bill. Producers may enroll in ARC/PLC program for the 2024 season beginning December 18, 2023. The deadline to complete enrollment and make any election changes is March 15, 2024.
You may wish to avoid the rush and contact your local County FSA Office for an appointment because even if you are not changing your program election for 2024, you still need to sign a contract to enroll. For more information on the 2018 Farm Bill one year extension for ARC/PLC programs please contact your local County FSA Office.
Additionally, the Farm Loan team is already working on operating loans for spring 2024 and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose.
The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year.
As another reminder, FSA provides marketing assistance loans (MALs) and loan deficiency payments (LDPs) for wool and mohair to eligible producers who produce and shear wool and mohair from live sheep and goats for each crop year. The LDP program is also available to eligible producers of nongraded wool in the form of unshorn pelts. Producers interested in learning more about MALs and LDPs, should contact their FSA County office for additional details or questions.
Additional program details and more in-depth information is provided in our newsletter. Please don’t hesitate to contact your County FSA office for questions about our programs, loans and information that is included in this newsletter edition. For more information, contact the your local County USDA Service Center or visit fsa.usda.gov.
I have a few important reminders and dates to remember this month:
December 25 -- Christmas Day Holiday. FSA Offices are Closed.
January 1 ------- Elected Committee Members and alternates take office.
January 1 ------- New Year's Day Holiday. FSA Offices are Closed.
January 30----Final date to apply for 2023 Livestock Forage Disaster Program (LFP) Losses
January 30-----Final date to apply for 2023 Livestock assistance Program (ELAP) Losses
On behalf of the FSA State Committee, FSA employees, my family and myself I would like to wish you and your families, The Happiest of Holiday seasons and a Prosperous New Year!
And as always, stay safe and we’ll see you in the new year! Until next year,
Scott Halpin
State Executive Director
Illinois Farm Service Agency
|
The U.S. Department of Agriculture (USDA) recently announced that agricultural producers can now enroll in the Farm Service Agency’s (FSA) Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2024 crop year. Producers can enroll and make election changes for the 2024 crop year starting December 18, 2023. The deadline to complete enrollment and any election change is March 15, 2024.
On November 16, 2023, President Biden signed into law H.R. 6363, the Further Continuing Appropriations and Other Extensions Act, 2024 (Pub. L. 118-22), which extended the Agriculture Improvement Act of 2018 (Pub. L. 115-334), more commonly known as the 2018 Farm Bill, through September 30, 2024. This extension allows authorized programs, including ARC and PLC, to continue operating.
2024 Elections and Enrollment
Producers can elect coverage and enroll in ARC-County (ARC-CO) or PLC, which provide crop-by-crop protection, or ARC-Individual (ARC-IC), which protects the entire farm. Although election changes for 2024 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm it will continue for 2024 unless an election change is made.
If producers do not submit their election revision by the March 15, 2024, deadline, their election remains the same as their 2023 election for commodities on the farm. Farm owners cannot enroll in either program unless they have a share interest in the cropland.
Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.
2022 Crop Year Payments
This fall, FSA issued payments totaling more than $267 million to agricultural producers who enrolled in the 2022 ARC-CO option and the ARC ARC-IC option for covered commodities that triggered a payment. Payments through the PLC option did not trigger for the 2022 crop year.
ARC and PLC payments for a given crop year are paid out the following fall to allow actual county yields and the Market Year Average prices to be finalized. These payments help mitigate fluctuations in either revenue or prices for certain crops. Payments for crops that may trigger for the 2023 crop year will be issued in the fall of 2024.
Crop Insurance Considerations
ARC and PLC are part of a broader USDA safety net that also includes crop insurance and marketing assistance loans.
Producers are reminded that ARC and PLC elections and enrollments can impact eligibility for some crop insurance products.
Producers on farms with a PLC election can purchase Supplemental Coverage Option (SCO) through their Approved Insurance Provider; however, producers on farms where ARC is the election are ineligible for SCO on their planted acres for that crop on that farm.
Unlike SCO, the Enhanced Coverage Option (ECO) is unaffected by an ARC election. Producers may add ECO regardless of the farm program election.
Upland cotton farmers who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan (STAX) on their planted cotton acres for that farm.
Web-Based Decision Tools
Many universities offer web-based decision tools to help producers make informed, educated decisions using crop data specific to their respective farming operations. Producers are encouraged to use the tool of their choice to support their ARC and PLC elections.
More Information
For more information on ARC and PLC, producers can visit the ARC and PLC webpage or contact their local USDA Service Center. bProducers can also make elections and complete enrollment online with level 2 eAuth.
The U.S. Department of Agriculture (USDA) has launched an online application for Direct Loan customers. More than 26,000 customers who submit a Direct Loan application each year can now use an online, interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet and build a farm operating plan. This tool is part of a broader effort by USDA’s Farm Service Agency (FSA) to streamline its processes, improve customers service, and expand credit access.
The online farm loan application replicates the support an applicant would receive when completing a loan application in person with an FSA Farm Loan Officer, while continuing to provide customers with one-on-one assistance as needed. This tool and other process improvements allow farmers and ranchers to submit complete loan applications and reduce the number of incomplete and withdrawn applications.
Through a personalized dashboard, borrowers can track the progress of their loan application. It can be accessed on farmers.gov or by completing FSA’s Loan Assistance Tool at farmers.gov/loan-assistance-tool. To use the online loan application tool, producers must establish a USDA customer account and a USDA Level 2 eAuthentication (“eAuth”) account or a Login.gov account. For the initial stage, the online application tool is only available for producers who will be, or are currently, operating their farm as an individual. FSA is expanding the tools availability to married couples applying jointly and other legal entities in 2024.
Farm Loan Improvement Efforts
FSA has a significant initiative underway to streamline and automate Farm Loan Program customer-facing business processes. For the over 26,000 producers who submit a Direct Loan application to FSA annually, and its 85,000 Direct Loan borrowers, FSA has made improvements this year, including:
More Information
FSA continues to accept and review individual requests for assistance from borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans or those who missed a recent installment or are unable to make their next scheduled installment. All requests for assistance must be received by December 31, 2023. For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.
The Inflation Reduction Act, a historic, once-in-a-generation investment and opportunity for agricultural communities, provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. Since October 2022, USDA has provided approximately $1.6 billion in immediate assistance to more than 27,000 financially distressed direct and guaranteed FSA loan borrowers.
The Livestock Indemnity Program (LIP) provides assistance to you for livestock deaths in excess of normal mortality caused by adverse weather, disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law.
For disease losses, FSA county committees can accept veterinarian certifications that livestock deaths were directly related to adverse weather and unpreventable through good animal husbandry and management.
For 2023 livestock losses, you must file a notice within 30 calendar days of when the loss is first apparent. You then must provide the following supporting documentation to your local FSA office no later than 60 calendar days after the end of the calendar year in which the eligible loss condition occurred.
- Proof of death documentation
- Copy of grower’s contracts
- Proof of normal mortality documentation
USDA has established normal mortality rates for each type and weight range of eligible livestock, i.e. Adult Beef Cow = 1.5% and Non-Adult Beef Cattle (less than 250 pounds) = 5%. These established percentages reflect losses that are considered expected or typical under “normal” conditions.
In addition to filing a notice of loss, you must also submit an application for payment by March 1, 2024.
For more information, contact the your local County USDA Service Center or visit fsa.usda.gov.
If you’ve suffered above normal expenses for hauling feed or water to livestock or hauling livestock to forage/grazing acres due to the impacts of drought, you may be eligible for financial assistance through the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP). The following Illinois counties have reached the D3 designation: Adams, Hancock, Pike, Randolph, and Schuyler, Stephenson, and Winnebago. The Illinois counties that have reached the D2 designation: Boone, Fulton, Mason, McDonough, McHenry, Mercer, and Tazewell.
For eligible producers in qualifying counties, ELAP provides financial assistance for:
- the transportation of water to livestock;
- the above normal cost of mileage for transporting feed to livestock,
- the above normal cost of transporting livestock to forage/grazing acres.*
*Hauling livestock one-way, one haul per animal reimbursement and no payment for “empty miles.”
Eligible livestock include cattle, buffalo, goats and sheep, among others, that are maintained for commercial use and located in a county where the qualifying drought conditions occur. A county must have had D2 severe drought intensity on the U.S. Drought Monitor for eight consecutive weeks during the normal grazing period, or D3 or D4 drought intensity at any time during the normal grazing period. Producers must have risk in both eligible livestock and eligible grazing land in an eligible county to qualify for ELAP assistance.
Water Transportation
For ELAP water transportation assistance, a producer must be transporting water to eligible livestock on eligible grazing land where the producer had adequate livestock watering systems or facilities in place before the drought occurred and where they do not normally require the transportation of water. Payments are for costs associated with personal labor, equipment, hired labor, equipment, and/or contracted water transportation fees. Cost of the water itself is not covered. The ELAP payment formula uses a national average price per gallon.
Above Normal Costs of Transporting Feed
ELAP provides financial assistance to livestock producers who incur above normal expenses for transporting feed to livestock during drought. The payment formula excludes the first 25 miles and any mileage over 1,000 miles. The reimbursement rate is 60% of the costs above what would normally have been incurred during the same time period in a normal (non-drought) year.
Above Normal Costs of Transporting Livestock to Forage/Grazing Acres
ELAP provides financial assistance to livestock producers who are hauling livestock to a new location for feed resources due to insufficient feed and/or grazing in drought-impacted areas. Please contact your county FSA office for additional details.
For calendar year 2022 forward, producers must submit a notice of loss to your local FSA office within 30 calendar days of when the loss is apparent; producers should contact their county FSA office as soon as the loss of water resources or feed resources are known. For ELAP eligibility, documentation of expenses is critical. Producers should maintain records and receipts associated with the costs of transporting water to eligible livestock, the costs of transporting feed to eligible livestock, and the costs of transporting eligible livestock to forage/grazing acres.
ELAP also offers assistance to producers impacted by wildfire. Contact your county FSA office for more information on ELAP resources for wildfire losses. In addition, beekeepers also can benefit from ELAP provisions and should contact their county FSA office within 15 calendar days of when a loss occurs or from when the loss is apparent.
For more information and additional eligibility requirements, contact your local County USDA Service Center or visit fsa.usda.gov.
Disaster Assistance Available for Livestock Losses
The Livestock Indemnity Program (LIP) provides assistance to you for livestock deaths in excess of normal mortality caused by adverse weather, disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law.
For disease losses, FSA county committees can accept veterinarian certifications that livestock deaths were directly related to adverse weather and unpreventable through good animal husbandry and management.
For 2023 livestock losses, you must file a notice within 30 calendar days of when the loss is first apparent. You then must provide the following supporting documentation to your local FSA office no later than 60 calendar days after the end of the calendar year in which the eligible loss condition occurred.
- Proof of death documentation
- Copy of grower’s contracts
- Proof of normal mortality documentation
USDA has established normal mortality rates for each type and weight range of eligible livestock, i.e. Adult Beef Cow = 1.5% and Non-Adult Beef Cattle (less than 250 pounds) = 5%. These established percentages reflect losses that are considered expected or typical under “normal” conditions.
In addition to filing a notice of loss, you must also submit an application for payment by March 1, 2024.
For more information, contact the your local County USDA Service Center or visit fsa.usda.gov.
The Farm Loan team in [Name] County is already working on operating loans for spring 202# and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year.
Microloans are a simplified loan program that will provide up to $50,000 for both Farm Ownership and Operating Microloans to eligible applicants. These loans, targeted for smaller and non-traditional operations, can be used for operating expenses, starting a new operation, purchasing equipment, and other needs associated with a farming operation. Loans to beginning farmers and members of underserved groups are a priority.
Other types of loans available include:
Marketing Assistance Loans allow producers to use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. These loans provide cash flow to the producer and allow them to market the crop when prices may be more advantageous.
Farm Storage Facility Loans can be used to build permanent structures used to store eligible commodities, for storage and handling trucks, or portable or permanent handling equipment. A variety of structures are eligible under this loan, including bunker silos, grain bins, hay storage structures, and refrigerated structures for vegetables and fruit. A producer may borrow up to $500,000 per loan.
For more information, contact the your local County USDA Service Center or visit fsa.usda.gov.
The Farm Service Agency (FSA) has several loan programs to help you start or continue an agriculture production. Farm ownership and operating loans are available.
While all qualified producers are eligible to apply for these loan programs, FSA has provided priority funding for members of targeted underserved applicants.
A targeted underserved applicant is one of a group whose members have been subjected to racial, ethnic or gender prejudice because of his or her identity as members of the group without regard to his or her individual qualities.
For purposes of this program, targeted underserved groups are women, African Americans, American Indians, Alaskan Natives, Hispanics, Asian Americans and Pacific Islanders.
FSA loans are only available to applicants who meet all the eligibility requirements and are unable to obtain the needed credit elsewhere. For more information, contact the your local County USDA Service Center or visit fsa.usda.gov.
Producers in Adams, Boone, Hancock, McHenry, Pike, Randolph, Schuyler, and Stephenson, and Winnebago Counties are eligible to apply for 2023 Livestock Forage Disaster Program (LFP) benefits on native pasture, improved pasture, forage sorghum. Producers in Fulton, Mason, McDonough, Mercer and Tazewell Counties are eligible to apply for 2023 LFP benefits on native pasture and improved pasture.
LFP provides compensation if you suffer grazing losses for covered livestock due to drought on privately owned or cash leased land or fire on federally managed land.
County committees can only accept LFP applications after notification is received by the National Office of qualifying drought or if a federal agency prohibits producers from grazing normal permitted livestock on federally managed lands due to qualifying fire. You must complete a CCC-853 and the required supporting documentation no later than January 30, 2024, for 2023 losses.
For additional Information about LFP, including eligible livestock and fire criteria, contact your local County USDA Service Center or visit fsa.usda.gov.
|
