Michigan FSA Newsletter - December 2023

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Michigan Farm Service Agency Newsletter  -  December 21 , 2023


Dates and Deadlines to Remember

graphic of bullhorn with Attention

Acreage Reporting Deadline: 

January 02, 2024: Acreage Reporting Deadline for Honey

January 15, 2024: Acreage Reporting Deadline for Grapes, Blueberries, Apples, and Cherries

Farm Loan: 

December 31, 2023: Inflation Reduction Act Assistance for Distressed Borrowers Assistance Request Deadline

January 13, 2024: Discrimination Financial Assistance Program Application Deadline

Noninsured Crop Disaster Assistance Program (NAP): 

December 31, 2023: Noninsured Crop Disaster Assistance Program Enrollment Deadline for Honey and Maple Sap

Food Safety Certification for Specialty Crops Program: 

January 31, 2024: Food Safety Certification for Specialty Crops Program Deadline

Marketing Assistance Loans And Loan Deficiency Payments: 

January 31, 2024: Marketing Assistance Loans and Loan Deficiency Payment Deadline for Peanuts, Wool, Mohair, and LDP only for Unshorn Pelts

More Information

The above information is for general awareness. Program deadlines may change or vary by county. Be sure to verify program deadlines for your land or operation by contacting your local USDA Service Center.


Employment Opportunities

We Are Hiring FSA

GENERAL NEWS:

Improving Risk Protection on Tribal Lands

Overheard view of farmland next to a river

More than 46 million acres of tribal land in the United States are used for production agriculture, an inherently high-risk business. The U.S. Department of Agriculture (USDA) is here to help the producers who operate these tribal lands to prepare, recover, and build long-term resilience to natural disasters and climate change, through a suite of disaster assistance programs, crop insurance and other risk management options, and conservation programs and practices.

A new Tribal Partnerships page on USDA’s farmers.gov website is designed to connect Tribal Nation leaders, land managers, agricultural producers and citizens with USDA programs and services. Developed as part of USDA’s commitment to its federal trust responsibility to Tribal Nations, the web page showcases opportunities for land access, indigenous representation, conservation partnerships, and support for tribal food sovereignty.

USDA’s Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS), and Risk Management Agency (RMA) offer programs, technical assistance, and insurance products for managing risk, adopting climate-smart practices, and ensuring a safety net from weather.

Crop Insurance

Through the Federal Crop Insurance Corporation, USDA provides crop insurance to farmers and ranchers to help them manage risks on their farms and ranches. There are many types of insurance products available for a wide variety of production practices, including organic and sustainable agriculture. Crop insurance can be obtained through an Approved Insurance Provider (crop insurance agent), while other programs, including FSA’s Noninsured Crop Disaster Assistance Program (NAP) coverage can be accessed by contacting your local USDA Service Center.

Disaster Assistance Discovery Tool

Producers who recently suffered loss or damage due to a natural disaster including crop and livestock losses, farmland damage as well as damages to farm or ranch infrastructure such as hay storage facilities, fence, and equipment can use the USDA Disaster Discovery Tool to receive personalized results outlining which programs best meet their needs. Find disaster assistance program details and learn more about USDA assistance at the USDA Disaster Resource Center.

Risk Protection for Beginning, Veteran, Limited Resource and Minority Producers 

In 2023, FSA made improvements to NAP to enhance risk protection coverage for beginning, veteran, limited resource, and minority producers. Learn more about NAP coverage and other disaster recovery programs at farmers.gov/protection-recovery.

Crop Acreage Reporting

To be eligible for many USDA programs, including risk management programs, agricultural producers must file timely acreage reports that document the crops grown on their farm or ranch and their intended uses. Deadlines for filing crop acreage reports vary by crop and by state and county.

FSA staff at local USDA Service Centers will provide producers with maps and acreage reporting deadlines, by crop, for their county. A crop insurance agent can assist with reporting information necessary for crop insurance benefits. Learn more about crop acreage reporting here.

Climate-Smart Conservation Practices

USDA is making more than $3 billion in funding available for agricultural producers and forest landowners nationwide to participate in voluntary conservation programs and adopt climate-smart practices in fiscal year 2024 as part of President Biden’s Investing in America agenda. These funds are provided by President Biden’s Inflation Reduction Act – the largest climate and conservation investment in history. This law invests an additional $19.5 billion for USDA’s popular conservation programs.

Farmers.gov Portal

Producers can also manage their USDA business on farmers.gov. Signing up for an account provides one place to do business online with FSA and NRCS, including the ability to e-sign documents, request assistance and apply for programs. Features on this site will help expedite acreage reporting, including the ability to view, print and label maps. A farmers.gov account also offers self-service for FSA and NRCS customers to manage FSA farm loans and NRCS conservation contracts.

Customers who are new to USDA should visit Get Started at Your USDA Service Center, then go to farmers.gov/account to create a farmers.gov account.

For more information about USDA support and partnerships with Tribal Nations, visit farmers.gov/tribal. To learn more about FSA and NRCS programs, producers can contact their local USDA Service Center. Visit RMA online to find risk management education and training opportunities. Watch this USDA Office of Tribal Relations video to hear how USDA Helps Acoma Pueblo Ranchers.

 

Baled Hay and the Imported Fire Ant

Hay Bales Trailer

If you buy, sell, or produce baled hay, check out USDA’s factsheet titled “Questions and Answers: Moving Baled Hay From Areas Under Quarantine for Imported Fire Ant.” This publication contains useful information for farmers, ranchers, hay growers, and suppliers as they respond to livestock needs in drought-hit states. Its goal is to help support commerce and the movement of hay, while guarding against the further spread of the imported fire ant. The factsheet’s web address is http://www.aphis.usda.gov/plant-health/baled-hay


PRODUCTION ADJUSTMENT NEWS:

USDA Honeybee Colony Reporting Policy

Bees on honeycomb - USDA

Honeybee producers are required to file an initial report of colony inventory by January 2 each year and report any changes to inventory, including movement of colonies into or outside of the county, within 30 days.

Beginning with the 2024 crop year, honeybee producers will need to use the new Honeybee Colony Inventory Reporting Form, CCC-771. 

The established crop year for honey is January 1 through December 31. An initial report of colonies on a CCC-771 must be submitted to your local FSA office for each unit in which you have an interest, by January 2 of each year.

Colonies must be reported in order to participate in FSA’s Noninsured Crop Disaster Assistance Program and Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program.

 

Agriculture Risk Coverage and Price Loss Coverage Programs Receive 2018 Farm Bill One Year Extension, Farmers Can Now Enroll for the 2024 Crop Year

FSA HQ Use Only ARC PLC

The deadline is March 15, 2024

The U.S. Department of Agriculture (USDA) today 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 Dec. 18, 2023. The deadline to complete enrollment and any election change is March 15, 2024.  

On Nov. 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. Producers can also make elections and complete enrollment online with level 2 eAuth.  

 

USDA Reminds Specialty Crop Growers of Deadline to Apply for Assistance for 2023 On-Farm Food Safety Expenses

Specialty Crop

Deadline for Calendar Year 2023 Applications is Jan. 31, 2024 

The U.S. Department of Agriculture (USDA) reminds specialty crop growers that assistance is available for producers who incur eligible on-farm food safety program expenses to obtain or renew a food safety certification through the Food Safety Certification for Specialty Crops (FSCSC) program. Producers can apply for assistance on their calendar year 2023 expenses through Jan. 31, 2024. 

Program Details 

 FSCSC assists specialty crop operations that incurred eligible on-farm food safety certification and related expenses pertaining to obtaining or renewing a food safety certification in calendar year 2023. FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing its certification, as well as a portion of related expenses. 

To be eligible for FSCSC, the applicant must be a specialty crop operation; meet the definition of a small business or very small business; and have paid eligible expenses related to the 2023 certification. 

Specialty crop operations may receive assistance for the following costs: 

  • Developing a food safety plan for first-time food safety certification.
  • Maintaining or updating an existing food safety plan.
  • Food safety certification.
  • Certification upload fees.
  • Microbiological testing for products, soil amendments and water.
  • Training

FSCSC payments are calculated separately for each category of eligible costs. A higher payment rate has been set for socially disadvantaged, limited resource, beginning and veteran farmers and ranchers. Details about the payment rates and limitations can be found at farmers.gov/food-safety

Applying for Assistance 

The FSCSC application period for 2023 closes Jan. 31, 2024. FSA will issue payments after the application period closes. If calculated payments exceed the amount of available funding, payments will be prorated. 

Interested specialty crop producers can apply by completing the FSA-888, Food Safety Certification for Specialty Crops Program (FSCSC) application. The application, along with other required documents, can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means. 

Specialty crop producers can also call 877-508-8364 to speak directly with a USDA employee ready to assist. Visit farmers.gov/food-safety for additional program details, eligibility information and forms needed to apply. 

 

USDA Makes Producer-Friendly Change to 2023 Notice of Loss Requirements for Two Livestock Disaster Assistance Programs

Livestock

The U.S. Department of Agriculture (USDA) has waived certain notice of loss requirements for 2023 for the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish (ELAP) and Livestock Indemnity Program (LIP). In an effort to streamline assistance to support access to critical 2023 natural disaster recovery assistance, USDA’s Farm Service Agency (FSA) is waiving the requirement to submit ELAP or LIP notices of loss within a pre-determined number of days for 2023. Instead, producers have the flexibility to submit 2023 notices of loss as soon as possible, once losses are realized, following a natural disaster event or no later than the established annual program application for payment deadlines for each program. FSA county committees are also being asked to re-evaluate 2023 ELAP and LIP late-filed notices of loss to determine if the waiver applies.  

Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish 

ELAP provides recovery assistance to eligible producers of livestock, honeybee, and farm-raised fish losses due to an eligible adverse weather or loss condition, including blizzards, disease, water shortages and wildfires. ELAP covers grazing and feed losses, transportation of water and feed to livestock and hauling livestock to grazing acres. ELAP also covers certain mortality losses for livestock including honeybees and farm-raised fish as well as honeybee hive losses. ELAP is designed to address losses not covered by other FSA disaster assistance programs.  

For 2023, FSA is waiving the regulatory requirement for producers who are eligible for ELAP to file a notice of loss with FSA within 30 calendar days from when the loss first became apparent for livestock and farm-raised fish and 15 calendar days for honeybees. Under this waiver, notices of loss are to be completed by the eligible producer and submitted to FSA no later than the annual program application deadline of January 30 following the program year in which the loss occurred. Therefore, producers who incurred ELAP-eligible losses in 2023, will need to submit a notice of loss by Jan. 30, 2024. 

Livestock Indemnity Program 

LIP provides disaster recovery assistance to livestock owners and contract growers who experience livestock deaths, in excess of normal mortality caused by eligible loss conditions including adverse weather, disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators. LIP also helps livestock owners who must sell livestock at a reduced price because of an injury from certain loss conditions. 

For 2023, FSA is waiving the regulatory requirement for producers who are eligible for LIP to file a notice of loss within 30 calendar days from when the loss first became apparent. Under this waiver, producers are still required to complete and submit the notice of loss to FSA no later than the annual program payment application date, which is 60 calendar days following the program year in which the loss occurred. The LIP payment application and notice of loss deadline is Feb. 29, 2024, for the 2023 program year.  

2023 Disapproved Applications 

FSA county committees will review all notices of loss for both ELAP and LIP that were previously disapproved for the 2023 program year due to late filing and re-evaluate them to determine if the waiver applies. To receive ELAP and LIP benefits, producers will still need to file an application for payment by the established program deadline for the 2023 program year. Producers who are unsure about the status of their notice of loss or application for payment, should contact their local FSA county office as soon as possible. 

Supporting Documentation 

Accurate records and loss documentation are critical following disaster events and are required when filing notices of loss with FSA. Acceptable loss documentation includes:  

  • Documentation of the number, kind, type, and weight range of livestock that have died, supplemented, if possible, by photographs or video records of ownership and losses. 
  • Rendering truck receipts by kind, type, and weight - important to document prior to disposal. 
  • Beginning inventory supported by birth recordings or purchase receipts. 
  • Documentation from Animal Plant Health Inspection Service, Department of Natural Resources, or other sources to substantiate eligible death losses due to an eligible loss condition. 
  • Documentation that livestock were removed from grazing pastures due to an eligible adverse weather or loss condition. 
  • Costs of transporting livestock feed to eligible livestock, such as receipts for equipment rental fees for hay lifts and snow removal. 
  • Feed purchase receipts if feed supplies or grazing pastures are destroyed.
  • Number of gallons of water transported to livestock due to water shortages.

More Information 

The improvements to ELAP and LIP build on others made since 2021. This includes ELAP benefits for above normal costs for hauling feed and water to livestock and transporting livestock to other grazing acres during a qualifying drought. FSA also expanded eligible livestock under ELAP, LIP, and the Livestock Forage Disaster Assistance Program, and increased the LIP payment rate for beef, beefalo, bison, and dairy animals less than 250 pounds and most recently beef calves over 800 pounds. Learn about USDA disaster assistance programs on farmers.gov.  

On farmers.gov, the Disaster Assistance Discovery Tool, Disaster-at-a-Glance fact sheet and Loan Assistance Tool can help producers and landowners determine disaster protection and recovery program or loan options. For more information about FSA programs, contact your local USDA Service Center

 

USDA to Provide More Than $3 Billion to Commodity and Specialty Crop Producers Impacted by 2022 Natural Disasters

ERP 2022

The U. S Department of Agriculture (USDA) will provide more than $3 billion to commodity and specialty crop producers impacted by natural disaster events in 2022. Eligible impacted producers can apply for financial assistance through the Emergency Relief Program (ERP) 2022. The program will help offset the financial impacts of crop yield and value losses from qualifying disasters occurring in 2022.

Background

On Dec. 29, 2022, President Biden signed into law the Disaster Relief Supplemental Appropriations Act, 2023 (P.L. 117-328) that provides about $3.7 billion in financial assistance for agricultural producers impacted by eligible natural disasters that occurred in calendar year 2022.  

ERP 2022 covers losses to crops, trees, bushes and vines due to qualifying, calendar year 2022 natural disaster events including wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought and related conditions. 

ERP 2022 program benefits will be delivered to eligible producers through a two-track process. FSA intends to make both tracks available to producers at the same time. This two-track approach enables USDA to:

  • Streamline the application process.
  • Reduce the paperwork burden on producers.
  • Proactively include provisions for underserved producers who have not been well served by past emergency relief efforts.
  • Encourage producer participation in existing risk management programs to mitigate the impacts of future severe weather events.

It’s important to note that disaster-impacted producers may be eligible for ERP 2022 assistance under one or both tracks. To avoid duplicative benefits, if a producer applies for both tracks, the Track 2 payment calculation will take into account any payments received through Track 1.  

ERP 2022 Application Process – Track 1

ERP 2022 Track 1 leverages existing federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) data as the basis for calculating payments for eligible crop producers who received indemnities through these risk management programs.

Although FSA is sending pre-filled ERP 2022 Track 1 application forms to producers who have crop insurance and NAP data already on file with USDA, producers indemnified for losses resulting from 2022 natural disasters do not have to wait to receive the application before requesting ERP 2022 assistance. Effective Oct. 31, 2023, producers can apply for ERP 2022 benefits whether they have received the pre-filled application or not. Receipt of a pre-filled application is not confirmation that a producer is eligible to receive an ERP 2022 Track 1 payment. 

USDA estimates that ERP Track 1 benefits will reach more than 206,000 producers who received indemnities for losses covered by federal crop insurance and more than 4,500 producers who obtained NAP coverage for the 2022 crop year.   

ERP 2022 Application Process – Track 2

Track 2 is a revenue-based certification program designed to assist eligible producers who suffered an eligible decrease in revenue resulting from 2022 calendar year disaster events when compared with revenue in a benchmark year using revenue information that is readily available from most tax records. In cases where revenue does not reasonably reflect a normal year’s revenue, Track 2 provides an alternative method for establishing revenue. Likewise, Track 2 affords producers of crops that are used within an operation and do not generate revenue from the sale of the crop a method for establishing revenue for the purpose of applying for ERP 2022 benefits. Producers are not required to submit tax records to FSA unless requested by the County Committee if required for an FSA compliance spot check.

Although not required when applying for ERP 2022 Track 2, applicants might find the following documents useful to the process:

  • Schedule F (Form 1040)
  • Profit or Loss from Farming or similar tax documents for tax years 2018, 2019, 2022 and 2023.

Track 2 targets gaps in emergency relief assistance for eligible producers whose eligible losses were not covered by crop insurance or NAP including revenue losses too small (shallow loss) to be covered by crop insurance.

Producers interested in applying for ERP 2022 Track 2, should contact their local FSA county office.  Additional reference resources can be found on FSA’s emergency relief website.

Additional Required Forms

For both ERP 2022 tracks, all producers must have certain required forms on file with FSA within 60 days of the ERP 2022 deadline. Producers can apply for ERP 2022 starting Oct. 31, 2023. The application deadline has not yet been determined and will be announced at a later date. If not already on file, producers can update, complete and submit required forms to FSA at any time.

Required forms:

  • 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, for the 2022 program year.
  • 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 ERP producer and applicable affiliates.

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 the status of their forms can contact their local FSA county office.  

Future Insurance Coverage Requirements 

All producers who receive ERP 2022 payments must purchase crop insurance, or NAP coverage where crop insurance is not available, in the next two available crop years as determined by the Secretary. Purchased coverage must be at the 60/100 coverage level or higher for insured crops or at the catastrophic coverage level or higher for NAP crops. 

More Information

ERP 2022 eligibility details and payment calculation factor tables are available on the emergency relief website, in the ERP Track 1 and ERP Track 2 fact sheets and through your local FSA county office.


PRICE SUPPORT NEWS:

FSA Outlines MAL and LDP Policy

Grain Bins

Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool and honey. MALs provide you with interim financing after harvest to help you meet cash flow needs without having to sell your commodities when market prices are typically at harvest-time lows. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available. Marketing loan provisions and LDPs are not available for sugar and extra-long staple cotton.

FSA is now accepting requests for 2024 MALs and LDPs for all eligible commodities after harvest. Requests for loans and LDPs shall be made on or before the final availability date for the respective commodities.

Commodity certificates are available to loan holders who have outstanding nonrecourse loans for wheat, upland cotton, rice, feed grains, pulse crops (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds. These certificates can be purchased at the posted county price (or adjusted world price or national posted price) for the quantity of commodity under loan, and must be immediately exchanged for the collateral, satisfying the loan. MALs redeemed with commodity certificates are not subject to Adjusted Gross Income provisions.

To be considered eligible for an LDP, you must have form CCC-633EZ, Page 1 on file at your local FSA Office before losing beneficial interest in the crop. Pages 2, 3 or 4 of the form must be submitted when payment is requested.

Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.

Adjusted Gross Income (AGI) provisions state that if your total applicable three-year average AGI exceeds $900,000, then you’re not eligible to receive an MLG or LDP. You must have a valid CCC-941 on file to earn a market gain of LDP. The AGI does not apply to MALs redeemed with commodity certificate exchange.

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


FARM LOAN NEWS:

USDA To Provide Additional Financial Assistance to Qualifying Guaranteed Farm Loan Borrowers Facing Financial Risk

Farm Loan Programs

The USDA announced it will begin providing additional, automatic financial assistance for qualifying guaranteed Farm Loan Programs (FLP) borrowers who are facing financial risk. The announcement is part of the $3.1 billion to help certain distressed farm loan borrowers that was provided through Section 22006 of the Inflation Reduction Act.

Since the Inflation Reduction Act was signed into law by President Biden in August 2022, USDA has provided approximately $1.15 billion in assistance to more than 20,000 distressed borrowers as a part of an ongoing effort to keep borrowers farming, remove obstacles that currently prevent many borrowers from returning to their land, and improve the way that USDA approaches borrowing and loan servicing in the long-term. The financial assistance announced today will provide qualifying distressed guaranteed loan borrowers with financial assistance similar to what was already provided to distressed direct loan borrowers. Based on current analysis, the financial assistance announced today will assist an estimated approximately 3,500 eligible borrowers, subject to change as payments are finalized.    An FLP guaranteed loan borrower is distressed if they qualify under one of the options below. FLP guaranteed borrowers who qualify under multiple options will receive a payment based on the option that provides the greatest payment amount:

Payment of any outstanding delinquency on all qualifying FLP guaranteed loans as of Oct. 18, 2022. This includes any guaranteed loan borrowers who did not receive an automatic payment in 2022 on that loan because they were not yet 60 days delinquent as of Sept. 30, 2022, as well as guaranteed borrowers that became delinquent on a qualifying FLP guaranteed loan between September 30, 2022, and Oct.18, 2022.  

Payment on a qualifying FLP guaranteed loan for which a guaranteed loan borrower received a loan restructure, which modified the guaranteed loan maturity date, between March 1, 2020, and Aug. 11, 2023. The payment amount will be the lesser of the post-restructure annual installment or the amount required to pay the loan in full. The guaranteed loan must not have been paid in full prior to Aug. 11, 2023.

Payments on certain deferred amounts on qualifying FLP guaranteed loans, not to exceed $100,000, for guaranteed borrowers who received a deferral or another type of payment extension, for at least 45 days, between March 1, 2020, and Sept. 30, 2022, from their guaranteed lender on that qualifying guaranteed loan in response to COVID-19, disasters, or other revenue shortfalls. The Inflation Reduction Act payment amount will be the lesser of the most recent deferral or extension amount on the qualifying FLP guaranteed loan, or the amount required to pay that loan in full. The guaranteed loan must not have been paid in full prior to Aug. 11, 2023.

This assistance is only available for FLP guaranteed loan borrowers who did not or will not receive an initial payment on the same FLP guaranteed loan under Inflation Reduction Act assistance announced in October 2022.   Distressed guaranteed borrowers qualifying for this assistance will receive a United States Department of the Treasury check that is jointly payable to the borrower and the lender. These borrowers will also receive a letter from FSA informing them of Inflation Reduction Act assistance they will receive as well as instructions to make an appointment with their lender to process the payment and apply it to their qualifying guaranteed loan accounts. Guaranteed lenders will receive an email in the coming days informing them of this assistance and any next steps. Lenders will also receive letters informing them which borrowers will receive assistance and the amount of assistance they will receive.    Any distressed guaranteed borrowers who qualify for these forms of assistance and are currently in bankruptcy will be addressed using the same case-by-case review process announced in October 2022 for complex cases.    FSA will also provide relief to qualifying FLP guaranteed loan borrowers determined to be distressed borrowers based on liability for remaining federal debt subject to debt collection and garnishment after the liquidation of their guaranteed loan account as of July 31, 2023. This will allow some borrowers to potentially return to farming. Guaranteed borrowers who qualify for this assistance will have their federal debt paid automatically by FSA and will receive a letter informing them of the payment made on their federal debt.    All letters to qualifying guaranteed loan borrowers will contain instructions for opting out of assistance if a borrower chooses to do so. 

Important Tax Information

Similar to other USDA Inflation Reduction Act assistance, payments provided to borrowers and payments to be applied to FSA farm loan accounts will be reported to the Internal Revenue Service (IRS). Borrowers receiving this assistance will receive a 1099 form from FSA. Please note that payments over $600 are subject to Federal and State Income Taxes and will be reflected on your annual 1099 form. Borrowers are encouraged to consult a tax professional with all tax-related questions regarding any Inflation Reduction Act assistance received. USDA also has tax-related resources at farmers.gov/taxes. 

Individual Requests for Farmers Seeking Assistance 

In addition to the automatic payments announced today for distressed guaranteed loan borrowers, FSA continues to accept and review individual distressed borrower assistance requests from direct loan borrowers who missed a recent installment or are unable to make their next scheduled installment on a qualifying direct FLP loan. All FSA direct borrowers should have received a letter detailing the eligibility criteria and process for seeking this type of assistance, which is available even before they become delinquent. As the letter details, borrowers who are within two months of their next installment may seek a cash flow analysis from FSA using a recent balance sheet and operating plan to determine their eligibility. 

FSA direct borrowers also received a letter detailing an opportunity to receive assistance if they took certain extraordinary measures to avoid delinquency on their qualifying direct FLP loans, such as taking on or refinancing more debt, selling property, or cashing out retirement or college savings accounts.  

Borrowers can submit requests for extraordinary measures or cash flow-based assistance in person at their local FSA office or by sending in a direct request using the farmers.gov 22006 assistance request portals at farmers.gov/loans/inflation-reduction-investments/assistance. All requests for assistance must be received by Dec. 31, 2023.

 

Reminder: Discrimination Financial Assistance Program

Farm Loan Programs

Apply by Jan. 13, 2024

USDA continues to accept applications for assistance through the Discrimination Financial Assistance Program for Michigan farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021. The application process will close on January 13, 2024. Borrowers have the option to apply for assistance online via 22007apply.gov or through a paper-based form.

Details about the program, including an application and e-filing portal, are available at 22007apply.gov. 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.

Applicants can also call a free call center at 1-800-721-0970 or visit one of several dozen brick-and-mortar offices the program has set up around the country. Locations are provided on the program website and vendors will update the local events schedule with more information as it becomes available.

Several entities are involved in the Discrimination Financial Assistance Program, with varying roles and responsibilities. The National Administrator and Regional Hubs are responsible for conducting outreach, assisting with the financial assistance application process, processing applications, managing program call centers, and operating local offices. Additional outreach and application support is provided by trusted community groups. These groups include AgrAbility, the Farmer Veteran Coalition, Farmers’ Legal Action Group, Federation of Southern Cooperatives, Intertribal Agriculture Council, Land Loss Prevention Program, National Young Farmers Coalition, and Rural Coalition.  

It is important to note that filing an application is FREE and does not require a lawyer.

If you want to get weekly updates on the program’s events and progress, you can go to https://22007apply.gov, and subscribe to a weekly newsletter.


URBAN AG NEWS:

USDA Supports Urban and Innovative Producers

Urban Agriculture, National Photo

Are you gardening or farming in an urban environment or involved in controlled environment agriculture, rooftop farms, hydroponic aeroponic, aquaponic facilities or other types of innovative production? Agencies across USDA including the Office of Urban Agriculture and Innovative Production (OUAIP) have programs and resources available for you, and many are listed in this Urban Agriculture Programs at a Glance brochure.

USDA offers resources to help you:

Farmers Market Promotion Program (FMPP) funds projects that develop, coordinate and expand direct producer-to-consumer markets like farmers markets. Agricultural businesses and cooperative are among the eligible entities.

A first step is to contact your local USDA Service Center, including our new Urban Service Centers, to meet face to face with our staff from FSA and NRCS. If you’re a new farmer, you can also reach out to your state Beginning Farmer and Rancher Coordinator.

We also invite you to get involved with your FSA Urban County Committee, which provides local input on USDA urban agriculture policy, and the Advisory Committee for Urban Agriculture and Innovative Production, which advises the Secretary of Agriculture and holds public meetings.

Sign up for e-mail updates on Urban Agriculture and learn more at farmers.gov/urban or usda.gov/urban.


BEGINNING FARMER & RANCHER NEWS:

Guide Available for Underserved Farmers, Ranchers

young farmer

A multi-agency guide for USDA assistance for underserved farmers and ranchers is now available. If you are a farmer or rancher and are a minority, woman, veteran, beginning, or limited resource producer, you can use this booklet to learn about assistance and targeted opportunities available to you. This includes programs offered through the Farm Service Agency, Natural Resources Conservation Service, and Risk Management Agency. Download the guide here. The guide is also available in Spanish, Hmong, Korean, Vietnamese, Thai and Chinese on farmers.gov/translations


RMA NEWS:

USDA Updates Crop Insurance for Sugar Beets Making Early Harvest Adjustments Optional

Person entering information on a computer

USDA is revising its Sugar Beet crop insurance policy to make the early harvest adjustment feature optional for producers. USDA’s Risk Management Agency (RMA) is offering this flexibility beginning with the 2024 crop year for most program areas and beginning with the 2025 crop year for Imperial County, California. The update is published in the Federal Register.

In 2018, RMA responded to requests from producers to limit the effects on their Actual Production History (APH) databases caused by the need to harvest sugar beets before they reach full maturity by making early harvest adjustments to the Sugar Beet Crop Provisions. The 2018 revision was made because sugar beets harvested early are smaller and have less sugar than beets harvested at full maturity, resulting in lower net pounds of raw sugar in the producer’s APH database for that crop year.

This recent rule revision will now allow producers to opt-in to the early harvest adjustment. Producers will be required to select the option by the sales closing date. The producer will also choose which years from their APH database will include the adjusted early harvest yields.

The sales closing date for the 2024 crop year is March 15, 2024.

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.

 

Ask the Expert: Crop Insurance Options for Urban and Innovative Producers

GA Urban Ag Farm with Land Trust

USDA’s Risk Management Agency (RMA) connects agricultural producers with high-quality and affordable crop insurance sold by approved insurance providers. This includes the specific needs of urban and innovative producers, who may have smaller and more specialized operations.

In this Ask the Expert, Economist Claire White answers questions about RMA programs and opportunities for urban and innovative producers, including the new Controlled Environment crop insurance program. This new option is part of USDA’s broader effort to support urban agriculture and develop new and better markets for American producers.

Claire has been with RMA for over 20 years, writing and improving crop insurance policies. She specializes in nursery and nursery-related products, cotton, small grains, apples, and many others.

Read the interview here.


December 2023 Lending Rates

barn

USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs. 

Operating, Ownership and Emergency Loans   

FSA offers farm ownership, operating and emergency loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation.   For many loan options, FSA sets aside funding for underserved producers, including, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.     

Interest rates for Operating and Ownership loans for December 2023 are as follows:      

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.    

To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.   

Commodity and Storage Facility Loans  

Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.      

Simplified Direct Loan Application   

FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides an improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center.  

Disaster Support  

FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.  

Inflation Reduction Act Assistance for Distressed Producers  

The Inflation Reduction Act, a historic, once-in-a-generation investment and opportunity for the 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 $1.7 billion in immediate assistance to more than 30,000 financially distressed direct and guaranteed FSA loan borrowers. 

FSA recently announced additional automatic assistance to qualifying, economically distressed guaranteed farm loan program and Emergency Loan borrowers who face financial risk.  

FSA is also accepting and reviewing 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 who are unable to make their next scheduled installment. 

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.   

More Information

To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other fam records data and customer information by logging in their farmers.gov account. Producers without an account can sign up today.

   

USDA is an equal opportunity provider, employer and lender.

Michigan Farm Service Agency

3001 Coolidge Road, Suite 350
East Lansing, MI 48823

State Executive Director, Acting
Christina Salenbien

State Committee Members:

Cheryl Kobernik, Chair

Amanda Carey Goodfellow

Jerry Ann Hebron

Ryan Shaw

 Joseph Van Alstine

Administrative Officer
Troy Nichols

Conservation Programs Chief
Dale Allen

Farm Loan Programs Chief
Dave Russ

Price Support Programs Chief
Ken Schapman

Production Adjustment Programs Chief
Kyle Knapp

Outreach & Communications
Aimee Swenson