Greetings and Happy Holidays! During this season of holiday thankfulness and appreciation, we take the time to acknowledge the service of our community partners, sister agencies, county and state committeepersons, and our state and county office staff. Thank you for your hard work and invaluable service. Success is not by the hands of just one person but by the hands of many.
Pennsylvania State Office and Adams County Office staff were happy to help organize and host Undersecretary for Trade and Foreign Agricultural Affairs, Alexis Taylor, in Adams County this month. The roundtable meeting and tour was held at Rice Fruit Farm and included a handful of specialty crop and apple producers. The event was a great opportunity to highlight the successes and challenges of the domestic and international markets as the Biden-Harris administration opens new trade opportunities in India as well as jobs and market conditions impacting the apple industry.
In November, USDA announced the Regional Agricultural Promotion Program which will effectively double the funding available for trade promotion as well as increasing opportunities for trade promotion programs like the Market Access Program. Both of these programs are provided through USDA’s Foreign Ag Service and represent just two of many programs on which the administration is focused. Apple producers, who are sitting on 33% more apples than in the past, were grateful for the Undersecretary’s time and were able to ask tough questions and share the challenges and positive stories of their industry. Pennsylvania Secretary of Agriculture Russell Redding joined the Undersecretary, highlighting the work of PA Department of Agriculture and the administration and all that we do together to support producers and the agriculture community.
At the end of the year and around the holiday season, I always reflect on the past year as your Pennsylvania Farm Service Agency State Executive Director. I have learned much throughout the year by meeting and conversing with our county office staff, producers, partners, and collaborators. Our successes directly correlate to your input and hard work. Farming is tough – and with many of our staff being producers ourselves, we recognize that - and aim to serve all farmers, ranchers, and agricultural partners through the equitable delivery of effective, efficient agricultural programs. Against the odds of drought, heat, high winds, microbursts, rainy conditions, and the like, you have all persevered through 2023. As your partner in addressing some of those seemingly insurmountable obstacles, the staff of this agency has delivered many important programs to aid in making your task a little easier. This is a good partnership, and I’m excited each day to be a part of it.
I’m thankful to be a member of the Pennsylvania farming community for the past 30 years of my life. My plate is full of gratitude – for every day that I work with and for the Pennsylvania FSA team, helping to keep farming families on the land and supporting those who want to become Pennsylvania farmers.
From all of us at Pennsylvania FSA, we wish you all health and happiness during the holidays and into the New Year!
In admiration for all you do, every day, 365 days of the year,
Heidi Secord
State Executive Director
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Deadline to enroll is March 15, 2024
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.
Apply by Jan. 13, 2024.
USDA continues to accept applications for assistance through the Discrimination Financial Assistance Program for Pennsylvania 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.
Deadline for Calendar Year 2023 Applications is Jan. 31, 2024
Specialty crop growers are reminded 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.
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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.
Navigating filing taxes can be challenging, especially if you are new to running a farm business, participating in disaster programs for first time, or trying to forecast the farm’s tax bill. Receiving funds from USDA through activities such as a conservation program payment or a disaster program is considered farm income that includes a tax liability for farm businesses. USDA technical assistance is free and creates no tax implications.
At the end of the tax year, USDA issues tax forms 1098 and 1099 forms for farm loans, conservation programs administered by the Farm Service Agency and Natural Resource Conservation Service including the Conservation Reserve Program and Environmental Quality Incentives Program, crop disaster payments, and the Market Facilitation Program. USDA also issues tax forms for recipients of assistance for distressed borrowers, including through Section 22006 of the Inflation Reduction Act.
If you have received tax forms related to your operation, USDA cannot and does not provide tax advice but wants you to be aware of options that may help manage your tax liability. USDA has partnered with experts to provide resources to help you make the right tax decisions for your operation. Monthly webinars are available for registration and to view on demand at https://www.farmers.gov/working-with-us/taxes.
The Tax Estimator Tool is an interactive spreadsheet that producers can download to estimate tax liability. It is for informational and educational purposes and should not considered tax or legal advice. Producers may need to work with a tax professional to determine the correct information to be entered in the Tax Estimator Tool.
We encourage you to visit https://www.farmers.gov/working-with-us/taxes for more information on how to find and work with a tax preparer as well as instructions on how to request copies of USDA documents and links to other helpful tax resources.
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.
Are you interested in keeping your working land productive for years to come? Use Natural Resources Conservation Service’s new Conservation Concerns Tool to learn about conservation concerns that might impact your agricultural operation, then work with us on solutions targeted to fit your business needs. This tool is available now on our farmers.gov website, no login or account necessary.
With plain language and illustrative photos, the Conservation Concerns Tool provides a walkthrough of more than 40 conservation concerns related to soil, water, plants, animals, energy and air. Use the tool to create a list of resource concerns specific to your farm, ranch, or working forest lands, then download or print your list to share with NRCS staff at your local USDA Service Center.
We have a video available to walk you through the tool so you can see how it works.
The Conservation Concerns Tool is built to run on any modern browser such as Chrome, Edge, Firefox, or Safari and is fully functional on mobile devices. Whether you work from your desktop at home or your smartphone in the field, this new tool offers personalized conservation insights to meet the needs of 21st century agriculture. Visit farmers.gov/conserve to learn about additional USDA resources available for your working land.
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