Illinois - January 2024 FPAC Newsletter

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US Department of Agriculture

January  FPAC Newsletter  -  January, 2024

In This Issue:


A Message from the State Executive Director

Sed

Happy New Year to All:

2023 has come and gone in what seems like a blink of an eye, and here we are at the end of January already.

The new year finds the FSA employees continuing to assist and educate Illinois producers on safety net programs and other disaster/pandemic assistance available, but not limited to Price Support programs; the ARC/PLC Farm Program; NAP; ELAP and more.  Winter storms can be very challenging and often result in a loss to livestock, row crops or vulnerable fruits.  As you prepare for potential impacts of winter weather, please be aware that USDA offers several programs to help with recovery.   Please read the entire article in this newsletter below: USDA Helps Producers Prepare for and Recover from Severe Winter Weather.  To inquire about available programs, please contact your local county FSA Office.

I want to mention that producers have until March 15, 2024 to make 2024 crop year elections, enroll in Agriculture Risk Coverage/Price Loss Coverage programs.   There are many tools to assist producers with their farm program election such as the https://farmdoc.illinois.edu/.

If producers do not submit their election by March 15, 2024 their election remains the same as their 2023 election on the farm.  Farm owners cannot enroll in either program unless they have a share interest in the farm.

On behalf of the entire FSA staff, I would like to wish my counterpart/friend Betsy Dirksen Londrigan the best, as she transitions into her new role as the Administrator for Rural Business-Cooperative Service at USDA Rural Development in Washington, D.C.   It has been my pleasure working alongside Betsy the last two years as we collaborated/partnered on many USDA events.   Congratulations and best of luck Betsy!

As I close my message, I have a few important reminders and dates to remember this month: 

January 12 - July 31 - Continuous CRP Signup
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 February 19 – Presidents Day – FSA Offices Closed
February 29 – Final Date to Apply for Livestock Indemnity Program (LIP)

As always, please stay safe on and around the farm.

Sincerely,

Scott Halpin
State Executive Director
Illinois Farm Service Agency 


USDA Helps Producers Prepare for and Recover from Severe Winter Weather

Winter storms create significant challenges and often result in catastrophic loss for agricultural producers, especially for those raising livestock, row crops and vulnerable crops like citrus.  Despite every attempt to mitigate risk, your operation may suffer losses. As you prepare for the potential impacts of upcoming winter weather, know that USDA offers several programs to help with recovery. 

Risk Management 

For producers who have risk protection through Federal Crop Insurance or the Noninsured Crop Disaster Assistance Program (NAP), we want to remind you to report crop damage to your crop insurance agent or the local Farm Service Agency (FSA) office. 

If you have crop insurance, contact your agency within 72 hours of discovering damage and be sure to follow up in writing within 15 days.  If you have NAP coverage, file a Notice of Loss (also called Form CCC-576) within 15 days of loss becoming apparent, except for hand-harvested crops, which should be reported within 72 hours. 

Disaster Assistance 

USDA also offers disaster assistance programs, which are especially important to livestock, fruit and vegetable, specialty and perennial crop producers.  

First, the Livestock Indemnity Program (LIP) and Emergency Assistance for Livestock, Honeybee and Farm-raised Fish Program (ELAP) reimburses producers for a portion of the value of livestock, poultry and other animals that died as a result of a qualifying natural disaster event– like these winter storms – or for loss of grazing acres, feed and forage. To participate in LIP and ELAP, you will need to file a Notice of Loss by the annual program payment application date.  The LIP payment application and notice of loss deadline is Feb. 29, 2024, for the 2023 program year and March 3, 2025, for 2024 program year losses.  For ELAP, producers are required to complete and a notice of loss to their local FSA office no later than the annual program application deadline of January 30 following the program year in which the loss occurred.  

Next, the Tree Assistance Program (TAP) provides cost share assistance to rehabilitate and replant trees, vines or shrubs loss experienced by orchards and nurseries.  This complements NAP or crop insurance coverage, which covers the crop but not the plants or trees in all cases. 

For TAP, you will need to file a program application within 90 days of the disaster event or the date when the loss of the trees, bushes, or vines is apparent.  

Documentation 

It’s critical to keep accurate records to document all losses following this devastating cold weather event. Livestock producers are advised to document beginning livestock numbers by taking time and date-stamped video or pictures prior to and after the loss. 

Other common documentation options include: 

  • Purchase records 
  • Production records 
  • Vaccination records 
  • Bank or other loan documents 
  • Third-party certification 

Other Programs 

The Emergency Conservation Program and Emergency Forest Restoration Program can assist landowners and forest stewards with financial and technical assistance to restore fencing, damaged farmland or forests, and remove snow from feed stocks, water supplies, and feeding areas.  

Additionally, FSA offers a variety of loans available including emergency loans that are triggered by disaster declarations and operating loans that can assist producers with credit needs.  You can use these loans to replace essential property, purchase inputs like livestock, equipment, feed and seed, or refinance farm-related debts, and other needs. Additionally, FSA offers several loan servicing options available for borrowers who are unable to make scheduled payments on their farm loan programs debt to the agency because of reasons beyond their control. 

Meanwhile, USDA’s Natural Resources Conservation Service (NRCS) provides financial resources through its Environmental Quality Incentives Program to help with immediate needs and long-term support to help recover from natural disasters and conserve water resources.  Assistance may also be available for emergency animal mortality disposal from natural disasters and other causes. 

Additional Resources 

Additional details – including payment calculations – can be found on our NAPELAPLIP, and TAP fact sheets.  On farmers.gov, the Disaster Assistance Discovery ToolDisaster-at-a-Glance fact sheet, and Farm Loan Assistance Tool can help you determine program or loan options. 

While we never want to have to implement disaster programs, we are here to help.  To inquire about available programs, contact your local USDA Service Center


Before You Break Out New Ground, Ensure Your Farm Meets Conservation Compliance

The term “sodbusting” is used to identify the conversion of land from native vegetation to commodity crop production after December 23, 1985.   As part of the conservation provisions of the Food Security Act of 1985, if you’re proposing to produce agricultural commodities (crops that require annual tillage including one pass planting operations and sugar cane) on land that has been determined highly erodible and that has no crop history prior to December 23, 1985, that land must be farmed in accordance with a conservation plan or system that ensures no substantial increase in soil erosion.

Eligibility for many USDA programs requires compliance with a conservation plan or system on highly erodible land (HEL) used for the production of agricultural commodities. This includes Farm Service Agency (FSA) loan, disaster assistance, safety net, price support, and conservation programs; Natural Resources Conservation Service (NRCS) conservation programs; and Risk Management Agency (RMA) Federal crop insurance.

Before you clear or prepare areas not presently under production for crops that require annual tillage, you are required to file Form AD-1026 “Highly Erodible Land Conservation and Wetland Conservation Certification,” with FSA indicating the area to be brought into production.  The notification will be referred to NRCS to determine if the field is considered highly erodible land.  If the field is considered HEL, you are required to implement a conservation plan or system that limits the erosion to the tolerable soil loss (T) for the predominant HEL soil on those fields.

In addition, prior to removing trees or conducting any other land manipulations that may affect wetlands, remember to update form AD-1026, to ensure you remain in compliance with the wetland conservation provisions.

Prior to purchasing or renting new cropland acres, it is recommended that you check with your local USDA Service Center to ensure your activities will be in compliance with the highly erodible land and wetland conservation provisions.

For additional information on highly erodible land conservation and wetland conservation compliance, contact your local USDA Service Center.


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.

Wool/Unshorn Pelts Triggers Loan Deficiency Payments 

If you raise sheep, you may be eligible for loan deficiency payments (LDPs) from the USDA’s Farm Service Agency (FSA).

LDPs and marketing assistance loans (MALs) are marketing tools that are available during harvest [or shearing].

MALs help producers meet cash flow needs without selling commodities when market prices are at harvest-time lows. Producers who are eligible for marketing loans, but choose to forgo the loan, are eligible for LDPs if the posted county price falls below the county loan rate.

Producers can purchase a commodity certificate that may be exchanged for the outstanding loan collateral. Daily LDP rates are available online at fsa.usda.gov.

Rules related to payment limitations, actively engaged in farming and cash-rent tenant no longer apply to LDPs.

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

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.


Maintaining Good Credit History

Farm Loan Programs

Farm Service Agency (FSA) loans require applicants to have a satisfactory credit history. A credit report is requested for all FSA direct farm loan applicants.  These reports are reviewed to verify outstanding debts, see if bills are paid timely and to determine the impact on cash flow.

Information on your credit report is strictly confidential and is used only as an aid in conducting FSA business.

Our farm loan staff will discuss options with you if you have an unfavorable credit report and will provide a copy of your report.  If you dispute the accuracy of the information on the credit report, it is up to you to contact the issuing credit report company to resolve any errors or inaccuracies.

There are multiple ways to remedy an unfavorable credit score:

  • Make sure to pay bills on time
    • Setting up automatic payments or automated reminders can be an effective way to remember payment due dates.
  • Pay down existing debt
  • Keep your credit card balances low
  • Avoid suddenly opening or closing existing credit accounts

FSA’s farm loan staff will guide you through the process, which may require you to reapply for a loan after improving or correcting your credit report.

For more information on FSA farm loan programs, contact your local County USDA Service Center or visit fsa.usda.gov.


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

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 March 1, 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 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 Launches Loan Assistance Tool to Enhance Equity and Customer Service

The U.S. Department of Agriculture (USDA) launched a new online tool to help farmers and ranchers better navigate the farm loan application process.  This uniform application process will help to ensure all farm loan applicants receive equal support and have a consistent customer experience with USDA’s Farm Service Agency (FSA) regardless of their individual circumstances.  

USDA experiences a high rate of incomplete or withdrawn applications, particularly among underserved customers, due in part to a challenging and lengthy paper-based application process.  The Loan Assistance Tool is available 24/7 and gives customers an online step-by-step guide that supplements the support they receive when working in person with a USDA employee, providing materials that may help an applicant prepare their loan application in one tool. 

Farmers can access the Loan Assistance Tool by visiting farmers.gov/farm-loan-assistance-tool  and clicking the ‘Get Started’ button.  From here they can follow the prompts to complete the Eligibility Self-Assessment and start the farm loan journey.  The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser, and is fully functional on mobile devices.  It does not work in Internet Explorer.

The Loan Assistance Tool is the first of multiple farm loan process improvements that will be available to USDA customers on farmers.gov in the future.  Other improvements and tools that were launched include: 

  • A streamlined and simplified direct loan application, reduced from 29 pages to 13 pages. 
  • An interactive online direct loan application that gives customers a paperless and electronic signature option, along with the ability to attach supporting documents such as tax returns.  
  • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment. 

USDA Launches Workshops on Livestock Risk Management Products

The “Livestock Roadshow” Features In-person and Virtual Events

The U.S. Department of Agriculture (USDA) is hosting more than a dozen in-person and virtual workshops this winter for producers to learn about new and expanded livestock risk management products.  The “Livestock Roadshow,” hosted by USDA’s Risk Management Agency (RMA), will highlight policy improvements based on feedback from America’s livestock producers as part of the agency’s broader outreach and education efforts.

Improvements to livestock insurance options have led to tremendous growth.  For example, Livestock Risk Protection grew by 250% in two years, with about 27 million head of cattle insured in 2023.  Meanwhile, Livestock Gross Margin grew by 600% in two years, with about 14.5 million head of cattle insured in 2023.

To ensure livestock producers across the country can attend a livestock roadshow event, two virtual livestock roadshows are scheduled for January.  To learn more about the virtual roadshows, and to see the full listing of upcoming in-person roadshow events, visit the Livestock Roadshow webpage.

Producers attending the Livestock Roadshow events can expect to learn more about:

  • Annual Forage
  • Dairy Revenue Protection 
  • Livestock Gross Margin 
  • Livestock Risk Protection
  • Pasture, Rangeland, and Forage 
  • Weaned Calf Risk Protection 

Back in December a podcast was presented by RMA through The Ohio State University discussing the options livestock producers have.  Below are links to the podcast if you would like to learn more.

OSU Website: https://podcast.osu.edu/agronomy/

Apple Podcast: https://podcasts.apple.com/us/podcast/agronomy-and-farm-management/id1385727972

Or by simply googling “Agronomy and Farm Management Podcast”

The Livestock Roadshow builds on other recent outreach and education efforts.  Earlier this year, RMA held a roadshow highlighting insurance options for specialty crop, organic, and urban producers, drawing more than 3,000 attendees.  Additionally, since 2021, RMA has invested around $13 million in partnerships to advance risk management education. Learn more on the Outreach and Education webpage.

More Information

Livestock producers can learn more by visiting the Livestock Roadshow webpage or by contacting a RMA Regional Office.  Additionally, all producers can subscribe for email messages from RMA.


Foreign Buyers Notification

The Agricultural Foreign Investment Disclosure Act (AFIDA) requires all foreign owners of U.S. agricultural land to report their holdings to the Secretary of Agriculture.  Foreign persons who have purchased or sold agricultural land in the county are required to report the transaction to FSA within 90 days of the closing.  Failure to submit the AFIDA form could result in civil penalties of up to 25 percent of the fair market value of the property.  County government offices, realtors, attorneys and others involved in real estate transactions are reminded to notify foreign investors of these reporting requirements.  The data gained from these disclosures is used in the preparation of periodic reports to the President and Congress concerning the effect of such holdings upon family farms and rural communities.  Click here for more information on AFIDA.


Apply for Livestock Forage Losses

Producers in Adams, Boone, Hancock, McHenry, Pike, Randolph, Schuyler, 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.


USDA Increases Minimum Annual Payment for Conservation Stewardship Program

CSP: Your stewardship goals. Our assistance

USDA is increasing the minimum annual payment for agricultural producers participating in the Conservation Stewardship Program (CSP)  from $1,500 to $4,000 starting in fiscal year 2024.  The increase addresses challenges faced by small scale, underserved, and urban producers and improves equity in the program by making participation more financially beneficial for smaller operations.  The new minimum payment is available for new and renewed CSP contracts, and applications for the program in Illinois will be accepted until February 2, 2024. 

CSP offers technical and financial assistance to help agricultural and forest producers take their conservation efforts to the next level.  The program is designed to compensate agricultural and forest producers who agree to increase their level of conservation by adopting additional conservation activities and maintaining their baseline level of conservation.

Examples of CSP enhancements that are suitable for being adopted by smaller scale and urban producers include:

  • Planting multi-species cover crops
  • Mulching with natural materials
  • Establishing pollinator habitats
  • Soil health crop rotation

Inflation Reduction Act and CSP

Currently, an unprecedented amount of funding is available for CSP through the Inflation Reduction Act and Farm Bill.  The Inflation Reduction Act provided $19.5 billion in additional funding for NRCS’ oversubscribed programs like CSP for five years.  Inflation Reduction Act funds are available to help producers adopt climate-smart practices.

For more information about assistance available, contact your local USDA Service Center.


The Importance of Responding to NASS Surveys

USDA’s National Agricultural Statistics Service (NASS) conducts hundreds of surveys every year and prepares reports covering virtually every aspect of U.S. agriculture.

If you receive a survey questionnaire, please respond quickly and online if possible.

The results of the surveys help determine the structure of USDA farm programs, such as soil rental rates for the Conservation Reserve Program and prices and yields used for the Agriculture Risk Coverage and Price Loss Coverage programs.  This county-level data is critical for USDA farm payment determinations.  Survey responses also help associations, businesses and policymakers advocate for their industry and help educate others on the importance of agriculture.

NASS safeguards the privacy of all respondents and publishes only aggregate data, ensuring that no individual operation or producer can be identified.

NASS data is available online at nass.usda.gov/Publications and through the searchable Quick Stats database.  Watch a video on how NASS data is used at youtube.com/watch?v=m-4zjnh26io&feature=youtu.be.


Update Your Records

FSA is cleaning up our producer record database and needs your help.  Please report any changes of address, zip code, phone number, email address or an incorrect name or business name on file to our office.  You should also report changes in your farm operation, like the addition of a farm by lease or purchase.  You should also report any changes to your operation in which you reorganize to form a Trust, LLC or other legal entity. 

FSA and NRCS program participants are required to promptly report changes in their farming operation to the County Committee in writing and to update their Farm Operating Plan on form CCC-902.

To update your records, contact your local County USDA Service Center.


January Interest Rates and Important Dates

January Interest Rates and Important Dates


Illinois / FPAC Newsletter

3500 Wabash Ave.
Springfield, Illinois 62711
Phone: 217-241-6600
Fax: 217-855-800-1760
Natural Resources Conservation Service
2118 W. Park Court
Champaign, Illinois 61821
217-353-6600

 

 

Farm Service Agency
Scott Halpin
State Executive Director

Risk Management Agency
Brian Frieden
Regional Director

Natural Resources Conservation Service
Tammy Willis
State Conservationist

 

   





 


USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).