North Dakota FSA eNews - February, 2024

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North Dakota FSA eNews - February, 2024


FSA State Executive Director- Monthly Message

Valentines Calf

After selling our calves in January, we took our annual family vacation.  Normally we go skiing – but after experiencing -30 degree wind chills on the slopes in January of 2023, we elected to go on a cruise this year.  We had a great time, but after boarding and unboarding planes, waiting in lines, being pushed, pulled and herded at various events – I have a lot more empathy for our cows!  Thankfully, no one had an electric prod.

ARC/PLC sign up is currently under way – deadline March 15th.   County staff are also working on ERP 2022 signup; the 2023 Livestock Indemnity Program deadline is February 29th (remember the 30-day notice of loss requirement has been waived); and CRP Continuous Sign Up is open for landowners.  Are you thinking about putting up a new bin, hay barn, or just doing some improvements to existing bins – check out our Farm Storage Facility Loans with attractive interest rates.  Spring will be here before you know it and that means construction season!  Speaking of spring – our farm loan staff are ready to help you if you need direct or guaranteed loans for operating or to purchase land.  There’s an upcoming webinar related to Farm Loans – check out the info in this newsletter.  You can also stop in or call and make an appointment – we are here to help!

I frequently mention our awesome County Office staff in my newsletters – rightly so!  Today – let me tell you about the amazing people I work with directly at the State Office.  The Program Directors, Farm Loan Chief, Administrative Officer, Outreach Coordinator, Specialists and District Directors are talented, dedicated and hardworking professionals whose job it is to support the County offices with training, program expertise and in the AO’s case – helping to fill our county office positions.  The combined experience this group of staff has adds up to several hundred years…  These individuals help ease the transition between new State Executive Directors and have provided invaluable information, guidance and historical perspective to me personally.  On January 26th, Wanda Braton, the Conservation and Livestock Program Director retired after 38 years, 9 months of service with FSA.  Wanda was instrumental in putting together the rationale for increasing the baby calf LIP payment from $175 to $475 after the 2022 spring blizzards.  She received a Lifetime Achievement Award for her service, and we wish her all the best in her retirement!

Finally – it’s Valentine’s month – give your sweetheart some extra attention on the 14th.  Take care until next month – and be nice to those cows!

- Marcy Svenningsen


North Dakota Farmers Union to host a Farm Loan Program Webinar

COC Farm Loans

Join us for a free webinar “Farm Loan Programs” on March 7 at 10 a.m., as representatives from the Farm Service Agency and the Bank of North Dakota discuss financing options for farmers and ranchers. 

You can register for the webinar here

Log in from the comfort of your own home to get the latest on these financing options from FSA and Bank of North Dakota

Don't miss out!


USDA to Issue $306 Million in Final Payments to Producers Impacted by 2020 and 2021 Natural Disasters

The U. S Department of Agriculture (USDA) is issuing final Emergency Relief Program (ERP) payments totaling approximately $306 million to eligible commodity and specialty crop producers who incurred losses due to natural disasters in 2020 and 2021. USDA’s Farm Service Agency (FSA) will begin issuing these additional payments to eligible producers this week.

“In the natural disaster recovery process, every little bit of available assistance helps offset the financial toll that these catastrophic events have taken on agricultural producers, their families, and their operations,” said FSA Administrator Zach Ducheneaux. “With remaining funds after initial factoring, USDA was able to put additional money back in the hands of the producers as we strive for the most fair and equitable distribution of available funds to as many producers as possible.”

Recipients of the additional payment are limited to those producers who received ERP Phase One payments from FSA that were calculated based on crop insurance indemnities. Initially, ERP Phase One payments to producers who were indemnified through Federal crop insurance, were subject to a 75% payment factor. FSA has since determined that adequate funding exists to provide an additional 3.5% ERP Phase One payment to producers who had crop insurance increasing the overall payment factor to 78.5%. These additional ERP Phase One payments are subject to FSA payment limitation provisions as outlined in the ERP Phase One fact sheet

Because ERP Phase One payments to producers of noninsured crops covered by FSA NAP policies were originally paid at 100%, there will be no additional payments issued to these producers for 2020 and 2021 losses. 

The Extending Government Funding and Delivering Emergency Assistance Act, 2021 (P.L. 117-43) provided $10 billion in assistance to agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters experienced during calendar years 2020 and 2021. In 2022, FSA implemented ERP Phase One, which delivered $7.5 billion in payments to commodity and specialty crop producers. For Phase One, ERP used a streamlined process with pre-filled application forms, leveraging crop insurance indemnities or Noninsured Crop Disaster Assistance Program (NAP) payments on file with USDA.   

Separately, through the Disaster Relief Supplemental Appropriations Act, 2023 (P.L. 117-328) Congress allocated approximately $3.2 billion in funding to cover necessary expenses related to losses of revenue, quality or production losses of crops. Enrollment is ongoing for ERP 2022, which 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. To learn more, visit usda.gov.


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 tree, 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 NAP, ELAP, LIP, and TAP fact sheets. On farmers.gov, the Disaster Assistance Discovery Tool, Disaster-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.


USDA Now Accepting Applications for Farm Loans Online

The U.S. Department of Agriculture (USDA) has launched an online application for Direct Loan customers. More than 26,000 customers who submit a Direct Loan application each year can now use an online, interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet and build a farm operating plan. This tool is part of a broader effort by USDA’s Farm Service Agency (FSA) to streamline its processes, improve customers service, and expand credit access.

The online farm loan application replicates the support an applicant would receive when completing a loan application in person with an FSA Farm Loan Officer, while continuing to provide customers with one-on-one assistance as needed.  This tool and other process improvements allow farmers and ranchers to submit complete loan applications and reduce the number of incomplete and withdrawn applications.

Through a personalized dashboard, borrowers can track the progress of their loan application. It can be accessed on farmers.gov or by completing FSA’s Loan Assistance Tool at farmers.gov/loan-assistance-tool. To use the online loan application tool, producers must establish a USDA customer account and a USDA Level 2 eAuthentication (“eAuth”) account or a Login.gov account. For the initial stage, the online application tool is only available for producers who will be, or are currently, operating their farm as an individual. FSA is expanding the tools availability to married couples applying jointly and other legal entities in 2024.

Farm Loan Improvement Efforts

FSA has a significant initiative underway to streamline and automate Farm Loan Program customer-facing business processes. For the over 26,000 producers who submit a Direct Loan application to FSA annually, and its 85,000 Direct Loan borrowers, FSA has made improvements this year, including:


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

Emergency Relief Program (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.


Farmers Can Now Enroll for the Agriculture Risk Coverage and Price Loss Coverage Programs for the 2024 Crop Year

The U.S. Department of Agriculture (USDA) 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. Tools include:   

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.  


Is the Noninsured Crop Disaster Assistance Program Right for You?

Farmers and ranchers rely on crop insurance to protect themselves from disasters and unforeseen events, but not all crops are insurable through the USDA’s Risk Management Agency. The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides producers another option to obtain coverage against disaster for these crops. NAP provides financial assistance to producers of non-insurable crops impacted by natural disasters that result in lower yields, crop losses, or prevents crop planting.

Commercially produced crops and agricultural commodities for which crop insurance is not available are generally eligible for NAP. Eligible crops include those grown specifically for food, fiber, livestock consumption, biofuel or biobased products, or value loss crops such as aquaculture, Christmas trees, ornamental nursery, and others. Contact your local FSA office to see which crops are eligible in your state and county.

Eligible causes of loss include drought, freeze, hail, excessive moisture, excessive wind or hurricanes, earthquake and flood. These events must occur during the NAP policy coverage period, before or during harvest, and the disaster must directly affect the eligible crop. For guidance on causes of loss not listed, contact your local FSA county office.

Interested producers apply for NAP coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office where their farm records are maintained. These must be filed by the application closing date, which varies by crop. Contact your local FSA office to verify application closing dates and ensure coverage for eligible NAP crops.

At the time of application, each producer acknowledges they have received the NAP Basic Provisions, which describes NAP requirements  for coverage. NAP participants must report crop acreage shortly after planting and provide verifiable or reliable crop production records when required by FSA.

Producers are required to pay service fees which vary depending on the number of crops and number of counties your operation is located in. The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums also apply when producers elect higher levels of coverage with a maximum premium of $15,750 per person or legal entity.

A producer’s certification on Form CCC-860 Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification may serve as an application for basic NAP coverage for all eligible crops beginning with crop year 2022.  These producers will have all NAP-related service fees for basic coverage waived, in addition to a 50 percent premium reduction if higher levels of coverage are elected.

For more detailed information on NAP, download the NAP Fact Sheet. To get started with NAP, we recommend you contact your local USDA service center.


North Dakota Producers Encouraged to Apply for USDA’s Continuous Conservation Reserve Program

The U.S. Department of Agriculture (USDA) is now accepting applications for the Continuous Conservation Reserve Program (Continuous CRP). USDA’s Farm Service Agency (FSA) encourages agricultural producers and landowners in North Dakota who are interested in conservation opportunities for their land in exchange for yearly rental payments to consider the enrollment options available through Continuous CRP, which also includes the Conservation Reserve Enhancement Program (CREP) offered by FSA partners. Additionally, producers participating in CRP can now apply to re-enroll, if their contracts will expire this year.  

To submit an offer, producers should contact the FSA at their local USDA Service Center by July 31, 2024, in order to have an offer effective by Oct. 1, 2024. To ensure enrollment acreages do not exceed the statutory cap, FSA will accept offers from producers on a first-come, first-served basis and will return offers for approval in batches throughout the year. 

Additionally, producers with acres enrolled in Continuous CRP set to expire Sept. 30, 2024, can now offer acres for re-enrollment. A producer can both enroll new acres into Continuous CRP and re-enroll any acres expiring Sept.30, 2024.  

FSA water quality practices, such as riparian buffers, prairie strips, grassed waterways, and wetlands, will receive an additional 20% incentive. Buffer practices have a positive impact on water quality. Additionally, the Climate-Smart Practice Incentive launched in 2021 is also available in the Continuous signup.    


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.


USDA Rallies Partners to Help with Outreach to Beginning, Veteran and Socially Disadvantaged Producers in North Dakota on the Conservation Reserve Program-Transition Incentives Program

TIP_meadows_mountains

WASHINGTON, Feb. 8, 2024 – The U.S. Department of Agriculture (USDA) is investing almost $1.8 million in cooperative agreements with six partner organizations for outreach and technical assistance to promote awareness and understanding of the Conservation Reserve Program-Transition Incentives Program among agricultural communities. This includes a partnership with Trustees of Indiana University that focuses on North Dakota producers.

USDA’s Farm Service Agency (FSA) offers the program as an important tool to help beginning, veteran and socially disadvantaged farmers access land, as well as keep agricultural lands in production. These partnerships build on other efforts by USDA to increase equity in program delivery and broaden the reach of its programs to underserved producers.  

“The Conservation Reserve Program-Transition Incentives Program creates opportunities to ensure expiring Conservation Reserve Program contracts are used to support the next generation of producers by incentivizing transfer of land access and ownership. Connecting Conservation Reserve Program contract holders to beginning, veteran and underserved farmers and ranchers, as well as making sure landowners understand the program, its benefits and potential for positive, generational impact, is an ongoing challenge,” said FSA North Dakota State Director, Marcy Svenningsen. “FSA is partnering with organizations like Trustees of Indiana University to increase enrollment in the Conservation Reserve Program-Transition Incentives Program by providing outreach and technical assistance to the agricultural community with a focus on increasing awareness about the program and a primary goal of connecting landowners and land seekers interested in program participation.”  

About the Project

  • Trustees of Indiana University – The project will build a clearer national understanding of the Transition Incentives Program’s social and agro-ecological effects on the ground, and opportunities to dissolve barriers to participation for underserved farmers and farmers interested in ecologically sustainable farming practices. The project will focus on 18 priority Transition Incentives Program states: Alabama, Colorado, Idaho, Illinois, Iowa, Kansas, Maryland, Mississippi, Missouri, Montana, New Mexico, North Carolina, North Dakota, Oklahoma, South Dakota, Texas, Virginia and Washington. The project will look at who participates in the Transition Incentives Program, what takes place on Transition Incentives Program land, how lands convert from the Conservation Reserve Program to production, and how the Transition Incentives Program affects participating farmers’ and ranchers’ entry into – and success in – agriculture. It will also clarify impediments to the Transition Incentives Program in places where the Conservation Reserve Program is prevalent, and opportunities to dissolve those impediments, by learning directly from farmers who do not participate in the Transition Incentives Program.

Read for a full list of projects.

About the Conservation Reserve Program-Transition Incentives Program

The Conservation Reserve Program-Transition Incentives Program provides assistance for landowners or operators to transition land expiring from the Conservation Reserve Program to a beginning, veteran or socially disadvantaged farmer or rancher for sustainable grazing or transition to crop production. The program pays owners or operators of land enrolled in an expiring Conservation Reserve Program contract up to two additional annual Conservation Reserve Program payments if they sell or lease their expiring Conservation Reserve Program land to an eligible non-family member. The producer gaining access or ownership to the land must return the land to production using sustainable grazing or crop production methods and be provided the opportunity to re-enroll some or all of the land into Conservation Reserve Program or enroll in the Natural Resource Conservation Service’s Conservation Stewardship Program or Environmental Quality Incentives Program.

  • A beginning farmer or rancher is one who has farmed or ranched 10 years or less, and materially and substantially participates in the operation.
  • A socially disadvantaged farmer or rancher is a farmer or rancher who is a member of a group whose members have historically been subjected to racial or ethnic prejudice because of their identity as a member of that group without regard to their individual qualities. For this program, gender is not included among these groups.
  • A veteran farmer or rancher is a person who served in the Armed Forces and who has obtained status as a veteran during the most recent 10-year period, or who has not operated a farm or ranch, or operated a farm or ranch for no more than 10 years.

More Information

Landowners enrolled in the Conservation Reserve Program are encouraged to contact FSA through their local USDA Service Center to learn more about the Conservation Reserve Program -Transition Incentives Program. Beginning, veteran and socially disadvantaged producers interested in learning more about the Conservation Reserve Program-Transition Incentives Program or other resources to help them start or grow their farm operation are also encouraged to contact FSA at their local USDA Service Center


IRS Reporting for Tax Year 2023

Producers receiving program payments during calendar year 2023 will receive form CCC-1099-G detailing payments received from the Commodity Credit Corporation.  The annual report of program payments on CCC-1099-G is a service intended to help our customers report taxable income. It is not intended to replace producer’s responsibilities to report income to IRS. The mailing of form CCC-1099-G will occur around January 31, 2024.

CCC will not issue form CCC 1099-G when CCC program payments total less than $600 for the calendar year. In addition, producers who receive program payments from multiple counties will receive only one CCC Form 1099-G showing all payments from all counties. 

FSA staff will not attempt to interpret IRS regulations or advise producers about which payments to report on their income tax returns.  However, county office staff can review payments for accuracy.

Although refund information is not shown on the CCC 1099-G, a customer’s financial data including refund information, program payment amounts, and prior year CCC-1099 information is conveniently available via the internet through the FSA “Financial Inquiries” database (FSA-FI). Instructions for obtaining a FSA-FI user ID and password are available on the FSA web site at: http://www.fsa.usda.gov/fmi


Monitoring Efforts by FSA and RMA to Prevent Fraud, Waste, and Abuse in the Federal Crop Insurance Program

FSA will be assisting RMA and AIP’s in monitoring crop conditions throughout the growing season.  FSA will refer all suspected cases of fraud, waste, and abuse about the Federal Crop Insurance program to RMA.  Producers may report suspected cases of fraud, waste, and abuse to your local USDA Service Center.  FSA will provide producer information to RMA and AIP’s to assist in claim audits, inspections , and quality control reviews.


Reminder: Insurance Linkage Requirements for Payments Received Through the Emergency Relief Program

Producers who received an Emergency Relief Program (ERP) payment need to meet ERP insurance linkage requirements by purchasing crop insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage at the 60/100 level or higher for the next two available crop years, which will be determined from the date you received an ERP payment and may vary depending on the timing and availability of coverage. The insurance coverage requirement applies to the physical location of the county where the crop was located and for which an ERP payment was issued. 

The next two available crop years are determined from the date you received your ERP payment. Example:  Producer G received ERP benefits for 2021 rye losses and received an ERP payment in June of 2022. The sales closing date to purchase insurance for the 2023 crop year is September 30, 2022. Based on the date Producer G received ERP benefits, and the sales closing date for the crop, the next 2 available crop years for Producer G are 2023 and 2024.

The coverage requirement is applicable to the crop and the specific physical location of that crop. Please refer to your ERP application to identify crops for which you received an ERP payment. Questions about physical location can be directed to your local county FSA office.

Failure to meet the linkage requirement will require you to refund ERP payments received on the applicable crop(s), plus interest.

Contact your crop insurance agent or local FSA county office as soon as possible to ask about coverage options. Producers who do not obtain the applicable coverage by the sales/application closing date will be required to refund the ERP benefits received on the applicable crop, plus interest. To determine which crops are eligible for federal crop insurance or NAP, visit the RMA website.

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


Making Farm Reconstitutions

When changes in farm ownership or operation take place, a farm reconstitution is necessary. The reconstitution — or recon — is the process of combining or dividing farms or tracts of land based on the farming operation.

To be effective for the current fiscal year, farm combinations and farm divisions must be requested by August 1 of the fiscal year for farms subject to the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. A reconstitution is considered to be requested when all of the required signatures are on FSA-155 and all other applicable documentation, such as proof of ownership, is submitted.

Total Conservation Reserve Program (CRP) and non-ARC/PLC farms may be reconstituted at any time. 

The following are the different methods used when doing a farm recon:

  • Estate Method — the division of bases, allotments and quotas for a parent farm among heirs in settling an estate.
  • Designation of Landowner Method — may be used when (1) part of a farm is sold or ownership is transferred; (2) an entire farm is sold to two or more persons; (3) farm ownership is transferred to two or more persons; (4) part of a tract is sold or ownership is transferred; (5) a tract is sold to two or more persons; or (6) tract ownership is transferred to two or more persons. In order to use this method, the land sold must have been owned for at least three years, or a waiver granted, and the buyer and seller must sign a Memorandum of Understanding
  • DCP Cropland Method — the division of bases in the same proportion that the DCP cropland for each resulting tract relates to the DCP cropland on the parent tract.
  • Default Method — the division of bases for a parent farm with each tract maintaining the bases attributed to the tract level when the reconstitution is initiated in the system.

 For questions on your farm reconstitution, contact your local County USDA Service Center.


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


Weather the Storm: FEMA Mobile App Provides Weather Alerts and Safety Tips

USDA offers programs to help producers recover from disasters; FEMA can help you prepare ahead of time.

The Federal Emergency Management Agency (FEMA) has a free mobile app that explains what to do before, during and after emergencies. The app is available for download for Apple, Android and Blackberry mobile devices.

Download the app to:

  • Receive alerts from the National Weather Service for up to five locations
  • Get safety reminders, read tips to survive natural disasters and customize your emergency checklist
  • Locate open shelters and where to talk to FEMA in person (or on the phone)
  • Upload and share your disaster photos to help first responders.

For more information about the FEMA app, visit fema.gov/mobile-app. To download the FEMA app from the Apple Store visit itunes.apple.com/us/app/fema/id474807486?mt=8. To download the FEMA app on Google Play for Android visit: play.google.com/store/apps/details?id=gov.fema.mobile.android&hl=en


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.


North Dakota FSA eNews

North Dakota State Office
1025 28th St. South
Fargo, ND 58103

Phone: 701-239-5224
Fax: 855-813-6644

State Office Staff:
State Executive Director:
Marcy Svenningsen
Administrative Officer: Amber Briss
Compliance/Payment Limitations: Kristen Knudtson
Conservation/Livestock-Acting: Beau Peterson
ARC/PLC/NAP/Disaster: Laura Heinrich
Farm Loan Programs: Mary Sue Ohlhauser
Price Support: Brian Haugen


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).