- a message from Joe Aull, State Executive Director
Promoting Climate Smart Agriculture is currently a high priority with USDA. Producers are being strongly encouraged to utilize climate smart practices that are designed to help protect the environment, as well as give the farmer a strong opportunity to be as productive as possible in their agricultural endeavors. The main goals of Climate Smart Agriculture are to significantly reduce the amount of greenhouse gas emissions and to sequester or keep as much carbon in the soil as possible during agricultural production. Some common examples of climate smart practices include: regular crop rotation, planting cover crops, using no or low till cultivation, using organic fertilizer and other non-chemical materials.
There are numerous financial and other incentives that are being offered by USDA and other governmental entities, for producers who are willing to utilize Climate Smart practices in their agricultural operation. To give you some examples: (1) Climate Smart Grants—USDA has awarded 141 grants nationwide for $3.1 billion which are building and expanding market opportunities for American commodities produced using climate smart practices; (2) Renewable Energy and Bioproducts---There is money for repurposing animal waste as a means to help develop future aviation and marine biofuel, along with incentives for experimenting with electric utilities through farm generated energy. There is also money for farmers who are willing to invest in other practices and technologies designed to convert what happens on their ground into renewable energy; (3) Ecosystem Service Markets--- Farmers can be paid for measuring and quantifying their level of reducing greenhouse gas emissions and sequestering or keeping carbon in the soil by using climate smart practices; (4) American made Fertilizer---There is currently a $900 million initiative announced by President Biden to increase the production of American made fertilizer, which will increase the innovation of fertilizer technology and should help reduce high fertilizer costs for farmers, and help protect them from unpredictable global markets; (5) Local and Regional Food Systems---These new food systems offer a great opportunity for farmers to sell their home grown produce directly to schools, restaurants, grocery stores hospitals, foodbanks, childcare facilities and other institutional purchasers of food, creating a good profit opportunity by eliminating the middleman and giving the farmer the ability to negotiate their own selling price. There are 12 Regional Business Centers across the Country that will provide technical and other assistance to farmers who might be interested in selling food directly to the entities mentioned above; (6) Organic Agriculture---As a part of the American Rescue Plan, there is significant funding to help offset much of the cost if a producer wants to transition to Organic farming. This speeds up the process for a farmer to see a better profit margin from Organic farming sooner, while giving consumers better access to high demand organic products; (7) Processing--- USDA has provided grants to help establish and assist small and medium sized meat and poultry processing facilities. This provides more processing options for the producer which are closer to home and often offer a much more competitive price for their meat and poultry; (8) Government Food Purchases---Since the Federal Government is a major food purchaser, they have the ability to enter into food purchasing agreements with small and rural farmers to purchase their local home-grown food, and this should increase over time.
In today’s world, farmers and their families are often the backbone of many of our rural communities and they do so much to help keep those communities thriving. As you can see from the examples that I mentioned in the previous paragraph, practicing Climate Smart Agriculture can provide many financial and other types of incentives for many farmers which could be a huge benefit in helping them to realize an increased profit margin that could help make a very positive difference in their agricultural operation in helping to keep them productively farming.
As I mentioned in the title of this article, Climate Smart Agriculture appears to be a wave of the future; I would encourage each of you to give it a shot. I hope and believe that it will give you the opportunity to be highly productive, while doing all that you can to protect our environment. Also, I am thinking that sometime in the near future, fruits and vegetables that are produced by climate smart practices, will have a higher market value, because of the fact that they are grown in an environment where the condition of the soil and the quality of the air are much better.
In this month's edition of "What's Happening Today at FSA", Missouri FSA State Executive Director Joe Aull sits down with Administrative Officer Jessica Claypole to discuss her role with the agency and review the Missouri FSA organization and office operations across the state. Claypole also highlights a new hiring opportunity that is currently underway to help establish and maintain County Executive Directors, within the state. Click Here to view video. |
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Payments to Begin Early March
Starting Wednesday, Feb 28, 2024, dairy producers will be able to enroll for 2024 Dairy Margin Coverage (DMC), an important safety net program offered through the U.S. Department of Agriculture (USDA) that provides producers with price support to help offset milk and feed price differences. This year’s DMC signup began Feb. 28, 2024, and ends April 29, 2024. For those who sign up for 2024 DMC coverage, payments may have begun as soon as March 4, 2024, for any payments that triggered in January 2024.
USDA’s Farm Service Agency (FSA) has revised the regulations for DMC to allow eligible dairy operations to make a one-time adjustment to established production history. This adjustment will be accomplished by combining previously established supplemental production history with DMC production history for those dairy operations that participated in Supplemental Dairy Margin Coverage during a prior coverage year. DMC has also been authorized through calendar year 2024. Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program.
DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. In 2023, Dairy Margin Coverage payments triggered in 11 months including two months, June and July, where the margin fell below the catastrophic level of $4.00 per hundredweight, a first for Dairy Margin Coverage or its predecessor Margin Protection Program.
2024 DMC Coverage and Premium Fees FSA has revised DMC regulations to extend coverage for calendar year 2024, which is retroactive to Jan. 1, 2024, and to provide an adjustment to the production history for dairy operations with less than 5 million pounds of production. In previous years, smaller dairy operations could establish a supplemental production history and receive Supplemental Dairy Margin Coverage. For 2024, dairy producers can establish one adjusted base production history through DMC for each participating dairy operation to better reflect the operation’s current production.
For 2024 DMC enrollment, dairy operations that established supplemental production history through Supplemental Dairy Margin Coverage for coverage years 2021 through 2023, will combine the supplemental production history with established production history for one adjusted base production history.
For dairy operations enrolled in 2023 DMC under a multi-year lock-in contract, lock-in eligibility will be extended until Dec. 31, 2024. In addition, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium rate during the 2024 coverage year. To confirm 2024 DMC lock-in coverage or opt out in favor of an annual contract for 2024, dairy operations having lock-in contracts must enroll during the 2024 DMC enrollment period.
DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.
DMC Payments DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses. These updated feed calculations use 100% premium alfalfa hay.
More Information USDA also offers other risk management tools for dairy producers, including the Dairy Revenue Protection (DRP) plan that protects against a decline in milk revenue (yield and price) and the Livestock Gross Margin (LGM) plan, which provides protection against the loss of the market value of milk minus the feed costs. Both DRP and LGM livestock insurance policies are offered through the Risk Management Agency. Producers should contact their local crop insurance agent for more information.
For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.
Sign up for the general Conservation Reserve Program (CRP) starts March 4 and runs through March 29, 2024
The U.S. Department of Agriculture (USDA) announced that agricultural producers and private landowners can begin signing up for the general Conservation Reserve Program (CRP) starting March 4 and running through March 29, 2024. The announcement was made earlier today by Zach Ducheneaux, Administrator of the USDA’s Farm Service Agency (FSA) at this year’s National Pheasant Fest, in Sioux Falls, SD.
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 Sept. 30, 2024. This extension allows authorized programs, including CRP, to continue operating.
As one of the largest private lands conservation programs in the United States, CRP offers a range of conservation options to farmers, ranchers, and landowners. It has been an especially strong opportunity for farmers with less productive or marginal cropland, helping them re-establish valuable land cover to help improve water quality, prevent soil erosion, and support wildlife habitat.
Producers and landowners enrolled about 926,000 acres in General CRP in 2023, bringing the total of enrolled acres in General CRP to 7.78 million. This, combined with all other acres in CRP through other enrollment opportunities, such as Grassland and Continuous CRP, bring the current total of enrolled acres to 24.8 million.
General CRP
General CRP helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. Additionally, General CRP includes a Climate-Smart Practice Incentive to help increase carbon sequestration and reduce greenhouse gas emissions by helping producers and landowners establish trees and permanent grasses, enhance wildlife habitat, and restore wetlands.
General CRP is one of several ways agricultural producers and private landowners can participate in the program.
Other CRP Options
This past January FSA began accepting applications for the Continuous CRP signup. Under this enrollment, producers and landowners can enroll in CRP throughout the year. Offers are automatically accepted provided the producer and land meet the eligibility requirements and the enrollment levels do not exceed the statutory cap.
The USDA also offers financial assistance to producers and landowners enrolled in CRP to improve the health of their forests through the Forest Management Incentive (FMI), which can help participants with forest management practices, such as brush management and prescribed burning.
FSA will announce the dates for Grassland CRP signup in the near future.
Producers with expiring CRP acres can use the Transition Incentives Program (TIP), which incentivizes producers who sell or enter a long-term lease with a beginning, veteran, or socially disadvantaged farmer or rancher who plans to sustainably farm or ranch the land.
How to Sign Up
Landowners and producers interested in CRP should contact their local USDA Service Center to learn more or to apply for the program before their deadlines.
<USDA Announces Conservation Reserve Program General Signup for 2024>
Farm loan borrowers who have pledged real estate as security for their Farm Service Agency (FSA) direct or guaranteed loans are responsible for maintaining loan collateral. Borrowers must obtain prior consent or approval from FSA or the guaranteed lender for any transaction that affects real estate security. These transactions include, but are not limited to:
- Leases of any kind
- Easements of any kind
- Subordinations
- Partial releases
- Sales
Failure to meet or follow the requirements in the loan agreement, promissory note, and other security instruments could lead to nonmonetary default which could jeopardize your current and future loans.
It is critical that borrowers keep an open line of communication with their FSA loan staff or guaranteed lender when it comes to changes in their operation. For more information on borrower responsibilities, read Your FSA Farm Loan Compass.
As the use of cover crops to improve soil health and reduce water quality concerns on working cropland has increased in recent years, questions have emerged regarding the value of cover crops to wildlife. For example, do cover crops provide needed habitat for grassland birds, a group that has experienced widespread population decline in recent decades? What is the value of cover crop fields to grassland birds during the winter, spring migration, and breeding periods compared to cropland fields without cover crops or areas of perennial cover?
On April 25 at 2:00 p.m. eastern, Dr. Adam Janke of Iowa State University and Dr. David Buehler of the University of Tennessee will provide answers to these questions and more during our free, one-hour Conservation Outcomes Webinar. This webinar will share findings from recent studies examining bird use of cover crops in Iowa and Tennessee conducted in partnership with USDA's Conservation Effects Assessment Project. Findings may be used to support on-the-ground cropland management decisions informed by a better understanding of the potential roll of cover crops in grassland bird conservation efforts.
Registration is not required. Access instructions are available on the Conservation Outcomes Webinar Series webpage along with a calendar of upcoming webinars through 2024.
Looking for ways to do business with USDA that saves you time? Look no further than farmers.gov.
When you create a farmers.gov account for the farmers.gov authenticated site, you have access to self-service features through a secure login. Managing your business with the Farm Service Agency (FSA) and the National Resources Conservation Service (NRCS) is faster than ever. From e-signing documents, viewing, printing, and exporting maps and receiving notifications of payment disbursements, a farmers.gov authenticated account makes doing business with USDA easy and secure.
What can you do with your farmers.gov account?
- Submit a Direct Farm Loan application. This tool and other process improvements allow farmers and ranchers to submit complete loan applications. Helpful features include an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet, and build a farm operating plan.
- View NRCS Disbursements and Farm Loans financial activity from the past 180 days.
- View, print and export detailed farm records and farm/tract maps.
- Export common land unit (field) boundaries as ESRI and GeoJSON file types.
- Import precision agriculture planting boundaries, create labels containing crop information, and print both on farm tract maps.
- Use the draw tools to determine acres in an area of interest that can be printed on a map and provided to a third party or exported as a feature file for use in other geospatial applications.
- View, upload, download and e-sign NRCS documents.
- Request conservation and financial assistance, including submitting a program application.
- Access information on current and past conservation practices, report practice completion and request practice certification
- View detailed information on previous and ongoing contracts, including the amount of cost- share assistance received and request contract modifications.
- View Farm Loan Program loans: View Farm Loan principal and interest balances, payment history, loan terms, and download interest statements.
How do you create a farmers.gov account?
To create a farmers.gov account you will need:
- A USDA individual customer record - A customer record contains information you have given to USDA to do business with them, like your name, address, phone number, and any legal representative authority relationships.
- A login.gov account – Login.gov is a sign-in service that gives people secure online access to participating government programs.
- Customers who are new to USDA should visit Get Started at Your USDA Service Center, then go to gov/account to create a farmers.gov account.
In addition to the self-service features, farmers.gov also has information on USDA programs, farm loans, disaster assistance, conservation programs and crop insurance.
Meeting will take place April 10, 2-4 p.m. ET
We’re inviting urban producers, innovative producers, and other stakeholders to virtually attend a public meeting of the Federal Advisory Committee for Urban Agriculture and Innovative Production on April 10 from 2-4 p.m. Eastern.
Meeting details can be viewed in the Federal Register Notice. Written comments can be submitted via UrbanAgricultureFederalAdvisoryCommittee@usda.gov by April 24 at 11:59 p.m. The Committee will deliberate and vote on proposed recommendations and address public comments during the meeting. USDA will share the agenda between 24 to 48 hours prior to the meeting on the Committee’s webpage.
The Committee is managed by the Office of Urban Agriculture and Innovative Production and was established through the 2018 Farm Bill and is part of a broad USDA investment in urban agriculture.
Learn more or register.
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.
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.
Apply by April 9, 2024
USDA is accepting applications for grants to support urban agriculture and innovative production. The competitive grants will support the development of urban agriculture and innovative production projects through two categories, Planning Projects and Implementation Projects.
Learn more.
A multi-agency guide for USDA assistance for underserved farmers and ranchers is now available. If you are a farmer or rancher and are a minority, woman, veteran, beginning, or limited resource producer, you can use this booklet to learn about assistance and targeted opportunities available to you. This includes programs offered through the Farm Service Agency, Natural Resources Conservation Service, and Risk Management Agency. Download the guide here. The guide is also available in Spanish, Hmong, Korean, Vietnamese, Thai and Chinese on farmers.gov/translations.
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