North Dakota FSA eNews - August, 2024
In This Issue:
August 14, 2024: ERP 2022 Track 1 and Track 2 Deadline
August 15, 2024: Deadline to enroll in CRP-Transition Incentives Program
November 15, 2024: 2025 Acreage Reporting Deadline for Fall-Seeded Small Grains
August is National Wellness Month. Wellness can be defined as the act of practicing healthy habits in all areas of your life, including health, fitness, mindfulness, mental health and social well-being. With the busy lives we lead, wellness is something that is easy to overlook or push to the backburner until “we’ve got time”. In reality, by making time for wellness – we may actually give ourselves more time to enjoy good health and activities. Think about walking a half mile to the truck instead of getting a ride; spend time eating with the family at noon instead of grabbing a sandwich to eat in the tractor; recognize that the work will always be there, but time spent with family is precious and necessary for our mental and emotional well-being. I like what Tom Rath said, “Well-being is about the combination of our love for what we do each day, the quality of our relationships, the security of our finances, the vibrancy of our physical health, and the pride we take in what we have contributed to our communities. Most importantly, it’s about how these five elements interact.” I hope you give some consideration to your wellness this month – it’s never too late to start or improve your wellness habits.
Speaking of starting – we will start harvesting wheat about the 10th of August. We’re still trying to put up grass hay – the days of no wind and high humidity really set us back in that department and the third cutting alfalfa is coming on strong. County FSA offices are finishing up any appointments they had for acreage reporting and will now spend some time on the projects that were set aside for that push. We are still seeing loan applications come in and our loan staff are working on those as well as doing farm visits. Be sure and check out all the articles in the newsletter – you never know when we might implement a program that would benefit you and your operation. Be safe and we’ll visit again next month.
- Marcy Svenningsen
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 We are happy to announce the most significant changes to USDA’s farm loan programs since 2007. These updates from the Farm Service Agency (FSA) are set to enhance financial opportunities for farmers and ranchers, ensuring their long-term viability.
As part of a comprehensive modernization initiative, the Enhancing Program Access and Delivery for Farm Loans rule aims to revitalize our farm loan programs. These programs are vital in helping agricultural producers start, expand, and sustain their operations through various challenges.
The Enhancing Program Access and Delivery for Farm Loans rule introduces several critical changes:
- Low-Interest Installment Set-Aside Program: This new program assists financially distressed borrowers by allowing them to set aside low-interest installments.
- Flexible Repayment Terms: These terms offer equitable access to repayment options, increasing farmer profitability and enabling the building of working capital reserves and savings.
- Reduced Loan Security Requirements: By lowering loan security requirements, borrowers can leverage their financial equity more effectively.
These changes provide borrowers with the financial freedom and flexibility needed to improve profitability and resilience. They create opportunities for saving towards long-term needs and making strategic investments.
Since 2022, the FSA team has been dedicated to streamlining business processes for both customers and employees. By automating operations, they have improved the overall customer experience, making farm loan programs more accessible, equitable, and user-friendly.
This modernization effort includes replacing outdated, paper-based processes with efficient, automated systems. They are phasing out over 20 obsolete IT systems that support Farm Loans delivery, integrating new end-to-end functions to enhance the online customer experience. This shift promises more efficient and effective loan origination and servicing.
We are excited about these changes and confident that they will create a stronger agricultural community. Stay tuned for more updates and information on how these changes can benefit you.
If natural disasters impacted your farm or ranch in 2022, there’s still time to submit your application for ERP assistance before the Aug. 14 deadline.
The U.S. Department of Agriculture (USDA) announced the deadline for commodity and specialty crop producers to apply for the Emergency Relief Program (ERP) for 2022 natural disaster losses is Aug. 14, 2024. USDA’s Farm Service Agency (FSA) began accepting ERP 2022 applications in October 2023.
Through the Disaster Relief Supplemental Appropriations Act, 2023 (P.L. 117-328) Congress allocated $3.2 billion in funding to cover an estimated $10 billion in uncovered crop losses.
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 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.
In fall 2023, FSA began issuing pre-filled ERP 2022 Track 1 application forms to producers who had crop insurance and NAP data already on file with USDA. Receipt of a pre-filled application is not confirmation that a producer is eligible to receive an ERP 2022 Track 1 payment.
ERP 2022 Application Process – Track 2
Track 2 is a revenue-based certification program designed to assist 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.
It’s important to note that disaster-impacted producers may be eligible for ERP 2022 assistance under one or both tracks (ERP 2022 Track 1 and Track 2). 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.
Additional Required Forms
For both ERP 2022 tracks, all producers must have certain required forms on file with FSA within 60 days of the Aug. 14 application deadline. If not already on file, producers can update, complete and submit required forms to FSA by Tuesday, Oct. 15, 2024.
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.
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Note: Currently, there is a Federal court injunction that prohibits USDA from “making or increasing payments, or providing any additional relief, based on its ‘socially disadvantaged farmer or rancher’ designation” under ERP 2022. This may impact certain payments.
- 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 FSA’s Emergency Relief webpage, in the ERP Track 1 and ERP Track 2 fact sheets and through the FSA at your local USDA Service Center.
Additional webinars available on ERP 2022:
- NDSU-FSA ERP 2022 Webinar, Laura Heinrich and Ron Haugen discussed the ins and outs of the Emergency Relief Program Track One and Track Two. You can watch the full webinar here: Emergency Relief Program (ERP) 2022 - YouTube.
- USDA-Tax Expert ERP 2022 Webinar, USDA staff and experts Guido van der Hoeven and JC Hobbs provide an overview Webinar of ERP 2022 Track 2, completing the application form, and guidance on where advanced tax and accounting knowledge may be required. A recording of the webinar is posted on: https://www.farmers.gov/working-with-us/taxes
The Farm Service Agency uses the drought monitor to determine eligibility for some of our disaster programs. If you are concerned that the drought map isn’t capturing what is happening in your part of the county – consider becoming a CMOR reporter. This program is available through NDSU Extension and allows you to upload pictures of your creeks or pastures as well as give a report on what you are seeing in your area. These reports do have an impact on the drought monitor so it’s important to share what you are experiencing. Here’s the link and instructions: Reporting Drought Impacts in North Dakota with Condition Monitoring Observer Reports | NDSU Agriculture
The Farm Service Agency (FSA) is accepting offers for specific conservation practices under the Conservation Reserve Program (CRP) Continuous Signup.
In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and to plant species that will improve environmental health and quality. The program’s long-term goal is to re-establish valuable land cover to improve water quality, prevent soil erosion, and reduce loss of wildlife habitat. Contracts for land enrolled in CRP are 10-15 years in length.
Under continuous CRP signup, environmentally sensitive land devoted to certain conservation practices can be enrolled in CRP at any time. Offers for continuous enrollment are not subject to competitive bidding during specific periods. Instead they are automatically accepted provided the land and producer meet certain eligibility requirements and the enrollment levels do not exceed the statutory cap.
For more information, including a list of acceptable practices, contact your local County USDA Service Center at fsa.usda.gov/crp.
The deadline for timely filing an acreage report in North Dakota for spring-seeded crops for the 2024 program year was July 15, 2024. Acreage reports must be filed for all cropland on the farm before any 2024 ARC/PLC payments can be made or before eligibility can be established for marketing assistance loans and LDP’s. Additionally, participants of the Conservation Reserve Program (CRP), the Non-insured Assistance Program (NAP) and other disaster programs such as Livestock Forage Program (LFP) or the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP) must report the specific acreage for which benefits are being requested. Although the reporting deadline has passed, County Offices will accept late-filed acreage reports providing certain criteria are met. Contact your local county office for additional information relative to late-filed acreage reports. FSA will not accept acreage reports provided more than a year after the acreage reporting deadline.
FSA can now accept late-filed acreage reports without a field visit if the producer can provide proof of existence and disposition. Producers are required to pay the late filed fee.
Proof of existence of the crop includes, but is not limited to:
- seed receipts showing the amount, variety, and date purchased;
- receipts for cleaning, treating, etc., for seed planted on the farm;
- a written contract or documentation of an oral contract to produce a specific crop;
- evidence that was accepted and approved by the RMA or another USDA agency;
- precision planting, spraying, or harvesting geospatial data or maps;
- drone photos with location and notable physical boundaries;
- other aerial or ground imagery with the ability to determine date, acres, and crop.
Proof of disposition of the crop includes, but is not limited to:
- receipts showing number and units sold if the sale can be positively identified as sale of the crop for the farm for the year represented;
- a written contract or documentation of an oral contract to produce a specific crop;
- records showing the crop was fed to livestock;
- documentation of payment for custom harvesting indicating acreage, location, and crop year;
- evidence that was accepted and approved by another USDA agency.
The Non-Insured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters (includes native grass for grazing).
Eligible producers must have purchased NAP coverage for 2024 crops. If a producer has a Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification (form CCC-860) on file with FSA, it serves as a 2024 application for basic coverage for all eligible NAP crops. These underserved producers have all NAP-related service fees for basic coverage waived.
A notice of loss must be filed on form CCC-576, Notice of Loss, the earlier of 15 days of the occurrence of the disaster or when losses become apparent or 15 days of the final harvest date. Prevented planting acreage must be reported no later than 15 calendar days after the final planting date as established by FSA. Contact your local FSA office for a list of final planting dates by crop.
Producers abandoning or destroying a crop with NAP coverage must notify FSA prior to the destruction of the acreage.
Producers of hand-harvested crops must notify FSA of damage or loss through the administrative County Office within 72 hours of the date of damage or loss first becomes apparent. This notification can be provided by filing a CCC-576, email, fax or phone. Producers who notify the County Office by any method other than by filing the CCC-576 are still required to file a CCC-576, Notice of Loss, within the required 15 calendar days.
Eligible crops must be commercially produced agricultural commodities for which crop insurance is not available, including perennial grass forage and grazing crops, fruits, vegetables, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup, bioenergy, and industrial crops.
For more information on NAP, contact your local FSA office or visit www.fsa.usda.gov/nap.
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 where crop insurance is not available.
Purchase 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 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.
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.
USDA’s Commodity Credit Corporation makes available nonrecourse marketing assistance loans on certain crop year 2024 commodities. These loans can be requested via mail, fax, email or by calling the office to make an appointment to complete a loan application (CCC-666). Loan applications are available at all county FSA offices or available online at: https://www.fsa.usda.gov/ then select the Forms link.
A commodity loan application must be filed at the county office that maintains the farm records for the farm that produced the commodity for the loan. The 2024 crop commodity loan rates are available at any county FSA office, or online at:https://www.fsa.usda.gov/programs-and-services/price-support/Index
Lien searches are required for all applicants and spouses in order to identify prior lien holders. County Offices update CCC-10’s by verifying an individual’s name according to their driver’s license. Lien waivers are required from all lien holders before the commodity loan can be disbursed.
To be eligible for loan the commodity must meet the applicable commodity definition in the Official United States Standards and specific commodity eligibility requirements for a nonrecourse loan. Test weight and moisture levels can impact the eligibility for nonrecourse loans. If there are known quality problems producers should contact their local county FSA office to discuss available loan options.
Farm-stored loans are available in approved storage structures that provide safe storage for the commodity through the maturity date of the loan.
Warehouse-stored loans are also available at CCC-approved storage warehouses or State licensed warehouses which have been assigned a CCC warehouse code. Proof of storage paid through the loan maturity date and proof of payment of in-charges must be provided with the warehouse receipt for the warehouse stored loan. CCC will not adjust the loan rate using premiums and discounts at the time of loan making. However, loan rates will be adjusted if the loan is forfeited to CCC at maturity.
Producers requesting commodity loans are required to maintain beneficial interest in the commodity tendered for loan. Beneficial interest includes having control and title in the commodity. Loss of any one element causes loss of beneficial interest. Sales agreements, including options to purchase, priced later and contracts for future delivery can impact beneficial interest. Once beneficial interest is lost, the commodity remains ineligible for loan or LDP, even if the producer regains control or title at a later date.
Loans mature on demand, but no later than the last day of the ninth calendar month after the month in which the loan is disbursed.
USDA’s Farm Service Agency (FSA) has implemented pre-authorized debit (PAD) for Farm Loan Program (FLP) borrowers. PAD is a voluntary and alternative method for making weekly, bi-weekly, monthly, quarterly, semi-annual or annual payments on loans.
PAD payments are pre-authorized transactions that allow the National Financial and Accounting Operations Center (NFAOC) to electronically collect loan payments from a customer’s account at a financial institution.
PAD may be useful if you use nonfarm income from regular wages or salary to make payments on loans or adjustment offers or for payments from seasonal produce stands. PAD can only be established for future payments.
To request PAD, customers, along with their financial institution, must fill out form RD 3550-28. This form has no expiration date, but a separate form RD 3550-28 must be completed for each loan to which payments are to be applied. A fillable form can be accessed on the USDA Rural Development (RD) website at rd.usda.gov/publications/regulations-guidelines. Click forms and search for “Form 3550-28.”
If you have a “filter” on the account at your financial institution, you will need to provide the financial institution with the following information: Origination ID: 1220040804, Agency Name: USDA RD DCFO.
PAD is offered by FSA at no cost. Check with your financial institution to discuss any potential cost. Preauthorized debit has no expiration date, but you can cancel at any time by submitting a written request to your local FSA office. If a preauthorized debit agreement receives three payment rejections within a three-month period, the preauthorized debit agreement will be cancelled by FSA. The payment amount and due date of your loan is not affected by a cancellation of preauthorized debit. You are responsible to ensure your full payment is made by the due date.
For more information about PAD, contact your local County USDA Service Center or visit fsa.usda.gov.
If you’re enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, you must protect all cropland and noncropland acres on the farm from wind and water erosion and noxious weeds. By signing ARC county or individual contracts and PLC contracts, you agree to effectively control noxious weeds on the farm according to sound agricultural practices. If you fail to take necessary actions to correct a maintenance problem on your farm that is enrolled in ARC or PLC, the County Committee may elect to terminate your contract for the program year.
The U.S. Department of Agriculture, in partnership with FarmRaise, today launched a new, online Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program (ELAP) Decision Tool. The USDA’s Farm Service Agency (FSA) tool is designed to assist agricultural producers who have been impacted by natural disasters access available program support. This ELAP Decision Tool, a component of a broader disaster assistance program educational module, further expands the library of online FSA disaster and farm loan program reference resources and decision aids currently available to agricultural producers on the FarmRaise FSA educational hub. The Decision Tool is a resource only and is not an application for benefits or a determination of eligibility.
ELAP is designed to address losses not covered by other FSA disaster assistance programs. The program provides recovery assistance to eligible producers of livestock, honey bee, and farm-raised fish losses due to an eligible adverse weather or loss condition, including drought, 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 due to an eligible loss condition. ELAP also covers certain mortality losses, due to an eligible condition, for livestock including honey bees and farm-raised fish as well as honey bee hive losses.
New FarmRaise Tools and Resources
FarmRaise, in partnership with FSA, recently launched their online, educational hub – the FarmRaise | FSA Educational Hub – comprised of videos, tools and interactive resources that enable USDA cooperators and agricultural producers to learn about and access major FSA programs.
A new addition to the hub, the ELAP Decision Tool helps eligible producers impacted by qualifying natural disasters and other eligible causes of loss better understand program eligibility and application requirements, learn about record-keeping and supporting loss documentation requirements and track the steps needed before applying for program benefits. The document generated by the ELAP Decision Tool can be used to support the ELAP application process, but it is not a program application. Producers will need to complete and submit the ELAP Application to their local FSA county office. Upon request, applicants may be asked to provide additional supporting documentation per the program requirements.
Through use of the ELAP Decision Tool, producers can segment by loss type (honey bee, farm-raised fish and livestock). This enables easier navigation, as guided by the tool, to assistance available to meet specific disaster recovery needs. After entering the type of loss, identifying the loss condition and entering their inventory and loss information, producers are guided through a worksheet that helps identify required loss documentation — documentation (i.e., pictures, receipts, truck logs, etc.) that can be uploaded through the ELAP tool and sent directly to the producer’s local FSA county office, or producers can provide a copy of the tool-generated worksheet summary document when they visit their local FSA county office to complete and submit the required ELAP application.
Additional FarmRaise Resources
The previously announced Livestock Indemnity Program (LIP) Decision Tool, also available through the FarmRaise | FSA Educational Hub, assists livestock producers who suffered losses from eligible adverse weather events and other causes of loss as well as cooperators who are helping disaster-impacted livestock producers navigate available federal disaster assistance programs. The LIP Decision Tool gives producers guidance on what is needed to gather and submit required loss documentation, reducing the amount of time needed to complete applications and enabling FSA county office staff to deliver much-needed assistance faster. Using the LIP Decision Tool is not an application for benefits or a determination of eligibility.
In addition to the new ELAP Decision Tool and the LIP Decision Tool, the FarmRaise | FSA Educational Hub offers several, easily navigated farm loan programs how-to videos designed to introduce producers to FSA’s many farm loan programs options and guide them through the application process.
More FSA program resources and tools will continue to be added to the FarmRaise | FSA Educational Hub. Cooperators and agricultural producers are encouraged to visit the FarmRaise | FSA Educational Hub often to access all available educational resources.
North Dakota FSA is implementing a new District Employee of the Quarter award program starting July 1st. We want to recognize those farm loan and farm program employees who go above and beyond to be helpful and have a cheerful, can-do attitude. Employees may be nominated by their fellow staff, PRODUCERS, BORROWERS, and outside businesses that employees come in contact with. We will have nomination forms available at the county offices but the easiest way to nominate someone is by using this link: https://www.surveymonkey.com/r/WPMJMND or scanning the QR code above with your cell phone. All employees in the county offices are eligible to be nominated. Quarterly district winners will be eligible for the Employee of the Year award. This is a great opportunity for you to help us recognize those employees you look forward to seeing when you stop in your county office!
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Farm Storage Facility Loan, 3-Year Term: 4.375%
Farm Storage Facility Loan, 5-Year Term: 4.250%
Farm Storage Facility Loan, 7-Year Term: 4.250%
Farm Storage Facility Loan, 10-Year Term: 4.250%
Farm Storage Facility Loan, 12-Year Term: 4.375%
Commodity Loans: 6.000%
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North Dakota FSA eNews
North Dakota State Office 1025 28th St. South Fargo, ND 58103
Phone: 701-239-5224 Fax: 855-813-6644
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State Office Staff:
State Executive Director: Marcy Svenningsen
Administrative Officer: Amber Briss
Compliance/Payment Limitations: Kristen Knudtson
Conservation/Livestock: Beau Peterson
ARC/PLC/NAP/Disaster: Laura Heinrich
Farm Loan Programs: Mary Sue Ohlhauser
Price Support: Brian Haugen
Outreach/Communication Coordinator: Cierra Hauck
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