Maryland FSA News - July 29, 2024
In This Issue:
Farm Service Agency (FSA) is committed to providing our farm loan borrowers the tools necessary to be successful. FSA staff will provide guidance and counsel from the loan application process through the borrower’s graduation to commercial credit. While it is FSA’s commitment to advise borrowers as they identify goals and evaluate progress, it is crucial for borrowers to communicate with their farm loan staff when changes occur. It is the borrower’s responsibility to alert FSA to any of the following:
- Any proposed or significant changes in the farming operation
- Any significant changes to family income or expenses
- The development of problem situations
- Any losses or proposed significant changes in security
If a farm loan borrower can’t make payments to suppliers, other creditors, or FSA on time, contact your farm loan staff immediately to discuss loan servicing options.
For more information on FSA farm loan programs, contact your County USDA Service Center or visit fsa.usda.gov.
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At the National Rural Grocer’s Summit last week, U.S. Agriculture Secretary Tom Vilsack announced that USDA and Reinvestment Fund are launching a new program under the Healthy Food Financing Initiative (HFFI) to increase access to healthy foods in communities underserved by grocery stores. Funding for the new Food Access and Retail Expansion Fund (FARE Fund) is made possible by President Biden’s American Rescue Plan Act.
“People across this country deserve fresh, healthy and affordable foods,” Secretary Vilsack said. “Through this program, the Biden-Harris Administration is partnering with food retailers to ensure that everyone has access to affordable, delicious foods while also supporting local farmers and ranchers. We are revitalizing the food systems in this country and increasing access for those that need it.”
Through the HFFI FARE Fund, USDA and the Reinvestment Fund are making available $60 million in loans, grants and technical assistance for food retail and food retail supply chain projects that increase access to healthy food in communities underserved by grocery stores. Funding will be available for the next five years.
Eligible organizations include food retailers and food retail suppliers.
Applicants may apply for loans ranging from $500,000 to $5 million to implement healthy food projects. Funds may be used to support predevelopment, land acquisition, renovations and equipment purchases.
Applicants may also apply for grants up to $250,000 to implement healthy food projects. Funds may be used to support project management, equipment purchases and construction.
The program also offers funding for business support, or technical assistance, to support projects in their early stages. Funds may be used to support market and feasibility studies, business planning and store design.
Potentially eligible projects can check for eligibility now and sign up to be notified when the program begins accepting applications at: www.investinginfood.com/fare-fund
Background
Many low-income communities lack adequate, affordable access to healthy food. HFFI provides grants and loans to entities that offer healthy foods in communities that are underserved by grocery stores and other food retailers. The program increases access to healthy foods, provides new market opportunities for farmers and ranchers, stabilizes small and independent retailers, and creates good-paying jobs and economic opportunity in low-income communities.
The FARE Fund is an expansion of HFFI administered by the Reinvestment Fund on behalf of USDA Rural Development.
Through HFFI, USDA partners with Reinvestment Fund to bring healthy food options to underserved rural, urban and Tribal communities. Reinvestment Fund serves as the National Fund Manager for USDA. It raises capital; provides financial and technical assistance to regional, state and local partnerships; and helps fund projects to improve access to fresh, healthy foods in underserved areas.
In August 2023, Reinvestment Fund expanded America’s Healthy Food Financing Initiative to include the new HFFI Local and Regional Healthy Food Financing Partnerships Program.
To date, HFFI has awarded over $25 million directly to food retail and food enterprise projects in 48 states, Washington D.C. and Puerto Rico. Additionally, over $40 million has been awarded to support 16 new and existing regional, state, and local food financing programs through the HFFI Local and Regional Healthy Food Financing Partnerships Program.
USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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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.
“If natural disasters impacted your farm or ranch in 2022, there’s still time to submit your application for Emergency Relief Program assistance,” said John Sullivan, FSA State Executive Director for Maryland. “Don’t delay. Gather up your documents and contact your local FSA office to complete the application process.”
Background
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.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.gov.
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USDA Farm Service Agency (FSA) reminds you to report prevented planted and failed acres in order to establish or retain FSA program eligibility for some programs.
You should report crop acreage you intended to plant, but due to natural disaster, were prevented from planting. Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by FSA and the Risk Management Agency (RMA).
Additionally, if you have failed acres, you should also use form CCC-576, Notice of Loss, to report failed acres.
For hand-harvested crops and certain perishables, you 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. If you notify the County Office by any method other than by filing the CCC-576, you are still required to file a CCC-576, Notice of Loss, within the required 15 calendar days.
For losses on crops covered by the Noninsured Crop Disaster Assistance Program (NAP), you must file a Notice of Loss within 15 days of the occurrence of the disaster or when losses become apparent. You must timely file a Notice of Loss for failed acres on all crops including grasses.
To file a Notice of Loss, visit your local county service center.
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Click here for July's Lending Rates for Agriculture Producers
July 31, 2024 - Acreage reporting deadline for hemp
August 15, 2024- Primary Nesting Season Ends
August 15, 2024 - Acreage reporting deadline for beans (all types except limas), cucumbers (planted 6/26-8/10 in Caroline, Dorchester, Kent, and Talbot Counties)
September 1, 2024 - NAP Coverage Application Closing date – Value-loss crops or controlled environment crops, ornamental nursery, aquaculture, Christmas trees, ginseng, floriculture, mushrooms, and turf grass sod
September 30, 2024 - NAP Coverage Application Closing date – Biennial and perennial forage crops, alfalfa, grass forages, mixed forages and other forages
September 30, 2024 - Acreage reporting deadline - Value-loss (ex-oysters) and controlled environment crops (except Nursery)
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Maryland FSA
339 Busch's Frontage Rd.
Suite 104
Annapolis, MD 21409-5561
Phone: (443)-482-2760
Fax: (855)-401-6638
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FSA State Executive Director
C. John Sullivan
john.sullivan4@usda.gov
Farm Programs Chief
Robert Wevodau
robert.wevodau@usda.gov
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NRCS State Conservationist
Suzy Daubert
suzy.daubert@usda.gov
Farm Loan Chief
Joseph Scott
joseph.scott@usda.gov
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