Salem Service Center - August 2024
In This Issue:
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Farm Service Agency (FSA) program payments are issued electronically into your bank account. In order to receive timely payments, you need to notify your FSA servicing office if you close your account or if your bank information is changed for any reason (such as your financial institution merging or being purchased). Payments can be delayed if FSA is not notified of changes to account and bank routing numbers.
For some programs, payments are not made until the following year. For example, payments for crop year 2019 through the Agriculture Risk Coverage and Price Loss Coverage program aren’t paid until 2020. If the bank account was closed due to the death of an individual or dissolution of an entity or partnership before the payment was issued, please notify your local FSA office as soon as possible to claim your payment.
The Farm Loan team for Livingston/Crittenden County located in Hopkinsville is already working on operating loans for spring 2025 and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year.
Microloans are a simplified loan program that will provide up to $50,000 for both Farm Ownership and Operating Microloans to eligible applicants. These loans, targeted for smaller and non-traditional operations, can be used for operating expenses, starting a new operation, purchasing equipment, and other needs associated with a farming operation. Loans to beginning farmers and members of underserved groups are a priority.
Other types of loans available include:
Marketing Assistance Loans allow producers to use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. These loans provide cash flow to the producer and allow them to market the crop when prices may be more advantageous.
Farm Storage Facility Loans can be used to build permanent structures used to store eligible commodities, for storage and handling trucks, or portable or permanent handling equipment. A variety of structures are eligible under this loan, including bunker silos, grain bins, hay storage structures, and refrigerated structures for vegetables and fruit. A producer may borrow up to $500,000 per loan.
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Agriculture offers a major potential to support water quality improvements nationwide. At USDA’s Natural Resources Conservation Service (NRCS), we deliver science and data, one-on-one technical support, and cost share opportunities to ensure this potential is realized.
This blog by Chief Terry Cosby details some of the key ways NRCS supports producers and conservation partners in improving water quality and strengthening agricultural operations through voluntary conservation.
Read Chief Cosby's Blog
The U.S. Department of Agriculture (USDA) today 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.
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.
- 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.
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Salem USDA Service Center
2027 US Hwy 60 E
Ste B
Salem, KY 42078
Phone: 270-988-2180
Fax: 855-774-8958
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Sign up for text notifications by texting: kylivingston or kycrittenden to 372-669.
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Beth Chittenden
FSA 270-988-2180 alizabeth.chittenden@usda.gov
Shelly Ezell
FSA Farm Loan 270-885-5066 shelly.ezell@usda.gov
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Frank Yancey
NRCS 270-885-5066 frank.yancey@usda.gov
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Public Meetings
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Crittenden/Livingston County Committee Meeting: Second Wednesday of the month at 7:30 am at the Salem Service Center Committee Room. Please call the office to make sure the meeting has not been cancelled.
- Questions? Contact Beth Chittenden at alizabeth.chittenden@usda.gov.
- If you would need to request an accommodation, please contact Beth Chittenden at 270-988-2180 or alizabeth.chittenden@usda.gov by the first of the month to request accommodations (e.g., an interpreter, translator, seating arrangements, etc.) or materials in an alternative format (e.g., Braille, large print, audiotape – captioning, etc.).
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Livingston Soil and Water Conservation District Meeting: Third Thursday of the month at 8:00 am at Deer Lakes Golf Course.
- Questions? Contact Johnetta Taylor at johnetta.taylor@ky.nacdnet.net.
- If you would need to request an accommodation, please contact Johnetta Taylor at 270-988-2180 or johnetta.taylor@ky.nacdnet.net by the first of the month to request accommodations (e.g., an interpreter, translator, seating arrangements, etc.) or materials in an alternative format (e.g., Braille, large print, audiotape – captioning, etc.).
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Crittenden Soil and Water Conservation District Meeting: Third Thursday of the month at 7:00 pm at the Conservation District's office.
- Questions? Contact Bob Guess at robert.guess@ky.nacdnet.net.
- If you would need to request an accommodation, please contact Bob Guess at 270-969-3074 or robert.guess@ky.nacdnet.net.net by the first of the month to request accommodations (e.g., an interpreter, translator, seating arrangements, etc.) or materials in an alternative format (e.g., Braille, large print, audiotape – captioning, etc.).
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