USDA - Missouri State Office Newsletter - September 27, 2024.
In This Issue:
As you know, making different types of Agricultural Loans to producers is a big part of what FSA does. In the past month, FSA published a new Farm Loan Rule, that should make many of our loans more accessible and more user friendly, along with providing a much higher level of flexibility for producers who are interested in securing an FSA loan. In next month’s Newsletter, I will try to explain some of the changes that the new Rule provides in the Farm Loan area, but in today’s column, I want to highlight one of our most popular Farm Loans, which is the Farm Storage Facility Loan. This loan has been around for many years, and we have a very large number of producers in Missouri who apply for a storage facility loan on a regular basis.
Below is some information about the Farm Storage Facility Loan program, and also attached is a video with Melissa Marks. Melissa and her husband, Andrew operate Triple M Acres which is near Warrenton, and they grow a wide range of different produce. The Marks family recently utilized the Farm Storage Facility Loan program to purchase a large walk-in cooler. This cooler opened some doors for their agricultural operation and gave them the ability to preserve much of their produce in a cool temperature environment. I hope that you enjoy the video, and I hope that you have a very productive harvest.
The Farm Service Agency’s (FSA) Farm Storage Facility Loan (FSFL) program provides low-interest financing to help you build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.
Eligible commodities include corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as whole grain, pulse crops (lentils, chickpeas and dry peas), hay, honey, renewable biomass, fruits, nuts and vegetables for cold storage facilities, floriculture, hops, maple sap, rye, milk, cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and aquaculture (excluding systems that maintain live animals through uptake and discharge of water). Qualified facilities include grain bins, hay barns and cold storage facilities for eligible commodities.
Loans up to $50,000 can be secured by a promissory note/security agreement, loans between $50,000 and $100,000 may require additional security, and loans exceeding $100,000 require additional security.
You do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.
For more information, contact your local county USDA Service Center or visit fsa.usda.gov/pricesupport.
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The U.S. Department of Agriculture (USDA) is announcing the launch of the Debt Consolidation Tool, an innovative online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.
A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt may also provide farmers and ranchers additional cash flow flexibilities.
The Debt Consolidation Tool is a significant addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs. The tool enhances customer service and increases opportunities for farmers and ranchers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming and ranching operation, retirement accounts, or college savings accounts.
Producers can access the Debt Consolidation Tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox, or the Safari browser. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.
Additional Farm Loan Programs Improvements FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes, to take effect September 25, 2024, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.
FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made several impactful improvements including:
- The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
- The Online Loan Application, an 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.
- An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
- A simplified direct loan paper application, reduced from 29 pages to 13 pages.
- A new educational hub with farm loan resources and videos.
USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation. To conduct business with FSA, please contact your local USDA Service Center.
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USDA’s Natural Resources Conservation Service can help you conserve water and build resilience to drought, through conservation practices that improve irrigation efficiency, boost soil health, and manage grazing lands.
Irrigation Efficiency USDA helps you improve your irrigation efficiency to ensure each drop of water is used wisely. Saving water on your farm can help during drought and can offset rising water costs; reduce expenditures for energy, chemicals, and labor; and enhance revenues through higher crop yields and improved crop quality. Funded conservation practices include conversion to more efficient irrigation systems, such as micro-irrigation or subsurface drip irrigation, installation of irrigation pipeline, irrigation water management, structures for water control, and flow meters. Tools like drip irrigation, which provides water precisely where and when it’s needed, can achieve greater precision with flow meters and soil moisture sensors.
Soil Health In addition, soil health conservation practices, such as reduced- or no-till, cover crops, mulching and residue management can help to make your soil, and the plants you grow or animals you raise, healthier. Healthier soil can absorb and retain more water for longer periods of time, making your farm or ranch more resilient to drought. Using soil health practices, you can conserve water by increasing your soil’s water-holding capacity and use conservation tillage to keep the ground covered, reducing water loss through transpiration and evaporation.
And soil health practices increase organic matter, and each pound of organic matter can hold up to 20 pounds of water. Every 1% increase in organic matter results in as much as 25,000 gallons of soil water per acre. Each 1% increase in organic matter can also provide up to 30 pounds of more available nitrogen per acre. That means less money and time spent on inputs like water and fertilizer, which make your operation more profitable.
Rotational/Prescribed Grazing, Water Sources for Livestock Drought also impacts grazing lands, and NRCS works with you to increase the resilience of your livestock operation. Ranchers can adapt to dry conditions in two main ways: increasing the availability and suitability of forage and ensuring that cattle have an adequate and reliable source of water. For forage, rotational or prescribed grazing (rotating cattle among pastures) can relieve pressure on stressed vegetation and ensure a more consistent supply of forage for animals. NRCS conservationists can also work with you to plant more drought-tolerant forage species, plants best suited to local soils and conditions. For reliable sources of water, NRCS can help you with installing watering facilities, water wells, or water pipeline for livestock. Having available forage and water for livestock can make a big difference in difficult drought conditions.
USDA and NRCS are here for you, helping you recover from drought and prepare for the next one. For more information on drought recovery assistance at farmers.gov/protection-recovery/drought#recovery. For more information on conservation practices to make your operation more resilient to drought in future years, go to www.nrcs.usda.gov.
The USDA Farm Service Agency’s (FSA) Direct Farm Ownership loans can help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations.
There are three types of Direct Farm Ownership Loans: regular, down payment and joint financing. FSA also offers a Direct Farm Ownership Microloan option for smaller financial needs up to $50,000.
Joint financing allows FSA to provide more farmers and ranchers with access to capital. FSA lends up to 50 percent of the total amount financed. A commercial lender, a State program or the seller of the property being purchased, provides the balance of loan funds, with or without an FSA guarantee. The maximum loan amount for a joint financing loan is $600,000, and the repayment period for the loan is up to 40 years.
The operation must be an eligible farm enterprise. Farm Ownership loan funds cannot be used to finance nonfarm enterprises, and all applicants must be able to meet general eligibility requirements. Loan applicants are also required to have participated in the business operations of a farm or ranch for at least three years out of the 10 years prior to the date the application is submitted. The applicant must show documentation that their participation in the business operation of the farm or ranch was not solely as a laborer.
For more information about farm loans, contact your local USDA Service Center or visit fsa.usda.gov.
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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) is announcing the launch of the Distressed Borrowers Assistance Network, an initiative designed to provide personalized support to financially distressed farmers and ranchers across the nation. Through a series of Cooperative Agreements, this national network will connect distressed borrowers with individualized assistance to help them stabilize and regain financial footing. USDA’s Farm Service Agency (FSA) made this announcement today at the Farm Aid Festival in Saratoga Springs, N.Y.
Network partners include Farm Aid, Rural Advancement Foundation International, the University of Arkansas, the Socially Disadvantaged Farmers and Ranchers Policy Center at Alcorn State University, and the University of Minnesota. Through this initiative, we are collaborating with community-based organizations to better serve financially distressed producers. Network partners will provide farm loan policy training to the community-based organizations so the organizations can work alongside FSA to help producers understand financing available through FSA, ensuring that when they visit an FSA office, the partner organization representative and FSA staff can better assist.
FSA, in collaboration with farm support organizations and land-grant institutions, will facilitate this network, which will provide the technical resources and guidance of USDA partners to experts from distressed and underserved communities. The network's approach includes integrating knowledgeable service providers to deliver one-on-one support to borrowers so they can best make plans and understand options to overcome their financial challenges.
The Distressed Borrowers Assistance Network will address the immediate needs of distressed borrowers and provide comprehensive, wraparound services aimed at addressing the unique challenges faced by financially distressed producers. Once stabilized financially, these borrowers will be better positioned to access new opportunities and continue contributing to the agricultural economy. These investments will also build a system of service providers that can better support agricultural communities for years to come. Investing in a network of agricultural financing service providers to help bridge access to FSA loans is a benefit for rural and agricultural communities.
Additional Farm Loan Programs Improvements
FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes, to take effect Sept. 25, 2024, are designed to expand opportunities for borrowers to increase profitability and be better prepared to make strategic investments in enhancing or expanding their agricultural operations.
FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made several meaningful improvements including:
- The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may fit their business needs and to understanding the application process.
- The Online Loan Application, an 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.
- An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
- A simplified direct loan paper application, reduced from 29 pages to 13 pages.
- A new educational hub with farm loan resources and videos.
USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan making and servicing options available to assist with starting, expanding, or maintaining their agricultural operation. To conduct business with FSA, producers should contact their local USDA Service Center.
FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.
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 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 usda.gov.
As Missouri begins harvest season, the Farm Service Agency wants to remind producers about the Marketing Assistance Loan (MAL) Program.
FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. One type of loan producers can utilize is the Marketing Assistance Loan.
USDA’s Farm Service Agency (FSA) routinely provides agricultural producers with marketing assistance loans that provide interim cash flow without having to sell the commodities when market prices are at harvest time lows. The loans allow you to store and delay the sale of the commodity until more favorable market conditions emerge, while also providing for a more orderly marketing of commodities throughout the marketing year.
Producers can use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. Eligible commodities include wheat, corn, grain sorghum, barley, oats, upland cotton, extra-long staple cotton (eligible for MAL only), long grain rice, medium grain rice, soybeans, other oilseeds (including sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe and sesame seed), dry peas, lentils, small chickpeas, large chickpeas, graded and nongraded wool, mohair, honey and peanuts.
Eligible producer requirements include:
- Comply with conservation and wetland protection requirements.
- Submit an acreage report for all cropland on all farms as applicable.
- Have and retain beneficial interest in the commodity until the MAL is repaid or CCC takes title to the commodity.
- Meet adjusted gross income limitations
Interest rates for MAL’s can be found here. USDA Announces 2024 Marketing Assistance Loan Rates for Wheat, Feed Grains, Oilseeds, Rice, and Pulse Crops
FSA asks interested borrowers to submit their requests early so they can be timely processed. For more information, consider reviewing the Marketing Assistance Loan fact sheet or contact your local USDA Service Center.
MU Extension wants to sincerely thank all who participated in the 2024 Missouri Cash Rental Rate Survey. Your insights and contributions to the state’s only publicly available source of rental date data helps all Missourians! This data is used by landowners and tenants, as well as farmers, ranchers and recreational property owners as they make informed decisions for their operations. Results from the survey, and information about leasing agreements, can be downloaded for free at https://extension.missouri.edu/publications/g427.
For questions about the survey results, please contact MU Extension economist Ben Brown at 573-882-6527 or bpbrown@missouri.edu.
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FSA offers direct farm ownership and direct farm operating loans to producers who want to establish, maintain, or strengthen their farm or ranch. Direct loans are processed, approved and serviced by FSA loan officers.
Direct farm operating loans can be used to purchase livestock and feed, farm equipment, fuel, farm chemicals, insurance, and other costs including family living expenses. Operating loans can also be used to finance minor improvements or repairs to buildings and to refinance some farm-related debts, excluding real estate.
Direct farm ownership loans can be used to purchase farmland, enlarge an existing farm, construct and repair buildings, and to make farm improvements.
The maximum loan amount for direct farm ownership loans is $600,000 and the maximum loan amount for direct operating loans is $400,000 and a down payment is not required. Repayment terms vary depending on the type of loan, collateral and the producer's ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years.
Please contact your local FSA office for more information or to apply for a direct farm ownership or operating loan.
Applications accepted from Sept. 30 to Nov. 29
The U.S. Department of Agriculture (USDA) today announced $58 million available for assistance to dairy producers through the Organic Dairy Marketing Assistance Program (ODMAP) 2024. ODMAP 2024 helps mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. Specifically, through ODMAP 2024, USDA’s Farm Service Agency (FSA) is assisting organic dairy operations with projected marketing costs in 2024 calculated using their marketing costs in 2023. FSA will begin accepting ODMAP 2024 applications on Sept. 30. Eligible producers include certified organic dairy operations that produce milk from cows, goats, and sheep.
ODMAP 2024 Program Improvements Dairy producers who participate in ODMAP 2024 will benefit from improvements to provisions outlined in the program. Specifically, ODMAP 2024 provides for an increase in the payment rate to $1.68 per hundredweight compared to the previous $1.10 per cwt. Additionally, the production cap has increased to nine million pounds compared to the previous five million pounds.
How ODMAP 2024 Works FSA is providing financial assistance for a producer’s projected marketing costs in 2024 based on their 2023 costs. ODMAP 2024 provides a one-time cost-share payment based on marketing costs on pounds of organic milk marketed in the 2023 calendar year or estimated 2024 marketing costs for organic dairy operations that have increased milk production.
ODMAP 2024 provides financial assistance that immediately supports certified organic dairy operations during 2024 keeping organic dairy operations sustainable until markets return to more normal conditions.
How to Apply FSA is accepting applications from Sept. 30 to Nov. 29. To apply, producers should contact FSA at their local USDA Service Center. To complete the ODMAP 2024 application, producers must certify to pounds of 2023 milk production, show documentation of their organic certification, and submit a completed application form.
Organic dairy operations are required to provide their USDA certification of organic status confirming operation as an organic dairy in 2024 and 2023 along with the certification of 2023 milk production or estimated 2024 milk production in hundredweight.
ODMAP 2024 complements other assistance available to dairy producers, including Dairy Margin Coverage (DMC), with more than $36 million in benefits paid for the 2024 program year to date. Learn more on the FSA Dairy Programs webpage.
More Information To learn more about USDA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and other programs by logging into their farmers.gov account. If you don’t have an account, sign up today.
FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.
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 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 usda.gov.
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MISSOURI - USDA
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Service Center Locator
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FARM SERVICE AGENCY (FSA)
601 Business Loop 70 West, Suite 225 Columbia, MO 65203 Phone: 573-876-0925 Fax: 855-830-0680
fsa.usda.gov
State Executive Director Joe Aull
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NATURAL RESOURCE CONSERVATION SERVICE (NRCS)
601 Business Loop 70 West, Suite 250 Columbia, MO 65203 Phone: 573-876-0901 Fax: 855-865-2188
nrcs.usda.gov
State Conservationist Scott Edwards
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USDA is an equal opportunity provider, employer, and lender.
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