North Dakota FSA eNews - September, 2024
In This Issue:
September 30, 2024: 2025 Rye, Rhubarb, Asparagus, and Finfish NAP Coverage
October 31, 2024: 2024 Organic Certification Cost Share Program (OCCSP) deadline
November 15, 2024: 2025 Acreage Reporting Deadline for Fall-Seeded Small Grains
November 15, 2024: 2025 Aronia and June Berries NAP Coverage deadline
November 15, 2024: 2025 Hops NAP Coverage deadline
December 1, 2024: 2025 Grapes NAP Coverage deadline
December 31, 2024: 2025 Honey NAP Coverage deadline
Greetings!
I’m excited to tell you about the historic changes in our Farm Loan policy at FSA. It has been 40 years since we’ve seen significant changes in the farm loan arena. My husband and I were borrowers at the Farmers Home Administration (FmHA) during the Farm Financial Crisis of the 1980’s. We wouldn’t be farming and ranching today if that opportunity hadn’t been available for us. With the new enhanced farm loan policy, we’re broadening loan eligibility, expanding emergency loan access and adding flexibilities on direct loan security requirements. We’ve simplified and shortened the application process required for distressed borrowers to defer payments – and we’ll provide a lower interest rate on the deferred payment. We’re also removing the requirement that borrowers pledge their primary residence as additional collateral at the time the loan is made, unless it’s the only way to secure the loan. We’re lowering the pledged collateral requirement to not more than 125% instead of 150%. We will be helping our direct loan customers to increase their savings by offering flexible repayment terms like starting with smaller, interest only payments and longer loan terms that provide more time to pay. Our loan staff will receive state-wide training the week of September 16th and the new rule will go into effect on September 25th. As our FSA Administrator, Zach Ducheneaux, said recently, “Never underestimate the potential this agency has to make lifechanging impacts on the producers we’re entrusted to serve.” I can certainly attest to that!
I hope your wheat is either at the elevator or in the bin. We definitely experienced some challenges as we harvested our wheat – heavy morning dews with no wind during the day and periodic rain caused us to have some sprout damage and then falling numbers became an issue. These discounts on top of low prices can really make you shake your head. On the bright side though – the corn and beans look amazing in many parts of our state. We never put all our eggs in one basket and this year – that looks like especially good advice.
Please take some time this month to appreciate the colors of Fall as we start to change seasons. I love Fall! There is something so satisfying in bringing in a harvest, preparing the barns and lots for cows to come home and tucking away equipment we won’t need until next year. Be safe and take care until next month,
- Marcy Svenningsen,
The U.S. Department of Agriculture (USDA) announced 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.
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 county USDA Service Center or visit fsa.usda.gov.
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 also 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.
Farmers and ranchers rely on crop insurance to protect themselves from disasters and unforeseen events, but not all crops are insurable through the USDA’s Risk Management Agency. The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides producers another option to obtain coverage against disaster for these crops. NAP provides financial assistance to producers of non-insurable crops impacted by natural disasters that result in lower yields, crop losses, or prevents crop planting.
Commercially produced crops and agricultural commodities for which crop insurance is not available are generally eligible for NAP. Eligible crops include those grown specifically for food, fiber, livestock consumption, biofuel or biobased products, or value loss crops such as aquaculture, Christmas trees, ornamental nursery, and others. Contact your local FSA office to see which crops are eligible in your state and county.
Eligible causes of loss include drought, freeze, hail, excessive moisture, excessive wind or hurricanes, earthquake and flood. These events must occur during the NAP policy coverage period, before or during harvest, and the disaster must directly affect the eligible crop. For guidance on causes of loss not listed, contact your local FSA county office.
Interested producers apply for NAP coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office where their farm records are maintained. These must be filed by the application closing date, which varies by crop. Contact your local FSA office to verify application closing dates and ensure coverage for eligible NAP crops.
At the time of application, each producer acknowledges they have received the NAP Basic Provisions, which describes NAP requirements for coverage. NAP participants must report crop acreage shortly after planting and provide verifiable or reliable crop production records when required by FSA.
Producers are required to pay service fees which vary depending on the number of crops and number of counties your operation is located in. The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums also apply when producers elect higher levels of coverage with a maximum premium of $15,750 per person or legal entity.
A producer’s certification on Form CCC-860 Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification may serve as an application for basic NAP coverage for all eligible crops beginning with crop year 2022. These producers will have all NAP-related service fees for basic coverage waived, in addition to a 50 percent premium reduction if higher levels of coverage are elected.
For more detailed information on NAP, download the NAP Fact Sheet. To get started with NAP, we recommend you contact your local USDA service center.
If you’re an orchardist or nursery tree grower who experienced losses from natural disasters during calendar year 2024, you must submit a TAP application either 90 calendar days after the disaster event or the date when the loss is apparent.
TAP provides financial assistance to help you replant or rehabilitate eligible trees, bushes and vines damaged by natural disasters.
Eligible tree types include trees, bushes or vines that produce an annual crop for commercial purposes. Nursery trees include ornamental, fruit, nut and Christmas trees that are produced for commercial sale. Trees used for pulp or timber are ineligible.
To qualify for TAP, orchardists must suffer a qualifying tree, bush or vine loss in excess of 15 percent mortality from an eligible natural disaster, plus an adjustment for normal mortality. The eligible trees, bushes or vines must have been owned when the natural disaster occurred; however, eligible growers are not required to own the land on which the eligible trees, bushes and vines were planted.
If the TAP application is approved, the eligible trees, bushes and vines must be replaced within 12 months from the date the application is approved. The cumulative total quantity of acres planted to trees, bushes or vines, for which you can receive TAP payments, cannot exceed 1,000 acres annually.
Through the Organic Certification Cost Share Program (OCCSP), USDA’s Farm Service Agency (FSA) will cover up to 75% of organic certification costs at a maximum of $750 per certification category. FSA is now accepting applications, and organic producers and handlers should apply for OCCSP by the Oct. 31, 2024, deadline for eligible expenses incurred from Oct. 1, 2023, to Sept. 30, 2024. FSA will issue payments as applications are received and approved.
OCCSP was part of a broader organic announcement made by Agriculture Secretary Tom Vilsack on May 15, 2024, which also included the Organic Market Development Grant program and Organic Transition Initiative.
Eligible Applicants, Expenses and Categories
OCCSP provides cost-share assistance to producers and handlers of organic agricultural commodities for expenses incurred obtaining or maintaining organic certification under USDA’s National Organic Program. Eligible OCCSP applicants include any certified organic producers or handlers who have paid organic certification fees to a USDA-accredited certifying agent.
Cost share assistance covers expenses including application fees, inspection costs, fees related to equivalency agreement and arrangement requirements, inspector travel expenses, user fees, sales assessments and postage. OCCSP pays a maximum of $750 per certification category for crops, wild crops, livestock, processing/handling, and state organic program fees (California only).
How to Apply
To apply, producers and handlers should contact FSA at their local USDA Service Center and be prepared to provide documentation of organic certification and eligible expenses. OCCSP applications can also be submitted through participating state departments of agriculture. For more information, visit the OCCSP webpage.
Opportunity for State Departments of Agriculture
FSA is also accepting applications from state departments of agriculture to administer OCCSP. FSA posted a funding opportunity summary on grants.gov and will electronically mail the Notice of Funding Opportunity to all eligible state departments of agriculture. Applications are due July 12, 2024.
If a state department of agriculture chooses to participate in OCCSP, both the state department of agriculture and FSA county offices in that state will accept OCCSP applications and make payments to eligible certified operations. Producers or handlers can receive OCCSP assistance from either FSA or the participating state department of agriculture but not both.
More Information
USDA offers other assistance for organic producers, including the Organic Transition Initiative (OTI), which includes direct farmer assistance for organic production and processing and conservation. For more information on organic agriculture, visit farmers.gov/organic.
To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.
ELAP provides emergency assistance to eligible livestock, honeybee, and farm-raised fish producers who have losses due to disease, adverse weather or other conditions, such as blizzards and wildfires, not covered by other agricultural disaster assistance programs.
Eligible losses include:
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Livestock - grazing losses not covered under the Livestock Forage Disaster Program (LFP), loss of purchased feed and/or mechanically harvested feed due to an eligible adverse weather event, additional cost of transporting water and feed because of an eligible drought and additional cost associated with gathering livestock to treat for cattle tick fever.
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Honeybee - loss of purchased feed due to an eligible adverse weather event, cost of additional feed purchased above normal quantities due to an eligible adverse weather condition, colony losses in excess of normal mortality due to an eligible weather event or loss condition, including CCD, and hive losses due to eligible adverse weather.
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Farm-Raised Fish - death losses in excess of normal mortality and/or loss of purchased feed due to an eligible adverse weather event.
If you’ve suffered eligible livestock, honeybee, or farm-raised fish losses during calendar year 2024, you must file a notice of loss and an application for payment by Jan. 30, 2025.
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.
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.
If loan grain has been disposed of through feeding, selling or any other form of disposal without prior written authorization from the county office staff, it is considered unauthorized disposition. The financial penalties for unauthorized dispositions are severe. Always call before you haul any grain under CCC loan.
Outstanding commodity loans from crop year 2023 can be repaid at any time at principal plus interest. If the sales proceeds are needed to repay the loan, a marketing authorization (CCC-681-1) can be requested. The request can either be made in person or by telephone. The marketing authorization allows for the selection of a delivery period to the buyer of either 15 or 30 calendar days. Marketing Authorizations which are requested after loan maturity date are limited to a delivery period of 15 days. All parties who signed the note are responsible for repaying the loan. If the buyer does not repay the loan as required by the marketing authorization, CCC will make demand for repayment on the producers who signed the note. Repayment of quantities delivered to the buyer are required within 15 days of the expiration date of the marketing authorization.
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 local county USDA Service Center or visit fsa.usda.gov.
Landowners and operators are reminded that in order to receive payments from USDA, compliance with Highly Erodible Land (HEL) and Wetland Conservation (WC) provisions are required. Farmers with HEL determined soils are reminded of tillage, crop residue, and rotation requirements as specified per their conservation plan. Producers are to notify the USDA Farm Service Agency prior to breaking sod, clearing land (tree removal), and of any drainage projects (tiling, ditching, etc.) to ensure compliance. Failure to update certification of compliance, with form AD-1026, triggering applicable HEL and/or wetland determinations, for any of these situations, can result in the loss of FSA farm program payments, FSA farm loans, NRCS program payments, and premium subsidy to Federal Crop Insurance administered by RMA.
LDP’s are available when the CCC-determined market repayment rate is below the commodity loan rate. Crop year 2024 wool has reached LDP levels for ungraded wool and graded wool. LDP rates for wool are announced weekly and rates vary based on graded or non-graded wool. If a graded wool LDP is requested, it must be accompanied by a copy of the core test report from a CCC approved laboratory.
LDP’s are only available on a commodity after the commodity is sheared if wool or mohair. Approved storage is not required for commodities to be eligible for LDP. If an LDP payment is requested, a producer agrees to forego obtaining a loan on the same quantity.
LDP applications can be filed in person, by fax or electronically through the LDP process using the multi-part form CCC-633EZ.
The CCC-633 EZ is a multi-part form. Page 1 is filed as an intention to request LDP benefits. It must be filed each crop year and will cover all farms and commodities in which a producer has an interest for the 2024 crop year. Page 1 must be filed before beneficial interest is lost in the commodity and before a request for payment is completed on pages 2-4. The current version of the form and only one accepted by CCC is dated May 21, 2019. The completion of page 1 does not cause a producer to lose loan eligibility for the commodity. The option of obtaining a loan is maintained until a quantity is requested on the page 2 or 4 payment request.
Page 2 of the form is used to request the LDP payment for wheat, feed grains, oilseeds, pulse crops and honey. Page 4 is used to request mohair, wool and unshorn pelt LDP payments. Page 2 and page 4 of the application must be filed in the county FSA office that maintains the farm records for the farm that produced the requested commodity.
In order to claim a Farm Service Agency (FSA) payment on behalf of a deceased producer, all program conditions for the payment must have been met before the applicable producer’s date of death.
If a producer earned a FSA payment prior to his or her death, the following is the order of precedence for the representatives of the producer:
- administrator or executor of the estate
- the surviving spouse
- surviving sons and daughters, including adopted children
- surviving father and mother
- surviving brothers and sisters
- heirs of the deceased person who would be entitled to payment according to the State law
For FSA to release the payment, the legal representative of the deceased producer must file a form FSA-325 to claim the payment for themselves or an estate. The county office will verify that the application, contract, loan agreement, or other similar form requesting payment issuance, was signed by the applicable deadline by the deceased or a person legally authorized to act on their behalf at that time of application.
If the application, contract or loan agreement form was signed by someone other than the deceased participant, FSA will determine whether the person submitting the form has the legal authority to submit the form.
Payments will be issued to the respective representative’s name using the deceased program participant’s tax identification number. Payments made to representatives are subject to offset regulations for debts owed by the deceased.
FSA is not responsible for advising persons in obtaining legal advice on how to obtain program benefits that may be due to a participant who has died, disappeared or who has been declared incompetent.
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
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: 4.000%
Farm Storage Facility Loan, 5-Year Term: 3.875%
Farm Storage Facility Loan, 7-Year Term: 3.875%
Farm Storage Facility Loan, 10-Year Term: 4.000%
Farm Storage Facility Loan, 12-Year Term: 4.125%
Commodity Loans: 5.625%
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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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