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Brunswick County USDA Service Center -  October 10, 2024

In This Issue:

• Making Farm Reconstitutions
• Foreign Investors Must Report U.S. Agricultural Land Holdings
• Producers Encouraged to Apply Now for USDA Conservation Programs
• USDA Microloans Help Farmers Purchase Farmland and Improve Property
• RMA Offers New Resource for Specialty and Small-Scale Farmers
• The Importance of Responding to NASS Surveys

Making Farm Reconstitutions

When changes in farm ownership or operation take place, a farm reconstitution is necessary. The reconstitution — or recon — is the process of combining or dividing farms or tracts of land based on the farming operation. To be effective for the current fiscal year, farm combinations and farm divisions must be requested by August 1 of the fiscal year for farms subject to the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. A reconstitution is considered to be requested when all of the required signatures are on FSA-155 and all other applicable documentation, such as proof of ownership, is submitted. Total Conservation Reserve Program (CRP) and non-ARC/PLC farms may be reconstituted at any time.  The following are the different methods used when doing a farm recon: Estate Method — the division of bases, allotments and quotas for a parent farm among heirs in settling an estate Designation of Landowner Method — may be used when (1) part of a farm is sold or ownership is transferred; (2) an entire farm is sold to two or more persons; (3) farm ownership is transferred to two or more persons; (4) part of a tract is sold or ownership is transferred; (5) a tract is sold to two or more persons; or (6) tract ownership is transferred to two or more persons. In order to use this method, the land sold must have been owned for at least three years, or a waiver granted, and the buyer and seller must sign a Memorandum of Understanding DCP Cropland Method — the division of bases in the same proportion that the DCP cropland for each resulting tract relates to the DCP cropland on the parent tract Default Method — the division of bases for a parent farm with each tract maintaining the bases attributed to the tract level when the reconstitution is initiated in the system.  For questions on your farm reconstitution, contact your Brunswick County USDA Service Center at 910-253-4448.

Foreign Investors Must Report U.S. Agricultural Land Holdings

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) reminds foreign investors with an interest in agricultural land in the United States that they are required to report their land holdings and transactions to USDA.

The Agricultural Foreign Investment Disclosure Act (AFIDA) requires foreign investors who buy, sell or hold an interest in U.S. agricultural land to report their holdings and transactions to the USDA. Foreign investors must file AFIDA Report Form FSA-153 with the FSA county office in the county where the land is located.  Large or complex filings may be handled by AFIDA headquarters staff in Washington, D.C.

According to CFR Title 7 Part 781, any foreign person who holds an interest in U.S. agricultural land is required to report their holdings no later than 90 days after the date of the transaction.

Foreign investors should report holdings of agricultural land totaling 10 acres or more used for farming, ranching or timber production, and leaseholds on agricultural land of 10 or more years.  Tracts totaling 10 acres or less in the aggregate, and which produce annual gross receipts in excess of $1,000 from the sale of farm, ranch, forestry or timber products, must also be reported.  AFIDA reports are also required when there are changes in land use, such as from agricultural to nonagricultural use. Foreign investors must also file a report when there is a change in the status of ownership.

The information from AFIDA reports is used to prepare an annual report to Congress.  These annual reports to Congress, as well as more information, are available on the FSA AFIDA webpage.

Assistance in completing the FSA-153 report may be obtained from the local FSA office. For more information regarding AFIDA or FSA programs, contact the Brunswick County FSA office at phone or visit farmers.gov.

Producers Encouraged to Apply Now for USDA Conservation Programs

The U.S. Department of Agriculture (USDA) is encouraging agricultural producers and forest landowners to participate in voluntary conservation programs and adopt climate-smart practices in fiscal year 2024 as part of President Biden’s Investing in America agenda. USDA’s Natural Resources Conservation Service (NRCS) is accepting applications for the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP) and Agricultural Conservation Easement Program (ACEP), which help a wide variety of producers, including urban and organic producers. For fiscal year 2024, NRCS has $3 billion in Inflation Reduction Act funds to invest in climate-smart mitigation activities. This year, NRCS expanded the list of those activities as well as expanded priority areas for ACEP for grasslands, wetlands and farmlands at risk of conversion. Learn more about those expansions in our Sept. 28, 2023 news release. Additionally, for fiscal year 2024, NRCS has over $2 billion in Farm Bill funding available to producers for priorities like organic and urban agriculture, soil health, water quality and quantity and wildlife habitat development.  This extensive amount of funding will be used to meet producer demand for our oversubscribed programs, maximize climate benefits and help producers address their natural resource challenges. NRCS accepts producer applications for its conservation programs year-round. To apply for fiscal year 2024 funding, apply by your state’s ranking date by contacting your local NRCS office.

USDA Microloans Help Farmers Purchase Farmland and Improve Property

Farmers can use USDA farm ownership microloans to buy and improve property. These microloans are especially helpful to beginning or underserved farmers, U.S. veterans looking for a career in farming, and those who have small and mid-sized farming operations. Microloans have helped farmers and ranchers with operating costs, such as feed, fertilizer, tools, fencing, equipment, and living expenses since 2013.

Microloans can also help with farmland and building purchases and soil and water conservation improvements. FSA designed the expanded program to simplify the application process, expand eligibility requirements and expedite smaller real estate loans to help farmers strengthen their operations. Microloans provide up to $50,000 to qualified producers and can be issued to the applicant directly from the USDA Farm Service Agency (FSA).

To learn more about the FSA microloan program, contact your Brunswick County USDA Service Center at 910-253-4448 or visit fsa.usda.gov/microloans.

RMA Offers New Resource for Specialty and Small-Scale Farmers

Finding the right risk management fit for your farm can feel overwhelming, especially for specialty crop and small-scale farmers and ranchers. That’s why the USDA’s Risk Management Agency (RMA) created a new searchable directory of crop insurance agents who have experience selling Whole-Farm Revenue Protection (WFRP) and Micro Farm policies. 

With 1,135 crop insurance agents listed, providing coverage in all 50 states, the process of finding the “right risk management fit” just got easier.

In addition to the new directory, there are other resources available for specialty crop producers including regional specialists located in each of the RMA regional offices. Feedback is crucial to continually improving risk management options, and specialty crop producers can reach out with suggestions or questions by e-mailing SpecialtyCrops@usda.gov.

Specialty crop and small-scale producers are encouraged to use the new searchable directory and visit the RMA Specialty Crops page. 

Whole-Farm Revenue Protection

The first of its kind, WFRP recognizes diversification found on specialty and small-scale farms. With WFRP producers can insure their entire operation including crops, livestock, and nursery production, under one policy. Another advantage of WFRP coverage, is it bridges the insurance gap for several specialty crops that don’t currently have individual policies available.  

Micro Farm

Also included in WFRP, the Micro Farm option gives smaller operations more streamlined insurance options. It provides a risk management safety net for all commodities on your farm under one insurance policy. This insurance plan is tailored for any farm with up to $350,000 in approved revenue, including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets. 

The Importance of Responding to NASS Surveys

USDA’s National Agricultural Statistics Service (NASS) conducts hundreds of surveys every year and prepares reports covering virtually every aspect of U.S. agriculture. If you receive a survey questionnaire, please respond quickly and online if possible. The results of the surveys help determine the structure of USDA farm programs, such as soil rental rates for the Conservation Reserve Program and prices and yields used for the Agriculture Risk Coverage and Price Loss Coverage programs. This county-level data is critical for USDA farm payment determinations. Survey responses also help associations, businesses and policymakers advocate for their industry and help educate others on the importance of agriculture. NASS safeguards the privacy of all respondents and publishes only aggregate data, ensuring that no individual operation or producer can be identified. NASS data is available online at nass.usda.gov/Publications and through the searchable Quick Stats database. Watch a video on how NASS data is used at youtube.com/watch?v=m-4zjnh26io&feature=youtu.be.

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