Colorado USDA Newsletter - November 12, 2024
In This Issue:
U.S. Department of Agriculture (USDA) and its Northwest and Rocky Mountain Regional Food Business Center (RFBC) launched the NWRM RFBC’s $6.75 million Business Builder subaward program to support farm and food businesses producing in, sourcing from, and focused on local and regional markets. The funding is being distributed through competitive and non-competitive awards on a rolling basis from 2024 to 2027 through three pools of funding, each designed to address distinct regional needs and increase regional impact.
Applications are being accepted for the first Focus on Place funding pool in Colorado. The center has $200,000 available in Business Builder grants for farms and food businesses located in Colorado and expects to make between 20 and 60 awards. The Request for Applications is open through January 10, 2025. The next Request for Applications will focus on Idaho and be released later this fall. Additional pools of funding will be announced as they become available.
Learn more about the Business Builder program and review the Colorado Request for Applications at our Business Builder webpage.
The U.S. Department of Agriculture (USDA) is issuing almost $92 million in payments to livestock producers, nationwide, who faced increased supplemental feed costs as a result of forage losses due to 2022 qualifying drought and wildfire. The payments for livestock producers are through the Emergency Livestock Relief Program (ELRP) 2022 and are a second round of payments to producers using remaining funds in the program.
ELRP support came from the Disaster Relief Supplemental Appropriations Act, 2023 (P.L. 117-328), signed by President Biden that provides financial assistance for agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters occurring in calendar year 2022.
The almost $92 million in ELRP payments for 2022 losses build on more than $465 million in payments made to eligible livestock producers in September 2023 who suffered qualifying losses due to drought or wildfire in 2022. Learn more on the Emergency Relief webpage.
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 FSA Office.
Navigating filing taxes can be challenging, especially if you are new to running a farm business, participating in disaster programs for first time, or trying to forecast the farm’s tax bill. Receiving funds from USDA through activities such as a conservation program payment or a disaster program is considered farm income that includes a tax liability for farm businesses. USDA technical assistance is free and creates no tax implications.
At the end of the tax year, USDA issues tax forms 1098 and 1099 forms for farm loans, conservation programs administered by the Farm Service Agency and Natural Resource Conservation Service including the Conservation Reserve Program and Environmental Quality Incentives Program, crop disaster payments, and the Market Facilitation Program. USDA also issues tax forms for recipients of assistance for distressed borrowers, including through Section 22006 of the Inflation Reduction Act.
If you have received tax forms related to your operation, USDA cannot and does not provide tax advice but wants you to be aware of options that may help manage your tax liability. USDA has partnered with experts to provide resources to help you make the right tax decisions for your operation. Monthly webinars are available for registration and to view on demand at https://www.farmers.gov/working-with-us/taxes.
The Tax Estimator Tool is an interactive spreadsheet that producers can download to estimate tax liability. It is for informational and educational purposes and should not considered tax or legal advice. Producers may need to work with a tax professional to determine the correct information to be entered in the Tax Estimator Tool.
We encourage you to visit https://www.farmers.gov/working-with-us/taxes for more information on how to find and work with a tax preparer as well as instructions on how to request copies of USDA documents and links to other helpful tax resources.
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Colorado NRCS has announced Farm Bill funding opportunities for the Environmental Quality Incentives Program (EQIP), and the Conservation Stewardship Program (CSP). Although the NRCS accepts Farm Bill program applications throughout the year, cut-off dates do apply for certain opportunities. There are two avenues to receive funding in Fiscal Year (FY) 2025, the traditional funding process and the ACT NOW process using either the Farm Bill or IRA funding authorities.
FY-25 EQIP Traditional Funding Opportunities
NRCS's traditional funding process involves the installation of more complex practices and systems which require more planning and design. The traditional applications must be submitted to the NRCS by December 13, 2024.
FY-25 EQIP ACT NOW Funding Opportunities
NRCS's ACT NOW process allows producers the opportunity to apply for applicable NRCS funding and potentially know if their project will be funded in an expedited manner. ACT NOW applications are due to NRCS no later than March 7, 2025.
EQIP is a voluntary Farm Bill program which provides financial assistance for conservation systems such as animal waste management facilities, irrigation system efficiency improvements, fencing, water supply development, riparian protection, and wildlife habitat enhancement.
Farmers, ranchers, and forest land managers are encouraged to contact their local Colorado NRCS field office to help determine which process best fits their goals and needs.
FY-25 CSP Funding Opportunities
CSP applications will be utilizing the ACT NOW process for all funding opportunities though Farm Bill and IRA. CSP applications must be submitted by March 7, 2025.
Through conservation programs, NRCS provides technical and financial assistance to help producers and landowners make conservation improvements on their land that benefit natural resources, build resiliency, and contribute to the nation’s broader effort to combat the impacts of climate change.
Through CSP, NRCS helps farmers, ranchers, and forest landowners that are already stewardship-minded take their operations to a higher level of conservation and stewardship. CSP participants earn annual payments enabling them to expand and adopt new conservation activities while maintaining and strengthening their agricultural operation and its production goals. Landowners looking to improve grazing conditions, increases soil health, or develop wildlife habitat will find CSP is a financial assistance program worth consideration.
Producers, landowners, and forest managers interested in applying for assistance should contact their local Colorado NRCS field office located in the USDA Service Center that services their county. Producers must have farm records current with the Farm Service Agency and submit a complete program application to NRCS to be considered for financial assistance through EQIP and CSP. To find out more information about EQIP, CSP, and other Colorado NRCS programs and opportunities, visit www.co.nrcs.usda.gov.
Don’t know much about Federal crop insurance, but you want to learn more?
Crop insurance is a risk management strategy that farmers use to protect their livelihoods. By purchasing a policy through a crop insurance agent, farmers are financially protected if there are losses due to a covered cause of loss. It’s not so different from car or homeowners insurance.
Start your journey out right by reading RMA’s Beginners Guide to Crop Insurance.
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USDA Service Center
Colorado State Office
1 Denver Federal Center, Bld 56
Denver, CO 80225
Phone: 720-544-2876
Fax: 844-860-8238
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Farm Service Agency
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State Executive Director
Kent Peppler
720.544.2876
Kent.Peppler@usda.gov
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Communications Specialist
Elizabeth Thomas
720.544.2879
Elizabeth.Thomas1@usda.gov
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Natural Resource Conservation Service
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