South Dakota USDA Newsletter - December 18, 2024
Greetings from the South Dakota State FSA Office,
I hope everyone had a wonderful Thanksgiving holiday as many of us gathered with our families to reflect on what we were thankful for. For many South Dakota farm and ranch families it was a bountiful corn harvest or calves that weaned at heavier weights because of bountiful grasses. For many families just having a loved one home was more than enough to be thankful!
This is the last time I will write to you, as President Biden’s term comes to an end next month. I have enjoyed a privilege of a lifetime to serve in the Biden-Harris Administration. Under the leadership of former Iowa Governor, USDA Secretary Tom Vilsack, and Dewey County rancher, FSA Administrator Zach Ducheneaux; South Dakota farm and ranch families were well served these past four years.
Despite everything mother nature threw at farmers and ranchers; droughts or poor yields, damaging winds or excessive snow; the Biden-Harris Administration was there when our farm and ranch families needed assistance. In my first month serving as SED, the eastern part of our state was hit with a derecho that left debris scattered in crop fields right before spring planting. Again, later that summer multiple derechos hit the state again, leveling buildings and grain bins. With each disaster FSA was there to help with cleanup through the Emergency Conservation Program . When the winter of 22-23 dumped upwards of 100 inches of snow, the same ECP program was used to help producers repair many miles of destroyed fencing. Again, the same ECP program was used to help clean up fields after the flooding that hit southeast part of our state last June.
Two of the most noticeable changes which occurred under the leadership of Administrator Ducheneaux, were how FSA handles loans and how FSA County office staff are treated.
The changes to the FSA loan requirements no longer require families to use their home for collateral when securing an FSA loan and gives them the ability to save for specific items such as retirement or their children’s college fund. These improvements are life changing for many farm and ranch families as they are able to establish their operation without the worry of losing their home or sacrificing saving for future needs.
The other significant change in FSA policy is how the front office staff has been treated. The staff positions have been reclassified to Program Analysts along with a wage increase that makes working for the FSA more attractive in a very competitive job market. Before the reclassification FSA salaries were only competitive with jobs in the fast-food sector. Now we are seeing 10 – 15 applicants for positions that previously we would be lucky to have even 1 applicant. The reclassification was long overdue!
As I stated, it has been truly an honor to work with the 350 plus employees of South Dakota FSA, spread across 55 counties and the state office. Every day was a challenge, but a challenge that was met head on with a great group of FSA team members. Team members which have become like family.
Ryan Vanden Berge will step in as the Acting State Executive Director until the next administration names a successor. SED positions have changed before; USDA Secretaries change; pandemics have hit; however, the one constant is the dedication of the 350 plus career FSA team members, they will continue to provide the service that our farm and ranch families rely on to ensure our nation and world have a safe and reliable food source.
Again, thank you for allowing me to serve as your SED for South Dakota FSA. I hope everyone has a blessed Christmas and a Happy New Year.
Sincerely,
Steve Dick
State Executive Director
USDA - Farm Service Agency
Greetings,
Key staff of SD NRCS and I participated in the national Intertribal Agriculture Council’s annual conference last week to help us better assist with natural resource needs of tribal lands in South Dakota. See the article below titled “… Support for Conservation on Tribal Lands” announcing a new nationwide NRCS Tribal Relations Strategy. In 2024, obligations in South Dakota totaled $13.4 million assisting American Indian individuals, entities, or Tribes planning natural resource activities on 237,000 acres.
An approaching partner event to consider attending is the 2025 Soil Health Conference hosted by the SD Soil Health Coalition on January 15-16 in Watertown, SD. This educational event will offer learning opportunities no matter where you are at on your soil health journey. Additionally, the 2025 South Dakota Grasslands Planner , prepared by the SD Grassland Coalition, is available by request. The 44-page planner includes tips, tools, and features South Dakota conservation efforts. To stay engaged with NRCS happenings and upcoming partner events by following us on our NRCS-SD X account.
Happy Holidays and stay safe if you are traveling this season. Thank you to all South Dakota farmers, ranchers, land managers, landowners, and NRCS partners who are moving the needle of conservation in our state forward.
Sincerely,
Tony Sunseri
State Conservationist
USDA-Natural Resources Conservation Service
December 20, 2024 - Batching date for Inflation Reduction Act funded FY2025 Agricultural Conservation Easement Program's Agricultural Land Easements (ACEP-ALE) and Wetland Reserve Easements (ACEP-WRE)
December 25, 2024 - Christmas Day Holiday - USDA Service Centers CLOSED
January 1, 2025 - New Year's Day Holiday - USDA Service Centers CLOSED
January 8, 2025 - Application Deadline for Marketing Assistance for Specialty Crops (MASC) Program
January 20, 2025 - Martin Luther King Jr. Holiday - USDA Service Centers CLOSED
January 30, 2025 - Deadline to submit ELAP notice of loss and payment application for 2024 eligible losses
January 30, 2025 - Deadline to submit application for Livestock Forage Program
January 31, 2025 - Deadline to submit application for 2024 MAL and LDP for Wool, Mohair and Unshorn Pelts
January 31, 2025 - Application Deadline for Food Safety Certification for Specialty Crops (FSCSC) Program
March 1, 2025 - Deadline to submit Livestock Indemnity Program notice of loss and payment application for 2024 program year
The U.S. Department of Agriculture (USDA) Farm Service Agency’s (FSA) $2 billion Marketing Assistance for Specialty Crops (MASC) program, aimed at helping specialty crop producers expand markets and manage higher costs, is now accepting applications from Dec. 10, 2024 through Jan. 8, 2025. Funded by the Commodity Credit Corporation, MASC was announced in November alongside the $140 million Commodity Storage Assistance Program for facilities impacted by 2024 natural disasters.
MASC helps specialty crop producers meet higher marketing costs related to:
- Perishability of specialty crops like fruits, vegetables, floriculture, nursey crops and herbs;
- Specialized handling and transport equipment with temperature and humidity control;
- Packaging to prevent damage;
- Moving perishables to market quickly; and
- Higher labor costs.
MASC Eligibility
To be eligible for MASC, a producer must be in business at the time of application, maintain an ownership share and share in the risk of producing a specialty crop that will be sold in calendar year 2025.
MASC covers the following commercially marketed specialty crops:
- Fruits (fresh, dried);
- Vegetables (including dry edible beans and peas, mushrooms, and vegetable seed);
- Tree nuts;
- Nursery crops, Christmas trees, and floriculture;
- Culinary and medicinal herbs and spices; and
- Honey, hops, maple sap, tea, turfgrass and grass seed.
Applying for MASC
Eligible established specialty crop producers can apply for MASC benefits by completing the FSA-1140, Marketing Assistance for Specialty Crops (MASC) Program Application, and submitting the form to any FSA county office by Jan. 8, 2025. When applying, eligible specialty crop producers must certify their specialty crop sales for calendar year 2023 or 2024.
New specialty crop producers are required to certify 2025 expected sales, submit an FSA-1141 application and provide certain documentation to support reported sales i.e., receipts, contracts, acreage reports, input receipts, etc. New producers are those who began producing specialty crops in 2023 or 2024 but did not have sales due to the immaturity of the crop, began producing specialty crops in 2024 but did not have a complete year of sales or will begin growing specialty crops in 2025.
MASC applicants, established and new, must also submit the following information to FSA if not already on file at the time of application:
- Form AD-2047, Customer Data Worksheet.
- Form CCC-902, Farm Operating Plan for an individual or legal entity.
- Form CCC-941, Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information.
- Form FSA-942, Certification of Income from Farming, Ranching and Forestry Operations, if applicable, for the producer and members of entities.
- 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.
- Other Documentation if requested by FSA to support reported specialty crop sales.
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 or producers who may be new to conducting business with FSA, can contact their local FSA county office. For MASC program participation, eligible specialty crop sales only include sales of commercially marketed raw specialty crops grown in the United States by the producer. The portion of sales derived from adding value to a specialty crop (such as sorting, processing, or packaging) is not included when determining eligible sales. Further explanation of what is considered by FSA for specialty crop sales as well as an online MASC decision tool and applicable program forms, are available on the MASC program webpage.
MASC Payments
For established specialty crop growers, those who certify crop sales in 2023 or 2024, FSA will calculate MASC payments based on the producer’s total specialty crop sales for the calendar year elected by the producer. Payments for new producers will be based on their expected 2025 calendar year sales. Payment calculation details and examples are available on the MASC webpage or related questions can be directed to local FSA county office staff.
FSA will issue MASC payments after the end of the application period. If demand for MASC payments exceeds available funding, MASC payments may be prorated, and the payment limitation of $125,000 may be lowered. If additional funding is available after MASC payments are issued, FSA may issue an additional payment.
Specialty crop producers interested in applying for MASC benefits, are encouraged to review the program fact sheet for detailed information on program eligibility, required documentation, payment calculations and more.
More Information
Additional information on MASC is available in the Notice of Funding Availability, which went on public inspection in the Federal Register on Dec. 9, 2024.
Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for producers of many commodities, including graded and non-graded wool, mohair, and unshorn pelts. MALs and LDPs are available during shearing and provide interim financing to help you meet cash flow needs without having to sell commodities when market prices are low, enabling you to delay selling until more favorable marketing conditions emerge. LDPs are payments made to producers who, although eligible to obtain an MAL, agree to forgo the loan in return for a payment on the eligible commodity.
FSA is now accepting requests for 2024 MALs and LDPs for all eligible wool, mohair and unshorn pelts. These requests should be made on or before the final availability date of Jan. 31, 2025. USDA recently announced 2024 wool and mohair marketing assistance loan rates.
Eligibility
To be eligible for a wool or mohair MAL or LDP, producers must produce and shear eligible mohair and wool in the U.S. during the applicable crop year and must:
- comply with conservation and wetland protection requirements;
- report all cropland acreage on applicable farms where the eligible commodity is produced;
- have and retain beneficial interest in the commodity until the MAL is repaid or the Commodity Credit Corporation (CCC) takes title to the commodity, and;
- meet Adjusted Gross Income (AGI) limitations.
Unshorn pelts are eligible for LDPs only. In addition to the criteria above, producers of unshorn pelts must have sold the unshorn lamb for immediate slaughter or slaughter the lambs for personal use. LDPs and marketing loan gains are not subject to payment limitation, including actively engaged in farming and cash rent tenant provisions.
In addition to producer eligibility, the loan commodity must have been produced and shorn from live animals by an eligible producer, be in storable condition, and meet specific CCC minimum grade and quality standards. Producers are responsible for any loss in quantity or quality of the wool or mohair pledged as loan collateral.
To retain beneficial interest, the producer must have control and title of the wool, mohair, or unshorn pelt. If beneficial interest in the commodity is lost, the commodity loses eligibility for an MAL or LDP and remains ineligible even if the producer later regains beneficial interest. The producer must be able to make all decisions affecting the commodity including movement, sale, and the request for an MAL or LDP.
Producers may repay an MAL any time during the loan period at the lesser of the loan rate plus accrued interest and other charges or an alternative loan repayment rate, the national posted price, which is announced weekly. Visit the Farm Service Agency (FSA) website for posted loan and LDP rates.
How to Apply
Producers can apply for an MAL by contacting their local FSA county office. To be considered for a LDP, producers must first have the form CCC-633 EZ, Page 1, on file with FSA prior to losing beneficial interest in the wool, mohair or unshorn pelt. It is best to visit the county office and submit the CCC-633 Page 1 right before you shear. This is completed one time per crop year and indicates your intention to receive LDP benefits.
To apply and learn more information, contact your local USDA Service Center.
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 County USDA Service Center.
The U.S. Department of Agriculture’s (USDA) long-awaited updates to the Farm Service Agency’s (FSA) Farm Loan Programs are officially in effect. These changes, part of the Enhancing Program Access and Delivery for Farm Loans rule, are designed to increase financial flexibility for agricultural producers, allowing them to grow their operations, boost profitability, and build long-term savings.
These program updates reflect USDA’s ongoing commitment to supporting the financial success and resilience of farmers and ranchers nationwide, offering critical tools to help borrowers manage their finances more effectively.
What the new rules mean for you:
- Low-interest installment set-aside program: Financially distressed borrowers can now defer up to one annual loan payment at a reduced interest rate. This simplified option helps ease financial pressure while keeping farming operations running smoothly.
- Flexible repayment terms: New repayment options give borrowers the ability to increase their cash flow and build working capital reserves, allowing for long-term financial planning that includes saving for retirement, education, and other future needs.
- Reduced collateral requirements: FSA has lowered the amount of additional loan security needed for direct farm loans, making it easier for borrowers to leverage their existing equity without putting their personal residence at risk.
These new rules provide more financial freedom to borrowers. By giving farmers and ranchers better tools to manage their operations, we’re helping them build long-term financial stability. It’s all about making sure they can keep their land, grow their business, and invest in the future.
If you’re an FSA borrower or considering applying for a loan, now is the time to take advantage of these new policies. We encourage you to reach out to your local FSA farm loan staff to ensure you fully understand the wide range of loan making and servicing options available to assist with starting, expanding, or maintaining your agricultural operation.
To conduct business with FSA, please contact your local USDA Service Center.
The Farm Loan team in your local County 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.
The U.S. Department of Agriculture’s (USDA) Natural Resources Conservation Service (NRCS) has released a new Tribal Relations Strategy, demonstrating the agency’s commitment to honoring its federal trust relationship with the 574 federally recognized tribes and Alaska Native Villages that have sovereign interest in more than 119 million acres of land across the United States.
The strategy was based on feedback from Tribal Nations, including recommendations made to Chief Cosby at the 2021, 2022, and 2023 National Tribal Consultations, and in-depth collaboration that took place at seven Regional Tribal Conservation Advisory Council meetings. Its six action items include:
- Hiring a Tribal Relations Director to establish an NRCS Office of Tribal Relations within the Office of the Chief.
- Filling positions dedicated to tribal conservation.
- Providing housing assistance on tribal lands (in partnership with the Department of the Interior).
- Implementing a tribal knowledge training plan.
- Creating an advanced tribal development program.
- Recording correctly tribal conservation data.
This strategy builds on many years of listening, working and consulting with tribes to address their natural resources concerns. NRCS is committed to carrying out its federal trust responsibilities by ensuring that the agency has tribal operations built into its organizational structure.
NRCS plans to announce a new national Tribal Relations Director in the coming months. Tribal organizations can reach out to their State Conservationist for more information and submit a request for assistance.
More Information
In addition to NRCS, USDA’s Farm Service Agency and Risk Management Agency are also supporting Tribal Nations. Learn more on the Partnerships with Tribal Nations webpage on farmers.gov.
Flax producers can now benefit from revenue protection, a crop insurance option available through the U.S. Department of Agriculture (USDA). USDA’s Risk Management Agency (RMA) has expanded Small Grains Crop Provisions to now offer revenue protection for flax for the 2025 crop year, which is already offered for barley, rye, wheat and oats.
Revenue protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, disease and revenue losses caused by harvest price changes from the projected price.
For a revenue protection policy, a producer selects the coverage level – between 50% and 85% –and has the option to select revenue protection that has a harvest price option or one with a harvest price exclusion. If the harvest price option is chosen, RMA will calculate guaranteed revenue for insurance purposes using the higher of either the harvest price or the initial guaranteed projected price.
The current yield-based plan of insurance, Actual Production History (APH), available to flax will be automatically converted to the yield protection plan of insurance. For producers who wish to maintain yield coverage without electing one of the new revenue coverage options, the only difference in coverage is that the price guarantee will be the projected price offered for revenue protection, instead of a price election established by RMA. The replanting payment for flax will be determined by using the projected price, instead of a price election.
Specialty and Organic Growers
RMA is continuing efforts to expand crop insurance options for specialty and organic growers by allowing enterprise units by organic farming practice, adding enterprise unit eligibility for several crops and making additional policy updates.
The following changes will be made beginning with the 2025 crop year:
- Expand the availability of enterprise units as well as units by organic farming practice to green peas and processing sweet corn.
- Combine written agreement deadlines in the Dry Bean crop insurance provisions to match other insurance policies. For the first year of coverage, the deadline is the acreage reporting date; for subsequent years of coverage, the deadline is the sales closing date. This change will reduce the likelihood of a producer losing coverage because of confusion over which deadline applies.
Most of these changes take effect with a November 30 Final Rule in the Federal Register. Public comments will be accepted on the rule through January 27, 2025.
Additionally, RMA also expanded the availability of enterprise units as well as enterprise units by organic farming practice to sugar beets, onions, popcorn and processing beans.
More Information
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Producers can learn more about crop insurance and the modern farm safety net at rma.usda.gov or by contacting their RMA Regional Office.
Top of page
USDA in South Dakota
200 4th Street SW
Huron, SD 57350
FSA Phone: (605) 352-1160
NRCS Phone: (605) 352-1200
RMA Phone: (406) 651-8450
|
|
Get Started at Your USDA Service Center | Farmers.gov
|
|
Farm Service Agency
State Executive Director:
Steve Dick
Deputy State Executive Director:
Ryan Vanden Berge
Administrative Officer:
Theresa Hoadley
Program Managers:
Owen Fagerhaug - Conservation
Logan Kopfmann - Disaster Relief
Donita Garry - Program Delivery
Bridget Weber - Farm Loan Program, Acting
State Outreach Coordinator:
Gail Gullickson
State Committee:
Troy Knecht, Chair
Fanny Brewer
Peggy Greenway
Larry Olsen
Hank Wonnenberg
|
Natural Resources Conservation Service
State Conservationist:
Tony Sunseri
Assistant State Conservationists:
Jessica Michalski - Ecological Sciences James Reedy - Engineering
Nathan Jones - Soils
Val Dupraz - Programs
Colette Kessler - Partnerships
Deke Hobbick - Compliance
Denise Gauer - Management & Strategy Shala Larson - Public Affairs Manager
|
|
South Dakota | Farm Service Agency
South Dakota State Office | Natural Resources Conservation Service (usda.gov)
|
|
