From all of us at the West Otter Tail and Wilkin County FSA offices, we wish you all health and happiness during this holiday season and in the new year! Please take a little time to ready over this month’s bulletin to stay up to date with all available programs and deadlines.

As you begin your year-end tax planning, remember that FSA has financing options to help you. Options range from 9-month grain loans to longer term farm ownership and operating loans, please reach out to your office if you would like to explore FSA financing further.

Marketing Assistance for Specialty Crops (MASC):  The Marketing Assistance for Specialty Crops (MASC) program provides financial assistance to specialty crop producers to help them expand domestic markets or develop new markets for their crops. Signup started on December 10, 2024, and ends on January 8, 2024. See the related article below for additional information. 

An example of eligible crops include:  

• 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
• Honey, hops, maple sap, tea, turfgrass, and grass seed

Common examples of specialty crops can be found on USDA’s Agricultural Marketing Service’s specialty crop definition webpage. 

Timely Report Ownership and Operator Changes – Producers who are buying or selling agricultural land need to notify FSA as soon as possible following transaction for timely update of FSA farm records. To report an ownership change, provide either a copy of the recorded warranty deed or a contract for deed to FSA.

If you will be renting new land, the FSA County Office will need a copy of the lease before we can add you to the farm and/or give you any information about the farms such as maps, base acres, yields, and ARCPLC Election(s). If an operator is dropping rented land, we appreciate notification of those changes also for updating of records.

Producers who have transferred their land into a trust also need to timely report this "ownership" change to the FSA County Office. To record an ownership change to a trust, the trust, grantors, or trustee(s) need to provide a copy of the recorded deed to FSA. 

Ownership changes involving land enrolled in the Conservation Reserve Program (CRP) need to be reported to the FSA County Office once the deed is recorded at the County Recorder’s office. Failure to timely report an ownership change (including land being transferred from an individual to a trust, etc.) for land enrolled in CRP could result in termination of the CRP contract and require a refund of all payments received under the applicable contract. Timely reporting of ownership changes is appreciated.

FSA is not notified by the County Recorder’s Office of these sales. In addition, notify FSA if your bank account has changed.

County Committee Election Results:  West Otter Tail County Committee (COC) election ballots were tabulated on December 11, 2024. Congratulations to Paul Dubbels who was re-elected to the COC for Local Administrative Area (LAA) 2 which includes the townships of Carlisle, Fergus Falls, Aurdal, Orwell, Buse, Dane Prairie, Tordenskjold, Western, Aastad, Tumuli, and St. Olaf.

Wilkin County Committee (COC) election ballots were tabulated on December 5, 2024. Congratulations to David Simmer who was re-elected to the COC for Local Administrative Area (LAA) 2 which includes the townships of Wolverton, Deerhorn, Roberts, Mitchell, McCauleyville, Nordick, Connelly & Nilsen. 

Thanks for taking the time to vote and a big thank you to Paul and David for their willingness to serve the county in this important role.

Farm Loan Program (FLP):  The Credit Team that works with our farm loan programs (annual operating and farm ownership loans) encourages everyone that may need assistance from the FSA office to apply sooner than later. The earlier you apply the less chance of funding limitations as we get closer to the 2025 planting season. The Credit Team members can be reached at the USDA Service Center in Fergus Falls at 218-739-4694

Commodity Loans:  FSA offers a 9-month commodity loan for grain in storage which is a great tool to help finance your operation. If you have 2024 grain in the bin, marketing assistance loans are able to provide interim financing following harvest time to meet cash flow needs without having to sell commodities when market prices are typically at harvest-time lows. Allowing producers to store production at harvest facilitates and allowing for orderly marketing of commodities throughout the year. A commodity loan is also a great end of year tax planning tool. Once you are ready to sell the grain or prior to loan maturity, you can pay off the loan.

Farm Storage Facility Loan:  As you are wrapping up the 2024 crop year and preparing for the 2025 crop year - Did you know FSA’s Farm Storage Facility Loan Program (FSFL) can help you with your storage and handling needs? 

During harvest, were you thinking that you really could use a truck, grain cart, sugar beet cart, auger, or another piece of equipment to meet your handling needs? Do you need additional storage, grain dryer, or improved grain handling? Are interest rates at your local lender holding you back from making that purchase?  Then why don’t you give our FSFL program a chance to help you:

• Acquire new or used storage and handling trucks;
• Acquire portable or permanently affixed storage and handling equipment;
• Acquire new or used storage facilities.

A variety of structures, handling equipment, and trucks are eligible under this loan, including new and used - dryers, augers, trucks, grain trailers (hopper, live bottom, end dump), including semi tractors, baggers, bale wrappers, grain carts, sugar beet carts, forklifts and skid steers, bulk tanks, propane tanks, hay barns, facilities for cold storage, storage, drying, & handling facilities, and many more options available.

Contact your local FSA office early in your planning process to determine what level of environmental review is required for your program application so that it can be completed timely.

Leon Johnson, CED

Important Dates and Deadlines:
December 25 - FSA offices closed in observance of
                         Christmas Day
December 31 - Noninsured Crop Disaster Assistance
                         Program (NAP) closing deadline for
                         honey and maple sap for crop year
                         2025 
January 1 - FSA offices closed in observance of New Year's Day
January 2 - Deadline for annual certification of honeybee colonies for Noninsured 
                   Crop Disaster Assistance Program (NAP) and Emergency Assistance
                   for livestock, Honeybees and Farm-Raised Fish Program (ELAP)
                   Eligibility
January 8 - Deadline to apply for the Marketing Assistance for Specialty Crops
                   (MASC) Program

December Interest Rates

Commodity Loan Interest Rate:  5.250%

Farm Loan Program - Interest Rates:
4.750% - Farm Operating Loans, Direct
5.250% - Farm Ownership Loans, Direct
3.250% - Farm Ownership, Joint Financing
1.500% - Farm Ownership Loans, Beginning Farmer Down Payment

Farm Storage Facility Loan Program Interest Rates:
4.125% - Farm Storage Facility Loans, 3-Year
4.125% - Farm Storage Facility Loans, 5-Year
4.250% - Farm Storage Facility Loans, 7-Year
4.375% - Farm Storage Facility Loans, 10-Year
4.375% - Farm Storage Facility Loans, 12-Year

Keep Connected with FSA:  How do you want to get information from us in the office - besides this bulletin - the best way is to sign up for text messages that pertain to critical information that is happening at that time. Signup for text messages by following the steps below!

Get a Text From FSA:  As we continue to transition to more and more electronic pathways of communication, I encourage you to sign up for our text message alerts. This will assist you with staying on top of all FSA program deadlines. FSA provides text message alerts (no more than 2 per month) for important reminders and deadlines. Don’t miss out on getting these effortless reminders. Let’s get you signed up right now!

1. Take out your cell-phone
2. Create a new text message, send:  MNWestOtterTail to 372-669 
   or  MNWilkin to 372-669
3. Press send

If you did these 3 easy steps, you are signed up to receive text alerts!

USDA Makes $2 Billion Available to Support Expansion of Current and Development of New Markets

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.

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.

FSA is cleaning up our producer record database and needs your help. Please report any changes of address, zip code, phone number, email address or an incorrect name or business name on file to our office. You should also report changes in your farm operation, like the addition of a farm by lease or purchase. You should also report any changes to your operation in which you reorganize to form a Trust, LLC or other legal entity. 

FSA and NRCS program participants are required to promptly report changes in their farming operation to the County Committee in writing and to update their Farm Operating Plan on form CCC-902.

To update your records, contact your West Otter Tail County USDA Service Center at 218-739-4694 or Wilkin County USDA Service Center at 218-643-1536.

The U.S. Department of Agriculture (USDA) today announces changes to the Farm Service Agency’s (FSA) Farm Loan Programs, effective Sept. 25, 2024 — changes that are intended to increase opportunities for farmers and ranchers to be financially viable. These improvements, part of the Enhancing Program Access and Delivery for Farm Loans rule, demonstrate USDA’s commitment to improving farm profitability through farm loans designed to provide important financing options used by producers to cover operating expenses and purchase land and equipment.

Farm loan policy changes outlined in the Enhancing Program Access and Delivery for Farm Loans rule, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.

The three most notable policy changes include:

• Establishing a new low-interest installment set-aside program for financially
  distressed borrowers. Eligible financially distressed borrowers can defer
  up to one annual loan installment per qualified loan at a reduced interest
  rate, providing a simpler and expedited option to resolve financial
  distress in addition to FSA’s existing loan servicing programs.
• Providing all eligible loan applicants access to flexible repayment terms that 
  can increase profitability and help build working capital reserves and
  savings. By creating upfront positive cash flow, borrowers can find
  opportunities in their farm operating plan budgets to include a reasonable
  margin for increased working capital reserves and savings, including for
  retirement and education.
• Reducing additional loan security requirements to enable borrowers to
  leverage equity. This reduces the amount of additional security required
  for direct farm loans, including reducing the frequency borrowers must
  use their personal residence as additional collateral for a farm loan.

Additional Farm Loan Program Improvements

Under the Biden-Harris Administration, USDA’s FSA has embarked on a comprehensive and systemic effort to ensure equitable delivery of Farm Loan Programs and improve access to credit for small and mid-size family farms. FSA has also included additional data in its annual report to Congress to provide information that Congress, stakeholders, and the general public need to hold USDA accountable on the progress that has been made in improving services to underserved producers. This year’s report shows FSA direct and guaranteed loans were made to a greater percentage of young and beginning farmers and ranchers, as well as improvements

in the participation rates of minority borrowers. The report also highlights FSA’s microloan program’s new focus on urban agriculture operations and niche market lending, as well as increased support for producers seeking direct loans for farm ownership in the face of increasing land values across the country.

FSA 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.

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

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 off ices and locally elected county committees. For more information, visit, www.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 www.usda.gov.