We are getting ready for the New Year and the beginning of another great year!

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.

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. 

Marketing Assistance for Specialty Crops (MASC): (see article below for more information) 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.  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

Farm Records & Other Changes – If you are making any changes to your farming operation (land sold/purchased, renting new land, or dropping land) please notify FSA immediately after these changes occur. Updating your records now will save you time when signing up for ARCPLC, reporting your acres, and ensuring maps are ready. FSA is not notified by the County Recorder’s Office of these sales. In addition, notify FSA if your bank account has changed.

Livestock Reminder – A reminder for all livestock producers to keep records throughout the year. It becomes essential to have inventory and loss records when applying for our Livestock Indemnity Program (LIP) due to eligible adverse weather events. LIP provides disaster assistance to livestock owners who experience livestock deaths, in excess of normal mortality, caused by eligible events for calendar year 2024. There are two related articles in this bulletin if you'd like additional information.

Wool Loan Deficiency Payments (LDP) – Please remember to contact our office to make sure you have page 1 of the CCC-633EZ submitted before you lose interest in the wool. For wool, these forms are tied to the calendar year, so if you plan on shearing after the 1st of the year, make sure you have submitted a 2025 CCC-633EZ, Page 1, to avoid losing out on potential wool LDPs.

Farm Storage Facility Loan:  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? 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 bins.

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.

A producer may borrow up to $500,000 per loan, with a minimum down payment of 15 percent. Loan terms range from 3 to 12 years, depending on the amount of the loan with favorable interest rates (3.500 - 3.875%) currently. Producers must demonstrate storage needs based on three years of production history for storage facilities. FSA also provides a microloan option that, while available to all eligible farmers and ranchers, also should be of particular interest to new or small producers where there is a need for financing options for loans up to $50,000 at a lower down payment with reduced documentation. Applicants for all loans will be charged a nonrefundable $100 application fee. If there is construction required, which would include ground disturbance such as site preparation, an environmental review must be completed before actions are approved. 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.

County Committee elections were held in Local Administrative Area (LAA) 1 in East Otter Tail County and consists of the following townships: Candor, Hobart, Gorman, Corliss, Butler, Paddock, Dora, Edna, Perham, Pine Lake, Homestead and Blowers. 

Candidate for this election was Adam Minten.  Adam was elected to a 3-year term.  We congratulate Adam and thank him for his willingness to serve.

As Always - Stay Safe and Healthy! - Julie

The Livestock Indemnity Program (LIP) provides assistance to you for livestock deaths in excess of normal mortality caused by adverse weather, disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law.

For disease losses, FSA county committees can accept veterinarian certifications that livestock deaths were directly related to adverse weather and unpreventable through good animal husbandry and management.

For 2023 livestock losses, you must file a notice and provide the following supporting documentation to your local FSA office no later than 60 calendar days after the end of the calendar year in which the eligible loss condition occurred.

• Proof of death documentation
• Copy of grower’s contracts
• Proof of normal mortality documentation
• Livestock beginning inventory documentation

USDA has established normal mortality rates for each type and weight range of eligible livestock, i.e. Adult Beef Cow = 1.5% and Non-Adult Beef Cattle = 5%. These established percentages reflect losses that are considered expected or typical under “normal” conditions.

In addition to filing a notice of loss, you must also submit an application for payment by March 3, 2025.

For more information, contact the East Otter Tail County USDA Service Center at 218-346-4260, or visit fsa.usda.gov.

USDA's 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 through Jan. 8, 2025.

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. 

The USDA's 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.

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 or visit fsa.usda.gov.

Livestock inventory records are necessary in the event of a natural disaster, so remember to keep them updated.

When disasters strike, the USDA Farm Service Agency (FSA) can help you if you’ve suffered excessive livestock death losses and grazing or feed losses due to eligible natural disasters.

To participate in the Livestock Indemnity Program (LIP), you’ll be required to provide verifiable documentation of death losses resulting from an eligible adverse weather event and must submit a notice of loss to your local FSA office no later than 60 calendar days after the end of the calendar year in which the eligible loss condition occurred.

For the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP), you must submit a notice of loss to your local FSA office no later than the annual program application deadline of January 30 following the program year in which the loss occurred and should maintain documentation and receipts. You should record all pertinent information regarding livestock inventory records including:

• Documentation of the number, kind, type, and weight range of livestock
• Beginning inventory supported by birth recordings or purchase receipts.

For more information on documentation requirements, contact your East Otter Tail County USDA Service Center at 218-346-4260, or visit fsa.usda.gov.