North Dakota FSA eNews - January, 2025
In This Issue:
January 30, 2025: Final Day to Apply for 2024 Livestock Forage Program
January 30, 2025: Final Day to Apply for 2024 Emergency Livestock Assistance Program
January 31, 2025: 2024 On-Farm Food Safety Expenses deadline- application period opens January 2, 2025
February 28, 2025: Final Day to Apply for 2024 Livestock Indemnity Program
March 3, 2025: Final Day to Apply for 2024 Livestock Indemnity Program
March 17, 2025: 2025 NAP Coverage - Spring Crops Planted
March 17, 2025: 2025 NAP Coverage - Perennial and Other Forages
Goodbyes are tough - especially when you are leaving a job that you care deeply about! I have been honored to serve as the FSA State Executive Director (SED) for almost 3 years – I started on 2/28/22. During that time, I have been privileged to advocate for the farmers and ranchers of ND as well as the excellent staff that work at the State and County offices. Secretary Vilsack challenged the SED’s early on to be aware that our time could be short and that we should try and make a difference every day – don’t procrastinate. I took that advice to heart – one of the first things we tackled at the State Office followed the back-to-back blizzards in April of 2022. I looked at what we were paying for baby calves in the LIP program and knew $175 was completely inadequate. Administrator Ducheneaux told me to “Go for it”. We put together a 17-page summary of why ranchers needed more dollars, support letters came from NDFU, NDSA and IBAND, and ranchers ended up receiving $475 for lost baby calves. That was a deeply satisfying win.
I have been keeping a list of accomplishments and changes that have come about over the last three years and of the 21 items on that list – 2 stand out because they were historic and desperately needed. First, reclassifying our Farm Program Technicians to Program Analysts. These front-line people that provide service to each of you – who have seen their office staff numbers decrease while the workload and available programs increase - were not being adequately compensated for their responsibility and work. I can argue that is true for all FSA employees but in the case of our PT’s – it was truly egregious. With the reclassification, the pay grade that we could hire employees increased as well as allowing our long-term employees to go from capping out at a Grade 7 to a Grade 9. You can be thankful for this change because we are starting to see an increase in applicants when we have openings – morale has been boosted – and hopefully our retention will improve – bottom line – better service for you.
The second historic change – for the first time in 40 years – was the implementation of the Enhanced Rule for Farm Loans in September of 2024. The effects of this change will start to show up with the approaching loan season. Both borrowers and loan officers have more flexibility available to them. Collateral levels have dropped from 150% to 125% and your personal home will only be included if that is the only way to make the loan work. Paperwork – I know that is a hated word – has decreased and online options are available with our new, shortened applications. Please – if you or someone you know may be in need of a loan this spring – start early – asap. Anytime you start with a new lender, it’s going to take extra time and FSA is no different. In fact, because we are a government entity, it can take a little longer, but we are here to serve and help you through the process!
In conclusion, I will treasure the amazing opportunity I have had the last three years. I’m looking forward to helping on our farm and ranch and if the opportunity presents itself – continuing to be an advocate for agriculture. It’s been a pleasure corresponding with you and, as always, be safe as you do the work of providing food, fuel and fiber for others.
- Marcy Svenningsen
|
I was recently hired as the Deputy State Executive Director for Farm Service Agency (FSA) in North Dakota. I will be assisting the SED with the administration of all FSA programs across the state. I am excited to start this new role with FSA!
My FSA career began over 14 years ago, started as a program technician in the Traill County FSA Office. I transitioned to the State Office, working in the Administrative, Production Adjustment, and Compliance departments. For the last 3 years, I have been serving as the Compliance Program Director at the ND FSA State Office in Fargo.
I grew up on a cow-calf operation in northern Missouri which my family still operates today, before moving to North Dakota after college to work for the North American Bison Cooperative and North Dakota Natural Beef.
I look forward to serving our North Dakota producers for the many FSA programs and County Offices Employees to effectively implement those programs.
Please reach out to me with any questions or concerns at 701-239-5224, kristen.knudtson@usda.gov.
- Kristen Knudtson, Deputy State Executive Director
Join us for a free “Farm Loan Programs” webinar on January 15, 2025 at 10 a.m., as representatives from the Farm Service Agency and the Bank of North Dakota discuss financing options for farmers and ranchers. Follow this link to register: Beyond the Field Webinar
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 2024 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 your local County USDA Service Center or visit fsa.usda.gov.
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.
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 Planfor 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).
- 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.
The U.S. Department of Agriculture (USDA) is expanding the Food Safety Certification for Specialty Crops (FSCSC) program to now include medium-sized businesses in addition to small businesses. Eligible specialty crop growers can apply for assistance for expenses related to obtaining or renewing a food safety certification. The program has also been expanded to include assistance for 2024 and 2025 expenses. Producers can apply for assistance on their calendar year 2024 expenses beginning July 1, 2024, through Jan. 31, 2025. For program year 2025, the application period will be Jan. 1, 2025, through Jan. 31, 2026.
Program Details
FSCSC assists specialty crop operations that incurred eligible on-farm food safety certification and expenses related to obtaining or renewing a food safety. FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing its certification, as well as a portion of related expenses.
Eligible FSCSC applicants must be a specialty crop operation; meet the definition of a small or medium-size business and have paid eligible expenses related to certification.
- A small business has an average annual monetary value of specialty crops sold by the applicant during the three-year period preceding the program year of no more than $500,000.
- A medium size business has an average annual monetary value of specialty crops the applicant sold during the three-year period preceding the program year of at least $500,001 but no more than $1,000,000.
Specialty crop operations can receive the following cost assistance:
- Developing a food safety plan for first-time food safety certification.
- Maintaining or updating an existing food safety plan.
- Food safety certification.
- Certification upload fees.
- Microbiological testing for products, soil amendments and water.
- Training
FSCSC payments are calculated separately for each eligible cost category. Details about payment rates and limitations are available at farmers.gov/food-safety.
Applying for Assistance
Interested applicants have until Jan. 31, 2025, to apply for assistance for 2024 eligible expenses. FSA will issue payments as applications are processed and approved. For program year 2025, the application period will be January 1, 2025, through January 31, 2026. FSA will issue 50% of the calculated payment for program year 2025 following application approval, with the remaining amount to be paid after the application deadline. If calculated payments exceed the amount of available funding, payments will be prorated.
Specialty crop producers can apply by completing the FSA-888-1, Food Safety Certification for Specialty Crops Program (FSCSC) for Program Years 2024 and 2025 application. The application, along with the AD-2047, Customer Data Worksheet and SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form, if not already on file with FSA, can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means. Alternatively, producers with an eAuthentication account can apply for FSCSC online. Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in.
Specialty crop producers can also call 877-508-8364 to speak directly with a FSA employee ready to assist. Visit farmers.gov/food-safety for additional program details, eligibility information and forms needed to apply.
More Information
To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account. Producers without an account can sign up today.
The U.S. Department of Agriculture (USDA) announced the final approximately $300 million in assistance to distressed direct and guaranteed farm loan borrowers under Section 22006 of the Inflation Reduction Act. Over the past two years, USDA acted swiftly to assist distressed borrowers in retaining their land and continuing their agricultural operations. Since President Biden signed the Inflation Reduction Act into law in August 2022, USDA has provided approximately $2.5 billion in assistance to more than 47,800 distressed borrowers.
The assistance announced today is expected to provide $300 million in assistance to over 12,800 distressed direct and guaranteed Farm Loan Programs (FLP) borrowers.
This round of automatic assistance includes approximately:
- $168.5 million for payments in the amount of any outstanding delinquencies on qualifying direct loans as of Nov. 30, 2024, for direct borrowers one or more days delinquent as of that date, and in the amount of any outstanding delinquencies, as of Sept. 30, 2024, on qualifying guaranteed loans of guaranteed borrowers one or more days delinquent or flagged for liquidation on a qualifying loan as of that date (including those who received prior IRA 22006 assistance).
- $5 million for payments in the amount of any outstanding delinquencies on qualifying guaranteed loans as of Sept. 30, 2024, for guaranteed borrowers who were delinquent as of Sept. 30, 2024, on a qualifying loan but by fewer than 30 days and were therefore not eligible for the assistance announced on Oct. 7, 2024.
- $67.3 million for payment of the next installment due on all FLP direct loans for borrowers that received direct borrower delinquency assistance under IRA 22006 announced on Oct. 7, 2024, not to exceed the remaining balance.
- $35 million for payment in the amount of the next installment due on qualifying direct loans for borrowers that restructured or who have accepted an offer to restructure, a qualifying direct loan between March 27, 2023, and today through primary loan servicing available through FSA. This assistance will be equal to the amount of the next installment (first applied toward any delinquency) for all qualifying direct loans held by the borrower, not to exceed the remaining balance. For any borrowers who have accepted an offer to restructure, payment will be equal to the next installment for all qualifying direct loans post-restructure, not to exceed the remaining balance.
- $9 million for the payment of outstanding direct Emergency Loans as of Nov. 30, 2024.
- $4.1 million in assistance for borrowers of qualifying direct loans with protective advances outstanding as of Nov. 30, 2024, and borrowers of qualifying guaranteed loans with protective or emergency advances as of Sept. 30, 2024. Protective advances are defined in 7 C.F.R. 761.2 and are those made consistent with 7 C.F.R. 765.203 or 762.149; emergency advances are those made consistent with 7 C.F.R. 762.146(a)(3). For direct loan borrowers, payments will be in the amount of the outstanding protective advance as of Nov. 30, 2024, where possible based on the structure of the account. For guaranteed loan borrowers, payments will be in the amount of the outstanding protective or emergency advance balance as of Sept. 30, 2024, where possible based on the structure of the account.
- $3.9 million for payment of outstanding interest for direct borrowers whose interest exceeds their principal debt owed as of Nov. 30, 2024.
- $1.8 million for payment of outstanding Economic Emergency (EE) loans for borrowers who have both EE loans and qualifying Consolidated Farm and Rural Development Act loans as of Nov. 30, 2024.
- $109,000 for the payment of outstanding non-capitalized interest for all direct borrowers as of Nov. 30, 2024.
FLP payment eligibility is determined on a loan-by-loan basis. Distressed borrowers may be able to receive assistance under multiple categories if they have multiple direct or guaranteed loans that qualify, however each qualifying loan may only receive one payment. FLP direct and guaranteed borrowers who have a loan that qualifies under multiple categories of assistance above will receive a payment on that loan based on the option that provides the greatest payment amount, except in cases where the loan is eligible for payment of non-capitalized interest, which can be applied to that loan along with another assistance category.
Any distressed direct and guaranteed borrowers who qualify for these forms of assistance and are currently in bankruptcy will be addressed using the same case-by-case review process announced in October 2022 for complex cases.
While FSA does not at this time anticipate having remaining funds available for additional assistance under IRA Section 22006 after each type of assistance above is issued, if any funds remain at that time, FSA will make a payment on a prorated basis by loan and subject to the availability of funds towards the next installment due on all FLP direct loans, not to exceed the remaining balance, for borrowers who both (i) have direct loans that qualified for assistance under the first bullet above; and (ii) have not received IRA 22006 assistance prior to this announcement. If full next installment payments are made to borrowers who meet (i) and (ii) above, and funds remain available, FSA will provide the same installment assistance on a prorated basis by loan and subject to the availability of funds to borrowers who meet (i) but have received prior IRA 22006 assistance.
Producers receiving program payments during calendar year 2024 will receive form CCC-1099-G detailing payments received from the Commodity Credit Corporation. The annual report of program payments on CCC-1099-G is a service intended to help our customers report taxable income. It is not intended to replace producer’s responsibilities to report income to IRS. The mailing of form CCC-1099-G will occur around January 31, 2025.
CCC will not issue form CCC 1099-G when CCC program payments total less than $600 for the calendar year. In addition, producers who receive program payments from multiple counties will receive only one CCC Form 1099-G showing all payments from all counties.
FSA staff will not attempt to interpret IRS regulations or advise producers about which payments to report on their income tax returns. However, county office staff can review payments for accuracy.
Although refund information is not shown on the CCC 1099-G, a customer’s financial data including refund information, program payment amounts, and prior year CCC-1099 information is conveniently available via the internet through the FSA “Financial Inquiries” database (FSA-FI). Instructions for obtaining a FSA-FI user ID and password are available on the FSA web site at: http://www.fsa.usda.gov/fmi
USDA recently announced the most significant changes to USDA’s farm loan programs since 2007. These updates from the Farm Service Agency (FSA) are set to enhance financial opportunities for farmers and ranchers, ensuring their long-term viability. This includes the establishment of a new low-interest installment set-aside program for financially distressed borrowers.
The Distressed Borrower Set-Aside Program (DBSA) provides USDA direct loan borrowers the opportunity to set-aside one loan payment to the end of the loan term if they are unable to make their scheduled installment. DBSA results in the borrower accruing significantly reduced interest and allows them to become current on their loans and continue farming.
When a borrower indicates they are in financial distress or when they become 90 days past due on an FSA direct loan, they will be notified of the availability of the Distressed Borrower Set-Aside Program (DBSA), or they can request DBSA assistance at any time at their local FSA office.
For more information on eligibility and how to apply, check out the Distressed Borrower Set-Aside Program fact sheet.
There are options for Farm Service Agency (FSA) loan customers during financial stress. If you are a borrower who is unable to make payments on a loan, contact your local FSA Farm Loan Manager to learn about your options.
The FSFL program provides low-interest financing to build or upgrade storage facilities and to purchase portable (new or used) structures, equipment including on-farm liquified petroleum tanks for eligible commodities for use as fuel storage for grain dryer equipment.
Loans up to $100,000 can be secured by a promissory note/security agreement. Loans or aggregate loan totals exceeding $100,000 require additional security in the form of real estate or an irrevocable letter of credit. Participants are required to provide a down payment of 15 percent, with CCC providing a loan for the remaining 85 percent of the eligible net cost of the storage facility and permanent drying and handling equipment. Loan terms of 3, 5, 7, 10 or 12 years are available depending on the amount of the loan and loan type. Interest rates for each term rate may be different and are based on the rate which CCC borrows from the Treasury Department.
Sign-up for the FSFL program is continuous throughout the year. All requests for FSFL prior to loan approval require a site inspection for an environmental assessment in accordance to National Environmental Protection Agency (NEPA) requirements showing no adverse impacts. FSFL policy requires the following actions cannot occur at the proposed FSFL location prior to the environmental assessment being completed:
- Accepting delivery of equipment and/or materials in previously undisturbed areas
- Site preparation or foundation construction in previously undisturbed areas
- No alteration to any structures that are 50 years old or older or within a historic district
If any of the above are completed prior to FSA completing the on-site assessment, the approval of the FSFL may be delayed and/or ineligible.
Producers considering an FSFL loan for the 2025 harvest season are encouraged to contact their local FSA office early to learn more concerning the application processing requirements.
Farm Service Agency (FSA) is committed to providing our farm loan borrowers the tools necessary to be successful. FSA staff will provide guidance and counsel from the loan application process through the borrower’s graduation to commercial credit. While it is FSA’s commitment to advise borrowers as they identify goals and evaluate progress, it is crucial for borrowers to communicate with their farm loan staff when changes occur. It is the borrower’s responsibility to alert FSA to any of the following:
- Any proposed or significant changes in the farming operation
- Any significant changes to family income or expenses
- The development of problem situations
- Any losses or proposed significant changes in security
If a farm loan borrower can’t make payments to suppliers, other creditors, or FSA on time, contact your farm loan staff immediately to discuss loan servicing options.
For more information on FSA farm loan programs, contact your local county USDA Service Center or visit fsa.usda.gov.
If you have experienced delays in receiving Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) payments, Loan Deficiency Payments (LDPs) and Market Gains on Marketing Assistance Loans (MALs), it may be because you have not filed form CCC-941, Adjusted Gross Income Certification.
If you don’t have a valid CCC-941 on file for the applicable crop year you will not receive payments. All farm operator/tenants/owners who have not filed a CCC-941 and have pending payments should IMMEDIATELY file the form with their recording county FSA office. Farm operators and tenants are encouraged to ensure that their landowners have filed the form.
FSA can accept the CCC-941 for years 2018 through 2025. Unlike the past, you must have the CCC-941 certifying your AGI compliance before any payments can be issued.
Farmers and ranchers rely on crop insurance to protect themselves from disasters and unforeseen events, but not all crops are insurable through the USDA’s Risk Management Agency. The Farm Service Agency’s (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides producers another option to obtain coverage against disaster for these crops. NAP provides financial assistance to producers of non-insurable crops impacted by natural disasters that result in lower yields, crop losses, or prevents crop planting.
Commercially produced crops and agricultural commodities for which crop insurance is not available are generally eligible for NAP. Eligible crops include those grown specifically for food, fiber, livestock consumption, biofuel or biobased products, or value loss crops such as aquaculture, Christmas trees, ornamental nursery, and others. Contact your local FSA office to see which crops are eligible in your state and county.
Eligible causes of loss include drought, freeze, hail, excessive moisture, excessive wind or hurricanes, earthquake and flood. These events must occur during the NAP policy coverage period, before or during harvest, and the disaster must directly affect the eligible crop. For guidance on causes of loss not listed, contact your local FSA county office.
Interested producers apply for NAP coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee at the FSA office where their farm records are maintained. These must be filed by the application closing date, which varies by crop. Contact your local FSA office to verify application closing dates and ensure coverage for eligible NAP crops.
At the time of application, each producer acknowledges they have received the NAP Basic Provisions, which describes NAP requirements for coverage. NAP participants must report crop acreage shortly after planting and provide verifiable or reliable crop production records when required by FSA.
Producers are required to pay service fees which vary depending on the number of crops and number of counties your operation is located in. The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums also apply when producers elect higher levels of coverage with a maximum premium of $15,750 per person or legal entity.
A producer’s certification on Form CCC-860 Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification may serve as an application for basic NAP coverage for all eligible crops beginning with crop year 2022. These producers will have all NAP-related service fees for basic coverage waived, in addition to a 50 percent premium reduction if higher levels of coverage are elected.
For more detailed information on NAP, download the NAP Fact Sheet. To get started with NAP, we recommend you contact your local USDA service center.
FSA and NRCS program applicants for benefits are required to submit a completed CCC-902 Farming Operation Plan and CCC-941 Average Gross Income (AGI) Certification and Consent to Disclosure of Tax Information for FSA to determine the applicant’s payment eligibility and establish the maximum payment limitation applicable to the program applicant.
Participants are not required to annually submit new CCC-902s for payment eligibility and payment limitation purposes unless a change in the farming operation occurs that may affect the previous determination of record. A valid CCC-902 filed by the participant is considered to be a continuous certification used for all payment eligibility and payment limitation determinations applicable for the program benefits requested.
Participants are responsible for ensuring that all CCC-902 and CCC-941 and related forms on file in the county office are updated, current, and correct. Participants are required to timely notify the county office of any changes in the farming operation that may affect the previous determination of record by filing a new or updated CCC-902 as applicable.
Changes that may require a NEW determination include, but are not limited to, a change of:
- Shares of a contract, which may reflect:
- A land lease from cash rent to share rent
- A land lease from share rent to cash rent (subject to the cash rent tenant rule
- A modification of a variable/fixed bushel-rent arrangement
- The size of the producer’s farming operation by the addition or reduction of cropland that may affect the application of a cropland factor
- The structure of the farming operation, including any change to a member's share
- The contribution of farm inputs of capital, land, equipment, active personal labor, and/or active personal management
- Farming interests not previously disclosed on CCC-902 including the farming interests of a spouse or minor child
- Certifications of average AGI are required to be filed annually for participation in an annual USDA program. For multi-year conservation contracts and NRCS easements, a certification of AGI must be filed prior to approval of the contract or easement and is applicable for the duration of the contract period.
Participants are encouraged to file or review these forms within the deadlines established for each applicable program for which program benefits are being requested.
Payment Limitation
Program payments may be limited by direct attribution to individuals or entities. A legal entity is defined as an entity created under Federal or State law that owns land or an agricultural commodity, product or livestock.
Through direct attribution, payment limitation is based on the total payments received by a person or legal entity, both directly and indirectly. Qualifying spouses are eligible for a separate payment limitation.
Payments and benefits under certain FSA programs are subject to some or all of the following:
- payment limitation by direct attribution (including common attribution)
- payment limitation amounts for the applicable programs
- substantive change requirements when a farming operation adds persons, resulting in an increase in persons to which payment limitation applies
- actively engaged in farming requirements
- cash-rent tenant rule
- foreign person rule
- average AGI limitations
- programs subject to AGI limitation
No program benefits subject to payment eligibility and limitation will be provided until all required forms for the specific situation are provided and necessary payment eligibility and payment limitation determinations are made.
Payment eligibility and payment limitation determinations may be initiated by the County Committee or requested by the producer.
Statutory and Regulatory rules require persons and legal entities, provide the names and Tax Identification Numbers (TINs) for all persons and legal entities with an ownership interest in the farming operation to be eligible for payment.
Payment eligibility and payment limitation forms submitted by persons and legal entities are subject to spot check through FSA’s end-of-year review process.
Persons or legal entities selected for end-of-year review must provide the County Committee with operating loan documents, income and expense ledgers, canceled checks for all expenditures, lease and purchase agreements, sales contracts, property tax statements, equipment listings, lease agreements, purchase contracts, documentation of who provided actual labor and management, employee time sheets or books, crop sales documents, warehouse ledgers, gin ledgers, corporate or entity papers, etc.
A finding that a person or legal entity is not actively engaged in farming results in the person or legal entity being ineligible for any payment or benefit subject to the actively engaged in farming rules.
Noncompliance with AGI provisions, either by exceeding the applicable limitation or failure to submit a certification and consent for disclosure statement, will result in payment ineligibility for all program benefits subject to AGI provisions. Program payments are reduced in an amount that is commensurate with the direct and indirect interest held by an ineligible person or legal entity in any legal entity, general partnership, or joint operation that receives benefits subject to the average AGI limitations.
If any changes occur that could affect an actively engaged in farming, cash-rent tenant, foreign person, or average Adjusted Gross Income (AGI) determination, producers must timely notify the County FSA Office by filing revised farm operating plans and/or supporting documentation, as applicable. Failure to timely notify the County Office may adversely affect payment eligibility.
Producers who received an Emergency Relief Program (ERP) payment need to meet ERP insurance linkage requirements by purchasing crop insurance, or Noninsured Crop Disaster Assistance Program (NAP) coverage where crop insurance is not available.
Purchase coverage must be at the 60/100 coverage level or higher for insured crops or at the catastrophic coverage level or higher for NAP crops for the next two available crop years, which will be determined from the date you received an ERP payment and may vary depending on the timing and availability of coverage. The insurance coverage requirement applies to the physical location of the county where the crop was located and for which an ERP payment was issued.
Contact your crop insurance agent or local FSA county office as soon as possible to ask about coverage options. Producers who do not obtain the applicable coverage by the sales/application closing date will be required to refund the ERP benefits received on the applicable crop, plus interest. To determine which crops are eligible for federal crop insurance or NAP, visit the RMA website.
For more information, contact your local USDA Service Center or visit fsa.usda.gov.
Producers who received an Emergency Relief Program (ERP) payment need to meet ERP insurance linkage requirements by purchasing crop insurance, or Noninsured Crop Disaster Assistance Program (NAP) coverage where crop insurance is not available.
Purchase coverage must be at the 60/100 coverage level or higher for insured crops or at the catastrophic coverage level or higher for NAP crops for the next two available crop years, which will be determined from the date you received an ERP payment and may vary depending on the timing and availability of coverage. The insurance coverage requirement applies to the physical location of the county where the crop was located and for which an ERP payment was issued.
Contact your crop insurance agent or local FSA county office as soon as possible to ask about coverage options. Producers who do not obtain the applicable coverage by the sales/application closing date will be required to refund the ERP benefits received on the applicable crop, plus interest. To determine which crops are eligible for federal crop insurance or NAP, visit the RMA website.
For 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 local County USDA Service Center or visit fsa.usda.gov.
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 their local USDA Service Center.
Wool and mohair producers are reminded that the deadline to apply for loans and LDP’s and submit all required eligibility documents on wool shorn in calendar year 2024 is January 31, 2025.
The crop year for wool and unshorn pelts begins January 1 through December 31. The year of shearing determines the crop year. To be considered eligible for an LDP, you must have form CCC-633EZ, Page 1 on file for the applicable crop year at your local FSA Office before losing beneficial interest in the crop. Page 4 of the form must be submitted when payment is requested.
Farm Storage Facility Loan, 3-Year Term: 4.125%
Farm Storage Facility Loan, 5-Year Term: 4.125%
Farm Storage Facility Loan, 7-Year Term: 4.250%
Farm Storage Facility Loan, 10-Year Term: 4.250%
Farm Storage Facility Loan, 12-Year Term: 4.375%
Commodity Loans: 5.250%
Top of page
North Dakota FSA eNews
North Dakota State Office 1025 28th St. South Fargo, ND 58103
Phone: 701-239-5224 Fax: 855-813-6644
|
State Office Staff:
State Executive Director: Marcy Svenningsen
Deputy State Executive Director: Kristen Knudtson
Administrative Officer: Amber Briss
Compliance/Payment Limitations:
Conservation/Livestock: Beau Peterson
ARC/PLC/NAP/Disaster: Brandi Laframboise
Farm Loan Programs: Mary Sue Ohlhauser
Price Support: Brian Haugen
Outreach/Communication Coordinator: Cierra Hauck
|
|
|
|
|