New Mexico FSA State Newsletter - August 2025
In This Issue:
The U.S. Department of Agriculture (USDA) is announcing the launch of the Debt Consolidation Tool, an innovative online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.
A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt may also provide farmers and ranchers additional cash flow flexibilities.
The Debt Consolidation Tool is a significant addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs. The tool enhances customer service and increases opportunities for farmers and ranchers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming and ranching operation, retirement accounts, or college savings accounts.
Producers can access the Debt Consolidation Tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox, or the Safari browser. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.
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.
The Farm Service Agency (FSA) offers two types of set-aside programs to assist FSA direct loan borrowers. The set-aside programs are intended to help distressed borrowers as well as borrowers impacted by natural disasters.
Disaster Set-Aside Program
The Disaster Set-Aside Program (DSA) assists existing FSA direct loan borrowers who have been impacted by natural disasters. The DSA program provides short-term financial relief by allowing eligible borrowers to delay FSA direct loan payments that are due this year or next year (but not both). You may delay up to one full annual payment per loan and the delayed payment will be moved to the end of the loan term. You will not be required to pay this set-aside installment until the loan’s final due date.
The principal portion of the amount set-aside will continue to accrue interest at your loan’s existing interest rate.
To be eligible, borrowers must have operated a farm in a county declared a disaster area or a contiguous county at the time of the disaster. In addition, the borrower’s inability to make their upcoming payment must be due to the disaster.
To apply for DSA, borrowers must provide their local USDA Service Center with a letter requesting DSA, which must be signed by all parties liable for the debt. The letter must be provided to your local Service Center within eight months of the disaster declaration date. The application process also includes providing your actual production, income, and expense records for the last three years. FSA may also request additional information as needed to make an eligibility decision.
Distressed Borrower Set-Aside Program
FSA Direct Farm Loan Program borrowers whose loans were closed before Sept. 25, 2024, may be eligible for assistance under the Distressed Borrower Set-Aside Program (DBSA). Similar to DSA, DBSA also provides short-term financial relief by allowing eligible borrowers to delay FSA direct loan payments that are due this year or next year (but not both). You may delay up to one full annual payment per loan and the delayed payment will be moved to the end of the loan term. You will not be required to pay this set-aside installment until the loan’s final due date.
An increased benefit with DBSA is that the principal portion of the set-aside will accrue interest at a reduced rate of 0.125% rather than your loan’s existing interest rate.
To be eligible for DBSA, the borrower must demonstrate financial distress, but their inability to make the upcoming payment does not need to be due to a disaster.
The DBSA application process is similar to DSA as borrowers must provide their local USDA Service Center with a letter requesting DBSA, which must be signed by all parties liable for the debt. The application process also includes providing your actual production, income, and expense records for the last three years. FSA may also request additional information as needed to make an eligibility decision.
Important Factors for Both DSA and DBSA:
FSA direct loan borrowers are not able to obtain more than one set-aside per loan. Borrowers also cannot obtain both a DSA and DBSA simultaneously on the same loan. In addition, FSA direct loans with less than two years remaining are not eligible for a DSA or DBSA. Other eligibility requirements apply; we encourage you to contact your local Service Center for more information.
Both DSA and DBSA are intended to provide short-term relief for situations where borrowers anticipate the ability to resume paying their full annual installment(s) in the following year. If you require a more long-term form of financial relief, FSA has other potential options available through primary loan servicing (PLS).
Additional information, eligibility criteria and program limitations may be found within the Disaster Set-Aside and Distressed Borrower Set-Aside Program fact sheets.
U.S. Secretary of Agriculture Brooke L. Rollins announced that agricultural producers who suffered eligible crop losses due to natural disasters in 2023 and 2024 can now apply for $16 billion in assistance through the Supplemental Disaster Relief Program (SDRP).
To expedite the implementation of SDRP, USDA’s Farm Service Agency (FSA) is delivering assistance in two stages. This first stage is open to producers with eligible crop losses that received assistance under crop insurance or the Noninsured Crop Disaster Assistance Program during 2023 and 2024. Stage One sign up started in-person at FSA county offices on July 10 and prefilled applications were mailed to producers starting July 9. SDRP Stage Two signups for eligible shallow or uncovered losses will begin in early fall.
SDRP Stage One
FSA is launching a streamlined, pre-filled application process for eligible crop, tree, and vine losses by leveraging existing Noninsured Crop Disaster Assistance Program (NAP) and Risk Management Agency (RMA) indemnified loss data. The pre-filled applications were mailed on July 9, 2025.
Eligibility
Eligible losses must be the result of natural disasters occurring in calendar years 2023 and/or 2024. These disasters include wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions.
To qualify for drought related losses, the loss must have occurred in a county rated by the U.S. Drought Monitor as having a D2 (severe drought) for eight consecutive weeks, D3 (extreme drought), or greater intensity level during the applicable calendar year.
Producers in Connecticut, Hawaii, Maine, and Massachusetts will not be eligible for SDRP program payments. Instead, these states chose to cover eligible crop, tree, bush, and vine losses through separate block grants. These block grants are funded through the $220M provided for this purpose to eligible states in the American Relief Act.
How to Apply
To apply for SDRP, producers must submit the FSA-526, Supplemental Disaster Relief Program (SDRP) Stage One Application, in addition to having other forms on file with FSA.
SDRP Stage One Payment Calculation
Stage One payments are based on the SDRP adjusted NAP or Federal crop insurance coverage level the producer purchased for the crop. The net NAP or net federal crop insurance payments (NAP or crop insurance indemnities minus administrative fees and premiums) will be subtracted from the SDRP calculated payment amount.
For Stage One, the total SDRP payment to indemnified producers will not exceed 90% of the loss and an SDRP payment factor of 35% will be applied to all Stage One payments. If additional SDRP funds remain, FSA may issue a second payment.
Future Insurance Coverage Requirements
All producers who receive SDRP payments are required to purchase federal crop insurance or NAP coverage for the next two available crop years at the 60% coverage level or higher. Producers who fail to purchase crop insurance for the next two available crop years will be required to refund the SDRP payment, plus interest, to USDA.
SDRP Stage 2
FSA will announce additional SDRP assistance for uncovered losses, including non-indemnified shallow losses and quality losses and how to apply later this fall.
Learn more by visiting fsa.usda.gov/sdrp.
The Conservation Reserve Program (CRP) is a program administered by the Farm Service Agency (FSA) to conserve farmland for future generations while providing habitat for wildlife, reducing soil erosion, and improving water quality. Regular maintenance on CRP acres is needed to ensure the acreage continues to provide conservation benefits and remains in compliance with the CRP contract.
Regular Maintenance
Producers with CRP contracts are required to control all weeds, insects, pests, and other undesirable species to the extent necessary to ensure that the approved conservation cover is adequately protected and to ensure there is no adverse impact on surrounding land. Mowing is one of the allowable practices for weed control, but mowing for aesthetic purposes is never permitted. The Conservation Plan states the required weed control methods for each site.
Once a stand has been certified as fully established, participants are required to maintain plant diversity and stand density according to the Conservation Plan and offer (CRP-2) for the life of the contract. Stands that do not meet practice specific plant diversity or density requirements may be considered non-compliant. Refer to your conservation plan or contact FSA if you have any questions or concerns about the vegetative cover requirements.
Maintenance activities cannot occur during the primary nesting season for birds without written prior approval from the local county office. The primary nesting season in State is March 1 through July 1.
Mid-Contract Management
Regular maintenance for weed and pest control is separate from the Mid-Contract Management (MCM) requirement. MCM ensures plant diversity and wildlife benefits while ensuring protection of the soil and water resources. Such activities are site-specific and are for the purpose of enhancing the approved cover.
MCM must be completed between years four and six of a 10-year contract and between years seven and nine of a 15-year contract. The Conservation Plan will state what year MCM must take place.
Noncompliance with Maintenance Requirements
Failure to adequately maintain the stand may result in noncompliance with the terms and conditions of the CRP contract. Noncompliance can result in adverse actions up to and including termination of the CRP contract. Contracts that are out of compliance are ineligible to re-enroll, unless the stand is brought back into compliance prior to the enrollment deadline.
For general information about CRP, visit the Conservation Reserve Program webpage. For information about specific contracts, reach out to the local FSA office.
The U.S. Department of Agriculture (USDA) reminds specialty crop producers that the application period for the Food Safety Certification for Specialty Crops (FSCSC) program for program year 2025 opened Jan. 1, 2025, and runs through Jan. 31, 2026. The program has been expanded to 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.
Program Details
FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing its on-farm food safety 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
For program year 2025, the application period began Jan. 1, 2025, and runs through Jan. 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 county office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means. Producers with an eAuthentication account can apply for FSCSC online. Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in.
Visit farmers.gov/food-safety for additional program details, eligibility information and application forms.
The National Environmental Policy Act (NEPA) requires Federal agencies to consider all potential environmental impacts for federally funded projects before the project is approved.
For all Farm Service Agency (FSA) programs, an environmental review must be completed before actions are approved, such as site preparation or ground disturbance. These programs include, but are not limited to, the Emergency Conservation Program (ECP), Farm Storage Facility Loan (FSFL) program and farm loans. If project implementation begins before FSA has completed an environmental review, the request will be denied. Although there are exceptions regarding the Stafford Act and emergencies, it’s important to wait until you receive written approval of your project proposal before starting any actions.
Applications cannot be approved until FSA has copies of all permits and plans. 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.
In order to claim a Farm Service Agency (FSA) payment on behalf of a deceased producer, all program conditions for the payment must have been met before the applicable producer’s date of death.
If a producer earned an FSA payment prior to his or her death, the following is the order of precedence for the representatives of the producer:
- administrator or executor of the estate
- the surviving spouse
- surviving sons and daughters, including adopted children
- surviving father and mother
- surviving brothers and sisters
- heirs of the deceased person who would be entitled to payment according to the State law
For FSA to release the payment, the legal representative of the deceased producer must file a form FSA-325 to claim the payment for themselves or an estate. The county office will verify that the application, contract, loan agreement, or other similar form requesting payment issuance, was signed by the applicable deadline by the deceased or a person legally authorized to act on their behalf at that time of application.
If the application, contract or loan agreement form was signed by someone other than the deceased participant, FSA will determine whether the person submitting the form has the legal authority to submit the form.
Payments will be issued to the respective representative’s name using the deceased program participant’s tax identification number. Payments made to representatives are subject to offset regulations for debts owed by the deceased.
FSA is not responsible for advising persons in obtaining legal advice on how to obtain program benefits that may be due to a participant who has died, disappeared or who has been declared incompetent.
USDA’s Risk Management Agency (RMA) announced it is implementing the Quality Loss (QL) option for additional crop insurance programs for the 2026 and succeeding crop years. QL will be available for the alfalfa seed, dry peas, dry beans, grass seed and triticale crop insurance programs.
RMA developed the QL option in response to the 2018 Farm Bill requirement to carry out research and development for an alternative method for adjusting quality losses that will not impact Actual Production History (APH). While initially created to improve coverage options for row crop producers, the option was expanded to perennial crop programs in the 2024 crop year.
Producers must elect QL by the sales closing date. The QL option may apply if a notice of loss is filed, regardless of whether an indemnity is received for that crop year. When elected, QL allows a producer to replace the post-quality adjusted production in their APH database with the pre-quality adjusted production, thereby increasing the actual yields for individual crop years.
Quality adjustment to production will be based on the applicable quality statements contained in the Special Provisions, or on applicable quality requirements allowed by the Crop Provisions or endorsements. The QL option is not available for policies insured under the Catastrophic Risk Protection Endorsement.
Contact a crop insurance agent to see how Federal Crop Insurance can meet the specific needs of your operation. Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available 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. RMA’s Basics for Beginners provides information for those new to crop insurance.
The USDA Risk Management Agency’s (RMA) Nursery Value Select (NVS) is a pilot program that allows nursery producers to select the dollar amount of coverage that best fits their risk management needs. NVS is available in all states and counties.
Beginning with the 2026 crop year, NVS will replace the Nursery Field Grown and Container (FG&C) crop insurance program. Nursery FG&C will no longer be available for producers to purchase after the 2025 crop year.
NVS will offer comparable but improved risk management options for those who currently have coverage with the Nursery FG&C program. Like Nursery FG&C, NVS also covers field grown and containerized nursery plants and offers coverage levels between catastrophic and 75%. Unlike Nursery FG&C, NVS has simplified reporting requirements, and an Occurrence Loss Option is available.
The next sales closing date for the 2026 crop year is Sept. 1, 2025, and is available to producers in all states except those states along the Gulf Coast and East Coast (including Pennsylvania, Vermont, and West Virginia). For all other producers, the sales closing date was May 1, 2025. NVS allows producers to apply for or renew coverage after the sales closing date. Producers should contact a local crop insurance agent to learn more about NVS and how they can apply for coverage for the 2026 crop year.
Learn more about crop insurance and the modern farm safety net on the RMA website and the Basics for Beginners webpage. Producers may also contact their RMA Regional Office.
Top of page
|
