November 2020

Having trouble viewing this email? View it as a Web page.

• A Note from State Executive Director Mike Mayfield
• Apply Now for USDA’s Coronavirus Food Assistance Program 2 - Deadline is December 11
• USDA to Open Signup for the Conservation Reserve Program and CRP Grasslands in Early 2021
• Submit Loan Requests for Financing Early
• USDA Service Centers are Here to Help!
• USDA Offers Targeted Farm Loan Funding for Underserved Groups and Beginning Farmers

November FSA Newsletter

Apply Now for USDA’s Coronavirus Food Assistance Program 2 - Deadline is December 11

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) reminds farmers and ranchers that the deadline to apply for the Coronavirus Food Assistance Program 2 (CFAP 2) is Dec. 11, 2020. This program provides direct relief to producers who continue to face market disruptions and associated costs because of COVID-19.

CFAP 2 will provide up to $14 billion to eligible producers of certain row crops, livestock, dairy, specialty crops, aquaculture and more. All eligible commodities, payment rates and calculations can be found on farmers.gov/cfap. CFAP 2 is a separate program from the first iteration of the program (CFAP 1) and interested producers must complete a new application to be eligible for payment for CFAP 2.

Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer general assistance. This is a recommended first step before a producer engages the team at the FSA county office.

Application Options

Producers have several options for applying to the CFAP 2 program by the Dec. 11 deadline:

• Using an online portal at gov/cfap. This allows producers with secure USDA login credentials, known as eAuthentication, to certify eligible commodities online, digitally sign applications and submit directly to the local USDA Service Center.  
• Completing the application form using our CFAP 2 Application Generator and Payment Calculator found at gov/cfap. This Excel workbook allows customers to input information specific to their operation to determine estimated payments and populate the application form, which can be printed, then signed and submitted to their local USDA Service Center. 
• Downloading the AD-3117 application form from gov/cfap and manually completing the form to submit to the local USDA Service Center by mail, electronically, or by hand delivery to an office drop box. In some limited cases, the office may be open for in-person business by appointment. Visit farmers.gov/coronavirus/service-center-status to check the status of your local office.

USDA Service Centers can also work with producers to complete and securely transmit digitally-signed applications through two commercially available tools: Box and OneSpan. Producers who are interested in digitally signing their applications should notify their local FSA office when calling to discuss the CFAP 2 application process. You can learn more about these solutions at farmers.gov/mydocs.

Producers of commodities with payments based on acreage will use acreage and yield information provided by FSA through the annual acreage reporting process. Producers have the option to complete their application by working directly with their local FSA office or online through the CFAP 2 Application Portal.

All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP 1, these documents are likely already on file.

Both CFAP 1 and CFAP 2 are self-certification programs, which means the applicant certifies the information submitted is correct. FSA will soon begin an important step in the internal controls portion of CFAP 1 by conducting spot checks. Producers have been randomly selected using a statistically sound methodology. These CFAP 1 applicants will be contacted by FSA staff and asked to provide supporting documentation to verify the information certified by the producer on their CFAP 1 application.

As of Nov. 9, FSA has paid more than $9.5 billion with more than 576,000 applications for CFAP 2. This builds upon more than $10.3 billion paid through CFAP 1.

More Information

To find the latest information on CFAP 2, visit farmers.gov/cfap or call 877-508-8364.

USDA to Open Signup for the Conservation Reserve Program and CRP Grasslands in Early 2021

USDA announced the 2021 signup periods for general Conservation Reserve Program (CRP) and CRP Grasslands offers. General signup for CRP will be open from January 4, 2021 to February 12, 2012; signup for CRP Grasslands runs from March 15, 2021 to April 23, 2021. Both programs are competitive and provide annual rental payments for land devoted to conservation purposes.

CRP and the many focused programs that come under it, like CRP Grasslands, are some of the most critical tools to help producers better manage their operations while conserving natural resources.  CRP has proven to protect the Nation’s valuable resources. Next year’s signup gives farmers and ranchers an opportunity to enroll in CRP for the first time or continue their participation for another term.

Producers may apply by contacting their FSA office.

Submit Loan Requests for Financing Early

The Farm Loan team in your local county is already working on operating loans for spring 2020 and asks potential borrowers to submit their requests early so they can be timely processed. The farm loan team can help determine which loan programs are best for applicants. 

FSA offers a wide range of low-interest loans that can meet the financial needs of any farm operation for just about any purpose. The traditional farm operating and farm ownership loans can help large and small farm operations take advantage of early purchasing discounts for spring inputs as well expenses throughout the year. 

Microloans are a simplified loan program that will provide up to $50,000 for both Farm Ownership and Operating Microloans to eligible applicants. These loans, targeted for smaller and non-traditional operations, can be used for operating expenses, starting a new operation, purchasing equipment, and other needs associated with a farming operation.  Loans to beginning farmers and members of underserved groups are a priority.

Other types of loans available include:

Marketing Assistance Loans allow producers to use eligible commodities as loan collateral and obtain a 9-month loan while the crop is in storage. These loans provide cash flow to the producer and allow them to market the crop when prices may be more advantageous.  

Farm Storage Facility Loans can be used to build permanent structures used to store eligible commodities, for storage and handling trucks, or portable or permanent handling equipment. A variety of structures are eligible under this loan, including bunker silos, grain bins, hay storage structures, and refrigerated structures for vegetables and fruit. A producer may borrow up to $500,000 per loan.  

USDA Service Centers are Here to Help!

At USDA, we are committed to helping farmers complete loan applications, environmental reviews, and other paperwork free of charge. One-on-one support is available at more than 2,300 USDA Service Centers nationwide. USDA’s Farm Service Agency and Natural Resources Conservation Service staff are usually co-located at these Service Centers, and can help guide farmers to the best USDA assistance based on their unique goals, whether it is loans, conservation programs, or insurance.

Service Center staff can guide farmers through the process of preparing and submitting required paperwork on their own, with no need to hire a paid preparer. Language translation service is available in all USDA Service Centers, so one-on-one assistance with a Service Center employee can be translated in real time for farmers requiring it. And while some program and loan applications do have an administrative fee for filing, there is never a charge for preparation services provided by USDA staff.

Farmers who come to the USDA Service Center can:

• Establish their farm by registering for a farm number, which is required for USDA programs and assistance.
• Learn how to meet conservation compliance provisions.
• Verify eligibility for USDA programs.
• Discuss their business and conservation goals.
• Create a conservation plan.
• Fill out and file loan and program applications.

To find the nearest USDA Service Center, visit https://www.farmers.gov/service-center-locator.

USDA Offers Targeted Farm Loan Funding for Underserved Groups and Beginning Farmers

The USDA Farm Service Agency (FSA) reminds producers that FSA offers targeted farm ownership and farm operating loans to assist underserved applicants and beginning farmers and ranchers.

USDA defines underserved applicants as a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of the group without regard to their individual qualities. For farm loan program purposes, targeted underserved groups are women, African Americans, American Indians and Alaskan Natives, Hispanics and Asians and Pacific Islanders.

Underserved or beginning farmers and ranchers who cannot obtain commercial credit from a bank can apply for either FSA direct loans or guaranteed loans. Direct loans are made to applicants by FSA. Guaranteed loans are made by lending institutions who arrange for FSA to guarantee the loan. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. The FSA guarantee allows lenders to make agricultural credit available to producers who do not meet the lender's normal underwriting criteria.

The direct and guaranteed loan program provides for two types of loans:  farm ownership loans and farm operating loans. In addition to customary farm operating and ownership loans, FSA offers Microloans through the direct loan program. Microloans focus on the financing needs of small, beginning farmer, niche, and non-traditional farm operations. Microloans are available for both ownership and operating finance needs. To learn more about microloans, visit fsa.usda.gov/microloans.

To qualify as a beginning producer, the individual or entity must meet the eligibility requirements outlined for direct or guaranteed loans. Individuals and all entity members must have operated a farm for less than 10 years. Applicants must materially or substantially participate in the operation.

For more information on FSA’s farm loan programs and targeted underserved and beginning farmer guidelines, visit fsa.usda.gov/farmloans.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).