Illinois State FSA December Newsletter

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[December 20, 2014]  Illinois State FSA December Newsletter

HOLIDAY GREETINGS FROM EXECUTIVE DIRECTOR SCHERRIE GIAMANCO

Dear Friends :

At this time of year with such beautiful days when the air is vibrant with Christmas carols, bright lights and busy streets, I reflect on how fortunate I am to work with the great producers in Illinois and I sincerely wish you and your families good health, love, prosperity and a another successfully abundant growing year.

I wish that the Christmas season and the New Year fills your souls and homes with joy.

May your days be Merry and Bright and may all your dreams come true.

Happy Holidays and please stay safe.

Scherrie V. Giamanco
State Executive Director

MICROLOAN CAP GROWS TO $50,000

Farm Service Agency (FSA) reminds farmers and ranchers that the FSA borrowing limit for microloans increased from $35,000 to $50,000, effective Nov. 7. Microloans offer borrowers simplified lending with less paperwork.

The microloan change allows beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay. Microloans are part of USDA’s continued commitment to small and midsized farming operations.

To complement the microloan program additional changes to FSA eligibility requirements will enhance beginning farmers and ranchers access to land, a key barrier to entry level producers. FSA policies related to farm experience have changed so that other types of skills may be considered to meet the direct farming experience required for farm ownership loan eligibility. Operation or management of non-farm businesses, leadership positions while serving in the military or advanced education in an agricultural field will now count towards the experience applicants need to show when applying for farm ownership loans.

Since 2010, FSA has made a record amount of farm loans — more than 165,000 loans totaling nearly $23 billion. More than 50 percent of USDA’s farm loans now go to beginning farmers. In addition, FSA has increased its lending to traditionally underserved producer groups (ethnic and gender) by nearly 50 percent since 2010.

Please review the FSA Microloan Program Fact Sheet for program application, eligibility and related information.

USDA ANNOUNCES CHANGES TO FRUIT, VEGETABLE AND WILD RICE PLANTING RULES

Farm Service Agency (FSA) has announced fruit, vegetable and wild rice provisions that affect producers who intend to participate in certain programs authorized by the Agricultural Act of 2014.

Producers who intend to participate in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs are subject to an acre-for-acre payment reduction when fruits and nuts, vegetables or wild rice are planted on the payment acres of a farm. Payment reductions do not apply to mung beans, dry peas, lentils or chickpeas. Planting fruits, vegetables or wild rice on acres that are not considered payment acres will not result in a payment reduction. Farms that are eligible to participate in ARC/PLC but are not enrolled for a particular year may plant unlimited fruits, vegetables and wild rice for that year but will not receive ARC/PLC payments for that year. Eligibility for succeeding years is not affected.

Planting and harvesting fruits, vegetables and wild rice on ARC/PLC acreage is subject to the acre-for-acre payment reduction when those crops are planted on either more than 15 percent of the base acres of a farm enrolled in ARC using the county coverage or PLC, or more than 35 percent of the base acres of a farm enrolled in ARC using the individual coverage.

Fruits, vegetables and wild rice that are planted in a double-cropping practice will not cause a payment reduction if the farm is in a double-cropping region as designated by the USDA’s Commodity Credit Corporation.

FSA SIGNATURE POLICY

Using the correct signature when doing business with FSA can save time and prevent a delay in program benefits. The following are FSA signature guidelines:

- Spouses may sign documents on behalf of each other for FSA and CCC programs in which either
has an interest, unless written notification denying a spouse this authority has been provided to the county office

- Spouses shall not sign on behalf of each other as an authorized signatory for partnerships, joint ventures, corporations, or other similar entities

For additional clarification on proper signatures contact your local FSA office.

USDA EXTENDS APPLICATION DEADLINE for DAIRY MARGIN PROTECTION PROGRAM to DECEMBER 19

Dairy producers urged to act now to protect their businesses against unpredictable market swings, take advantage of increased protections offered in first year of program.

The application deadline for the dairy Margin Protection Program (MPP) has been extended until December 19, 2014. The program, established by the 2014 Farm Bill, protects participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below levels of protection selected by the applicant.

For just $100, a farmer can cover 90 percent of production at $4 margin swings, and with affordable incremental premiums, dairy farmers can cover up to $8 margin swings. Those who apply this year will receive a slight increase in production protection that will not be available in the future. Farmers who do not sign up for the Margin Protection Program for 2015 will forfeit the 1 percent base production increase.

Producers can use the online Web resource at www.fsa.usda.gov/mpptool to calculate the best levels of coverage for their dairy operation.

To learn more about the Margin Protection Program for dairy, contact your local USDA Farm Service Agency county office at offices.usda.gov or visit us on the Web at www.fsa.usda.gov

LIVESTOCK DISASTER ASSISTANCE SIGN-UP UNDERWAY

Livestock disaster program enrollment opened on April 15, 2014. These disaster programs are authorized by the 2014 Farm Bill as permanent programs and provide retroactive authority to cover losses that occurred on or after Oct. 1, 2011.

Eligible producers can sign-up for the following livestock disaster assistance programs:

Livestock Forage Disaster Program (LFP):

LFP provides compensation to eligible livestock producers that have suffered grazing losses due to the drought that occurred in Illinois during crop year 2012 on privately owned or cash leased land. Producers who suffered eligible grazing losses in a county affected by the qualifying drought should visit their local county FSA office and submit a completed CCC-853 and supporting documentation by January 30, 2015.

Livestock Indemnity Program (LIP):

LIP provides compensation to eligible livestock producers that have suffered livestock death losses in excess of normal mortality due to adverse weather and attacks by animals reintroduced into the wild by the federal government or protected by federal law. Producers who suffered livestock death losses that occurred after October 1, 2011 should submit a notice of loss and an application for payment to their local FSA office by January 30, 2015.

Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP)

ELAP provides emergency assistance to eligible producers of livestock, honeybees and farm-raised fish that have losses due to disease, adverse weather, or other conditions, such as blizzards and wildfires. ELAP assistance is provided for losses not covered by LFP and LIP. For 2015 program year losses (losses that occur from October 1, 2014 through September 30, 2015), the notice of loss and an application for payment must be submitted by November 2, 2015.

For more information, producers can review the LFP, LIP and ELAP Fact Sheets on the Farm Bill webpage. Producers are encouraged to make an appointment with their local FSA office to apply for these programs.

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 2014 MAL (Marketing Assistance Loans) REQUESTS

The USDA Farm Service Agency (FSA) is accepting requests for marketing assistance loans (MALs) for eligible 2014 commodities.

MALs for the 2014 crop year become available to eligible producers beginning with harvest/shearing season and extending through a specific commodity’s final loan availability date.

MALs provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, wool, mohair and honey. MALs provide producers interim financing after harvest to help them meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.

National and county loans rates for 2014 crops are posted on the FSA website at: www.fsa.usda.gov/pricesupport.

For more information, please visit a nearby USDA Service Center or FSA’s website www.fsa.usda.gov.

USDA ENHANCES FARM STORAGE FACILITY LOAN PROGRAM

The U.S. Department of Agriculture (USDA) today announced the expansion of the Farm Storage and Facility Loan program, which provides low-interest financing to producers. The enhanced program includes 22 new categories of eligible equipment for fruit and vegetable producers.

Producers with small and mid-sized operations, and specialty crop fruit and vegetable growers, now have access to needed capital for a variety of supplies including sorting bins, wash stations and other food safety-related equipment. A new more flexible alternative is also provided for determining storage needs for fruit and vegetable producers, and waivers are available on a case-by-case basis for disaster assistance or insurance coverage if available products are not relevant or feasible for a particular producer.

Additionally, Farm Storage Facility Loan security requirements have been eased for loans up to $100,000. Previously, all loans in excess of $50,000 and any loan with little resale value required a promissory note/security agreement and additional security, such as a lien on real estate. Now loans up to $50,000 can be secured by only a promissory note/security agreement and some loans between $50,000 and $100,000 will no longer require additional security.

The low-interest funds can be used to build or upgrade permanent facilities to store commodities. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables. Qualified facilities include grain bins, hay barns and cold storage facilities for fruits and vegetables.

2015 NONINSURED CROP DISASTER ASSISTANCE PROGRAM (NAP)

Agriculture Secretary Tom Vilsack today announced that greater protection is now available from the Noninsured Crop Disaster Assistance Program for crops that traditionally have been ineligible for federal crop insurance. The new options, created by the 2014 Farm Bill, provide greater coverage for losses when natural disasters affect specialty crops such as vegetables, fruits, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup, and energy crops.

"These new protections will help ensure that farm families growing crops for food, fiber or livestock consumption will be better able to withstand losses due to natural disasters," said Vilsack. "For years, commodity crop farmers have had the ability to purchase insurance to keep their crops protected, and it only makes sense that fruit and vegetable, and other specialty crop growers, should be able to purchase similar levels of protection. Ensuring these farmers can adequately protect themselves from factors beyond their control is also critical for consumers who enjoy these products and for communities whose economies depend on them."

Previously, the program offered coverage at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. Producers can now choose higher levels of coverage, up to 65 percent of their expected production at 100 percent of the average market price.

The expanded protection will be especially helpful to beginning and traditionally underserved producers, as well as farmers with limited resources, who will receive fee waivers and premium reductions for expanded coverage. More crops are now eligible for the program, including expanded aquaculture production practices, and sweet and biomass sorghum. For the first time, a range of crops used to produce bioenergy will be eligible as well.

"If America is to remain food secure and continue exporting food to the world, we need to do everything we can to help new farmers get started and succeed in agriculture," Vilsack said. "This program will help new and socially disadvantaged farmers affordably manage risk, making farming a much more attractive business proposition."

To help producers learn more about the Noninsured Crop Disaster Assistance Program and how it can help them, USDA, in partnership with Michigan State University and the University of Illinois, created an online resource. The Web tool, available at www.fsa.usda.gov/nap, allows producers to determine whether their crops are eligible for coverage. It also gives them an opportunity to explore a variety of options and levels to determine the best protection level for their operation.

If the application deadline for an eligible crop has already passed, producers will have until Jan. 14, 2015, to choose expanded coverage through the Noninsured Crop Disaster Assistance Program. To learn more, visit the Farm Service Agency (FSA) website at www.fsa.usda.gov/nap or contact your local FSA office at offices.usda.gov. The Farm Service Agency (FSA), which administers the program, also wants to hear from producers and other interested stakeholders who may have suggestions or recommendations on the program. Written comments will be accepted until Feb. 13, 2015 and can be submitted through www.regulations.gov.

These new provisions under the Noninsured Crop Disaster Assistance Program were made possible through the 2014 Farm Bill, which builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for the taxpayer. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America. For more information, visit http://www.usda.gov/farmbill.

USDA is an equal opportunity provider and employer. 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).

Illinois Farm Service Agency

3500 Wabash Ave
Springfield, IL 62711

www.fsa.usda.gov/il

State Committee:
Jill Appell - Chairperson
Jerry Jimenez
Joyce Matthews
Gordon Stine
Vacant - Brenda Hill as of1/1/15

State Executive Director:
Scherrie V. Giamanco

Executive Officer:
Rick Graden

Public Affairs Specialist:
Mary S. Kirby

Administrative Officer:
Kent Mason

Chief Program Specialists:
Doug Bailey
Stan Wilson

Farm Loan Chief:
Jeff Koch

Please contact your local County FSA Office for questions specific to your operation or county.

 

 

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