July Farm Service Agency Newsletter

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[August 21, 2015]  USDA Opens Enrollment Period for Agriculture Risk Coverage and Price Loss Coverage Safety-Net Programs - U.S. Department of Agriculture (USDA) announced that eligible producers may now formally enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for 2014 and 2015. The enrollment period began June 17, 2015, and will end Sept. 30, 2015.

The new programs, established by the 2014 Farm Bill, trigger financial protections for agricultural producers when market forces cause substantial drops in crop prices or revenues. More than 1.76 million farmers have elected ARC or PLC. Previously, 1.7 million producers had enrolled to receive direct payments (the program replaced with ARC and PLC by the 2014 Farm Bill). This means more farms have elected ARC or PLC than previously enrolled under previously administered programs.

Nationwide, 96 percent of soybean farms, 91 percent of corn farms, and 66 percent of wheat farms elected ARC. 99 percent of long grain rice farms, 99 percent of peanut farms, and 94 percent of medium grain rice farms elected PLC. For data about other crops and state-by-state program election results go to www.fsa.usda.gov/arc-plc.

Covered commodities under ARC and PLC include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain and sweet rice), safflower seed, sesame, soybeans, sunflower seed and wheat. Upland cotton is no longer a covered commodity.

For more information please contact your local FSA office https://offices.usda.gov

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.

ARC, PLC and CTAP Acreage Maintenance

Producers enrolled in Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC) or the Cotton Transition Assistance Program (CTAP) must protect all cropland and noncropland acres on the farm from wind and water erosion and noxious weeds. Producers who sign ARC county or individual contracts and PLC contracts agree to effectively control noxious weeds on the farm according to sound agricultural practices. If a producer fails to take necessary actions to correct a maintenance problem on a farm that is enrolled in ARC, PLC or CTAP, the County Committee may elect to terminate the contract for the program year.

FSA County Committee Nomination Period is Now Open

The nomination period for all FSA county committees began on June 15, 2015. Nomination forms must be postmarked or received in the County FSA Office by close of business on Aug. 3, 2015.

County Committees are unique to FSA and allow producers to have a voice on federal farm program implementation at the local level.

To be eligible to serve on the FSA county committee, a person must participate or cooperate in an agency administered program, be eligible to vote in a county committee election and reside in the Local Administrative Area (LAA) where they are nominated. All producers, including women, minority and beginning farmers and ranchers are encouraged to participate in the nomination and election process.

Producers may nominate themselves or others as candidates. Organizations representing minority and women farmers and ranchers may also nominate candidates. To become a nominee, eligible individuals must sign form FSA-669A. The form and more information about county committee elections is available online at: www.fsa.usda.gov/elections.

Elected county committee members serve a three-year term and are responsible for making decisions on FSA disaster, conservation, commodity and price support programs, as well as other important federal farm program issues. County committees consist of three members.

FSA will mail election ballots to eligible voters beginning Nov. 9. Ballots are due back in the County Office by mail or in person no later than Dec. 7, 2015. All newly elected county committee members and alternates will take office January 1, 2016.

For more information about county committees, please contact your local County FSA office or visit www.fsa.usda.gov/elections.

MicroLoans

Farm Service Agency (FSA) reminds farmers and ranchers that the FSA borrowing limit for microloans increased from $35,000 to $50,000, on Nov. 7, 2014. 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. Important Note: Microloans cannot be used to purchase real estate.

Since 2010, more than 50 percent of USDA's farm loans now go to beginning farmers and FSA has increased its lending to targeted underserved producers by nearly 50 percent.

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

Conduct USDA Business Online by Creating an eAuthentication Account

The Internet allows you, the customer, access to USDA information 24 hours a day, seven days a week. You can fill out and submit electronic forms (eForms) any time of the day or night from anywhere you have Internet access. This new service delivery option allows you to complete and file your own forms or applications online, because your signature is already electronically "on file."

Information submitted to the Federal Government remains safe and secure because every customer has a unique User ID and password; only authorized USDA employees can access your information. It's safe, saves paper, saves a visit to your local USDA Service Center and provides electronic tracking of all your USDA transactions.

How to Sign Up for eAuth :

Begin the process by reviewing the information at the USDA Website https://www.eauth.usda.gov. This website describes the services available for Level 1 and Level 2 Accounts. Level 1 and Level 2 accounts require that you have an email address so you can register, create a customer profile, and be able to respond to a confirmation email. Level 1 Accounts do not require you to provide proof of your identity at a local USDA Service Center. Level 1 Accounts provide limited access to certain USDA Web site portals that require no authentication or authorization. A Level 2 Account does require a visit to a USDA Service Center with proof of your identity. That is because a Level 2 account allows you access to complete and submit documents and forms electronically.

LEVEL 1 ACCOUNT

STEP 1. To obtain a Level 1 Account, you may self-register online at www.eauth.egov.usda.gov.

Scroll down and click on the button that says “Sign Up for a Level 1 Account.” Complete the brief customer profile.

STEP 2. You will receive a confirmation email, and you must respond to it within 7 days to activate your account.

LEVEL 2 ACCOUNT

STEP 1. To obtain a Level 2 Account, you must complete an 18 question customer profile and prove your identity by presenting state or federal photo ID at a local USDA Service Center. Go to www.eauth.egov.usda.gov,  scroll down and click on “Sign Up for a Level 2 Account.” Complete your customer profile, which includes designating your user ID and password created by you, contact information and email information. The data you enter in your customer profile must match the data on the document you use as identification at your local USDA Service Center. Example: Your first and last names and address must match the government-issued photo ID you plan to use to prove your identity. Identify proof can only be verified by one of the following documents: Current State Driver’s License, State Photo ID, US Military ID, or United States Passport.

STEP 2. After completing your customer profile and submitting it online, you will receive a
confirmation email, and you must respond to it within 7 days to activate your account.

STEP 3. Then you must complete the “Identify Proofing” process by visiting a local USDA Service Center. You will be required to present the eligible photo ID to an USDA employee who will verify your identity and enter the expiration date of the ID document used.

STEP 4. The USDA employee then will update your customer profile to a Level 2 Account. You will have access to USDA online applications and forms within one hour of your account being updated.

You now have access to complete and submit documents and forms electronically. USDA continues to update and make more forms and programs available electronically.

Producers Must Report Prevented Planting and Failed Acres

USDA Farm Service Agency (FSA) reminds producers to report prevented planting and failed acres in order to establish or retain FSA program eligibility.

Producers must report crop acreage they intended to plant, but due to natural disaster, were prevented from planting. Prevented planting acreage must be reported on form FSA-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by RMA.

If a producer is unable to report the prevented planting acreage within the 15 calendar days following the final planting date, a late-filed report can be submitted. Late-filed reports will only be accepted if FSA conducts a farm visit to assess the eligible disaster condition that prevented the crop from being planted. A measurement service fee will be charged.

Additionally, producers with failed acres should also use form FSA-576, Notice of Loss, to report failed acres before disposition of the crop.

For losses on crops covered by the Non-Insured Crop Disaster Assistance Program (NAP), producers must file a Notice of Loss:

  • For prevented planted acreage, within calendar days after the final planting date
  • For low yield, the earlier of
    • 15 calendar days after the disaster occurrence or date of loss to the crop first becomes
      apparent
    • 15 calendar days after the normal harvest date.

Please contact the local County FSA Office to schedule an appointment to file a Notice of Loss. To find your local FSA office visit http://offices.usda.gov.

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Producers with CRP Contracts Scheduled to Expire September 30, 2015

CRP contracts scheduled to expire on September 30, 2015 may be eligible for one or more of the following options:

1-Year Extension. Producers with expiring general CRP contracts that are 14 years or less in length, may submit a request to extend the expiration for an additional year under the same terms and conditions as the expiring contract(s), including the rental rate per acre. General sign-up contracts which are already 15 years in length are not eligible for an extension, but may be eligible for a combination of the other options described below. The sign-up for the 1-year extension is June 22, 2015 through August 28, 2015.

Continuous Re-enrollment in a new 10- to 15-year CRP contract. Producers with an expiring CRP contract may re-enroll all or a portion of the expiring acreage. The aceage may be eligible to be enrolled in a new 10- to 15-year continuous CRP contract. If interested in re-enrolling expiring acreage, please submit an offer at your local FSA office no later than September 4, 2015.

Transition Incentive Program (TIP). For those producers with an expiring contract who are not planning to farm the land themselves, TIP may provide two additional annual rental payments on the condition a producer sells or rents their land to a beginning farmer or rancher or a member of an underserved group. New landowners or renters are required to use sustainable grazing or farming methods as they return the land to production. TIP offers a way to create new farming opportunities while continuing conservation efforts. If interested in TIP, contact your local FSA office no later than September 4, 2015.

Contract Expiration. If a producer does nothing, their CRP contract will expire. Producers will receive their final payment in October in 2015. They may plant, graze, or hay the acreage after September 30, 2015. Since CRP land typically does not have a recent history of pesticide or herbicide application, the land may be valuable for organic production without a transition period. Prior to contract expiration, producers should visit with the local FSA office and review the current crop acreage base re-instatement provisions. Before planting, check with FSA or Natural Resources Conservation Service (NRCS) to see if the land is subject to conservation and wetland compliance provisions.

Producers should contact their local FSA Office to reinstate crop acreage bases if they were reduced when the contract was originally approved. Expired contract acres that were devoted to trees will no longer be considered cropland and may be ineligible for subsequent CRP contracts and other farm programs.

Conservation Easements or Working Lands Programs. CRP land may transition into conservation easements to provide longer term benefits. NRCS’s Agricultural Conservation Easement Program (ACEP) or state or private easement programs may be an option. If a producer is planning to convert CRP land to agriculture use, the forthcoming CRP grasslands initiative, NRCS’s working lands Conservation Stewardship Program (CSP), or the Environmental Quality Incentives Program may be available to address a producer’s resource needs. In many cases, a combination of approaches can be taken on the same parcel.

Producers should contact their local USDA Service Center, or visit http://www.fsa. usda.gov/crp  to explore possible options.

Tree Assistance Program (TAP) Sign-up

Orchardists and nursery tree growers who experience losses from natural disasters during calendar year 2015 must submit a TAP application either 90 calendar days after the disaster event or the date when the loss is apparent. TAP was authorized by the Agricultural Act of 2014 as a permanent disaster program. TAP provides financial assistance to qualifying orchardists and nursery tree growers to replant or rehabilitate eligible trees, bushes and vines damaged by natural disasters.

Eligible tree types include trees, bushes or vines that produce an annual crop for commercial purposes. Nursery trees include ornamental, fruit, nut and Christmas trees that are produced for commercial sale. Trees used for pulp or timber are ineligible.

To qualify for TAP, orchardists must suffer a qualifying tree, bush or vine loss in excess of 15 percent mortality from an eligible natural disaster. The eligible trees, bushes or vines must have been owned when the natural disaster occurred; however, eligible growers are not required to own the land on which the eligible trees, bushes and vines were planted.
 


If the TAP application is approved, the eligible trees, bushes and vines must be replaced within 12 months from the date the application is approved. The cumulative total quantity of acres planted to trees, bushes or vines, for which a producer can receive TAP payments, cannot exceed 500 acres annually.

New Farm Bill Offers Increased Opportunities for Producers

The 2014 Farm Bill offers increased opportunities for producers including farm loan program modifications that create flexibility for new and existing farmers. A fact sheet outlining modifications to the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) Farm Loan Programs is available here.

The Farm Bill expands lending opportunities for thousands of farmers and ranchers to begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and targeted underserved producers.

Changes that will take effect immediately include:

Elimination of the 15 year term limit for guaranteed operating loans.

Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier instead of the median farm size.

Modification of the Joint Financing Direct Farm Ownership Interest Rate to 2 percent less than regular Direct Farm Ownership rate, with a floor of 2.5 percent. Previously, the rate was established at 5 percent.

Increase of the maximum loan amount for Direct Farm Ownership Down Payment Loan Program from $225,000 to $300,000.

Elimination of rural residency requirement for Youth Loans, allowing urban youth to benefit.

Debt forgiveness on Youth Loans, which will not prevent borrowers from obtaining additional loans from the federal government.

Increase of the guaranteed percentage on Conservation Loans from 75 to 80 percent and 90 percent for targeted underserved borrowers and beginning farmers.

Microloans will not count toward direct operating loan term limits for veterans and beginning farmers.
 


Additional modifications must be implemented through the rulemaking processes. Visit the FSA Farm Bill website for detailed information and updates to farm loan programs.

2015 Crop Reporting Dates

Producers who file accurate and timely reports for all crops and land uses, including failed acreage can prevent the potential loss of FSA program benefits. Please pay close attention to the acreage reporting dates below, as some dates have changed.

In order to comply with FSA program eligibility requirements, all producers are encouraged to visit their local County FSA office to file an accurate crop certification report by the applicable deadline.

August 15 - Cabbage (planted 6/1-7/20)

September 15 - Cucumbers (planted 6/1-8/15) in Gallatin, Lawrence, and White Counties

The following exceptions apply to the above acreage reporting dates:

If the crop has not been planted by the above acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed.

If a producer acquires additional acreage after the above acreage reporting date, then the acreage must be reported no later than 30 calendars days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office.

If a perennial forage crop is reported with the intended use of “cover only,” “green manure,” “left standing,” or “seed,” then the acreage must be reported by July 15, 2016.

Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins.
 


For questions regarding crop certification and crop loss reports, please contact the your local County FSA office.

If filing for prevented planting, an acreage report and CCC-576 must be filed within 15 calendar days of the final planting date for the crop.


July Interest Rates

90-Day Treasury Bill .125 %

Farm Operating Loans — Direct 2.50 %

Farm Ownership Loans — Direct 3.75 %

Farm Ownership Loans — Direct Down Payment, Beginning Farmer or Rancher 1.50 %

Emergency Loans - 3.50 %

Farm Storage Facility Loans - 7 years - 2.00 %

Farm Storage Facility Loans - 10 years - 2.25 %

Farm Storage Facility Loans - 12 years - 2.375 %

Commodity Loans 1996-Present - 1.250 %


Important Dates to Remember

August 3 - Last Day to File County Committee Nomination Forms at Local FSA Office

June 22 - August 28 - Sign up for September 30, 2015 Expiring CRP contract 1 year extension

September 30 - Final Date to Sign 2014 and 2015 ARC or PLC contracts

September 30 - Final Date to Enroll in MPP - Dairy for 2016 Coverage

Illinois Farm Service Agency
3500 Wabash Ave
Springfield, IL 62711

www.fsa.usda.gov/il

State Committee:
Jill Appell - chair
Brenda Hill - member
Jerry Jimenez - member
Joyce Matthews - member
Gordon Stine - member

State Executive Director:
Scherrie V. Giamanco
Executive Officer:
Rick Graden
Administrative Officer:
Dan Puccetti

Division Chiefs:
Doug Bailey
Jeff Koch
Stan Wilson

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

 

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