Changes in your farm operation, like the addition of a farm by
lease or purchase, need to be reported to our office as well.
Producers participating in FSA and NRCS programs are required to
timely report changes in their farming operation to the County
Committee in writing and update their CCC-902 Farm Operating
If you have any updates or corrections, please call your local
County FSA office to update your records.
Maintaining the Quality of Loaned Grain
Bins are ideally designed to hold a level volume of grain. When
bins are overfilled and grain is heaped up, airflow is hindered
and the chance of spoilage increases.
Producers who take out marketing assistance loans and use the
farm-stored grain as collateral should remember that they are
responsible for maintaining the quality of the grain through the
term of the loan.
CRP Payment Limitation
Payments and benefits received under the Conservation Reserve
Program (CRP) are subject to the following:
- payment limitation by direct attribution
- foreign person rule
- average adjusted gross income (AGI) limitation The 2014
Farm Bill continued the $50,000 maximum CRP payment amount
that can be received annually, directly or indirectly, by
each person or legal entity. This payment limitation
includes all annual rental payments and incentive payments
(Sign-up Incentive Payments and Practice Incentive
Payments). Annual rental payments are attributed (earned) in
the fiscal year in which program performance occurs. Sign-up
Incentive Payments (SIP) are attributed (earned) based on
the fiscal year in which the contract is approved, not the
fiscal year the contract is effective. Practice Incentive
Payments (PIP) are attributed (earned) based on the fiscal
year in which the cost-share documentation is completed and
the producer or technical service provider certifies
performance of practice completion to the county office.
Such limitation on payments is controlled by direct
- Program payments made directly or indirectly to a person
are combined with the pro rata interest held in any legal
entity that received payment, unless the payments to the
legal entity have been reduced by the pro rata share of the
- Program payments made directly to a legal entity are
attributed to those persons that have a direct and indirect
interest in the legal entity, unless the payments to the
legal entity have been reduced by the pro rata share of the
- Payment attribution to a legal entity is tracked through
four levels of ownership. If any part of the ownership
interest at the fourth level is owned by another legal
entity, a reduction in payment will be applied to the
payment entity in the amount that represents the indirect
interest of the fourth level entity in the payment entity.
Essentially, all payments will be “attributed” to a person’s
Social Security Number. Given the current CRP annual rental
rates in many areas, it is important producers are aware of
how CRP offered acreages impact their $50,000 annual payment
Producers should contact their local FSA office for
additional information. NOTE: The information in the above
article only applies to contracts subject to 4-PL and 5-PL
regulations. It does not apply to contacts subject to 1-PL
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.
FSAfarm+, FSA’s Customer Self-Service Portal
The U.S. Department of Agriculture (USDA) Farm Service
Agency (FSA) has launched a new tool to provide farmers and
ranchers with remote access to their personal farm
information using their home computers. Farmers and ranchers
can now view, print or export their personal farm data all
without visiting an FSA county office.
The program, known as FSAfarm+, provides you with secure
access to view your personal FSA data, such as base and
yields, Conservation Reserve Program data, other
conservation program acreage, Highly Erodible Land
Conservation and Wetland Conservation status information,
field boundaries, farm imagery, name and address details,
contact information and membership interest and shares in
the operation. This data will be available in real time, at
no cost to the producer and allow operators and owners to
export and print farm records, including maps. Producers
also can electronically share their data with a crop
insurance agent from their own personal computer.
Farm operators and owners first will need “Level 2
eAuthentication” to access the webportal. This level of
security ensures that personal information is protected for
This level of security ensures that personal information is
protected for each user. Level 2 access can be obtained by
going to www.eauth.usda.gov, completing the required
information and then visiting your local FSA office to
For more information on FSAfarm+, the customer self-service
portal, contact your local county FSA office. To find your
local FSA county office, click
FSA Offers Improved Program to Limit Losses on Forages
Reduced forage quality is now considered a production loss
for weather disaster assistance coverage under the new
buy-up provisions of the Farm Service Agency (FSA)
Noninsured Crop Disaster Assistance Program (NAP).
This safety net is important for cattlemen who produce
non-insurable forages for feeding livestock. Previously, FSA
only considered a decrease in overall forage tonnage
produced when determining if the producer suffered a
compensable loss after a qualifying weather event. Under
FSA’s new NAP buy-up provisions, a decrease in forage
quality – such as protein content – may also be considered.
To receive coverage for the 2017 crop year, producers must
enroll their eligible forage in NAP by September 30, 2016.
Beginning, limited resource and targeted underserved farmers
or ranchers are eligible for a waiver of the NAP service fee
and a 50 percent premium reduction in buy-up provisions.
For more information on NAP, visit
Dairy Producers Can Enroll to Protect Milk Production
USDA Farm Service Agency (FSA) in Illinois announced that
dairy producers can enroll for 2017 coverage in the Margin
Protection Program for Dairy (MPP-Dairy) starting July 1,
2016. The voluntary program, established by the 2014 Farm
Bill, provides financial assistance to participating dairy
producers when the margin – the difference between the price
of milk and feed costs – falls below the coverage level
selected by the producer.
Enrollment began July 1, 2016 and ends on September 30,
2016, for coverage in calendar year 2017. Please see the
July 2016 Illinois FSA Newsletter, for a more detailed
explanation of MPP.
For more information, visit FSA online at www.fsa.usda.gov/dairy
or stop by a local County FSA office to learn more about the
Margin Protection Program. To find a local county FSA office
in your area, visit http://offices.usda.gov.
USDA Offers New Loans for Portable Farm Storage and
USDA’s Farm Service Agency (FSA) will provide a new
financing option to help farmers purchase portable storage
and handling equipment through the Farm Storage Facility
Loan (FSFL) program. The loans, which now include a smaller
microloan option with lower down payments, are designed to
help producers, including new, small and mid-sized
producers, grow their businesses and markets. The FSFL
program allows producers of eligible commodities to obtain
low-interest financing to build or upgrade farm storage and
The program also offers a new “microloan” option, which
allows applicants seeking less than $50,000 to qualify for a
reduced down payment of five percent and no requirement to
provide three years of production history, with CCC
providing a loan for the remaining 95 percent of the net
cost of the eligible FSFL equipment.
Farms and ranches of all sizes are eligible. The microloan
option is expected to be of particular benefit to smaller
farms and ranches, and specialty crop producers who may not
have access to commercial storage or on-farm storage after
harvest. These producers can invest in equipment like
conveyers, scales or refrigeration units and trucks that can
store commodities before delivering them to markets. FSFL
microloans can also be used to finance wash and pack
equipment used post-harvest, before a commodity is placed in
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For larger farming and ranching operations that may not be able to
participate in the new “microloan” option, may apply for the
traditional, larger FSFL’s with the maximum principal amount for
each loan through FSFL of $500,000.00. Participants are required to
provide a down payment of 15 percent, with CCC providing a loan for
the remaining 85 percent of the net cost of the eligible storage
facility and permanent drying and handling equipment. Additional
security is required for poured-cement open-bunker silos, renewable
biomass facilities, cold storage facilities, hay barns and for all
loans exceeding $100,000.00. FSFL loan terms of 3, 5, 7, 10 or 12
years are available depending on the amount of the loan. Interest
rates for each term rate may be different and are based on the rate
which CCC borrows from the Treasury Department.
Earlier this year, FSA significantly expanded the list of
commodities eligible for FSFL. Eligible commodities now include
aquaculture; floriculture; fruits (including nuts) and vegetables;
corn, grain sorghum, rice, oilseeds, oats, wheat, triticale, spelt,
buckwheat, lentils, chickpeas, dry peas sugar, barley, rye, hay,
honey, hops, maple sap, unprocessed meat and poultry, eggs, milk,
cheese, butter, yogurt and renewable biomass.
Applications for FSFL must be submitted to the FSA county office
that maintains the farm's records. A FSFL must be approved before
any site preparation or construction can begin.
To learn more about Farm Storage Facility Loans, visit
www.fsa.usda.gov/pricesupport or contact your local county FSA
office. To find your county FSA office, visit
Marketing Assistance Available for 2016 Wheat, Other Crops
The 2014 Farm Bill authorized 2014-2018 crop year Marketing
Assistance Loans (MALs) and Loan Deficiency Payments (LDPs).
MALs and LDPs provide financing and marketing assistance for 2016
crop wheat, and other commodities such as feed grains, soybeans and
other oilseeds, pulse crops, wool 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.
Illinois FSA county offices are now accepting requests for 2016 crop
wheat, oats, barley and honey MALs and LDPs for eligible commodities
As 2016 crop harvest begins, Illinois FSA county offices will be
accepting requests for 2016 fall harvested crops; corn and soybeans.
A producer who is eligible to obtain an MAL, but agrees to forgo the
loan, may obtain an LDP if such a payment is available.
In Illinois Hard Red Winter (HRW) prices are nearing a range where
LDPs may be applicable, so producers should become familiar with the
process to access this assistance.
To be eligible for an MAL or an LDP, producers must have a
beneficial interest in the commodity, in addition to other
requirements. A producer retains beneficial interest when control of
and title to the commodity is maintained. For an LDP, the producer
must retain beneficial interest in the commodity from the time of
planting through the date the producer filed Form CCC-633EZ (page 1)
in the FSA County Office. For more information, producers should
contact their local FSA county office or view the LDP Fact Sheet.
Unauthorized Disposition of Grain
If loan grain has been disposed of through feeding, selling or any
other form of disposal without prior written authorization from the
county office staff, it is considered unauthorized disposition and a
violation of the terms and conditions of the Note and Security
Agreement. The financial penalties for unauthorized dispositions are
severe and a producer’s name will be placed on a loan violation list
for a two-year period. Always call before you haul any grain under
loan. If you have questions concerning the movement of grain under
loan, please contact your local county FSA office.
Loans for Targeted Underserved Producers
FSA has a number of loan programs available to assist applicants to
begin or continue in agriculture production. Loans are available for
operating type loans and/or to purchase or improve farms or ranches.
While all qualified producers are eligible to apply for these loan
programs, FSA has provided priority funding for members of targeted
A targeted underserved applicant is one of a group whose members
have been subjected to racial, ethnic or gender prejudice because of
his or her identity as members of the group without regard to his or
her individual qualities.
For purposes of this program, targeted underserved groups are women,
African Americans, American Indians, Alaskan Natives, Hispanics,
Asian Americans and Pacific Islanders.
FSA loans are only available to applicants who meet all the
eligibility requirements and are unable to obtain the needed credit
Beginning Farmer Loans
FSA assists beginning farmers to finance agricultural enterprises.
Under these designated farm loan programs, FSA can provide financing
to eligible applicants through either direct or guaranteed loans.
FSA defines a beginning farmer as a person who:
- Has operated a farm for not more than 10 years
- Will materially and substantially participate in the
operation of the farm
- Agrees to participate in a loan assessment, borrower
training and financial management program sponsored by FSA
- Does not own a farm in excess of 30 percent of the county’s
average size farm. Additional program information, loan
applications, and other materials are available at your local
USDA Service Center. You may also visit
Selected Interest Rates for August 2016
August dates to remember
Illinois Farm Service Agency
3500 Wabash Ave
Springfield, IL 62711
State Executive Director:
Scherrie V. Giamanco
Jill Appell - Chairperson
Brenda Hill - Member
Jerry Jimenez - Member
Joyce Matthews - Member
Gordon Stine - Member
To find contact information for your local county FSA office go to
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).