June, 2020 FSA Newsletter

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[July 01, 2020]    Message from the SED - Agricultural producers can now apply for USDA’s Coronavirus Food Assistance Program (CFAP), which provides direct payments to offset impacts from the coronavirus pandemic. The application and a payment calculator are now available online, and USDA’s Farm Service Agency (FSA) staff members are available via phone, fax and online tools to help producers complete applications.

Applications will be accepted through August 28, 2020. Through CFAP, USDA is making available $16 billion for vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

We also want to remind producers that the program is structured to ensure the availability of funding for all eligible producers who apply. In order to do this, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date nationwide, as funds remain available.

Producers can download the CFAP application and other eligibility forms from farmers.gov/cfap.

If you haven’t certified your planted acres, please telephone your local FSA office to make a telephone/virtual meeting appointment to do so.

There are also options for Farm Service Agency loan customers during financial stress. If you are a borrower who is unable to make payments on a loan, contact your local FSA Farm Loan Manager to learn about the options available to you.

County FSA Offices continue to be open for telephone and virtual appointments only.

William J. Graff
Illinois Farm Service Agency


Direct Loans

FSA offers direct farm ownership and direct farm operating Loans to producers who want to establish, maintain or strengthen their farm or ranch. FSA loan officers process, approve and service direct loans.

Direct farm operating loans can be used to purchase livestock and feed, farm equipment, fuel, farm chemicals, insurance and other costs including family living expenses. Operating loans can also be used to finance minor improvements or repairs to buildings and to refinance some farm-related debts, excluding real estate.

Direct farm ownership loans can be used to purchase farmland, enlarge an existing farm, construct and repair buildings, and to make farm improvements.

The maximum loan amount for direct farm ownership loans is $600,000 and the maximum loan amount for direct operating loans is $400,000 and a down payment is not required. Repayment terms vary depending on the type of loan, collateral and the producer's ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years.

Please contact your local FSA office for more information or to apply for a direct farm ownership or operating loan.


Farmers and Ranchers in Illinois Can Now Apply for Financial Assistance through USDA’s Coronavirus Food Assistance Program
Online Tools and Toll-Free Number Available to Assist Producers

Agricultural producers can now apply for USDA’s Coronavirus Food Assistance Program (CFAP), which provides direct payments to offset impacts from the coronavirus pandemic. The application and a payment calculator are now available online, and USDA’s Farm Service Agency (FSA) staff members are available via phone, fax and online tools to help producers complete applications. The agency set up a call center in order to simplify how they serve new customers across the nation.

Applications will be accepted through August 28, 2020. Through CFAP, USDA is making available $16 billion for vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

We also want to remind producers that the program is structured to ensure the availability of funding for all eligible producers who apply.

In order to do this, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date nationwide, as funds remain available.

Producers can download the CFAP application and other eligibility forms from farmers.gov/cfap. Also, on that webpage, producers can find a payment calculator to help identify sales and inventory records needed to apply and calculate potential payments.

Applying for Assistance

Producers of all eligible commodities will apply through their local FSA office. Those who use the online calculator tool will be able to print off a pre-filled CFAP application, sign, and submit to your local FSA office either electronically or via hand delivery. Please contact your local office to determine the preferred method. Find contact information for your local office at farmers.gov/cfap.

Documentation to support the producer’s application and certification may be requested after the application is filed. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.

Additional Commodities

USDA is also establishing a process for the public to identify additional commodities for potential inclusion in CFAP. Specifically, USDA is looking for data on agricultural commodities, that are not currently eligible for CFAP, that the public believes to have either:

1) suffered a five percent-or-greater price decline between mid-January and mid-April as a result of the COVID-19 pandemic,

2) shipped but subsequently spoiled due to loss of marketing channel, or

3) not left the farm or remained unharvested as mature crops.

More information about this process is available on farmers.gov/cfap.

More Information

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

USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/
coronavirus.


Eligibility for Nominations for the 2020 County Committee Elections

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) county committees are a critical component of the day-to-day operations of FSA and allow grassroots input and local administration of federal farm programs.

Committees are comprised of locally elected agricultural producers responsible for the fair and equitable administration of FSA farm programs in their counties. Committee members are accountable to the Secretary of Agriculture. If elected, members become part of a local decision making and farm program delivery process.

A county committee is composed of three to 11 elected members from local administrative areas (LAA). Each member serves a three-year term. To be eligible for nomination and hold office as a committee member or alternate, a person must fulfill each of the following requirements: (1) be a producer with an interest in farming or ranching operations, (2) participate or cooperate in any FSA program provided for by law, (3) be a U.S. citizen, (4) be of legal voting age, (5) meet the basic eligibility requirements, and (6) reside in the county or multi-county jurisdiction in which they will be serving.

All nomination forms for the 2020 election must be postmarked or received in the local USDA Service Center by Aug. 1, 2020 (or next business day). For more information on FSA county committee elections and appointments, refer to the FSA fact sheet: Eligibility to Vote and Hold Office as a COC Member available online at: fsa.usda.gov/elections.


USDA Reminds Illinois Producers to Complete Crop Acreage Reports

USDA’s Farm Service Agency (FSA) offices in Illinois are currently open to phone and virtual appointments only but can still work with producers on timely filing crop acreage reports. FSA staff can provide assistance over the phone, by email and through virtual meetings via Microsoft Teams.

The following acreage reporting dates are applicable in Illinois:

December 15
Fall-Seeded Small Grains, Canola

January 15
Apples, Asparagus, Blueberries, Caneberries, Cherries,
Grapes,Nectarines, Peaches, Pears, Plums, Strawberries

June 15
Cucumbers (Planted 5/1-5/31 in Gallatin, Lawrence, and
White Counties

July 15
Cabbage (Planted 3/15-5/31), Cucumbers (all other counties not listed), all other crops, Perennial Forage

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

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

In order to comply with FSA program eligibility requirements, all producers must file an accurate crop acreage report by the applicable deadline. FSA staff is still able to assist producers in completing acreage reports, including providing maps.

FSA county offices in Illinois provided maps to producers with instructions for completing the maps. After planting is complete, producers should return completed maps and the acreage reporting sheet.

FSA offices are using Microsoft Teams software to virtually meet with producers to review maps and documents for certification. Producers who want to schedule a virtual appointment can download the Microsoft Teams app on their smart phones and call the FSA office for an appointment. You can also use Microsoft Teams from your personal computer without downloading software.

After completed maps and all acreage reporting information is received, FSA will make software updates and provide producers with the completed Report of Acreage form (FSA-578) to sign. Producers must return the signed form certifying their acreage report to the FSA office.

The following exceptions apply to acreage reporting dates:

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

2) If a producer acquires additional acreage after the 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.

Producers should also report crop acreage they intended to plant, but due to natural disaster, were unable to plant. Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by FSA and USDA’s Risk Management Agency 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. If you have applied for organic certification and do not receive it before the acreage reporting deadline, you may provide the necessary documentation to FSA immediately upon receipt from the certifying agent.For questions, please contact your local FSA office. To locate your local FSA office visit farmers.gov/service-center-locator. 


FSA Reminds Producers of Ongoing Disaster Assistance Program Signup

The U.S. Department of Agriculture (USDA) has started making payments through the Wildfire and Hurricane Indemnity Program – Plus (WHIP+) to agricultural producers who suffered eligible losses because of drought or excess moisture in 2018 and 2019. Signup for these causes of loss opened March 23, and producers who suffered losses from drought (in counties designated D3 or above), excess moisture, hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms or wildfires can still apply for assistance through WHIP+.

To be eligible for WHIP+, producers must have suffered losses of certain crops, trees, bushes or vines in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation (primary counties only) for qualifying natural disaster events that occurred in calendar years 2018 or 2019. Also, losses located in a county not designated by the Secretary as a primary county may be eligible if a producer provides documentation showing that the loss was due to a qualifying natural disaster event.

In addition to the recently added eligible losses of drought and excess moisture, FSA will implement a WHIP+ provision for crop quality loss that resulted in price deductions or penalties when marketing crops damaged by eligible disaster events. To ensure an effective program for all impacted farmers, the Agency is currently gathering information on the extent of quality loss from producers and stakeholder organizations.

USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information on Service Centers can be found at farmers.gov/coronavirus, and more information on WHIP+ can be found at farmers.gov/whip-plus.


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USDA Adds Flexibilities for Crop Insurance

You can continue to work with your Approved Insurance Providers on policies, claims, and agreements. If you have crop insurance questions or other needs, you should continue to contact your insurance agents about conducting business by telephone or email.

USDA’s Risk Management Agency is working with those insurance providers to provide additional flexibilities in response to COVID-19, including:

  • Enabling producers to send notifications and reports electronically

  • Extending the date for production reports

  • Providing additional time and deferring interest on premium and other payments

  • Extending the correction time period for acreage reports and other forms

  • Modifying the sales period for Dairy Revenue Protection

  • Authorizing replant self-certification

  • Waiving the witness signature requirement for approval of Assignments of Indemnity

  • Allowing dumped milk to be counted as milk marketings for the Dairy Revenue Protection or actual marketings for the Livestock Gross Margin for Dairy programs

  • Allowing phone and electronic transactions for 2021 crop year sales and reporting dates, including options and endorsements

  • Extending the deadline for some perennial crop Pre-Acceptance Inspection Reports

  • Waiving the 2021 crop year inspection requirements for the Nursery and Nursery Value Select programs in certain cases

  • Authorizing AIPs to allow organic producers to report acreage as certified organic, or transitioning to organic, for the 2020 crop year if they can show they have requested a written certification from a certifying agent by their policy’s acreage reporting date.

For more in-depth information on these flexibilities, visit farmers.gov/
coronavirus.


Farm Storage Facility Loans
FSA’s Farm Storage Facility Loan


(FSFL) program provides low-interest financing to producers to build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.

The low-interest funds can be used to build or upgrade permanent facilities to store commodities. Eligible commodities include corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as whole grain, pulse crops (lentils, chickpeas and dry peas), hay, honey, renewable biomass, fruits, nuts and vegetables for cold storage facilities, floriculture, hops, maple sap, rye, milk, cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and aquaculture (excluding systems that maintain live animals through uptake and discharge of water). Qualified facilities include grain bins, hay barns and cold storage facilities for eligible commodities.

Loans up to $50,000 can be secured by a promissory note/security agreement and loans between $50,000 and $100,000 may require additional security. Loans exceeding $100,000 require additional security.

Producers do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.

To learn more about the FSA Farm Storage Facility Loan, visit www.
fsa.usda.gov/pricesupport or contact your local FSA county office. To find your local FSA county office, visit http://offices.usda.gov.


USDA Reports Record Enrollment in Key Farm Safety-Net Programs

Producers signed a record 1.77 million contracts for the U.S. Department of Agriculture’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 crop year, which is more than 107 percent of the total contracts signed compared with a 5-year average. USDA also reminds producers that June 30 is the deadline to enroll in ARC and PLC for the 2020 crop year.

Producers interested in enrolling for 2020 should contact their FSA county office. Producers must enroll by June 30 and make their one-time update to PLC payment yields by September 30.

FSA attributes the significant participation in the 2019 crop year ARC and PLC programs to increased producer interest in the programs under the 2018 Farm Bill and to an increase in eligible farms because of the selling and buying of farms and new opportunities for beginning farmers and military veterans with farms having 10 or fewer base acres. Enrollment for 2019 ended March 16.



USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

For more information on ARC and PLC, download the program fact sheet or the 2014-2018 farm bills comparison fact sheet. Online ARC and PLC election decision tools are available at www.fsa.usda.gov/arc-plc.  To locate the nearest USDA Service Center, visit farmers.gov/service-center-locator. 


Journal of Soil and Water Conservation Provide Evidence that USDA Conservation Practices Work

Conservation practices are working to reduce runoff, improve soil quality, and mitigate contaminants in small watersheds across the country, according to USDA’s scientific findings published in the Journal of Soil and Water Conservation. USDA’s Natural Resources Conservation Service (NRCS) and Agricultural Research Service (ARS) collaborated with universities and other agencies and organizations to complete the water-quality studies featured in the journal through USDA’s Conservation Effects Assessment Project (CEAP).

Practices were assessed at plot, field, edge-of-field and watershed scales and included drainage management, conservation tillage, cover crops, buffers, irrigation, nutrient management, water management and Conservation Reserve Program (CRP) practices.

Some examples of results include:

In the Central Mississippi River Basin, combining no-till and cover crop practices reduced sediment losses by 87% and nitrate losses by 57% on a monitored field due to changes in soil moisture, timing of nitrogen applications and use of cover crops.

In the Western Lake Erie Basin, edge-of-field monitoring revealed that subsurface placement of fertilizer in tile-drained fields reduced dissolved phosphorus losses by 66%. In addition, an innovative conservation practice was developed to treat contaminant losses from drainage water – replacing tile risers with blind inlets. This new practice reduced sediment losses by about 78% (Smith and Livingston 2013), total phosphorous losses by 66% and dissolved phosphorus losses by 50%.

In the Choptank Watershed in the Chesapeake Bay, novel satellite remote sensing techniques were developed and evaluated, along with program data, to assess the extent of cover crop implementation over an 8-year period (2008-2016). These techniques documented a 62% increase in winter cover crop use in corn fields and a 37% increase in soybean fields in a sub-watershed. In addition, modeling results indicate that this cover crop adoption led to a 25% reduction in nitrate leaching from cropland over a 10-year period (2008-2017).


The USDA spends about $6 billion per year on agricultural conservation programs to help producers and landowners implement suitable conservation practices and systems on their land. For more information on the special issue, visit https://www.jswc
online.org/content/75/3.


Transitioning Expiring CRP Land to Beginning, Veteran or Underserved Farmers and Ranchers

CRP contract holders are encouraged to transition their Conservation Reserve Program (CRP) acres to beginning, veteran or socially disadvantaged farmers or ranchers through the Transition Incentives Program (TIP). TIP provides annual rental payments to the landowner or operator for up to two additional years after the CRP contract expires, provided the transition is not to a family member.

Enrollment in TIP is on a con­tinuous basis through 2023 or until the new statutory limit of $50 million under the 2018 Farm Bill is reached.

CRP contract holders no longer need to be a retired or retiring owner or operator to transition their land. TIP participants must agree to sell, have a contract to sell, or agree to lease long term (at least five years) land enrolled in an expiring CRP contract to a beginning, veteran, or socially disadvantaged farmer or rancher who is not a family member.

Beginning, veteran or social disadvantaged farmers and ranchers and CRP participants may enroll in TIP beginning two years before the expiration date of the CRP contract. For example, if a CRP contract is scheduled to expire on Sept. 30, 2022, the land may be offered for en­rollment in TIP from October 1, 2020, through September 30, 2022. The TIP application must be submitted prior to completing the lease or sale of the affected lands.

New landowners or renters that return the land to production must use sustainable grazing or farming methods.

For more information on TIP, visit https://www.fsa.usda.gov/conservation.


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.


Uauthorized 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.


FSA Offers Disaster Assistance for Qualifying Tree, Bush and Vine Losses

Orchardists and nursery tree growers who experience losses from natural disasters during calendar year 2020 must submit a TAP application either 90 calendar days after the disaster event or the date when the loss is apparent. 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, plus an adjustment for normal mortality. 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 1,000 acres annually.


June Interest Rates and Important Dates

Illinois Farm Service Agency
3500 Wabash Ave.
Springfield, IL 62711

Phone: 217-241-6600 ext. 2
Fax: 855-800-1760

www.fsa.usda.gov/il

State Executive Director:
William Graff

State Committee:
James Reed-Chairperson
Melanie DeSutter-Member
Kirk Leifer-Member
George Obernagel III-Member
Troy Uphoff-Member

To find contact information for your local office go to www.fsa.usda.gov/il

 

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