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If you have any questions, please contact your local FSA office.
You can find contact information at Farmers.gov/
service-center-locator. For more information visit the FSA
website fsa.usda.gov or ask a specific question online at
ask.usda.gov .
Administrative Policy Reminders
Changing Bank Accounts
FSA program payments are issued electronically into your bank
account. In order to make timely payments, you need to notify
your FSA servicing office if you close your account or if your
bank information is changed for whatever reason (such as your
financial institution merging or being purchased). Payments can
be delayed if FSA is not notified of changes to account and bank
routing numbers.
For some programs, payments are not made until the following
year. For example, payments for crop year 2020 through the
Agriculture Risk Coverage and Price Loss Coverage program aren’t
paid until 2021. If the bank account was closed due to the death
of an individual or dissolution of an entity or partnership
before the payment was issued, please notify your local FSA
office as soon as possible to claim your payment.
Civil Rights/Discrimination Complaint Process
As a participant or applicant for programs or activities
operated or sponsored by USDA you have a right to be treated
fairly. If you believe you have been discriminated against
because of your race, color, national origin, gender, age,
religion, disability, or marital or familial status, you may
file a discrimination complaint. The complaint should be filed
with the USDA Office of Civil Rights within 180 days of the date
you became aware of the alleged discrimination. To file a
complaint of discrimination, write U.S. Department of
Agriculture, Director, Office of Adjudication,1400 Independence
Avenue, SW, Washington DC 20250-9410 or call 202-260-1026 (voice
or TDD), USDA is an equal opportunity provider, employer and
lender. A complaint must be filed within 180 calendar days from
the date the complainant knew, or should have known, of the
alleged discrimination.
Power of Attorney
FSA has a power of attorney form available that enables persons
and legal entities to designate another person to conduct
business on behalf of the person or legal entity. If you are
interested, please contact our office or any FSA office near you
for more information. FSA’s power of attorney form and
provisions do not apply to farm loan programs.
Reasonable Accommodations
Special accommodations will be made upon request for individuals
with disabilities, vision impairment or hearing impairment. If
accommodations are required, individuals should contact the
county FSA office directly or by phone or Federal Relay Service
at 1-800-877-8339.
Farm Program Policy Reminders
Annual Review of Payment Eligibility for New
Crop Year
FSA and NRCS program applicants benefits are required to submit
a completed CCC-902 (Farming Operation Plan) and CCC-941 Average
Gross Income (AGI) Certification and Consent to Disclosure of
Tax Information for FSA to determine the applicant’s payment
eligibility and establish the maximum payment limitation
applicable to the program applicant.
Participants are not required to annually submit new CCC-902s
for payment eligibility and payment limitation purposes unless a
change in the farming operation occurs that may affect the
previous determination of record. A valid CCC-902 filed by the
participant is considered to be a continuous certification used
for all payment eligibility and payment limitation
determinations applicable for the program benefits requested.
Participants are responsible for ensuring that all CCC-902 and
CCC-941 and related forms on file in the county office are
updated, current, and correct. Participants are required to
timely notify the county office of any changes in the farming
operation that may affect the previous determination of record
by filing a new or updated CCC-902 as applicable.
Changes that may require a NEW determination include, but are
not limited to, a change of:
Shares of a contract, which may reflect:
-A land lease from cash rent to share rent
-A land lease from share rent to cash rent (subject to the cash
rent tenant rule)
-A modification of a variable/fixed bushel-rent arrangement
The size of the producer’s farming operation by the addition or
reduction of cropland that may affect the application of a
cropland factor
The structure of the farming operation, including any change to
a member's share
The contribution of farm inputs of capital, land, equipment,
active personal labor, and/or active personal management
Farming interests not previously disclosed on CCC-902 including
the farming interests of a spouse or minor child
Certifications of average AGI are required to be filed annually
for participation in an annual USDA program. For multi-year
conservation contracts and NRCS easements, a certification of
AGI must be filed prior to approval of the contract or easement
and is applicable for the duration of the contract period.
Participants are encouraged to file or review these forms within
the deadlines established for each applicable program for which
program benefits are being requested.
Payment Limitation
Program payments may be limited by direct attribution to
individuals or entities. A legal entity is defined as an entity
created under Federal or State law that owns land or an
agricultural commodity, product or livestock. Through direct
attribution, payment limitation is based on the total payments
received by a person or legal entity, both directly and
indirectly. Qualifying spouses are eligible for a separate
payment limitation.
Payments and benefits under certain FSA programs are subject to
some or all of the following:
payment limitation by direct attribution (including common
attribution)
payment limitation amounts for the applicable programs
substantive change requirements when a farming operation adds
persons, resulting in an increase in persons to which payment
limitation applies
actively engaged in farming requirements
cash-rent tenant rule
foreign person rule
average AGI limitations
programs subject to AGI limitation
No program benefits subject to payment eligibility and
limitation will be provided until all required forms for the
specific situation are provided and necessary payment
eligibility and payment limitation determinations are made.
Payment eligibility and payment limitation determinations may be
initiated by the County Committee or requested by the producer.
Statutory and Regulatory rules require persons and legal
entities, provide the names and Tax Identification Numbers (TINs)
for all persons and legal entities with an ownership interest in
the farming operation to be eligible for payment.
Payment eligibility and payment limitation forms submitted by
persons and legal entities are subject to spot check through
FSA’s end-of-year review process.
Persons or legal entities selected for end-of-year review must
provide the County Committee with operating loan documents,
income and expense ledgers, canceled checks for all
expenditures, lease and purchase agreements, sales contracts,
property tax statements, equipment listings, lease agreements,
purchase contracts, documentation of who provided actual labor
and management, employee time sheets or books, crop sales
documents, warehouse ledgers, gin ledgers, corporate or entity
papers, etc.
A finding that a person or legal entity is not actively engaged
in farming results in the person or legal entity being
ineligible for any payment or benefit subject to the actively
engaged in farming rules.
Noncompliance with AGI provisions, either by exceeding the
applicable limitation or failure to submit a certification and
consent for disclosure statement, will result in payment
ineligibility for all program benefits subject to AGI
provisions. Program payments are reduced in an amount that is
commensurate with the direct and indirect interest held by an
ineligible person or legal entity in any legal entity, general
partnership, or joint operation that receives benefits subject
to the average AGI limitations.
If any changes occur that could affect an actively engaged in
farming, cash-rent tenant, foreign person, or average Adjusted
Gross Income (AGI) determination, producers must timely notify
the County FSA Office by filing revised farm operating plans
and/or supporting documentation, as applicable. Failure to
timely notify the County Office may adversely affect payment
eligibility.
Acreage Reporting
Timely filing an accurate crop and acreage report by the acreage
reporting date at your local FSA office can prevent the loss of
benefits for a variety of programs.
Failed acreage is acreage that was timely planted with the
intent to harvest, but because of disaster related conditions,
the crop failed before it could be brought to harvest.
Prevented planting must be reported no later than 15 days after
the final planting date. Annual acreage reports are required for
most FSA programs. Annual crop reporting deadlines vary based on
region, crop, perennial vs. annual crop type, Noninsured Crop
Disaster Assistance Program (NAP) or non-NAP crop and fall or
winter seeding. Consult your local FSA office for deadlines in
your area.
Change in Farming Operation
If you have bought or sold land, or if you have picked up or
dropped rented land from your operation, make sure you report
the changes to the office as soon as possible. You need to
provide a copy of your deed or recorded land contract for
purchased property. Failure to maintain accurate records with
FSA on all land you have an interest in can lead to possible
program ineligibility and penalties. Making the record changes
now will save you time this spring. Update signature
authorization when changes in the operation occur. Producers are
reminded to contact the office if there is a change in
operations on a farm so that records can be kept current and
accurate.
Controlled Substance
Program participants convicted under federal or state law of any
planting, cultivating, growing, producing, harvesting or storing
a controlled substance are ineligible for program payments and
benefits. If convicted of one of these offenses, the program
participant shall be ineligible during that crop year and the
four succeeding crop years for price support loans, loan
deficiency payments, market loan gains, storage payments, farm
storage facility loans, Noninsured Crop Disaster Assistance
Program payments or disaster payments.
Program participants convicted of any federal or state offense
consisting of the distribution (trafficking) of a controlled
substance, at the discretion of the court, may be determined
ineligible for any or all program payments and benefits:
for up to 5 years after the first conviction
for up to 10 years after the second conviction
permanently for a third or subsequent conviction
Program participants convicted of federal or state offense for
the possession of a controlled substance shall be ineligible, at
the discretion of the court, for any or all program benefits, as
follows:
up to 1 year upon the first conviction
up to 5 years after a second or subsequent conviction
Reconstitutions
To be effective for the current Fiscal Year (FY), farm
combinations and farm divisions must be requested by Aug. 1 of
the FY. A reconstitution is considered to be requested when all:
of the required signatures are on form FSA-155
other applicable documentation, such as proof of ownership, is
submitted
Farm Service Agency (FSA) and Risk
Management Agency (RMA) to Prevent Fraud, Waste, and Abuse
FSA and RMA jointly support the prevention of fraud, waste and
abuse of the Federal Crop Insurance Program. FSA has been, and
will continue to, assist RMA and insurance providers by
monitoring crop conditions throughout the growing season. FSA
will continue to refer all suspected cases of fraud, waste and
abuse directly to RMA. Producers can report suspected cases to
the county office staff, the RMA office or the Office of the
Inspector General.
Foreign Buyers Notification
The Agricultural Foreign Investment Disclosure Act (AFIDA)
requires all foreign owners of U.S. agricultural land to report
their holdings to the Secretary of Agriculture. Foreign persons
who have purchased or sold agricultural land in the county are
required to report the transaction to FSA within 90 days of the
closing. Failure to submit the AFIDA form could result in civil
penalties of up to 25 percent of the fair market value of the
property. County government offices, realtors, attorneys and
others involved in real estate transactions are reminded to
notify foreign investors of these reporting requirements. The
data gained from these disclosures is used in the preparation of
periodic reports to the President and Congress concerning the
effect of such holdings upon family farms and rural communities.
Click here for more information on AFIDA.
Adjusted Gross Income Requirements
The average Adjusted Gross Income (AGI) limitation for FSA and
NRCS administered programs is $900,000. A person or legal
entity, is eligible to receive, directly or indirectly, certain
program payments or benefits if the average AGI of the person or
legal entity (including the legal entity’s members) is $900,000
or less for the three taxable years preceding the most
immediately preceding complete taxable year.
For more information on payment limitation and payment
eligibility by program, contact your local FSA office or visit
FSA’s payment eligibility website for more details.
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:
Married individuals must sign their given name.
Example—Mary Doe and John Doe are married. When signing FSA
forms, each must use their given name, and may not sign with the
name of their spouse. Mrs. Mary Doe may not sign documents as
Mrs. John Doe.
For a minor, FSA requires the minor's signature and one from the
minor’s parent.
Note, by signing a document with a minor, the parent is liable
for actions of the minor and may be liable for refunds,
liquidated damages, etc.
When signing on one’s behalf the signature must agree with the
name typed or printed on the form or be a variation that does
not cause the name and signature to be in disagreement. Example
- John W. Smith is on the form. The signature may be John W.
Smith or J.W. Smith or J. Smith. Or Mary J. Smith may be signed
as Mrs. Mary Joe Smith, M.J. Smith, Mary Smith, etc.
FAXED signatures will be accepted for certain forms and other
documents provided the acceptable program forms are approved for
FAXED signatures. Producers are responsible for the successful
transmission and receipt of FAXED information.
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Examples of documents not approved for FAXED signatures include:
Promissory note
Assignment of payment
Joint payment authorization
Acknowledgement of commodity certificate purchase
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 cannot sign on behalf of each other as an authorized
signatory for partnerships, joint ventures, corporations or other
similar entities. Likewise, a spouse cannot sign a document on
behalf of the other in order to affirm the eligibility of oneself.
Any member of a general partnership can sign on behalf of the
general partnership and bind all members unless the Articles of
Partnership are more restrictive. Spouses may sign on behalf of each
other’s individual interest in a partnership, unless notification
denying a spouse that authority is provided to the county office.
Acceptable signatures for general partnerships, joint ventures,
corporations, estates, and trusts must consist of an indicator “by”
or “for” the individual’s name, individual’s name and capacity, or
individual’s name, capacity, and name of entity.
For additional clarification on proper signatures contact your local
FSA office.
Conservation Reserve Program (CRP) - Annual
Certification
Before an annual rental payment can be issued, participants must
certify to contract compliance using either the FSA-578, Report of
Acreage, or CCC-817U, Certification of Compliance for CRP.
Highly Erodible Land (HEL) and Wetland Conservation Compliance
Landowners and operators are reminded that in order to receive
payments from USDA, compliance with Highly Erodible Land (HEL) and
Wetland Conservation (WC) provisions are required. Farmers with HEL
determined soils are reminded of tillage, crop residue, and rotation
requirements as specified per their conservation plan. Producers are
to notify the USDA Farm Service Agency prior to breaking sod,
clearing land (tree removal), and of any drainage projects (tiling,
ditching, etc.) to ensure compliance. Failure to update
certification of compliance, with form AD-1026, triggering
applicable HEL and/or wetland determinations, for any of these
situations, can result in the loss of FSA farm program payments, FSA
farm loans, NRCS program payments, and premium subsidy to Federal
Crop Insurance administered by RMA.
Highly Erodible Land and Wetland Conservation Certification Must
be Filed to Receive FSA Benefits
The 2014 Farm Bill requires farmers to have a Highly Erodible Land
Conservation and Wetland Conservation Certification (AD-1026) on
file with their local Farm Service Agency (FSA) office in order to
maintain eligibility for premium support on federal crop insurance.
Since enactment of the 1985 Farm Bill, eligibility
for most commodity, disaster and conservation programs has been
linked to compliance with the highly erodible land conservation and
wetland conservation provisions. The 2014 Farm Bill continues the
requirement that producers adhere to conservation compliance
guidelines to be eligible for most programs administered by FSA and
the Natural Resources Conservation Service (NRCS). This includes
financial assistance from the Agriculture Risk Coverage (ARC) and
Price Loss Coverage (PLC) programs, the Conservation Reserve Program
(CRP), livestock disaster assistance programs, Marketing Assistance
Loans (MALs) and most programs implemented by FSA. It also includes
the Environmental Quality Incentives Program (EQIP), the
Conservation Stewardship Program (CSP) and other conservation
programs implemented by NRCS.
Producers certify to conservation compliance at FSA with form
AD-1026. This is a continuous certification that only requires
updates when changes occur. A producer will be ineligible for any
premium support paid by Federal Crop Insurance Corporation on their
policy or plan of insurance if they do not have a completed AD-1026
on file with FSA certifying compliance on or before the premium
billing date for their policy or plan of insurance, unless otherwise
exempted.
When a producer completes and submits the AD-1026 certification
form, FSA and NRCS staff will review the associated farm records and
outline any additional actions that may be required to meet the
required conservation compliance provisions.
Form AD-1026 is available at USDA Service Centers and online at:
fsa.usda.gov. Please contact your local USDA Service Center for more
information.
Marketing Assistance Loans and Loan Deficiency Payments
The 2018 Farm Bill extends loan authority through 2023 for Marketing
Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) for
wheat, corn, grain sorghum, barley, oats, upland cotton, extra-long
staple cotton, long grain rice, medium grain rice, soybeans, other
oilseeds (including sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, crambe and sesame seed), dry peas, lentils,
small chickpeas, large chickpeas, graded and non-graded wool,
mohair, unshorn pelts, honey and peanuts.
To be eligible for a MAL or LDP, producers must comply with
conservation and wetland protection requirements and submit an
acreage report to account for all cropland on all farms.
Additionally, they must have and retain beneficial interest in the
commodity until the MAL is repaid or the Commodity Credit
Corporation (CCC) takes title to the commodity while also meeting
Adjusted Gross Income (AGI) limitations.
LDPs and marketing loan gains available now through 2023 are not
subject to adjusted gross income and payment limitation, including
actively engaged in farming and cash rent tenant provisions.
In addition to producer eligibility, the commodity must have been
produced, mechanically harvested, or shorn from live animals by an
eligible producer and be in storable condition. It also must be
merchantable for food, feed or other uses, as determined by CCC.
Nonrecourse MALs must meet specific CCC minimum grade and quality
standards.
Recourse marketing assistance loans are also available for
commodities that may be of lower quality due to an element such as
high moisture, commodities harvested as other than grain, seed
cotton in module form, or for contaminated commodities that are
still within merchantable levels of tolerance. Recourse MALs can
only be repaid at principal plus accrued interest.
If beneficial interest in the commodity is lost, the commodity loses
eligibility for a MAL or LDP and remains ineligible even if the
producer later regains beneficial interest. To retain beneficial
interest, the producer must have control and title to the commodity.
The producer must be able to make all decisions affecting the
commodity including movement, sale and the request for a MAL or LDP.
The producer must not have sold or delivered the commodity or
warehouse receipt to the buyer.
Producers are responsible for any loss in quantity or quality of
commodities pledged as collateral for a farm-stored or warehouse
stored loan. CCC will not assume any loss in quantity or quality of
the loan collateral regardless of storage location.
The 2018 Farm Bill sets national loan rates. County and regional
loan rates are based on each commodity’s national loan rate, and
they vary by county or region and are based on the average prices
and production of the county or region where the commodity is
stored.
For all loan-eligible commodities, pledged for a non-recourse loan,
except extra-long staple (ELS) cotton, a producer may repay a MAL
any time during the loan period at the lesser of the loan rate plus
accrued interest and other charges or an alternative loan repayment
rate as determined by CCC.
Producers may obtain MALs or receive LDPs on all or part of their
eligible production anytime during the loan availability period. The
loan availability period runs from when the commodity is normally
harvested (or sheared for wool) until specified dates in the
following calendar year.
Visit the Farm Service Agency (FSA) website for posted loan rates.
Program Incentives for Underserved Producers
The USDA Farm Service Agency (FSA) reminds producers that FSA offers
support to beginning farmers and ranchers, targeted underserved
farmers and ranchers, and military veteran farmers and ranchers
through program incentives in existing farm programs.
Targeted underserved farmers and ranchers are defined 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 program purposes,
this category includes African Americans, American Indians and
Alaskan Natives, and Hispanics and Asians and Pacific Islanders.
Farm program provisions for women producers vary from program to
program.
Farm Loan Policy Reminder
Loans for Targeted Underserved Producers
The USDA Farm Service Agency (FSA) reminds producers that FSA offers
targeted farm ownership and farm operating loans to assist
underserved applicants as well as 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 programs 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
credit from a commercial lender 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 now offers
microloans through the direct loan program. The focus of microloans
is on the financing needs of small, beginning farmer, niche and
non-traditional farm operations. Microloans are available for both
ownership and operating finance needs. Visit FSA online for more
information on microloans.
To qualify as a beginning farmer, the individual or entity must meet
the eligibility requirements outlined for direct or guaranteed
loans. Additionally, individuals and all entity members must have
operated a farm for less than 10 years. Applicants must materially
or substantially participate in the operation.
Visit FSA’s farm loan programs website for more information on loans
and targeted underserved and beginning farmer guidelines.
Farm Loan Programs Guide and Compass
FSA offers online resources that can help producers understand our
programs.
The Your Guide to FSA Farm Loans guidebook simplifies information on
the types of farm loans available; how to apply for a guaranteed
loan, direct loan, or land contract guarantee; what you can expect
once you submit your application; and most importantly, your rights
and responsibilities as an FSA customer.
The Your FSA Farm Loan Compass guidebook simplifies information
regarding the responsibilities of FSA loan borrowers and the loan
servicing options available to them.
Spanish language versions of the Your Guide to FSA Farm Loans and
Your FSA Farm Loan Compass guidebooks are available as well.
Disaster Set-Aside (DSA) Program
FSA borrowers with farms located in designated primary or contiguous
disaster areas who are unable to make their scheduled FSA loan
payments should consider the Disaster Set-Aside (DSA) program.
DSA is available to producers who suffered losses as a result of a
natural disaster* and is intended to relieve immediate and temporary
financial stress. FSA is authorized to consider setting aside the
portion of a payment/s needed for the operation to continue on a
viable scale.
Borrowers must have at least two years left on the term of their
loan in order to qualify.
Borrowers have eight months from the date of the disaster
designation to submit a complete application. The application must
include a written request for DSA signed by all parties liable for
the debt along with production records and financial history for the
operating year in which the disaster occurred. FSA may request
additional information from the borrower in order to determine
eligibility.
All farm loans must be current or less than 90 days past due at the
time the DSA application is complete. Borrowers may not set aside
more than one installment on each loan.
The amount set-aside, including interest accrued on the principal
portion of the set-aside, is due on or before the final due date of
the loan.
*Note: Beginning in March 2020 and continuing through September 1,
2021, FSA will accept applications for Disaster Set-Aside for
impacted borrowers based on the Presidentially Declared COVID-19
Emergency.
For more USDA disaster assistance program information, visit
farmers.gov/recover and download the USDA Disaster Assistance
Programs At A Glance brochure.
Farm Loan Graduation Reminder
FSA Direct Loans are considered a temporary source of credit that is
available to producers who do not meet normal underwriting criteria
for commercial banks.
FSA periodically conducts Direct Loan graduation reviews to
determine a borrower’s ability to graduate to commercial credit. If
the borrower’s financial condition has improved to a point where
they can refinance their debt with commercial credit, they will be
asked to obtain other financing and partially or fully pay off their
FSA debt.
By the end of a producer’s operating cycle, the Agency will send a
letter requesting a current balance sheet, actual financial
performance and a projected farm budget. The borrower has 30 days to
return the required financial documents. This information will be
used to evaluate the borrower’s potential for refinancing to
commercial credit.
If a borrower meets local underwriting criteria, FSA will send the
borrower’s name, loan type, balance sheet and projected cash flow to
commercial lenders. The borrower will be notified when loan
information is sent to local lenders.
If any lenders are interested in refinancing the borrower’s loan,
FSA will send the borrower a letter with a list of lenders that are
interested in refinancing the loan. The borrower must contact the
lenders and complete an application for commercial credit within 30
calendar days.
If a commercial lender rejects the borrower, the borrower must
obtain written evidence that specifies the reasons for rejection and
submit to their local FSA farm loan office.
If a borrower fails to provide the requested financial information
or to graduate, FSA will notify the borrower of noncompliance, FSA’s
intent to accelerate the loan, and appeal rights.
[USDA Farm Service Agency] |
