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 The FSA team will help borrowers identify their goals to ensure
financial success. FSA staff will advise borrowers on developing
strategies and a plan to meet your goals and graduate to
commercial credit. FSA borrowers are responsible for the success
of their farming operation, but FSA staff will help in an
advisory role, providing the tools necessary to help you achieve
your operational goals and manage your finances.
For more information on FSA farm loan programs, contact your
local County USDA Service Center or visit fsa.usda.gov.
USDA Announces Changes to Emergency Haying
and Grazing Provisions
The U.S. Department of Agriculture’s (USDA)
Farm Service Agency (FSA) today announced changes for emergency
haying and grazing use of acres enrolled in the Conservation
Reserve Program (CRP). This includes changes outlined in the
2018 Farm Bill that streamlines the authorization process for
farmers and ranchers.
Drought conditions are tough for our livestock producers, but
emergency haying and grazing use of Conservation Reserve Program
acres provides temporary relief to these producers. Thanks to a
streamlined authorization process, State producers will be able
to more quickly obtain emergency use approval to begin emergency
haying or grazing of CRP acres.
Program Changes
Previously emergency haying and grazing requests originated with
FSA at the county level and required state and national level
approval. Now approval will be based on drought severity as
determined by the U.S. Drought Monitor.
Producers located in a county that is designated as severe
drought (D2) or greater on or after the last day of the primary
nesting season are eligible for emergency haying and grazing on
all eligible acres. Additionally, producers located in counties
that were in a severe drought (D2) status any single week during
the last eight weeks of the primary nesting season may also be
eligible for emergency haying and grazing unless the FSA County
Committee determines that forage conditions no longer warrant
emergency haying and grazing.
Counties that trigger for Livestock Forage Disaster Program (LFP)
payments based on the U.S. Drought Monitor may hay only certain
practices on less than 50% of eligible contract acres. Producers
should contact their local FSA county office for eligible CRP
practices.
Producers who don’t meet the drought monitor qualifications but
have a 40% loss of forage production may also be eligible for
emergency haying and grazing outside of the primary nesting
season.
FSA is Accepting CRP Continuous Enrollment
Offers
The Farm Service Agency (FSA) is accepting
offers for specific conservation practices under the
Conservation Reserve Program (CRP) Continuous Signup.
In exchange for a yearly rental payment, farmers enrolled in the
program agree to remove environmentally sensitive land from
agricultural production and to plant species that will improve
environmental health and quality. The program’s long-term goal
is to re-establish valuable land cover to improve water quality,
prevent soil erosion, and reduce loss of wildlife habitat.
Contracts for land enrolled in CRP are 10-15 years in length.
Under continuous CRP signup, environmentally sensitive land
devoted to certain conservation practices can be enrolled in CRP
at any time. Offers for continuous enrollment are not subject to
competitive bidding during specific periods. Instead, they are
automatically accepted provided the land and producer meet
certain eligibility requirements and the enrollment levels do
not exceed the statutory cap.
For more information, including a list of acceptable practices,
contact your local County USDA Service Center at or visit
fsa.usda.gov/crp.
Conservation for All
The U.S. Department of Agriculture (USDA)will invest up to $50
million in cooperative agreements to support historically
underserved farmers and ranchers with climate-smart agriculture
and forestry. The Racial Justice and Equity Conservation
Cooperative Agreements are available to entities and individuals
for two-year projects that expand the delivery of conservation
assistance to farmers who are beginning, limited resource,
socially disadvantaged, and veteran farmers.
According to Natural Resources Conservation Service (NRCS)
Illinois State Conservationist Ivan Dozier, historically
underserved producers face significant barriers in accessing
USDA assistance for conservation and climate-smart agriculture.
As a result, USDA is committed to revising programs to be more
equitable and these producers deserve our support as they
contribute to our vibrant and diverse agricultural communities
The projects should help historically underserved farmers and
ranchers in implementing natural resources conservation
practices that:
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Improve soil health
-
Improve water quality
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Provide habitat for local wildlife species of concern
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Improve the environmental and economic performance of
working agricultural land and
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Build and strengthen local food projects that provide
healthy food and economic opportunities. Projects should
remove barriers to access and reach historically underserved
groups through a combination of program outreach and
technical assistance in managing natural resources that
address one or more of the following four NRCS priority
areas:
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Addressing local natural resource issues
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Using climate-smart agriculture practices and principles
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Encouraging existing and new partnerships and
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Developing state and community-led conservation
leadership for historically underserved agricultural
producers, including educating and training students for
careers in natural resources management.
Who Is Eligible
Entities and individuals who provide outreach assistance to
historically underserved groups are eligible, including:
Historically underserved producers include
those who are considered beginning, limited resource, socially
disadvantaged, and veteran farmers.
How to Apply
Applications must be received by 11:59 p.m. Eastern Standard
Time on October 25, 2021. See the grants.gov announcement for
details and application instructions.
USDA Announces Pandemic Assistance for
Timber Harvesters and Haulers
The U.S. Department of Agriculture (USDA) is
providing up to $200 million to provide relief to timber
harvesting and timber hauling businesses that have experienced
losses due to COVID-19 as part of USDA’s Pandemic Assistance for
Producers initiative. Loggers and truckers can apply for
assistance through USDA’s Farm Service Agency (FSA) July 22
through October 15, 2021. The Pandemic Assistance for Timber
Harvesters and Haulers program (PATHH) is administered by FSA in
partnership with the U.S. Forest Service.
The Consolidated Appropriations Act, 2021, authorized this
critical assistance for the timber industry. Timber harvesting
and hauling businesses that have experienced a gross revenue
loss of at least 10% during the period of January 1 and December
1, 2020, compared to the period of January 1 and December 1,
2019, are encouraged to apply.
Program Details
To be eligible for payments, individuals or legal entities must
be a timber harvesting or timber hauling business where 50% or
more of its gross revenue is derived from one or more of the
following:
Cutting timber.
Transporting timber.
Processing of wood on-site on the forest land (chipping,
grinding, converting to biochar, cutting to smaller lengths,
etc.).
Payments will be based on the applicant’s gross revenue received
from January 1, 2019, through December1, 2019, minus gross
revenue received from January 1, 2020, through December 1, 2020,
multiplied by 80%. FSA will issue an initial payment equal to
the lesser of the calculated payment amount or $2,000 as
applications are approved. A second payment will be made after
the signup period has ended based upon remaining PATHH funds.
The maximum amount that a person or legal entity may receive
directly is $125,000.
Applying for Assistance
Loggers and truckers can apply for PATHH beginning on July 22,
2021 by completing form FSA-1118, Pandemic Assistance for Timber
Harvesters and Haulers Program application, and certifying to
their gross revenue for 2019 and 2020 on the application.
Additional documentation may be required. Visit farmers.gov/pathh
for more information on how to apply.
Applications can be submitted to the FSA office at any USDA
Service Center nationwide by mail, fax, hand delivery, or via
electronic means. To find a local FSA office, loggers and
truckers can visit farmers.gov/service-locator. They can also
call 877-508-8364 to speak directly with a USDA employee ready
to offer assistance.
USDA Accepting Applications to Help Cover
Costs for Organic Certification
USDA’s Farm Service Agency (FSA) announced that
organic producers and handlers can apply for USDA funds to
assist with the cost of receiving and maintaining organic
certification through the Organic Certification Cost Share
Program (OCCSP). Applications for eligible certification
expenses paid between October 1, 2020, and September 30, 2021,
are due November 1, 2021.
OCCSP provides cost-share assistance to producers and handlers
of agricultural products for the costs of obtaining or
maintaining organic certification under the USDA’s National
Organic Program. Eligible producers include any certified
producers or handlers who have paid organic certification fees
to a USDA-accredited certifying agent. Producers can be
reimbursed for expenses including application fees, inspection
costs, fees related to equivalency agreement and arrangement
requirements, travel expenses for inspectors, user fees, sales
assessments and postage.
For 2021, OCCSP will reimburse 50 percent of a certified
operation’s allowable certification costs, up to a maximum of
$500 for each of the following categories or “scopes:”
crops
wild crops
livestock
processing/handling
State organic program fees.
Organic farmers and ranchers may apply through an FSA county
office or a participating state agency.
More Information
To learn more about organic certification cost share, please
visit the OCCSP webpage, visit usda.gov/organic, or contact
your local USDA Service Center.
USDA Updates Pandemic Assistance for
Livestock, Poultry Contract Producers and Specialty Crop Growers
The U.S. Department of Agriculture (USDA) is
updating the Coronavirus Food Assistance Program 2 (CFAP 2) for
contract producers of eligible livestock and poultry and
producers of specialty crops and other sales-based commodities.
CFAP 2, which assists producers who faced market disruptions in
2020 due to COVID-19, is part of USDA’s broader Pandemic
Assistance for Producers initiative. Additionally, USDA’s Farm
Service Agency (FSA) has set an October 12, 2021 deadline for
all eligible producers to apply for or modify applications for
CFAP 2.
Assistance for Contract Producers
The Consolidated Appropriations Act, 2021, provides up to $1
billion for payments to contract producers of eligible livestock
and poultry for revenue losses from January 1, 2020, through
December 27, 2020. Contract producers of broilers, pullets,
layers, chicken eggs, turkeys, hogs and pigs, ducks, geese,
pheasants and quail may be eligible for assistance. This update
includes eligible breeding stock and eggs of all eligible
poultry types produced under contract.
Payments for contract producers were to be based on a comparison
of eligible revenue for the periods of January 1, 2019, through
December 27, 2019, and January1, 2020, through December 27,
2020. Today’s changes mean contract producers can now elect to
use eligible revenue from the period of January 1, 2018, through
December 27, 2018, instead of that date range in 2019 if it is
more representative.
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This change is intended to provide flexibility and make the program
more equitable for contract producers who had reduced revenue in
2019 compared to a normal production year. The difference in revenue
is then multiplied by 80% to determine a final payment. Payments to
contract producers may be factored if total calculated payments
exceed the available funding and will be made after the application
period closes.
Additional flexibilities have been added to account for increases to
operation size in 2020 and situations where a contract producer did
not have a full period of revenue from January 1 to December 27 for
either 2018 or 2019. Assistance is also available to new contract
producers who began their farming operation in 2020.
Updates for Sales-Based Commodities
USDA is amending the CFAP 2 payment calculation for sales-based
commodities, which are primarily comprised of by specialty crops, to
allow producers to substitute 2018 sales for 2019 sales. Previously,
payments for producers of sales-based commodities were based only on
2019 sales, with 2019 used as an approximation of the amount the
producer would have expected to market in 2020. Giving producers the
option to substitute 2018 sales for this approximation, including
2018 crop insurance indemnities and 2018 crop year Noninsured
Disaster Assistance Program (NAP) and Wildfire and Hurricane
Indemnity Program Plus (WHIP+) payments, provides additional
flexibility to producers of sales-based commodities who had reduced
sales in 2019.
Grass seed has also been added as an eligible sales commodity for
CFAP 2. A complete list of all eligible sales-based commodities can
be found at farmers.gov/cfap2/commodities. Producers of sales-based
commodities can modify existing applications.
Applying for Assistance
Newly eligible producers who need to submit a CFAP 2 application or
producers who need to modify an existing one can do so by contacting
their local FSA office. Producers can find their local FSA office by
visiting farmers.gov/service-locator. Producers can also obtain
one-on-one support with applications by calling 877-508-8364. All
new and modified CFAP 2 applications are due by the October 12, 2021
deadline.
USDA to Offer New Insurance Option for
Conservation-Minded Corn Farmers Who ‘Split-Apply’ Nitrogen
Corn farmers who “split apply” nitrogen will soon
have another option for insurance coverage. Beginning in crop year
2022, the U.S. Department of Agriculture’s (USDA) Risk Management
Agency (RMA) will offer the Post Application Coverage Endorsement
(PACE) in certain states for non-irrigated corn, providing coverage
for producers who use this practice that is considered better for
natural resources and saves money for producers.
To “split-apply” nitrogen, growers make multiple fertilizer
applications during the growing season rather than providing all of
the crop’s nitrogen requirements with a single treatment before or
during planting. The PACE will provide payments for the projected
yield lost when producers are unable to apply the in-season nitrogen
application.
“USDA is committed to building insurance options that encourage use
of practices that are better for the environment and for producers’
bottom lines,” said RMA Acting Administrator Richard Flournoy. “We
are able to offer the PACE thanks to the cooperation of our
partners, including the Illinois Corn Growers Association, National
Corn Growers Association, Ag-Analytics Technology Company and
Meridian Institute.”
“Split application” of nitrogen can lead to lower input costs as
well as helps prevent runoff or leaching of nutrients into waterways
and groundwater. This is because it is used in more targeted amounts
over multiple applications, rather than one large application.
This new crop insurance option builds upon RMA’s efforts to
encourage use of conservation practices, including cover crops. For
example, RMA recently provided premium support for producers who
planted cover crops to help offset impacts from the pandemic.
Meanwhile, RMA recently updated policy to allow producers with crop
insurance to hay, graze or chop cover crops at any time and still
receive 100% of the prevented planting payment. This policy change
supports use of cover crops, which can help producers build
resilience to drought.
The Federal Crop Insurance Corporation Board approved the PACE
recently, and RMA will share additional details later this year. The
sales closing date for the endorsement will be the same as the
producer’s underlying corn policy.
More Information
RMA staff are working with AIPs and other customers by phone, mail
and electronically to support crop insurance coverage for producers.
Farmers with crop insurance questions or needs should contact their
insurance agents about conducting business remotely (by telephone or
email). More information can be found at farmers.gov/coronavirus.
Crop insurance is sold and delivered solely through private crop
insurance agents. A list of crop insurance agents is available at
all USDA Service Centers and online at the RMA Agent Locator. Learn
more about crop insurance and the modern farm safety net at
rma.usda.gov.
USDA touches the lives of all Americans each day in so many positive
ways. In the Biden-Harris Administration, USDA is transforming
America’s food system with a greater focus on more resilient local
and regional food production, fairer markets for all producers,
ensuring access to healthy and nutritious food in all communities,
building new markets and streams of income for farmers and producers
using climate smart food and forestry practices, making historic
investments in infrastructure and clean energy capabilities in rural
America, and committing to equity across the Department by removing
systemic barriers and building a workforce more representative of
America. To learn more, visit www.usda.gov.
FSA Outlines MAL and LDP Policy
The 2018 Farm Bill extends loan authority through
2023 for Marketing Assistance Loans (MALs) and Loan Deficiency
Payments (LDPs).
MALs and LDPs provide financing and marketing assistance for wheat,
feed grains, soybeans, and other oilseeds, pulse crops, rice,
peanuts, cotton, wool and honey. MALs provide you with interim
financing after harvest to help you meet cash flow needs without
having to sell your commodities when market prices are typically at
harvest-time lows. A producer who is eligible to obtain a loan, but
agrees to forgo the loan, may obtain an LDP if such a payment is
available. Marketing loan provisions and LDPs are not available for
sugar and extra-long staple cotton.
FSA is now accepting requests for 2021 MALs and LDPs for all
eligible commodities after harvest. Requests for loans and LDPs
shall be made on or before the final availability date for the
respective commodities.
Commodity certificates are available to loan holders who have
outstanding nonrecourse loans for wheat, upland cotton, rice, feed
grains, pulse crops (dry peas, lentils, large and small chickpeas),
peanuts, wool, soybeans and designated minor oilseeds. These
certificates can be purchased at the posted county price (or
adjusted world price or national posted price) for the quantity of
commodity under loan, and must be immediately exchanged for the
collateral, satisfying the loan. MALs redeemed with commodity
certificates are not subject to Adjusted Gross Income provisions.
To be considered eligible for an LDP, you must have form CCC-633EZ,
Page 1 on file at your local FSA Office before losing beneficial
interest in the crop. Pages 2, 3 or 4 of the form must be submitted
when payment is requested.
Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are
no longer subject to payment limitations, actively engaged in
farming and cash-rent tenant rules.
Adjusted Gross Income (AGI) provisions state that if your total
applicable three-year average AGI exceeds $900,000, then you’re not
eligible to receive an MLG or LDP. You must have a valid CCC-941 on
file to earn a market gain of LDP. The AGI does not apply to MALs
redeemed with commodity certificate exchange.
For more information and additional eligibility requirements,
contact your local County USDA Service Center or visit fsa.usda.gov
Maintaining the Quality of Farm-Stored Loan
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.
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.
Environmental Review Required Before Project
Implementation
The National Environmental Policy Act (NEPA)
requires Federal agencies to consider all potential environmental
impacts for federally-funded projects before the project is
approved.
For all Farm Service Agency (FSA) programs, an environmental review
must be completed before actions are approved, such as site
preparation or ground disturbance. These programs include, but are
not limited to, the Emergency Conservation Program (ECP), Farm
Storage Facility Loan (FSFL) program and farm loans. If project
implementation begins before FSA has completed an environmental
review, the request will be denied. Although there are exceptions
regarding the Stafford Act and emergencies, it’s important to wait
until you receive written approval of your project proposal before
starting any actions.
Applications cannot be approved until FSA has copies of all permits
and plans. Contact your local FSA office early in your planning
process to determine what level of environmental review is required
for your program application so that it can be completed timely.
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. 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.
FSA Offers Loan Servicing Options
There are options for Farm Service Agency (FSA)
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 your options.
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