December 2021 FSA Newsletter

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[January 12, 2022]    Message from the Acting SED - This past year proved to be a challenge for all involved in agriculture. Illinois Farm Service Agency employees again managed service delivery challenges while providing tremendous levels of farm program and loan assistance. We appreciate those customers that have shown patience and demonstrated the willingness to change as necessity required us to do things differently than we have done them in the past. We still value those conversations at the counter and look forward to conducting business in person!

Pandemic assistance programs continue to roll out and we implement them as quickly as possible to the best of our ability. Despite the current grain markets, significant risk remains with the record input costs and questionable availability of crop inputs. Our traditional programs such as marketing assistance and farm storage facility loans remain available. We also look forward to increasing our role in urban food systems.

Many beginning farmers are highly leveraged and may need assistance with their first farm or major equipment purchase. FSA direct and guaranteed loans assist by supplementing traditional financing options. We work in partnership with agriculture lenders throughout the State. Discuss these options with your farm lender and please contact your local FSA office if you have any questions. Our County Offices are ready to assist Illinois farmers whenever possible.

Our thoughts and prayers are with those that suffered loss during the recent storms; a stark reminder that “the most important things in life are not things”.

I join all Illinois FSA employees in wishing you a joyous, peaceful holiday season spent with your family and friends..

John Gehrke
Acting State Executive Director


USDA Expands Farmers.gov to Include Farm Records

Producers with farmers.gov accounts can now access farm records and maps online, the latest self-service feature added to the U.S. Department of Agriculture (USDA) website.

You can quickly and easily access your land information in real time by desktop computer, tablet or phone. Capabilities include:

--View, print and export detailed farm records such as cropland, base acres, yields, CRP acres, land ownership details, and much more;

--View, print and export farm/tract maps that can be provided to lenders, chemical or fertilizer providers, and FSA for reporting acreage and crop insurance agents; and

--Export common land unit (field) boundaries as ESRI shapefiles.
The ability to access these records on demand without a visit to the service center saves you time and money.

Farmers.gov now includes the most popular functionalities from FSAFarm+, the FSA portal for producers, while providing enhanced functionality and an improved user experience. A new enhancement expands the scope of accessibility to include farmers and ranchers who are members of an entity, as well as people with a power of attorney form (FSA-211) on file with FSA.

Managing USDA Business Online

Using farmers.gov, producers, entities and those acting on their behalf can also:

--View, upload, download, and e-sign conservation documents.

--Request financial assistance, including submitting a program application.

--View and submit conservation requests.

--View technical references and submit questions.

--Access information on current and past conservation practices, plans and contracts.

--Report practice completion and request practice certification.

--View farm loan and interest information (producers only).

Future plans include adding the ability to import and view other shapefiles, such as precision agriculture planting boundaries.

To access your information, you’ll will need a USDA eAuth account to login to farmers.gov. After obtaining an eAuth account, producers should visit farmers.gov and sign into the site’s authenticated portal via the Sign In/Sign Up link at the top right of the website. Google Chrome, Mozilla Firefox or Microsoft Edge are the recommended browsers to access the feature.

In addition to the self-service features available by logging into farmers.gov, the website also has ample information on USDA programs, including pandemic assistance, farm loans, disaster assistance, conservation programs and crop insurance. Recently, USDA updated the navigation and organization of the site as well as added some new webpages, including “Get Involved,” “Common Forms,” and “Translations.” Learn more about these changes.


Applying for FSA 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. Direct loans are processed, approved and serviced by FSA loan officers.

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.


Small-Scale, Local Producers Get Improved Insurance Coverage through New Micro Farm Policy

Agricultural producers with small-scale farms who sell locally can now get simplified insurance coverage through a new policy designed for their needs. The U.S. Department of Agriculture (USDA) developed the new Micro Farm policy, which simplifies recordkeeping and covers post-production costs like washing and value-added products.

USDA is focused on supporting local and regional food systems, and Micro Farm is one more example of how we’re helping agricultural producers with farms of all shapes and sizes to manage their unique operations and risk. The Risk Management Agency values collaboration and feedback from our customers, and Micro Farm is one way we're responding to producers’ needs.

Micro Farm is offered through Whole-Farm Revenue Protection (WFRP) and is geared to local producers. Details include:

Eligibility: Micro Farm is available to producers who have a farm operation that earns an average allowable revenue of $100,000 or less, or for carryover insureds, an average allowable revenue of $125,000 or less. The increase in allowable revenue for a carry-over insured will allow for some farm growth in subsequent years before they become ineligible for the program. RMA’s research showed that 85% of producers who sell locally reported they made less than $75,000 in gross sales.

Coverage Levels: All coverage levels will be available to producers using Micro Farm. This will enable producers to purchase the 80% and 85% coverage levels without providing additional paperwork.

Underwriting and Recordkeeping Requirements: Micro Farm minimizes underwriting and recordkeeping requirements, and producers will not have to report expenses and individual commodities.

Post-production Revenue: Producers can include post-production activities as revenue, such as washing and packaging commodities or value-added products like jam.

Micro Farm is available for the 2022 crop year. Sales closing dates are January 31, 2022, February 28, 2022, or March 15, 2022, depending on the producer’s county.

Producers with crops insured under another crop insurance policy or a vertically integrated operation will not be eligible.

This new policy derived from research directed by the 2018 Farm Bill, and it includes feedback from producers who grow for their local communities. See the full report.
 


Specialty and Organic Crops

The Micro Farm policy builds on other RMA efforts to better serve specialty and organic crop growers. This includes WFRP, which provides coverage for producers with larger operations that may not be eligible for Micro Farm. RMA recently made. RMA recently made improvements to WFRP as part of a broader set of new policies and expanded policies to assist specialty crop and organic producers.

More Information

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. If you have difficulty finding an agent, contact your RMA Regional Office. 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 safe, 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.


Applying for FSA Guaranteed Loans

FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender's normal underwriting criteria. Farmers and ranchers apply for a guaranteed loan through a lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes.

Guaranteed farm ownership loans can be used to purchase farmland, construct or repair buildings, develop farmland to promote soil and water conservation or to refinance debt.

Guaranteed operating loans can be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance and other operating expenses.
 


FSA can guarantee farm ownership and operating loans up to $1,825,000. 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.

For more information on guaranteed loans, contact your local County USDA Service Center or visit fsa.usda.gov.


USDA Reminds Illinois Producers to File Crop Acreage Reports

Agricultural producers in Illinois who have not yet completed their crop acreage reports after planting should make an appointment with their Farm Service Agency (FSA) office before the applicable deadline.

An acreage report documents a crop grown on a farm or ranch and its intended uses. Filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planted acreage, can prevent the loss of benefits.

How to File a Report

The following acreage reporting dates are applicable in Illinois:

December 15, 2021
Fall-Seeded Small Grains, Canola

January 15, 2021
Apples, Asparagus, Blueberries, Caneberries, Cherries, Grapes, Nectarines, Peaches, Pears, Plums, Strawberries

Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Contact your Service Center to set up an in-person or phone appointment.

To file a crop acreage report, you will need to provide:

  • Crop and crop type or variety.

  • Intended use of the crop.

  • Number of acres of the crop.

  • Map with approximate boundaries for the crop.

  • Planting date(s).

  • Planting pattern, when applicable.

  • Producer shares.

  • Irrigation practice(s).

  • Acreage prevented from planting, when applicable.

  • Other information as required.
    Acreage Reporting Details

The following exceptions apply to acreage reporting dates:

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.

If a producer acquires additional acreage after the acreage reporting date, then the acreage must be reported no later than 30 calendar 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.

More Information

For questions, please contact your local FSA office. To locate your local FSA office visit farmers.gov/service-center-locator.


Sign up for Wetland Reserve Easements for 2022

USDA's Natural Resources Conservation Service (NRCS) announced the application period for the Fiscal Year (FY) 2022 Agricultural Conservation Easement Program - Wetland Reserve Easements. (ACEP-WRE). The purpose of the Wetland Reserve Easements (WRE) program is to help landowners enhance and protect habitat for wetland wildlife on their lands, reduce impacts from flooding, recharge groundwater, provide outdoor recreation, and increase habitat for migratory waterfowl.

NRCS wants landowners and farmers to know that the first application cut-off date for fiscal year 2022 has been established. NRCS accepts applications for Wetland Reserve Easements (WRE) year round. Applications NRCS receives that meet program eligibility by December 10, 2021 will be considered for funding in our 2022 program.

Land eligible for WRE includes farmed or converted wetlands that have been previously altered for agricultural production that can be successfully and cost-effectively restored. NRCS prioritizes applications based on the easement’s potential for improving water quality and protecting and enhancing habitat for migratory birds and other wildlife. To enroll land through this program, NRCS enters into purchase agreements with eligible private landowners and then they work together to develop and implement a wetland reserve plan to guide the restoration easement process. This plan restores, enhances, and protects the wetland’s functions and values.

Applications for ACEP-WRE are continuous and can be submitted at any time. For FY 2022, Illinois NRCS has received $3.8 million in funding and will make funding decisions for eligible applicant interested in ACEP-WRE.

NRCS provides technical and financial assistance directly to private landowners to restore, protect and enhance wetlands through the purchase of these easements, and eligible landowners can choose to enroll in either a permanent easement or a 30-year easement. To apply for a wetland easement through ACEP - WRE, visit NRCS at your local USDA Service Center. Due to COVID-19 restrictions, producers should call to set up appointments with their local NRCS office staff. Visit www.nrcs.usda.gov to learn more.

Find more information about ACEP and other NRCS conservation programs in Illinois online at https://www.nrcs.usda.
gov/wps/portal/nrcs/il/programs/.


Double Cropping

Each year, state committees review and approve or disapprove county committee recommended changes or additions to specific combinations of crops.

Double-cropping is approved when two specific crops have the capability to be planted and carried to maturity for the intended use, as reported by the producer, on the same acreage within a crop year under normal growing conditions. The specific combination of crops recommended by the county committee must be approved by the state committee.

Double-cropping is approved in Illinois on a county-by-county basis. Contact your local FSA Office for a list of approved double-cropping combinations for your county.

A crop following a cover crop terminated according to termination guidelines is approved double cropping and these combinations do not have to be approved by the state committee.


Disaster Assistance for 2021 Livestock Forage Losses

Producers in Boone, Cook, DeKalb, Kane, Lake, McHenry and Winnebago Counties in Illinois are eligible to apply for 2021 Livestock Forage Disaster Program (LFP) benefits.

Producers in Boone, Lake and McHenry Counties are eligible to apply for LFP benefits for native pasture, improved pasture, and forage sorghum.

Producers in Cook, DeKalb, Kane and Winnebago Counties are eligible to apply for LFP benefits for native pasture and improved pasture.

LFP provides compensation if you suffer grazing losses for covered livestock due to drought on privately owned or cash leased land or fire on federally managed land.

County committees can only accept LFP applications after notification is received by the National Office of qualifying drought or if a federal agency prohibits producers from grazing normal permitted livestock on federally managed lands due to qualifying fire.

You must complete a CCC-853 and the required supporting documentation no later than February 1, 2022, for 2021 losses.

For additional information about LFP, including eligible livestock and fire criteria, contact your local County USDA Service Center or visit fsa.usda.gov.


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.

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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.


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.

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. 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, contact your local County USDA Service Center or visit fsa.usda.gov.


USDA Builds Pandemic Support for Certified Organic and Transitioning Operations

The U.S. Department of Agriculture (USDA) will provide pandemic assistance to cover certification and education expenses to agricultural producers who are certified organic or transitioning to organic. USDA will make $20 million available through the new Organic and Transitional Education and Certification Program (OTECP) as part of USDA’s broader Pandemic Assistance for Producers initiative, which provides new, broader and more equitable opportunities for farmers, ranchers and producers.

During the COVID-19 pandemic, certified organic and transitional operations faced challenges due to loss of markets, and increased costs and labor shortages, in addition to costs related to obtaining or renewing their organic certification, which producers and handlers of conventionally grown commodities do not incur. Transitional operations also faced the financial challenge of implementing practices required to obtain organic certification without being able to obtain the premium prices normally received for certified organic commodities.

Eligible Expenses

OTECP funding is provided through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Certified operations and transitional operations may apply for OTECP for eligible expenses paid during the 2020, 2021 and 2022 fiscal years. For each year, OTECP covers 25% of a certified operation’s eligible certification expenses, up to $250 per certification category (crop, livestock, wild crop, handling and State Organic Program fee). This includes application fees, inspection fees, USDA organic certification costs, state organic program fees and more.

Crop and livestock operations transitioning to organic production may be eligible for 75% of a transitional operation’s eligible expenses, up to $750, for each year. This includes fees charged by a certifying agent or consultant for pre-certification inspections and development of an organic system plan.
 


For both certified operations and transitional operations, OTECP covers 75% of the registration fees, up to $200, per year, for educational events that include content related to organic production and handling in order to assist operations in increasing their knowledge of production and marketing practices that can improve their operations, increase resilience and expand available marketing opportunities. Additionally, both certified and transitional operations may be eligible for 75% of the expense of soil testing required under the National Organic Program (NOP) to document micronutrient deficiency, not to exceed $100 per year.

Applying for Assistance

Signup for 2020 and 2021 OTECP will be November 8, 2021, through January 7, 2022. Producers apply through their local Farm Service Agency (FSA) office and can also obtain one-on-one support with applications by calling 877-508-8364. Visit farmers.gov/otecp to learn more.

Additional Organic Support

OTECP builds upon USDA’s Organic Certification Cost Share Program (OCCSP) which provides cost share assistance of 50%, up to a maximum of $500 per scope, to producers and handlers of agricultural products who are obtaining or renewing their certification under the NOP. This year’s application period for OCCSP ended November 1, 2021.

Additionally, USDA’s Risk Management Agency announced improvements to the Whole-Farm Revenue Program including increasing expansion limits for organic producers to the higher of $500,000 or 35%. Previously, small and medium size organic operations were held to the same 35% limit to expansion as conventional practice producers. Also, producers can now report acreage as certified organic, or as acreage in transition to organic, when the producer has requested an organic certification by the acreage reporting date.

To learn more about USDA’s assistance for organic producers, visit usda.gov/organic.

As USDA looks for long-term solutions to build back a better food system, the Department is committed to delivery of financial assistance to farmers, ranchers and agricultural producers and businesses who have been impacted by COVID-19 market disruptions. Since USDA rolled out the Pandemic Assistance for Producers initiative in March, the Department has provided support to America’s farmers and ranchers including:

--$18 billion in Coronavirus Food Assistance Program 2 payments, including a fourfold increase in participation by historically underserved producers since the program reopened in April 2021.
 


--Over $35 million in assistance for those who had to depopulate livestock and poultry due to insufficient processing access (Pandemic Livestock Indemnity Program).

--Over $7 million to date for the logging and log hauling industry (Pandemic Assistance for Timber Harvesters and Haulers). Final payments are being calculated to be disbursed soon.

--$1 billion to purchase healthy food for food insecure Americans and build food bank capacity.

--$350 million in additional dairy assistance related to market volatility.

--$500 million deployed through existing USDA programs.

--For more details, please visit www.farmers.gov/pandemic-assistance.


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 or visit fsa.usda.gov/crp.


This October, USDA’s National Agricultural Statistics Service will mail its first Hemp Acreage and Production Survey. The survey will collect information on the total planted and harvested area, yield, production, and value of hemp in the United States.
 


The Domestic Hemp Production Program established in the Agriculture Improvement Act of 2018 (2018 Farm Bill) allows for the cultivation of hemp under certain conditions. The Hemp Acreage and Production survey will provide needed data about the hemp industry to assist producers, regulatory agencies, state governments, processors, and other key industry entities.

Producers may complete the survey online at agcounts.usda.gov or they may complete and return the survey by mail using the return envelope provided.

Learn more about the survey at nass.usda.gov/go/hemp


USDA Expands Assistance to Cover Feed Transportation Costs for Drought-Impacted Ranchers

In response to the severe drought conditions in the West and Great Plains, the U.S. Department of Agriculture (USDA) announced today its plans to help cover the cost of transporting feed for livestock that rely on grazing. USDA is updating the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) to immediately cover feed transportation costs for drought impacted ranchers. USDA’s Farm Service Agency (FSA) will provide more details and tools to help ranchers get ready to apply at their local USDA Service Center later this month at fsa.usda.gov/elap.

ELAP provides financial assistance to eligible producers of livestock, honeybees, and farm-raised fish for losses due to disease, certain adverse weather events or loss conditions as determined by the Secretary of Agriculture.

ELAP already covers the cost of hauling water during drought, and this change will expand the program beginning in 2021 to cover feed transportation costs where grazing and hay resources have been depleted. This includes places where:

--Drought intensity is D2 for eight consecutive weeks as indicated by the U.S. Drought Monitor;

--Drought intensity is D3 or greater; or

--USDA has determined a shortage of local or regional feed availability.

Cost share assistance will also be made available to cover eligible cost of treating hay or feed to prevent the spread of invasive pests like fire ants.
 


Under the revised policy for feed transportation cost assistance, eligible ranchers will be reimbursed 60% of feed transportation costs above what would have been incurred in a normal year. Producers qualifying as underserved (socially disadvantaged, limited resource, beginning or military veteran) will be reimbursed for 90% of the feed transportation cost. above what would have been incurred in a normal year.

A national cost formula, as established by USDA, will be used to determine reimbursement costs which will not include the first 25 miles and distances exceeding 1,000 transportation miles. The calculation will also exclude the normal cost to transport hay or feed if the producer normally purchases some feed. For 2021, the initial cost formula of $6.60 per mile will be used (before the percentage is applied), but may be adjusted on a state or regional basis.

To be eligible for ELAP assistance, livestock must be intended for grazing and producers must have incurred feed transportation costs on or after January 1, 2021. Although producers will self-certify losses and expenses to FSA, producers are encouraged to maintain good records and retain receipts and related documentation in the event these documents are requested for review by the local FSA County Committee. The deadline to file an application for payment for the 2021 program year is January 31, 2022.

USDA offers a comprehensive portfolio of disaster assistance programs. On farmers.gov, the Disaster Assistance Discovery Tool, Disaster Assistance-at-a-Glance fact sheet, and Farm Loan Discovery Tool can help producers and landowners determine all program or loan options available for disaster recovery assistance.

More information on this expansion to ELAP is forthcoming. In the meantime, more information is available at fsa.usda.gov/elap or by contacting a local USDA Service Center.


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.


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.


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.


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.

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. 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, contact your local County USDA Service Center or visit fsa.usda.gov.


NASS to Send 2021 Hemp Acreage and Production Survey This Fall

This October, USDA’s National Agricultural Statistics Service will mail its first Hemp Acreage and Production Survey. The survey will collect information on the total planted and harvested area, yield, production, and value of hemp in the United States.

The Domestic Hemp Production Program established in the Agriculture Improvement Act of 2018 (2018 Farm Bill) allows for the cultivation of hemp under certain conditions. The Hemp Acreage and Production survey will provide needed data about the hemp industry to assist producers, regulatory agencies, state governments, processors, and other key industry entities.
 


Producers may complete the survey online at agcounts.usda.gov or they may complete and return the survey by mail using the return envelope provided.

Learn more about the survey at nass.usda.gov/go/hemp


December Interest Rates and Important Dates

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