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 In the Farm Bill, Congress gave USDA the authority to address
this loophole for joint ventures and general partnerships, while
exempting family farm operations from being impacted by the new
rule USDA ultimately implements.
The current definition of "actively engaged" for managers,
established in 1987, is broad, allowing individuals with little
to no contributions to critical farm management decisions to
receive safety-net payments if they are classified as farm
managers, and for some operations there were an unlimited number
of managers that could receive payments.
The proposed rule seeks to close this loophole to the extent
possible within the guidelines required by the 2014 Farm Bill.
Under the proposed rule, non-family joint ventures and general
partnerships must document that their managers are making
significant contributions to the farming operation, defined as
500 hours of substantial management work per year, or 25 percent
of the critical management time necessary for the success of the
farming operation. Many operations will be limited to only one
manager who can receive a safety-net payment. Operators that can
demonstrate they are large and complex could be allowed payments
for up to three managers only if they can show all three are
actively and substantially engaged in farm operations. The
changes specified in the rule would apply to payment eligibility
for 2016 and subsequent crop years for Agriculture Risk Coverage
(ARC) and Price Loss Coverage (PLC) Programs, loan deficiency
payments and marketing loan gains realized via the Marketing
Assistance Loan program.
As mandated by Congress, family farms will not be impacted.
There will also be no change to existing rules for contributions
to land, capital, equipment, or labor. Only non-family farm
general partnerships or joint ventures comprised of more than
one member will be impacted by this proposed rule.
Stakeholders interested in commenting on the proposed definition
and changes are encouraged to provide written comments at
www.regulations.gov by May 26, 2015. The proposed rule is
available at http://go.usa.gov/3C6Kk.
ARC and PLC Acreage Maintenance
Producers enrolled in Agriculture Risk Coverage (ARC) or
Price Loss Coverage (PLC) must protect all cropland and
noncropland acres on the farm from wind and water erosion and
noxious weeds. Producers who sign ARC county or individual
contracts and PLC contracts agree to effectively control noxious
weeds on the farm according to sound agricultural practices. If
a producer fails to take necessary actions to correct a
maintenance problem on a farm that is enrolled in ARC or PLC,
the County Committee may elect to terminate the contract for the
program year.
A list of noxious weeds can be found on the following website:
http://plants.usda.gov/ java/noxiousDriver.
May Interest Rates
90-Day Treasury Bill .125%
Farm Operating Loans — Direct 2.50%
Farm Ownership Loans — Direct 3.625%
Farm Ownership Loans — Direct Down Payment, Beginning Farmer or
Rancher 1.50%
Direct Farm Ownership - Joint Financing 2.50%
Emergency Loans 3.50%
Farm Storage Facility Loans (7 years) 1.750%
Farm Storage Facility Loans (10 years) 1.875%
Farm Storage Facility Loans (12 years) 2.000%
Commodity Loans 1996-Present 1.250%
USDA Reminds Farmers of 2014 Farm Bill Conservation
Compliance Changes
The 2014 Farm Bill implements a change that requires farmers to
have a Highly Erodible Land Conservation and Wetland
Conservation Certification (AD-1026) on file.
For farmers to be eligible for premium support on their federal
crop insurance, a completed and signed AD-1026 certification
form must be on file with the FSA. The Risk Management Agency (RMA),
through the Federal Crop Insurance Corporation (FCIC), manages
the federal crop insurance program that provides the modern farm
safety net for American farmers and ranchers.
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 NRCS. This includes most financial assistance such as the
new price and revenue protection programs, the Conservation
Reserve Program, the Livestock Disaster Assistance programs and
Marketing Assistance Loans and most programs implemented by FSA.
It also includes the Environmental Quality Incentives Program,
the Conservation Stewardship Program, and other conservation
programs implemented by NRCS.
Many FSA and Natural Resources Conservation Service (NRCS)
programs already have
implemented this requirement and therefore most producers should
already have an AD-1026 form
on file for their associated lands. If an AD-1026 form has not
been filed or is incomplete, then
farmers are reminded of the deadline of June 1, 2015.
When a farmer 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 compliance with the conservation compliance
provisions.
In 2014, the average premium cost of a crop insurance policy was
$8,332, of which FCIC paid approximately 62 percent on the
producer’s behalf. If a farmer is not in compliance with WC and
HELC provisions, the premium cost could double, which is why it
is vital for farmers to have form
AD-1026 on file with the Farm Service Agency (FSA).
To continue to be eligible for premium subsidy on any Federal
crop insurance policy, including specialty crops, livestock, and
pasture, a producer must file form AD-1026 with their local FSA
office by June 1, 2015. If a producer does not have form AD-1026
on file with FSA by June 1, 2015, or
are not in compliance with the requirements as outlined on the
form, they will not be eligible for premium subsidy on any
Federal crop insurance policy that has a sales closing date on
or after
July 1, 2015. This means farmers may still be eligible for
insurance but will have to pay the full premium.
Additionally, it is possible a producer filed form AD-1026, but
under an individual or business entity (e.g. a spouse or
business partner) different than the one which purchased the
crop insurance. Farmers must ensure the person or entity, and
the associated Taxpayer Identification Number
(TIN), which buys crop insurance has the form on file because
USDA will use the TIN to match
records across agencies.
If a producer does not have form AD-1026 on file or does not
know whether they have an AD-1026
on file, they should visit their local FSA office in advance of
June 1, 2015. The FSA staff will be available to provide
assistance. Simply stated, by June 1, 2015, farmers must have an
AD-1026
on file with FSA in the same name and TIN used to purchase the
crop insurance policy.
FSA recently released a revised form AD-1026, which is available
at USDA Service Centers and online at: www.fsa.usda.gov. USDA
will publish a rule later this year that will provide details
outlining the connection of conservation compliance with crop
insurance premium support.
Producers can also contact their local USDA Service Center for
information. A listing of service
center locations is available at offices.usda.gov.
Tree Assistance Program (TAP) Sign-up
Orchardists and nursery tree growers who experience losses from
natural disasters during calendar year 2015 must submit a TAP
application either 90 calendar days after the disaster event or
the date when the loss is apparent. TAP was authorized by the
Agricultural Act of 2014 as a permanent disaster program. 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. 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 500 acres annually.
2015 Acreage Reporting Dates
Producers who file accurate and timely reports for all crops and
land uses, including failed acreage can prevent the potential
loss of FSA program benefits. Please pay close attention to the
acreage reporting dates below, as some dates have changed.
In order to comply with FSA program eligibility requirements,
all producers are encouraged to visit their local County FSA
office to file an accurate crop certification report by the
applicable deadline.
The following 2015 acreage reporting dates are applicable for
Illinois:
September 30, 2014 - aquaculture, Christmas trees, turfgrass
sod, floriculture
December 15, 2014 - perennial forage(with an intended use of
haying or grazing), fall-seeded small grains)
January 2, 2015 - honey
January 15, 2015 - apples, asparagus, blueberries, caneberries,
cherries, grapes, nectarines, peaches, pears, plums,
strawberries
June 15, 2015 - cucumbers(planted 5/1-5/31) in Gallatin,
Lawrence, and White counties
July 15, 2015 - cabbage(planted 3/15-5/31), perennial
forage(with an intended use of cover only, green manure, left
standing, or seed) and all
other crops
August 15, 2015 - cabbage (planted 6/1 – 7/20)
September 15, 2015 - cucumbers(planted 6/1-8/15) in Gallatin,
Lawrence, and White counties
The following exceptions apply to the above acreage reporting
dates:
- If the crop has not been planted by the above 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
above 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.
- If a perennial forage crop is reported with the intended
use of “cover only,” “green manure,” “left standing,” or
“seed,” then the acreage must be reported by July 15, 2014.
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.
For questions regarding crop certification and crop loss
reports, please contact the your local County FSA office.
If filing for prevented planting, an acreage report and CCC-576
must be filed within 15 calendar days of the final planting date
for the crop.
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Microloans
Farm Service Agency (FSA) reminds farmers and ranchers that the
FSA borrowing limit for microloans increased from $35,000 to
$50,000, on Nov. 7, 2014. Microloans offer borrowers simplified
lending with less paperwork.
The microloan change allows beginning, small and mid-sized
farmers to access an additional $15,000 in loans using a
simplified application process with up to seven years to repay.
Microloans are part of USDA’s continued commitment to small and
midsized farming operations.
To complement the microloan program additional changes to FSA
eligibility requirements will enhance beginning farmers and
ranchers access to land, a key barrier to entry level producers.
FSA policies related to farm experience have changed so that
other types of skills may be considered to meet the direct
farming experience required for farm ownership loan eligibility.
Operation or management of non-farm businesses, leadership
positions while serving in the military or advanced education in
an agricultural field will now count towards the experience
applicants need to show when applying for farm ownership loans.
Important Note: Microloans cannot be used to purchase real
estate.
Microloan uses are the same as all approved Direct Operating
loan expenses on a smaller scale, including, and not limited to:
- Essential tools
- Fencing and trellising
- Hoop houses
- Bees and bee equipment
- Milking and pasteurization equipment
- Maple sugar shack and processing equipment
- Livestock, seed, fertilizer, utilities, land rents, family
living expenses, and other materials essential to the operation
Irrigation
- GAP (Good Agricultural Practices), GHP (Good Handling
Practices), and Organic certification costs
- Marketing and distribution costs, including those associated
with selling through Farmers’ Markets and Community Supported
Agriculture operations
- Borrower training expenses
Since 2010, more than 50 percent of USDA's farm loans now go to
beginning farmers and FSA has increased its lending to targeted
underserved producers by nearly 50 percent.
Please review the FSA Microloan Program Fact Sheet for program
application, eligibility and related information.
Youth Loans
The Farm Service Agency makes loans to youth to establish and
operate agricultural income-producing projects in connection
with 4-H clubs, FFA and other agricultural groups. Projects must
be planned and operated with the help of the organization
advisor, produce sufficient income to repay the loan and provide
the youth with practical business and educational experience.
The maximum loan amount is $5000.
Youth Loan Eligibility Requirements:
- Be a citizen of the United States (which includes Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands) or a legal
resident alien
- Be 10 years to 20 years of age
Comply with FSA’s general eligibility requirements
- Be unable to get a loan from other sources
Conduct a modest income-producing project in a supervised
program of work as outlined above
- Demonstrate capability of planning, managing and
operating the project under guidance and assistance from a
project advisor. The project supervisor must recommend the
youth loan applicant, along with providing adequate
supervision.
Loan funds may be used to, but not limited to:
- Buy livestock, seed, equipment and supplies
- Buy, rent or repair needed tools and equipment
- Pay operating expenses for the project
We encourage you to contact your local office or USDA Service
Center to learn more about our programs and the information you
will need for a complete application. Our local FSA offices will
be happy to provide you with further information and a loan
application.
COC (FSA) Committee Elections
June 15 through August 3, 2015, is the period for nominating
farmers and ranchers as candidates for the local COC election.
FSA encourages all eligible producers to nominate themselves, or
an
eligible producer to run for office. Nomination forms
(FSA-669A’s) are available:
- at
http://www.fsa.usda.gov/elections , scroll down
to the links under “Election Materials” and CLICK
“2015 Nomination Form”
- by picking up FSA-669A at your local FSA office
- by calling your local office and requesting
FSA-669A be sent to you.
NOMINATE AND VOTE!
Important Dates to Remember
May 25 Memorial Day *Office Closed*
June 1 - Final date to file an AD-1026 to remain in
compliance with 2014 Farm Bill
June 1 - Final date to apply for a 2014 MAL for Corn &
Soybeans
June 5 - Final Crop Insurance planting date for Corn
June 20 - Final Crop Insurance planting date for Soybeans
June 22 - Final date to File a Notice of Loss for
Prevented Planted Corn
Summer 2015 - Sign 2014 & 2015 ARC/PLC Contracts
July 3 - Independence Day Observed *Office Closed*
July 6 - Final date to File a Notice of Loss for Prevented
Planted Soybeans
July 15 - Final date to report spring planted crops
August 2 - End of Primary Nesting & Brood Rearing Season
(CRP maintenance allowed)
August 3 - Final date to request a Farm Reconstitution for
2015
Continuous - Farm Record Changes (new owners, new
operators, direct deposits, etc.)
Continuous - Farm Storage Facility Loan Applications
Continuous - CRP Applications (grassed waterways, filter
strips, field borders,
pollinator habitat)
Emergency Assistance for Livestock, Honeybee, and Farm-Raised
Fish Program (ELAP)
The Emergency Assistance for Livestock, Honeybees and
Farm-Raised Fish Program (ELAP) provides emergency assistance to
eligible livestock, honeybee, and farm-raised fish producers who
have losses due to disease, adverse weather or other conditions,
such as blizzards and wildfires, not covered by other
agricultural disaster assistance programs.
Eligible livestock losses include grazing losses not covered
under the Livestock Forage Disaster Program (LFP), loss of
purchased feed and/or mechanically harvested feed due to an
eligible adverse weather event and additional cost of
transporting water because of an eligible drought.
Eligible honeybee losses include loss of purchased feed due to
an eligible adverse weather event, cost of additional feed
purchased above normal quantities due to an eligible adverse
weather condition, colony losses in excess of normal mortality
due to an eligible weather event or loss condition, including
CCD, and hive losses due to eligible adverse weather.
Eligible farm-raised fish losses include death losses in excess
of normal mortality and/or loss of purchased feed due to an
eligible adverse weather event.
Producers who suffer eligible livestock, honeybee, or
farm-raised fish losses from October 1, 2014 to September 30,
2015 must file:
- A notice of loss the earlier of 30 calendar
days of when the loss is apparent or by November
1, 2015
- An application for payment by November 1,
2015
The Farm Bill caps ELAP disaster funding at
$20 million per federal fiscal year.
The following ELAP Fact Sheets (by topic) are
available online:
- ELAP for Farm-Raised Fish Fact Sheet
- ELAP for Livestock Fact Sheet
- ELAP for Honeybees Fact Sheet
To view these and other FSA program fact sheets, visit the FSA
fact sheet web page at
www.fsa.usda.gov/factsheets.
Livestock Indemnity Program (LIP)
The Livestock Indemnity Program (LIP) provides assistance to
eligible producers for livestock death losses in excess of
normal mortality due to adverse weather and attacks by animals
reintroduced into the wild by the federal government or
protected by federal law. LIP compensates livestock owners and
contract growers for livestock death losses in excess of normal
mortality due to adverse weather, including losses due to
hurricanes, floods, blizzards, wildfires, extreme heat or
extreme cold.
For 2015, eligible losses must occur on or after Jan. 1, 2015,
and before December 31, 2015. A notice of loss must be filed
with FSA within 30 days of when the loss of livestock is
apparent. Participants must provide the following supporting
documentation to their local FSA office no later than 30
calendar days after the end of the calendar year for which
benefits are requested:
- Proof of death documentation
- Copy of growers contracts
- Proof of normal mortality
documentation
USDA has established normal mortality rates for each type and
weight range of eligible livestock, i.e. Adult Beef Cow = 1.5%
and Non-Adult Beef Cattle (less than 400 pounds) = 5%. These
established percentages reflect losses that are considered
expected or typical under “normal” conditions. Producers who
suffer livestock losses in 2015 must file both of the following:
- A notice of loss the earlier of
30 calendar days of when the loss
was apparent or by
January 30, 2016
- An application for payment by
January 30, 2016.
Additional Information about LIP is available at your local FSA
office or online at: www.fsa.usda.gov.
Illinois
Farm Service Agency
3500 Wabash Ave
Springfield, IL 62711
www.fsa.usda.gov/il
State Committee:
Jill Appell - Chair
Brenda Hill - Member
Jerry Jimenez - Member
Joyce Matthews - Member
Gordon Stine - Member
State Executive Director:
Scherrie V. Giamanco
State Executive Officer
Rick Graden
Division Chiefs:
Doug Bailey
Jeff Koch
Stan Wilson
Please contact your local FSA Office
for questions specific to your
operation or county. |
