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 The proposed rule limits farm payments to individuals who may be
designated as farm managers but are not actively engaged in farm
management. 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.
Beginning Farm Loans
FSA has a program to assist beginning farmers to finance
agricultural enterprises. Under these designated farm loan
programs, FSA can provide financing to eligible applicants
through either direct or guaranteed loans. FSA defines a
beginning farmer as a person who:
Has operated a farm for not more than 10 years.
Will materially and substantially participate in the
operation of the farm
Agrees to participate in a loan assessment,
borrower training and financial management
program sponsored by FSA.
Except for operating loan assistance, does not
own farm acreage in excess of 30 percent of the
county's average size farm, in the county
where the farm is located.
Each member of an entity must meet the
eligibility requirements. Loan approval is also
dependent on acceptable feasibility and
security determinations.
Additional program information, loan applications,
and other materials are available at the
local USDA Service Center or visit
www.fsa.usda.gov.
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 Resource 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.
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.
April Interest Rates
90-Day Treasury Bill .125%
Farm Operating Loans — Direct 2.375%
Farm Ownership Loans — Direct 3.375%
Farm Ownership Loans — Direct Down Payment, Beginning Farmer or
Rancher 1.50%
Direct Farm Ownership - Joint Financing 2.50%
Emergency Loans 3.375%
Farm Storage Facility Loans (7 years) 1.875%
Farm Storage Facility Loans (10 years) 2.125%
Farm Storage Facility Loans (12 years) 2.250%
Commodity Loans 1996-Present 1.250%
Important Dates to Remember
July 15, 2015 - Crop Acreage Certification Deadline
September 30, 2018 - Extension of Dairy Indemnity Payment
Program (DIPP)
Ongoing - FSFL (Farm Storage Facility Loans)
Livestock Disaster Assistance Sign-up Underway
USDA Enhances Farm Storage Facility Loan Program
The U.S. Department of Agriculture (USDA) expanded the Farm
Storage and Facility Loan program, which provides low-interest
financing to producers. The enhanced program includes 22 new
categories of eligible equipment for fruit and vegetable
producers.
Producers with small and mid-sized operations, and specialty
crop fruit and vegetable growers, now have access to needed
capital for a variety of supplies including sorting bins, wash
stations and other food safety-related equipment. A new more
flexible alternative is also provided for determining storage
needs for fruit and vegetable producers, and waivers are
available on a case-by-case basis for disaster assistance or
insurance coverage if available products are not relevant or
feasible for a particular producer.
Additionally, Farm Storage Facility Loan security requirements
have been eased for loans up to $100,000. Previously, all loans
in excess of $50,000 and any loan with little resale value
required a promissory note/security agreement and additional
security, such as a lien on real estate. Now loans up to $50,000
can be secured by only a promissory note/security agreement and
some loans between $50,000 and $100,000 will no longer require
additional security.
The low-interest funds can be used to build or upgrade permanent
facilities to store commodities. Eligible commodities include
grains, oilseeds, peanuts, pulse crops, hay, honey, renewable
biomass commodities, fruits and vegetables. Qualified facilities
include grain bins, hay barns and cold storage facilities for
fruits and vegetables.
Contact your local FSA office or visit www.fsa.usda.gov for more
about FSA programs and loans, including the Farm Storage
Facility Loan Program.
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Final Availability Dates for Marketing Assistance Loans & Loan
Deficiency Payments
May 31, 2015 - Corn, Dry Peas, Grain Sorghum, Lentils, Mustard
Seed, Rice, Safflower Seed, Chickpeas, Soybeans, Sunflower Seed
USDA to Issue Disaster Assistance to Help Honeybee, Livestock
and Farm-Raised Fish Producers -- Farm Bill Program Offers
Producers Relief for 2014 Losses in more than 40 States
including Illinois
The U.S. Department of Agriculture’s (USDA) Farm Service Agency
today announced that nearly 2,700 applicants will begin
receiving disaster assistance through the Emergency Assistance
for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) for
losses experienced from Oct. 1, 2013, through Sept. 30, 2014.
The program, re-authorized by the 2014 Farm Bill, provides
disaster relief to livestock, honeybee, and farm-raised fish
producers not covered by other agricultural disaster assistance
programs. Eligible losses may include excessive heat or winds,
flooding, blizzards, hail, wildfires, lightning strikes, and
diseases, or in the case of honeybees, losses due to colony
collapse disorder. Beekeepers, most of whom suffered honeybee
colony losses, represent more than half of ELAP recipients.
The farm bill caps ELAP disaster funding at $20 million per
federal fiscal year and the Budget Control Act of 2011, passed
by Congress, requires USDA to reduce payments by 7.3 percent,
beginning Oct. 1, 2014. To accommodate the number of requests
for ELAP assistance, which exceeded 2014 funding, payments will
be reduced to ensure that all eligible applicants receive a
prorated share.
Today's announcement was made possible by the 2014 Farm Bill,
which builds on historic economic gains in rural America over
the past six years, while achieving meaningful reform and
billions of dollars in savings for the taxpayer. Since
enactment, USDA has made significant progress to implement each
provision of this critical legislation, including providing
disaster relief to farmers and ranchers; strengthening risk
management tools; expanding access to rural credit; funding
critical research; establishing innovative public-private
conservation partnerships; developing new markets for rural-made
products; and investing in infrastructure, housing and community
facilities to help improve quality of life in rural America. For
more information, visit http://www.usda.gov/farmbill.
To learn more about ELAP, visit www.fsa.usda.gov/elap. For more
information about USDA Farm Service Agency (FSA) disaster
assistance programs, visit disaster.usda.fsa.gov or contact your
local FSA office at http://offices.usda.gov.
Conduct USDA Business Online by Creating an eAuthentication
Account
The Internet allows you, the customer, access to USDA
information 24 hours a day, seven days a week. You can fill out
and submit electronic forms (eForms) any time of the day or
night from anywhere you have Internet access. This new service
delivery option allows you to complete and file your own forms
or applications online, because your signature is already
electronically "on file."
Information submitted to the Federal Government remains safe and
secure because every customer has a unique User ID and password;
only authorized USDA employees can access your information. It's
safe, saves paper, saves a visit to your local USDA Service
Center and provides electronic tracking of all your USDA
transactions.
How to Sign Up for eAuth :
Begin the process by reviewing the information at the USDA
Website https://www.eauth.usda.gov. This website describes the
services available for Level 1 and Level 2 Accounts. Level 1 and
Level 2 accounts require that you have an email address so you
can register, create a customer profile, and be able to respond
to a confirmation email. Level 1 Accounts do not require you to
provide proof of your identity at a local USDA Service Center.
Level 1 Accounts provide limited access to certain USDA Web site
portals that require no authentication or authorization. A Level
2 Account does require a visit to a USDA Service Center with
proof of your identity. That is because a Level 2 account allows
you access to complete and submit documents and forms
electronically.
LEVEL 1 ACCOUNT
STEP 1. To obtain a Level 1 Account, you may self-register
online at www.eauth.egov.usda.gov.
Scroll down and click on the button that says “Sign Up for a
Level 1 Account.” Complete the brief customer profile.
STEP 2. You will receive a confirmation email, and you must
respond to it within 7 days to activate your account.
LEVEL 2 ACCOUNT
STEP 1. To obtain a Level 2 Account, you must complete an 18
question customer profile and prove your identity by presenting
state or federal photo ID at a local USDA Service Center. Go to
www.eauth.egov.usda.gov, scroll down and click on “Sign Up for a
Level 2 Account.” Complete your customer profile, which includes
designating your user ID and password created by you, contact
information and email information. The data you enter in your
customer profile must match the data on the document you use as
identification at your local USDA Service Center. Example: Your
first and last names and address must match the
government-issued photo ID you plan to use to prove your
identity. Identify proof can only be verified by one of the
following documents: Current State Driver’s License, State Photo
ID, US Military ID, or United States Passport.
STEP 2. After completing your customer profile and submitting it
online, you will receive a
confirmation email, and you must respond to it within 7 days to
activate your account.
STEP 3. Then you must complete the “Identify Proofing” process
by visiting a local USDA Service Center. You will be required to
present the eligible photo ID to an USDA employee who will
verify your identity and enter the expiration date of the ID
document used.
STEP 4. The USDA employee then will update your customer profile
to a Level 2 Account. You will have access to USDA online
applications and forms within one hour of your account being
updated.
You now have access to complete and submit documents and forms
electronically. USDA continues to update and make more forms and
programs available electronically.
[Illinois Farm Service Agency]
3500 Wabash Ave
Springfield, IL 62711
www.fsa.usda.gov/il
State Committee:
Jill Appell-Chairperson
Brenda Hill-Member
Jerry Jimenez-Member
Joyce Matthews-Member
Gordon Stine-Member
State Executive Director:
Scherrie V. Giamanco
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.
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