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Under the provisions
of the 2014 Farm Bill, $10 million is available nationwide to
eligible CRP participants. Those selected will be encouraged to
thin, prescribe burn or otherwise manage their forests in order
to allow sunlight to reach the forest floor. This will encourage
the development of grasses, forbs and legumes, benefitting
numerous species including pollinators and grassland-dependent
birds such as the northern bobwhite.
Eligibility is
limited to landowners and agricultural producers already
enrolled in CRP with conservation covers primarily containing
trees. Incentive payments, not to exceed 150 percent of the cost
to implement a particular customary forestry activity as
described, have been established. CRP participants meeting
eligibility requirements and interested in making offers to
participate should visit their local FSA county office.
For more information
about FSA conservation programs, visit the FSA office at the
local USDA service center or go towww.fsa.usda.gov/conservation.
Payments and benefits
received under the Conservation Reserve Program (CRP) are
subject to the following:
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payment limitation by direct attribution
● foreign
person rule
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average adjusted gross income (AGI) limitation The 2014
Farm Bill continued the $50,000 maximum CRP payment amount
that can be received annually, directly or indirectly, by
each person or legal entity. This payment limitation
includes all annual rental payments and incentive payments
(Sign-up Incentive Payments and Practice Incentive
Payments). Annual rental payments are attributed (earned)
in the fiscal year in which program performance occurs.
Sign-up Incentive Payments (SIP) are attributed (earned)
based on the fiscal year in which the contract is approved,
not the fiscal year the contract is effective. Practice
Incentive Payments (PIP) are attributed (earned) based on
the fiscal year in which the cost-share documentation is
completed and the producer or technical service provider
certifies performance of practice completion to the county
office. Such limitation on payments is controlled by direct
attribution.
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Program payments made directly or indirectly to a person are
combined with the pro rata interest held in any legal entity
that received payment, unless the payments to the legal
entity have been reduced by the pro rata share of the
person.
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Program payments made directly to a legal entity are
attributed to those persons that have a direct and indirect
interest in the legal entity, unless the payments to the
legal entity have been reduced by the pro rata share of the
person.
Many Farm Service
Agency programs require all program participants, either
individuals or legal entities, to be “actively engaged in
farming”. This means participants provide a significant
contribution to the farming operation, whether it is capital,
land, equipment, active personal labor and/or management. For
entities, each partner, stockholder or member with an ownership
interest, must contribute active personal labor and/or
management to the operation on a regular basis.
The 2014 Farm Bill
established additional payment eligibility provisions relating
to the farm management component of meeting “actively engaged in
farming”. These new provisions apply to joint operations
comprised of non-family members or partners, stockholders or
persons with an ownership in the farming operation. Effective
for 2016 and subsequent crop years, non-family joint operations
are afforded to one member that may use a significant
contribution of active personal management exclusively to meet
the requirements to be determined “actively engaged in
farming”. The person or member will be defined as the Farm
Manager for the purposes of administering these new management
provisions.
In some instances,
additional persons or members of a non-family member joint
operation who meet the definition of Farm Manager may also be
allowed to use such a contribution of active personal management
to meet the eligibility requirements. However, under no
circumstances may the number of Farm Managers in a non-family
joint operation exceed a total of three in any given crop and
program year.
Joint operations
composed of non-family members may be impacted by the new
provisions effective for the 2017 program year. Joint
operations must complete any operational changes and report
those changes to FSA on or before June
1, 2017.
The 2014 Farm Bill
established a maximum dollar amount for each program that can be
received annually, directly or indirectly, by each person or
legal entity. Payment limitations vary by program for 2014
through 2018.
Below is an overview
of payment limitations by program.
Commodity and Price Support Programs
The annual limitation for the Agriculture Risk Coverage (ARC)
and Price Loss Coverage (PLC) programs, Loan Deficiency Payments
(LDPs) and Market Loan Gains is $125,000 each.
Conservation Programs
The Conservation Reserve Program (CRP) annual
rental payment and incentive payment is limited to $50,000. CRP
contracts approved before Oct. 1, 2008, may exceed the
limitation, subject to payment limitation rules in effect on the
date of contract approval.
The Emergency
Conservation Program (ECP) has an annual limit of $200,000 per
disaster event. The Emergency Forest Restoration Program (EFRP)
has an annual limit of $500,000 per disaster event.
Recently the Farm
Service Agency (FSA), Natural Resources Conservation Service (NRCS)
and Risk Management Agency (RMA) worked together to develop
consistent, simple and a flexible policy for cover crop
practices.
The termination and
reporting guidelines were updated for cover crops.
Termination:
The cover crop
termination guidelines provide the timeline for terminating
cover crops, are based on zones and apply to non-irrigated
cropland. To view the zones and additional guidelines visithttps://www.nrcs.usda.gov/wps/portal/
nrcs/main/national/landuse/crops/ and
click “Cover Crop Termination Guidelines.”
Reporting:
The intended use of
cover only will be used to report cover crops. This includes
crops that were terminated by tillage and reported with an
intended use code of green manure. An FSA policy change will
allow cover crops to be hayed and grazed. Program eligibility
for the cover crop that is being hayed or grazed will be
determined by each specific program.
If the crop reported
as cover only is harvested for any use other than forage or
grazing and is not terminated properly, then that crop will no
longer be considered a cover crop.
Crops reported with
an intended use of cover only will not count toward the total
cropland on the farm. In these situations a subsequent crop will
be reported to account for all cropland on the farm.
Cover crops include
grasses, legumes, and forbs, for seasonal cover and other
conservation purposes. Cover crops are primarily used for
erosion control, soil health Improvement, and water quality
improvement. The cover crop may be terminated by natural causes,
such as frost, or intentionally terminated through chemical
application, crimping, rolling, tillage or cutting. A cover
crop managed and terminated according to NRCS Cover Crop
Termination Guidelines is notconsidered
a crop for crop insurance purposes.
Cover crops can be
planted: with no subsequent crop planted, before a subsequent
crop, after prevented planting acreage, after a planted crop, or
into a standing crop.
Starting March 20,
2017, organic producers and handlers will be able to visit over
2,100 USDA Farm Service Agency (FSA) offices to apply for
federal reimbursement to assist with the cost of receiving and
maintaining organic or transitional certification.
USDA reimburses
organic producers up to 75 percent of the cost of organic
certification, but only about half of the nation’s organic
operations currently participate in the program. Starting March
20, USDA will provide a uniform, streamlined process for organic
producers and handlers to apply for organic cost share
assistance either by mail or in person.
USDA is making
changes to increase participation in the National Organic
Certification Cost Share Program (NOCCSP) and the Agricultural
Management Assistance Organic Certification Cost Share Program,
and at the same time provide more opportunities for organic
producers to access other USDA programs, such as disaster
protection and loans for farms, facilities and marketing.
Producers can also access information on nonfederal agricultural
resources, and get referrals to local experts, including organic
agriculture, through USDA’s Bridges to Opportunity service at
the local FSA office.
Historically, many
state departments of agriculture have obtained grants to
disburse reimbursements to those producers and handlers
qualifying for cost share assistance. FSA will continue to
partner with states to administer the programs. For states that
want to continue to directly administer the programs,
applications were due Feb. 17, 2017.
Eligible producers
include any certified producers or handlers who have paid
organic or transitional certification fees to a USDA-accredited
certifying agent.
Application fees, inspection costs, fees related to equivalency
agreement/ arrangement requirements, travel/per diem for
inspectors, user fees, sales assessments and postage are all
eligible for a cost share reimbursement from USDA.
Once certified,
producers and handlers are eligible to receive reimbursement for
up to 75 percent of certification costs each year up to a
maximum of $750 per certification scope—crops, livestock, wild
crops and handling. This announcement also adds transitional
certification and state organic program fees as additional
scopes.
To learn more about
organic certification cost share, please visit www.fsa.usda.gov/organic or
contact a local FSA office by visiting http://offices.usda.gov.
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.
Producers who want to
use the Noninsured Crop Disaster Assistance Program (NAP)
organic price and selected the "organic" option on their NAP
application must report their crops as organic.
When certifying
organic acres, the buffer zone acreage must be included in the
organic acreage.
Producers must also
provide a current organic plan, organic certificate or
documentation from a certifying agent indicating an organic plan
is in effect. Documentation must include:
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name of certified individuals
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address
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telephone number
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effective date of certification
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certificate number
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list of commodities certified
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name and address of certifying agent
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a
map showing the specific location of each field of certified
organic, including the buffer zone acreage
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Certification exemptions
are available for producers whose annual gross agricultural income
from organic sales totals $5,000 or less. Although exempt growers
are not required to provide a written certificate, they are still
required to provide a map showing the specific location of each
field of certified organic, transitional and buffer zone acreage.
For questions about
reporting organic crops, contact your local FSA office. To find
your local office, visit http://offices.usda.gov.
USDA’s Farm Service
Agency (FSA) will provide a new financing option to help farmers
purchase portable storage and handling equipment through the Farm
Storage Facility Loan (FSFL) program. The loans, which now include a
smaller microloan option with lower down payments, are designed to
help producers, including new, small and mid-sized producers, grow
their businesses and markets. The FSFL program allows producers of
eligible commodities to obtain low-interest financing to build or
upgrade farm storage and handling facilities.
The program also offers a
new “microloan” option, which allows applicants seeking less than
$50,000 to qualify for a reduced down payment of five percent and no
requirement to provide three years of production history, with CCC
providing a loan for the remaining 95 percent of the net cost of the
eligible FSFL equipment. Farms and ranches of all sizes are
eligible. The microloan option is expected to be of particular
benefit to smaller farms and ranches, and specialty crop producers
who may not have access to commercial storage or on-farm storage
after harvest. These producers can invest in equipment like
conveyers, scales or refrigeration units and trucks that can store
commodities before delivering them to markets. FSFL microloans can
also be used to finance wash and pack equipment used post-harvest,
before a commodity is placed in cold storage. Producers do not need
to demonstrate the lack of commercial credit availability to apply
for FSFL’s.
Larger farming and
ranching operations, that may not be able to participate in the new
“microloan” option, may apply for the traditional, larger FSFL’s
with the maximum principal amount for each loan through FSFL of
$500,000.00. Participants are required to provide a down payment of
15 percent, with CCC providing a loan for the remaining 85 percent
of the net cost of the eligible storage facility and permanent
drying and handling equipment. Additional security is required for
poured-cement open-bunker silos, renewable biomass facilities, cold
storage facilities, hay barns and for all loans exceeding
$100,000.00. FSFL loan terms of 3, 5, 7, 10 or 12 years are
available depending on the amount of the loan. Interest rates for
each term rate may be different and are based on the rate which CCC
borrows from the Treasury Department.
Earlier this year, FSA
significantly expanded the list of commodities eligible for FSFL.
Eligible commodities now include aquaculture; floriculture; fruits
(including nuts) and vegetables; corn, grain sorghum, rice,
oilseeds, oats, wheat, triticale, spelt, buckwheat, lentils,
chickpeas, dry peas, sugar, barley, rye, hay, honey, hops, maple
sap, unprocessed meat and poultry, eggs, milk, cheese, butter,
yogurt and renewable biomass.
Applications for FSFL
must be submitted to the FSA county office that maintains the farm's
records. The FSFL application must be approved before: purchasing
the FSFL equipment, beginning any excavation or site preparation,
accepting delivery of FSFL equipment, beginning installation or
construction.
To learn more about Farm
Storage Facility Loans, visit www.fsa.usda.gov/pricesupport or
contact a local FSA county office. To find your local FSA county
office, visit http://offices.usda.gov.
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 $1,399,000. 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.
Please contact your
lender or local FSA farm loan office for more information on
guaranteed loans.
The Agricultural Act of
2014 authorized 2014-2018 crop year Marketing Assistance Loans (MALs)
and Loan Deficiency Payments (LDPs), with a few minor policy
changes.
Among the changes,
farm-stored MAL collateral transferred to warehouse storage will
retain the original loan rate, be allowed to transfer only the
outstanding farm-stored quantity with no additional quantity allowed
and will no longer require producers to have a paid for measurement
service when moving or commingling loan collateral.
FSA is now accepting
requests for 2016 MALs and LDPs for all eligible commodities after
harvest. Requests for loans and LDP’s shall be made on or before the
final availability date for the respective commodities. March 31 is
the final loan availability date for Barley, Canola, Crambe,
Flaxseed, Honey, Oats, Rapeseed, Wheat, and Sesame Seed. May
31 is the
final loan availability date for Corn, Dry Peas, Grain Sorghum,
Lentils, Mustard Seed, Rice, Safflower Seed, Chickpeas, Soybeans,
Sunflower Seed, and cotton.
Before MAL repayments
with a market loan gain or LDP disbursements can be made, producers
must meet the requirements of actively engaged in farming, cash rent
tenant and member contribution.
The 2014 Farm Bill also
establishes payment limitations per individual or entity not to
exceed $125,000 annually on certain commodities for the following
program benefits: price loss coverage payments, agriculture risk
coverage payments, marketing loan gains (MLGs) and LDPs. These
payment limitations do not apply to MAL loan disbursements or
redemptions using commodity certificate exchange.
Adjusted Gross Income (AGI)
provisions were modified by the 2014 Farm Bill, which states that a
producer whose total applicable three-year average AGI exceeds
$900,000 is not eligible to receive an MLG or LDP. Producers 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, please visit a nearby USDA
Service Center or FSA’s website www.fsa.usda.gov.
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:
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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
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Be 10
years to 20 years of age
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Comply
with FSA’s general eligibility requirements
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Be
unable to get a loan from other sources
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Conduct a modest income-producing project in a supervised
program of work as outlined above
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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.
Stop by the county office
for help preparing and processing the application forms.
Illinois Farm Service Agency
3500 Wabash Ave.
Springfield, IL 62711
Phone: 217-241-6600
Fax: 855-800-1760
www.fsa.usda.gov/il
Acting State Executive Director:
Rick Graden
Acting State Committee:
Jill Appell-Chairperson
Brenda Hill-Member
Jerry Jimenez-Member
Joyce Matthews-Member
Gordon Stine-Member
Administrative Officer:
Dan Puccetti
Division Chiefs:
Doug Bailey
Jeff Koch
Randy Tillman
To find contact information for your local office go to
www.fsa.usda.gov/il
USDA is an equal opportunity
provider, employer and lender. To file a complaint of
discrimination, write: USDA, Office of the Assistant Secretary for
Civil Rights, Office of Adjudication, 1400 Independence Ave., SW,
Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer
Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642
(Relay voice users). |
