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 Most importantly this fall please be mindful that FSA wants all
producers to have a successful, productive, crop year and that
begins with putting safety first.
Flowing grain in a storage bin or gravity-flow wagon is like
quicksand — it can kill quickly. It takes less than five seconds
for a person caught in flowing grain to be trapped.
The mechanical operation of grain handling equipment also
presents a real danger. Augers, power take offs, and other
moving parts can grab people or clothing.
These hazards, along with pinch points and missing shields, are
dangerous enough for adults; not to mention children. It is
always advisable to keep children at a safe distance from
operating farm equipment. Always use extra caution when backing
or maneuvering farm machinery. Ensure everyone is visibly clear
and accounted for before machinery is engaged.
Have a great 2020 harvest season and stay safe!
William J. Graff
State Executive Director
Coronavirus Food Assistance Program 2
CFAP 2 is a separate program from the first
round of the Coronavirus Food Assistance Program, now referred
to as CFAP 1. Farmers and ranchers who participated in CFAP 1
will not be automatically enrolled and must complete a new
application for CFAP 2. Details on how to apply can be found on
farmers.gov/cfap/apply.
CFAP 2 Eligible Commodities Finder
Many more commodities are eligible for CFAP 2 than CFAP 1.
Interested in finding the Coronavirus Food Assistance Program 2
payment rates for the eligible commodities you grow or raise?
Our new, easy-to-use CFAP 2 Eligible Commodities Finder makes
finding payment rates specific to your operation simple. From
yam to alpaca farmers – and everyone in between – the payment
rate information you need is just a few clicks away. Try it
today on your desktop, tablet, or mobile device.
Call Center
A call center is available for producers who would like
additional one-on-one support with the CFAP 2 application
process. Please call 877-508-8364 to speak directly with a USDA
employee ready to offer assistance. The call center can provide
service to non-English speaking customers. Customers will select
1 for English and 2 to speak with a Spanish speaking employee.
For other languages, customers select 1 and indicate their
language to the call center staff.
FSA Encourages Farmers and Ranchers to Vote
in County Committee Elections
The 2020 Farm Service Agency County Committee
Elections will begin on November 2, 2020, when ballots are
mailed to eligible voters. The deadline to return ballots to
local FSA offices, or to be postmarked, is December 7, 2020.
County committee members are an important component of the
operations of FSA and provide a link between the agricultural
community and USDA. Farmers and ranchers elected to county
committees help deliver FSA programs at the local level,
applying their knowledge and judgment to make decisions on
commodity price support programs, conservation programs,
incentive indemnity and disaster programs for some commodities,
emergency programs and eligibility. FSA committees operate
within official regulations designed to carry out federal laws.
To be an eligible voter, farmers and ranchers must participate
or cooperate in an FSA program. A person who is not of legal
voting age but supervises and conducts the farming operations of
an entire farm, may also be eligible to vote.
Eligible voters in the local administrative area(s) conducting
an election this year who do not receive a ballot can obtain one
from their local USDA Service Center.
Newly elected committee members will take office January 1,
2021.
For more information regarding FSA County Committee Elections,
please contact your local FSA county office.
Supervised Credit from FSA
Farm Service Agency (FSA) farm loans are
considered supervised credit. Unlike loans from a commercial
lender, FSA loans are intended to be temporary in nature. Our
goal is to help you graduate to commercial credit, and our farm
loan staff is available to help borrowers through training and
credit counseling.
The FSA team will help borrowers identify their goals to ensure
financial success. FSA staff will advise borrowers on developing
strategies and a plan to meet your goals and graduate to
commercial credit. FSA borrowers are responsible for the success
of their farming operation, but FSA staff will help in an
advisory role, providing the tools necessary to help you achieve
your operational goals and manage your finances.
For more information on FSA farm loan programs, contact your
local County USDA Service Center or visit fsa.usda.gov.
Obtaining Payments on Behalf of Deceased
Producers
In order to claim a Farm Service Agency (FSA)
payment on behalf of a deceased producer, all program conditions
for the payment must have been met before the applicable
producer’s date of death.
If a producer earned a FSA payment prior to his or her death,
the following is the order of precedence for the representatives
of the producer:
-
administrator or executor of the estate
-
the surviving spouse
-
surviving sons and daughters,
-
including adopted children
-
surviving father and mother
-
surviving brothers and sisters
-
heirs of the deceased person who would be entitled to
payment according to the State law
For FSA to release the payment, the legal
representative of the deceased producer must file a form FSA-325
to claim the payment for themselves or an estate. The county
office will verify that the application, contract, loan
agreement, or other similar form requesting payment issuance,
was signed by the applicable deadline by the deceased or a
person legally authorized to act on their behalf at that time of
application.
If the application, contract or loan agreement form was signed
by someone other than the deceased participant, FSA will
determine whether the person submitting the form has the legal
authority to submit the form.
Payments will be issued to the respective representative’s name
using the deceased program participant’s tax identification
number. Payments made to representatives are subject to offset
regulations for debts owed by the deceased.
FSA is not responsible for advising persons in obtaining legal
advice on how to obtain program benefits that may be due to a
participant who has died, disappeared or who has been declared
incompetent.
Using FSA Direct Farm Ownership Loans for
Construction
The USDA Farm Service Agency’s (FSA) Direct
Farm Ownership loans are a resource to help farmers and ranchers
become owner-operators of family farms, improve and expand
current operations, increase agricultural productivity, and
assist with land tenure to save farmland for future generations.
There are three types of Direct Farm Ownership Loans: regular,
down payment and joint financing. FSA also offers a Direct Farm
Ownership Microloan option for smaller financial needs up to
$50,000.
Direct Farm Ownership Loans can be used to construct, purchase
or improve farm dwellings, service buildings or other
facilities, and to make improvements essential to an operation.
Applicants must provide FSA with an estimate of the total cost
of all planned development that completely describe the work,
prior to loan approval and must show proof of sufficient funds
to pay for the total cost of all planned development at or
before loan closing. In some instances, applicants may be asked
to provide certified plans, specifications or contract
documents. The applicant cannot incur any debts for materials or
labor or make any expenditures for development purposes prior to
loan closing with the expectation of being reimbursed from FSA
funds.
Construction and development work may be performed either by the
contract method or the borrower method. Under the contract
method, construction and development contractors perform work
according to a written contract with the applicant or borrower.
If applying for a direct loan to finance a construction project,
the applicant must obtain a surety bond that guarantees both
payment and performance in the amount of the construction
contract from a construction contractor.
A surety bond is required when a contract exceeds $100,000. An
authorized agency official determines that a surety bond appears
advisable to protect the borrower against default of the
contractor or a contract provides for partial payments in excess
of the amount of 60 percent of the value of the work in place.
Under the borrower method, the applicant or borrower will
perform the construction and development work. The borrower
method may only be used when the authorized agency official
determines, based on information from the applicant, that the
applicant possesses or arranges to obtain the necessary skill
and managerial ability to complete the work satisfactorily and
that such work will not interfere with the applicant’s farming
operation or work schedule.
Potential applicants should visit with FSA early in the initial
project planning process to ensure environmental compliance.
For more eligibility requirements and information about FSA Loan
programs, contact your local County USDA Service Center or visit
fsa.usda.gov.
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2017, 2018 and 2019 Average Adjusted Gross Income Compliance
Reviews
The AGI verification and compliance reviews for
2017, 2018 and 2019 are conducted on producers who the IRS indicated
may have exceeded the adjusted gross income limitations described in
[7 CFR 1400.500]. Based on this review, producers will receive
determinations of eligibility or ineligibility. The State FSA Office
has begun notifying producers selected for review.
If it is determined that you have exceeded the average AGI
limitation of $900,000, receivables will be established for payments
earned directly or indirectly by you subject to the $900,000
limitation.
Payment eligibility adverse determinations become administratively
final 30 days from the date of the payment eligibility adverse
determination letter and can only be reopened if exceptional
circumstances exist that prevented the producer from timely filing
the appeal.
If you receive an initial debt notification letter, you may appeal
the amount of the debt to your local FSA office. If you have any
questions about the review process or determinations, please contact
the FSA Illinois Office at 217-241-6600, extension 2.
Farm Storage Facility Loans
FSA’s Farm Storage Facility Loan (FSFL) program
provides low-interest financing to producers to build or upgrade
storage facilities and to purchase portable (new or used)
structures, equipment and storage and handling trucks.
The low-interest funds can be used to build or upgrade permanent
facilities to store commodities. Eligible commodities include corn,
grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor
oilseeds harvested as whole grain, pulse crops (lentils, chickpeas
and dry peas), hay, honey, renewable biomass, fruits, nuts and
vegetables for cold storage facilities, floriculture, hops, maple
sap, rye, milk, cheese, butter, yogurt, meat and poultry
(unprocessed), eggs, and aquaculture (excluding systems that
maintain live animals through uptake and discharge of water).
Qualified facilities include grain bins, hay barns and cold storage
facilities for eligible commodities.
Loans up to $50,000 can be secured by a promissory note/security
agreement and loans between $50,000 and $100,000 may require
additional security. Loans exceeding $100,000 require additional
security.
Producers do not need to demonstrate the lack of commercial credit
availability to apply. The loans are designed to assist a diverse
range of farming operations, including small and mid-sized
businesses, new farmers, operations supplying local food and farmers
markets, non-traditional farm products, and underserved producers.
To learn more about the FSA Farm Storage Facility Loan, visit
www.fsa.usda.gov/pricesupport or contact your local FSA county
office. To find your local FSA county office, visit
http://offices.usda.gov.
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.
USDA Awards Nearly $500K to Support Wetland
Mitigation Banking in Illinois
The U.S. Department of Agriculture’s (USDA) Natural
Resources Conservation Service (NRCS) will award $498,010 for a new
wetland mitigation banking project in Illinois through the Wetland
Mitigation Banking Program. This program helps conservation partners
develop and/or establish mitigation banks to help agricultural
producers maintain eligibility for USDA programs. These banks will
provide agriculture producers a streamlined mitigation option to
remain compliant for USDA Farm Bill programs while maintaining
wetlands to support functions and environmental values. Healthy
wetlands help filter our water, sequester carbon, curb soil loss,
and provide habitat for wildlife.
The key partner in this Illinois effort is Magnolia Land Partners,
LLC. They will establish two agricultural mitigation bank sites
totaling 60 acres. Illinois NRCS will provide $498,010 in funding
and Magnolia Partners will contribute $252,000. These sites will be
added under Magnolia’s NRCS approved statewide agricultural
mitigation banking instrument. Magnolia will coordinate the location
of the sites with farm groups.
While 60 acres doesn’t sound like a lot, the environmental benefits
and water quality improvements can go a long way, given the
relatively small size of wetlands typically converted for farmland.
All partners involved—as well as new partners to come—see these
projects as the start of many new mitigation bank sites that can
start impacting Illinois land, water, and soil for years to come.
Mitigation banks create credits through restoration, creation, or
enhancement of wetlands to compensate for impacts on ecosystems in
developing communities. Establishing these banks serves Ag producers
in more affordable ways. Having Magnolia facilitate and manage all
the details for landowners is helpful in what can be a complex legal
process. NRCS will keep everyone posted on the sites and track
progress and long-term benefits for the projects.
Producers seeking benefits through USDA programs must comply with
wetland provisions by avoiding impact on wetlands. In situations
where avoidance or on-site mitigation is challenging, the Farm Bill
offers participants options to mitigate activities off-site through
the purchase of mitigation banking credits.
This competitive grant program helps states, local governments, and
other qualified partners develop wetland mitigation banks to assist
agricultural producers with meeting wetland conservation compliance
requirements to remain eligible for USDA programs. Nationally, USDA
will award $5 million for eight wetland mitigation banking projects
nationwide.
Projects include:
CORBLU Ecology Group, LLC in Georgia
Minnesota Board of Water and Soil Resources
EnviroScience in Ohio
Milton Environmental Consultants in Arkansas
Iowa Agricultural Mitigation, Inc.
Michigan Department of Natural Resources
Magnolia and Partners, LLC in Illinois
South Dakota Farm Bureau
For project descriptions and more information,
visit the Wetland Mitigation Banking Program webpage.
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.
October Interest Rates and Important Dates
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Illinois Farm Service Agency
3500 Wabash Ave.
Springfield, IL 62711
Phone: 217-241-6600 ext.2
Fax: 855-800-1760
www.fsa.usda.gov/il
State Executive Director:
William J. Graff
State Committee:
James Reed-Chairperson
Melanie DeSutter-Member
Kirk Liefer-Member
George Obernagel III-Member
Troy Uphoff-Member
Administrative Officer:
Dan Puccetti
Division Chiefs:
Vicki Donaldson
John Gehrke
Wendy Mueller
Randy Tillman
To find contact information for your local office go to
www.fsa.usda.gov/il
Check out
https://www.farmers.gov/ for information about ALL the programs
available through your local USDA Service Center FSA and NRCS
offices, including county office locations, agriculture statistics,
loan interest rates and much more!
Learn about Risk Management Agency's crop insurance programs at
https://cropinsurance
101.org/
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). |
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