|
 It’s often said that farmers are some of the most resilient
individuals because of the challenges they constantly face. With
little to no control over the weather, market prices, and input
costs, I think everyone in the IL FSA family understands the
struggles our farmers face. I just want to acknowledge the
commitment and perseverance the IL FSA workforce has shown while
dealing with our own uncontrollable and unprecedented
challenges. Together, IL FSA and our Farmers, have created an
amazing team and continue to work together to embrace change and
collaborate to find new ways to conduct business while still
completing the necessary program requirements and meeting our
deadlines.
I’m sure the recent weather has us all clamoring for an early
Spring or at least some decent weather that allows us the
opportunity to get back outdoors. Before we rush out and start
preparing for spring planting, I want to personally request your
cooperation in planning ahead and completing your 2021 ARC/PLC
enrollment. Enrollment for the 2021 crop year closes on March
15, 2021. This deadline coincides with the crop insurance
closing date for most spring-planted crops.
Our Service Centers are still accepting offers for the General
and Continuous CRP signups, producers have until March 5, 2021
to apply for the Quality Loss Adjustment Program and we are
still committed to addressing your lending needs with our Farm
Storage Facility Loan or our Guaranteed and Direct Loan
Programs. IL FSA is always here to assist all our farmers!
In closing, all USDA Service Centers are open for business, even
though we are currently restricting in-person visits. All
Service Center visitors wishing to conduct business with FSA
should call ahead. Our program delivery staff will continue to
work with our farmers by phone, email and using online tools.
Dan Puccetti
Acting State Executive Director/
Administrative Officer
March 15 is Deadline to Make Elections and
Complete Enrollment in 2021 Agriculture Risk Coverage (ARC) and
Price Loss Coverage (PLC) Programs
Agricultural producers can now make elections and enroll in the
Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC)
programs for the 2021 crop year.
Enrollment for the 2021 crop year closes March 15, 2021.
ARC provides income support payments on historical base acres
when actual crop revenue declines below a specified guaranteed
level. PLC provides income support payments on historical base
acres when the effective price for a covered commodity falls
below its reference price.
Covered commodities include barley, canola, large and small
chickpeas, corn, crambe, flaxseed, grain sorghum, lentils,
mustard seed, oats, peanuts, dry peas, rapeseed, long grain
rice, medium and short grain rice, safflower seed, seed cotton,
sesame, soybeans, sunflower seed and wheat.
2021 Elections and Enrollment
Producers can elect coverage and enroll in crop-by-crop
ARC-County or PLC, or ARC-Individual for the entire farm, for
the 2021 crop year. Although election changes for 2021 are
optional, enrollment (signed contract) is required for each year
of the program. If a producer has a multi-year contract on the
farm and makes an election change for 2021, it will be necessary
to sign a new contract.
If an election is not submitted by the deadline of March 15,
2021, the election defaults to the current election for crops on
the farm from the prior crop year.
For crop years 2022 and 2023, producers will have an opportunity
to make new elections during those signups. Farm owners cannot
enroll in either program unless they have a share interest in
the farm.
Web-Based Decision Tools
In partnership with USDA, the University of Illinois and Texas
A&M University offer web-based decision tools to assist
producers in making informed, educated decisions using crop data
specific to their respective farming operations. Tools include:
Gardner-farmdoc Payment Calculator, the University of Illinois
tool that offers farmers the ability to run payment estimate
modeling for their farms and counties for ARC-County and PLC.
ARC and PLC Decision Tool, the Texas A&M tool allows producers
to analyze payment yield updates and expected payments for 2021.
Producers who have used the tool in the past should see their
username and much of their farm data already available in the
system.
More Information
For more information on ARC and PLC, including two online
decision tools that assist producers in making enrollment and
election decisions specific to their operations, visit the ARC
and PLC webpage.
For additional questions and assistance, contact your local USDA
service center. To locate your local FSA office, visit
farmers.gov/service-locator.
Sales Closing Dates Near for Most Spring
Crops
To prepare for this year, the U.S. Department of Agriculture’s
(USDA) Risk Management Agency (RMA) urges farmers to sign up for
crop insurance before the sales closing dates for eligible 2021
spring crops.
The sales closing dates for most spring-planted crops in
Illinois is March 15, 2021.
Federal crop insurance helps producers recover after severe
weather and manage other business risks.
Coverage is available for nearly every commodity, including
fruit, vegetable, and organic, with crop specific plans or the
Whole Farm Revenue Protection policy.
Sales closing dates vary by crop, state, and county. More
information about deadlines are available in the RMA Actuarial
Browser.
To discuss dates and options, producers should contact their
local agent. Learn more at
www.rma.usda.gov.
Applying for Beginning Farmer Loans
The Farm Service Agency (FSA) assists 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
Does not own a farm in excess of 30 percent of the county’s
average size farm.
For more information contact, contact your local County USDA
Service Center or visit fsa.usda.gov.
USDA Offers Secure New Options for Signing
and Sharing Documents Online
Farmers and ranchers working with USDA’s Farm Service Agency or
Natural Resources Conservation Service can now sign and share
documents online in just a few clicks. By using Box or OneSpan,
producers can digitally complete business transactions without
leaving their homes or agricultural operations. Both services
are free, secure, and available for multiple FSA and NRCS
programs.
Box is a secure, cloud-based site where FSA or NRCS documents
can be managed and shared. Producers who choose to use Box can
create a username and password to access their secure Box
account, where documents can be downloaded, printed, manually
signed, scanned, uploaded, and shared digitally with Service
Center staff. This service is available to any FSA or NRCS
customer with access to a mobile device or computer with printer
connectivity.
OneSpan is a secure eSignature solution for FSA and NRCS
customers. Like Box, no software downloads or eAuthentication is
required for OneSpan. Instead, producers interested in
eSignature through OneSpan can confirm their identity through
two-factor authentication using a verification code sent to
their mobile device or a personalized question and answer. Once
identity is confirmed, documents can be reviewed and e-signed
through OneSpan via the producer’s personal email address.
Signed documents immediately become available to the appropriate
Service Center staff.
Box and OneSpan are both optional services for customers
interested in improved efficiency in signing and sharing
documents with USDA, and they do not replace existing systems
using eAuthentication for digital signature. Instead, these
tools provide additional digital options for producers to use
when conducting business with FSA or NRCS.
USDA Service Center staff are available to help producers get
started with Box and OneSpan through a few simple steps. Please
visit farmers.gov/service-locator to find your local office and
let Service Center staff know you’re interested in signing and
sharing documents through these new features. In most cases, one
quick phone call will be all that is needed to initiate the
process.
Visit farmers.gov/mydocs to learn more about Box and OneSpan,
steps for getting started, and additional resources for
conducting business with USDA online.
To learn more about program flexibilities and Service Center
status during the coronavirus pandemic, visit farmers.gov/coronavirus.
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 at or visit
fsa.usda.gov/crp.
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.
Farm Loan Graduation Reminder for Direct
Loan Borrowers
Farm Service Agency (FSA) Direct Loans are considered a
temporary source of credit available to producers who do not
meet normal underwriting criteria for commercial banks.
FSA periodically conducts Direct Loan graduation reviews to
determine a borrower’s ability to graduate to commercial credit.
If the borrower’s financial condition has improved to a point
where they can refinance their debt with commercial credit, they
will be asked to obtain other financing and partially or fully
pay off their FSA debt.
By the end of a producer’s operating cycle, the Agency will send
a letter requesting a current balance sheet, actual financial
performance and a projected farm budget. The borrower has 30
days to return the required financial documents. This
information will be used to evaluate the borrower’s potential
for refinancing to commercial credit.
If a borrower meets local underwriting criteria, FSA will send
the borrower’s name, loan type, balance sheet, and projected
cash flow to commercial lenders. The borrower will be notified
when loan information is sent to local lenders.
If any lenders are interested in refinancing the borrower’s
loan, FSA will send the borrower a letter with a list of lenders
interested in refinancing the loan. The borrower must contact
the lenders and complete an application for commercial credit
within 30 calendar days.
If a commercial lender rejects the borrower, the borrower must
obtain written evidence that specifies the reasons for rejection
and submit to their local FSA farm loan office.
If a borrower fails to provide the requested financial
information or to graduate, FSA will notify the borrower of
noncompliance, FSA’s intent to accelerate the loan, and appeal
rights.
Is the Noninsured Crop Disaster Assistance
Program Right for You?
Farmers and ranchers rely on crop insurance to protect
themselves from disasters and unforeseen events, but not all
crops are insurable through the USDA’s Risk Management Agency.
The Farm Service Agency’s (FSA) Noninsured Crop Disaster
Assistance Program (NAP) provides producers another option to
obtain coverage against disaster for these crops. NAP provides
financial assistance to producers of non-insured crops impacted
by natural disasters that result in lower yields, crop losses,
or prevents crop planting.
Commercially produced crops and agricultural commodities for
which crop insurance is not available are generally eligible for
NAP. Eligible crops include those grown specifically for food,
fiber, livestock consumption, biofuel or biobased products, or
be commodities such as value loss crops like Christmas trees and
ornamental nursery, honey, maple sap, and many others. Contact
your FSA office to see which crops are eligible in your state
and county.
Eligible causes of loss include drought, freeze, hail, excessive
moisture, excessive wind or hurricanes, earthquake, flood. These
events must occur during the NAP policy coverage period, before
or during harvest, and the disaster must directly affect the
eligible crop. For guidance on causes of loss not listed,
contact your local FSA county office.
Interested producers must apply for coverage using FSA form
CCC-471, “Application for Coverage,” and pay the applicable
service fee at the FSA office where their farm records are
maintained. These must be filed by the application closing date.
Closing dates vary by crop, so it is important to contact your
local FSA office as soon as possible to ensure you don’t miss an
application closing date.
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At the time of application, each producer will be provided a copy of
the NAP Basic Provisions, which describes how NAP works and all the
requirements you must follow to maintain NAP coverage. NAP
participants must provide accurate annual reports of their
production in non-loss years to ensure their NAP coverage is
beneficial to their individual operation.
Producers are required to pay service fees which
vary depending on the number of crops and number of counties your
operation is located in. The NAP service fee is the lesser of $325
per crop or $825 per producer per administrative county, not to
exceed a total of $1,950 for a producer with farming interests in
multiple counties. Premiums also apply when producers elect higher
levels of coverage with a maximum premium of $15,750 per person or
legal entity depending on the maximum payment limitation that may
apply to the NAP covered producer. The service fee can be waived for
beginning, qualifying veteran, and limited resource farmers and
rancher. These farmers and ranchers can also receive a 50 percent
reduction in the premium.
For more detailed information on NAP, download the NAP Fact Sheet.
To get started with NAP, we recommend you contact your local USDA
service center.
Environmental Review Required Before Project
Implementation
The National Environmental Policy Act (NEPA) requires Federal
agencies to consider all potential environmental impacts for
federally-funded projects before the project is approved.
For all Farm Service Agency (FSA) programs, an environmental review
must be completed before actions are approved, such as site
preparation or ground disturbance. These programs include, but are
not limited to, the Emergency Conservation Program (ECP), Farm
Storage Facility Loan (FSFL) program and farm loans. If project
implementation begins before FSA has completed an environmental
review, the request will be denied. Although there are exceptions
regarding the Stafford Act and emergencies, it’s important to wait
until you receive written approval of your project proposal before
starting any actions.
Applications cannot be approved until FSA has copies of all permits
and plans. Contact your local FSA office early in your planning
process to determine what level of environmental review is required
for your program application so that it can be completed timely.
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.
Filing CCC-941 Adjusted Gross Income (AGI)
Certifications
If you have experienced delays in receiving Agriculture Risk
Coverage (ARC) and Price Loss Coverage (PLC) payments, Loan
Deficiency Payments (LDPs) and Market Gains on Marketing Assistance
Loans (MALs), it may be because you have not filed form CCC-941,
Adjusted Gross Income Certification.
If you don’t have a valid CCC-941 on file for the applicable crop
year you will not receive payments. All farm operator/tenants/owners
who have not filed a CCC-941 and have pending payments should
IMMEDIATELY file the form with their recording county FSA office.
Farm operators and tenants are encouraged to ensure that their
landowners have filed the form.
FSA can accept the CCC-941 for 2018, 2019, 2020 and 2021. Unlike the
past, you must have the CCC-941 certifying your AGI compliance
before any payments can be issued.
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.
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.
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.
USDA Introduces Enhanced Coverage Option Crop
Insurance Product
The USDA’s Risk Management Agency (RMA) announced that a new Federal
Crop Insurance product, the Enhanced Coverage Option (ECO), will be
available for 31 spring-planted crops for the 2021 crop year and is
expected to be available for additional crops starting in the 2022
crop year.
ECO allows policyholders to purchase additional area-based coverage
for a portion of the deductible for their underlying yield- or
revenue-based crop insurance policy. ECO must be purchased as an
endorsement to the Yield Protection, Revenue Protection, Revenue
Protection with the Harvest Price Exclusion, Actual Production
History or Yield-Based Dollar Amount of Insurance policy.
ECO provides coverage in bands from 86% to a choice of either 90 or
95% of expected yield or revenue. ECO pays a loss on an area basis,
and an indemnity triggers when the county level yield or revenue
drops below 90 or 95% of its expected level. There is an additional
premium associated with ECO coverage, and premium subsidies are
offered to make the policy more affordable. Unlike the Supplemental
Coverage Option, ECO coverage is unaffected by Agriculture Risk
Coverage participation for the same crop, on the same acres. You may
select ECO regardless of your farm program election.
RMA is authorizing additional flexibilities due to coronavirus. More
information can be found at farmers.gov/coronavirus.
The USDA’s Risk Management Agency (RMA) announced that a new Federal
Crop Insurance product, the Enhanced Coverage Option (ECO), will be
available for 31 spring-planted crops for the 2021 crop year and is
expected to be available for additional crops starting in the 2022
crop year.
ECO allows policyholders to purchase additional area-based coverage
for a portion of the deductible for their underlying yield- or
revenue-based crop insurance policy. ECO must be purchased as an
endorsement to the Yield Protection, Revenue Protection, Revenue
Protection with the Harvest Price
Exclusion, Actual Production History or Yield-Based Dollar Amount of
Insurance policy.
ECO provides coverage in bands from 86% to a choice of either 90 or
95% of expected yield or revenue. ECO pays a loss on an area basis,
and an indemnity triggers when the county level yield or revenue
drops below 90 or 95% of its expected level. There is an additional
premium associated with ECO
coverage, and premium subsidies are offered to make the policy more
affordable. Unlike the Supplemental Coverage Option, ECO coverage is
unaffected by Agriculture Risk Coverage participation for the same
crop, on the same acres. You may select ECO regardless of your farm
program election.
RMA is authorizing additional flexibilities due to coronavirus. More
information can be found at farmers.gov/coronavirus.
Updates to Conservation Easements Strengthens
Protection for Farmland, Grassland & Wetlands
The U.S. Department of Agriculture (USDA) recently released the
final rule for its Agricultural Conservation Easement Program (ACEP),
which enables agricultural producers and private landowners to
protect farmlands, grasslands, and wetlands with conservation
easements. The rule updates ACEP as directed by the 2018 Farm Bill
and incorporates public comments made on an interim rule.
Ivan Dozier, State Conservationist for USDA’s Natural Resources
Conservation Service (NRCS) confirms that conservation easements are
a critical conservation tool helping landowners sustain Illinois’
vital working landscapes and wetland ecosystems. The minor updates
to the ACEP final rule are intended to improve processes that will
help strengthen the impacts of our investments and continue to
elevate protection of ecologically important lands in Illinois
through voluntary conservation.
ACEP is USDA’s premier conservation easement program, offering
financial and technical assistance to help protect productive farm
and ranch lands from conversion to other uses and to restore and
protect the nation’s critical wetlands. It uses innovative
conservation systems to support the restoration of wetland
ecosystems and to protect working lands, helping to sequester
carbon, trap sediment, and filter pollutants for clean water.
ACEP’s Agricultural Land Easements (ALE) component assists state and
local governments and non-governmental organizations that have
farmland or grassland protection programs purchase conservation
easements from eligible landowners. This helps protect the long-term
viability of the nation’s food supply by preventing conversion of
productive working farmland and grassland to non-agricultural uses
or non-grassland uses.
The Wetland Reserve Easements (WRE) component helps landowners
restore and protect wetlands in agricultural landscapes that provide
benefits, including increased wildlife habitat, improved water
quality, reduced impacts from flooding, groundwater recharge, and
more outdoor recreation and educational opportunities. NRCS provides
technical and financial assistance directly to private landowners to
restore, protect, and enhance wetlands through the purchase of these
easements.
NRCS received more than 570 comments on the ACEP interim rule, which
was published January 6, 2020. Overall, comments expressed support
for changes made in the interim rule but requested some
clarifications and additional changes. View the final rule on the
Federal Register. The final rule responds to these comments and
adopts the interim rule with minor changes, including:
Updates to ACEP:
Revised definitions for beginning farmer or rancher, eligible land,
farm or ranch succession plan, future viability and maintenance to
provide additional clarity, especially around succession planning.
Updates to ACEP Agricultural Land Easements:
Incorporated priority into ACEP-ALE ranking criteria for lands
enrolled in the Transition Incentives Program under the Conservation
Reserve Program (CRP-TIP).
Clarified non-federal match requirements and added new types of
costs that may be used to satisfy non-federal match requirements.
Modified one of the regulatory deed requirements to clarify types of
changes to the easement deed or easement area that must be approved
in advance by NRCS.
Updated regulatory language describing the United States’ inspection
authority to reflect the existing right of enforcement language used
in ACEP-ALE conservation easements, wherein NRCS provides
agricultural land easement holders and landowners notice and a
reasonable opportunity to participate in an inspection of the
easement area.
Revised regulatory language to specify minimum and maximum durations
for ACEP-ALE agreements based on an eligible entity’s certification
status under ACEP-ALE.
Updates to ACEP Wetland Reserve Easements:
Incorporated priority into the ACEP-WRE ranking criteria for lands
enrolled in the CRP-TIP that are farmed wetland and adjoining land
that has the highest wetland functions and values and is likely to
return to production after the land leaves CRP.
NRCS accepts ACEP applications year-round, but applications are
ranked and funded during enrollment periods set locally. View the
final rule on the Federal Register. For more information on how to
sign up for ACEP in Illinois, visit il.nrcs.usda.gov or contact your
local NRCS field office. Find more information about ACEP and other
NRCS conservation programs in Illinois online at
https://www.nrcs.usda.gov/
wps/portal/nrcs/il/programs/.
February Interest Rates and Important Dates
CLICK TO ENLARGE
Illinois Farm Service Agency
3500 Wabash Ave. Springfield, Illinois 62711
Phone: 217-241-6600 ext. 2 Fax: 855-800-1760
www.fsa.usda.gov/il
Acting State Executive Director: Dan Puccetti
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://cropinsurance101.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). |
