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 Illinois Service Centers would like to remind producers to
complete their crop acreage reports by the July 15th deadline
for spring-seeded crops. If the crop has not been planted by the
acreage reporting date, the acreage must be reported no later
than 15 calendar days after planting is completed. Producers are
strongly encouraged to file their acreage reports as soon as
planting is completed.
As I finish up preparing this message, I have received several
reports of excessive rain around the state. Like the rainfall,
planting progress varies across the state as well. I’m hopeful
that replant and/or prevented planting acreage will be isolated
and minimal for our Illinois farmers. To be approved as failed
acreage, the acreage report must have been reported as failed
acreage before disposition of the crop. The only exception to
this policy is that RMA data may be used if the failed acreage
was timely reported to RMA and supports the failed acreage
reported to FSA. To be approved as Prevented Planted acreage,
producers must report the acreage to FSA within 15 calendar days
after the final planting date established by RMA for insurable
crops. RMA data may be used to accept late-filed prevented
planting requests, if the prevented planted acreage was reported
timely to RMA and supports the prevented planting information
reported on the FSA-578.
In closing, I want to thank our dedicated employees and
resilient Illinois Farmers for their continued patience and
understanding during these difficult times. Take care and have a
safe spring!
Dan Puccetti
Acting State Executive Director
Maintaining Good Credit History
Farm Service Agency (FSA) loans require
applicants to have a satisfactory credit history. A credit
report is requested for all FSA direct farm loan applicants.
These reports are reviewed to verify outstanding debts, see if
bills are paid timely and to determine the impact on cash flow.
Information on your credit report is strictly confidential and
is used only as an aid in conducting FSA business.
Our farm loan staff will discuss options with you if you have an
unfavorable credit report and will provide a copy of your
report. If you dispute the accuracy of the information on the
credit report, it is up to you to contact the issuing credit
report company to resolve any errors or inaccuracies.
There are multiple ways to remedy an unfavorable credit score:
Make sure to pay bills on time -
Setting up automatic payments or automated reminders can be an
effective way to remember payment due dates.
Pay down existing debt
Keep your credit card balances low
Avoid suddenly opening or closing existing credit accounts
FSA’s farm loan staff will guide you through the process, which
may require you to reapply for a loan after improving or
correcting your credit report.
For more information on FSA farm loan programs, contact your
local County USDA Service Center or visit fsa.usda.gov.
After Identifying Gaps in Previous Aid, USDA
Announces ‘Pandemic Assistance for Producers’ to Distribute
Resources More Equitably
Agriculture Secretary Tom Vilsack announced
that USDA is establishing new programs and efforts to bring
financial assistance to farmers, ranchers and producers who felt
the impact of COVID-19 market disruptions. The new
initiative—USDA Pandemic Assistance for Producers—will reach a
broader set of producers than in previous COVID-19 aid programs.
USDA is dedicating at least $6 billion toward the new programs.
The Department will also develop rules for new programs that
will put a greater emphasis on outreach to small and socially
disadvantaged producers, specialty crop and organic producers,
timber harvesters, as well as provide support for the food
supply chain and producers of renewable fuel, among others.
Existing programs like the Coronavirus Food Assistance Program (CFAP)
will fall within the new initiative and, where statutory
authority allows, will be refined to better address the needs of
producers.
USDA Pandemic Assistance for Producers was needed, said Vilsack,
after a review of previous COVID-19 assistance programs
targeting farmers identified a number of gaps and disparities in
how assistance was distributed as well as inadequate outreach to
underserved producers and smaller and medium operations.
USDA will reopen sign-up for CFAP 2 for at least 60 days
beginning on April 5, 2021. The USDA Farm Service Agency (FSA)
has committed at least $2.5 million to improve outreach for CFAP
2 and will establish partnerships with organizations with strong
connections to socially disadvantaged communities to ensure they
are informed and aware of the application process.
USDA Pandemic Assistance for Producers – 4
Parts
Part 1: Investing $6 Billion to Expand Help & Assistance to More
Producers
USDA will dedicate at least $6 billion to
develop a number of new programs or modify existing proposals
using discretionary funding from the Consolidated Appropriations
Act and other coronavirus funding that went unspent by the
previous administration.
Part 2: Adding $500 Million of New Funding to Existing Programs
USDA expects to begin investing approximately $500 million
in expedited assistance through several existing programs this
spring, with most by April 30.
Part 3: Carrying Out Formula Payments under CFAP 1, CFAP 2,
CFAP AA
The Consolidated Appropriations Act, 2021, enacted December 2020
requires FSA to make certain payments to producers according to
a mandated formula. USDA is now expediting these provisions
because there is no discretion involved in interpreting such
directives, they are self-enacting.An increase in CFAP 1 payment
rates for cattle. Cattle producers with approved CFAP 1
applications will automatically receive these payments beginning
in April. Information on the additional payment rates for cattle
can be found on farmers.gov/cfap. Eligible producers do not need
to submit new applications, since payments are based on
previously approved CFAP 1 applications. USDA estimates
additional payments of more than $1.1 billion to more than
410,000 producers, according to the mandated formula.
Additional CFAP assistance of $20 per acre for producers of
eligible crops identified as CFAP 2 flat-rate or price-trigger
crops beginning in April. This includes alfalfa, corn, cotton,
hemp, peanuts, rice, sorghum, soybeans, sugar beets and wheat,
among other crops. FSA will automatically issue payments to
eligible price trigger and flat-rate crop producers based on the
eligible acres included on their CFAP 2 applications. Eligible
producers do not need to submit a new CFAP 2 application. For a
list of all eligible row-crops, visit farmers.gov/cfap. USDA
estimates additional payments of more than $4.5 billion to more
than 560,000 producers, according to the mandated formula.
USDA will finalize routine decisions and minor formula
adjustments on applications and begin processing payments for
certain applications filed as part of the CFAP Additional
Assistance program in the following categories:
Applications filed for pullets and turfgrass sod;
A formula correction for row-crop producer applications to allow
producers with a non-Actual Production History (APH) insurance
policy to use 100% of the 2019 Agriculture Risk Coverage-County
Option (ARC-CO) benchmark yield in the calculation;
Sales commodity applications revised to include insurance
indemnities, Noninsured Crop Disaster Assistance Program
payments, and Wildfire and Hurricane Indemnity Program Plus
payments, as required by statute; and
Additional payments for swine producers and contract growers
under CFAP Additional Assistance remain on hold and are likely
to require modifications to the regulation as part of the
broader evaluation and future assistance; however, FSA will
continue to accept applications from interested producers.
Part 4: Reopening CFAP 2 Sign-Up to Improve Access & Outreach
to Underserved Producers
As noted above, USDA will re-open sign-up for CFAP 2 for at
least 60 days beginning on April 5, 2021.
FSA has committed at least $2.5 million to establish
partnerships and direct outreach efforts intended to improve
outreach for CFAP 2 and will cooperate with grassroots
organizations with strong connections to socially disadvantaged
communities to ensure they are informed and aware of the
application process.
Please visit www.farmers.gov for additional information and
announcements under the USDA Pandemic Assistance to Producers
initiative, which will help to expand and more equitably
distribute financial assistance to producers and farming
operations during the COVID-19 national emergency.
Report Noninsured Crop Disaster Assistance
Program (NAP) Losses
NAP provides financial assistance to you for crops that aren’t
eligible for crop insurance to protect against lower yields or
crops unable to be planted due to natural disasters including
freeze, hail, excessive moisture, excessive wind or hurricanes,
flood, excessive heat and qualifying drought (includes native
grass for grazing), among others.
To receive payment, you had to purchase NAP coverage for 2021
crops and file a notice of loss the earlier of 15 days of the
occurrence of the disaster or when losses become apparent or 15
days of the final harvest date.
For hand-harvested crops and certain perishable crops, you must
notify FSA within 72 hours of when a loss becomes apparent.
Eligible crops must be commercially produced agricultural
commodities for which crop insurance is not available, including
perennial grass forage and grazing crops, fruits, vegetables,
mushrooms, floriculture, ornamental nursery, aquaculture, turf
grass, ginseng, honey, syrup, bioenergy, and industrial crops.
For more information on NAP, contact your local County USDA
Service Center or visitfsa.usda.gov/nap.
Preauthorized Debit Available for Farm Loan
Borrowers
USDA’s Farm Service Agency (FSA) has implemented pre-authorized
debit (PAD) for Farm Loan Program (FLP) borrowers. PAD is a
voluntary and alternative method for making weekly, bi-weekly,
monthly, quarterly, semi-annual or annual payments on loans.
PAD payments are pre-authorized transactions that allow the
National Financial and Accounting Operations Center (NFAOC) to
electronically collect loan payments from a customer’s account
at a financial institution.
PAD may be useful if you use nonfarm income from regular wages
or salary to make payments on loans or adjustment offers or for
payments from seasonal produce stands. PAD can only be
established for future payments.
To request PAD, customers, along with their financial
institution, must fill out form RD 3550-28. This form has no
expiration date, but a separate form RD 3550-28 must be
completed for each loan to which payments are to be applied. A
fillable form can be accessed on the USDA Rural Development (RD)
website at rd.usda.gov/publications/regulations-guidelines.
Click forms and search for “Form 3550-28.”
If you have a “filter” on the account at your financial
institution, you will need to provide the financial institution
with the following information: Origination ID: 1220040804,
Agency Name: USDA RD DCFO.
PAD is offered by FSA at no cost. Check with your financial
institution to discuss any potential cost. Preauthorized debit
has no expiration date, but you can cancel at any time by
submitting a written request to your local FSA office. If a
preauthorized debit agreement receives three payment rejections
within a three-month period, the preauthorized debit agreement
will be cancelled by FSA. The payment amount and due date of
your loan is not affected by a cancellation of preauthorized
debit. You are responsible to ensure your full payment is made
by the due date.
For more information about PAD, contact your local County USDA
Service Center or visit fsa.usda.gov.
Maintaining ARC/PLC Acreage
If you’re enrolled in the Agriculture Risk Coverage (ARC) or
Price Loss Coverage (PLC) programs, you must protect all
cropland and noncropland acres on the farm from wind and water
erosion and noxious weeds. By signing ARC county or individual
contracts and PLC contracts, you agree to effectively control
noxious weeds on the farm according to sound agricultural
practices. If you fail to take necessary actions to correct a
maintenance problem on your farm that is enrolled in ARC or PLC,
the County Committee may elect to terminate your contract for
the program year.
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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.
USDA-RMA Announces Implementation of
Improvements to Prevented Planting Coverage and the Beginning and
Veteran Farmer and Rancher Program
USDA’s Risk Management Agency (RMA) improvements to
prevented planting coverage and to the beginning and veteran farmer
and rancher program took effect on November 30 for crop year 2021.
These improvements, among others, were made to the Common Crop
Insurance Policy Basic Provisions.
Improvements to prevented planting coverage include:
Expanding the “1 in 4” requirement nationwide, requiring producers
to plant, insure and harvest acreage in at least one of the four
most recent crop years.
Making modifications to ensure that producers’ prevented planting
payments adequately reflect the crops the producer intended to
plant.
For more information, see the previous announcement and these
Frequently Asked Questions.
The improvement to the beginning and veteran farmer and rancher
program will allow participants with farming experience to use the
Actual Production History (APH) of the previous producer, with
permission, on newly acquired land. Previously, the APH could only
be used if the beginning or veteran farmer or rancher was involved
on the specific acreage acquired.
RMA is authorizing additional flexibilities due to coronavirus. More
information can be found at farmers.gov/coronavirus.
Actively Engaged Provisions for Non-Family Joint
Operations or Entities
Many Farm Service Agency (FSA) 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 that is identifiable and
documentable as well as separate and distinct from contributions of
any other member. Members of joint operations must have a share of
the profits or losses from the farming operation commensurate with
the member’s contributions to the operation and must make
contributions to the farming operation that are at risk for a loss,
with the level of risk being commensurate with the member’s claimed
share on the farming operation.
Joint operations comprised of non-family members or partners,
stockholders or persons with an ownership in the farming operation
must meet additional payment eligibility provisions. Joint
operations comprised of family members are exempt from these
additional requirements. For 2016 and subsequent crop years,
non-family joint operations can have 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 management provisions.
Non-family joint operations may request to add up to two additional
managers for their farming operation based on the size and/or
complexity of the operation. If additional farm managers are
requested and approved, all members who contribute management are
required to complete form CCC-902MR, Management Activity Record. The
farm manager should use the form to record management activities
including capital, labor and agronomics, which includes crop
selection, planting decisions, acquisition of inputs, crop
management and marketing decisions. One form should be used for each
month and the farm manager should enter the number of hours of time
spent for each activity under the date of the month the actions were
completed. The farm manager must also document if each management
activity was completed on the farm or remotely.
The records and supporting business documentation must be maintained
and timely made available for review by the appropriate FSA
reviewing authority, if requested.
If the farm manager fails to meet these requirements, their
contribution of active personal management to the farming operation
for payment eligibility purposes will be disregarded and their
payment eligibility status will be re-determined for the applicable
program year.
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.
More information on payment eligibility can be found online at
https://www.fsa.usda.gov/programs-and-services/payment-eligibility/index.
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.
USDA Announces Updates for Honeybee Producers
The Farm Service Agency (FSA) announced updates to
the Emergency Assistance for Livestock, Honeybees and Farm-Raised
Fish Program (ELAP) specific to honeybee producers. For honeybees,
ELAP covers colony losses, honeybee hive losses (the physical
structure) and honeybee feed losses in instances where the colony,
hive or feed has been destroyed by a natural disaster or, in the
case of colony losses, because of Colony Collapse Disorder. Colony
losses must be in excess of normal mortality.
Updates include:
Starting in 2020, you have 15 days from when the loss is first
apparent, instead of 30 days, to file a honeybee notice of loss,
which provides consistency between ELAP and the Noninsured Crop
Disaster Assistance Program, which also has a 15-day notice of loss
period for honey.
ELAP will now run according to the calendar year. Since you are
still required to apply for payment within 30 calendar days of the
end of the program year, the new signup deadline for calendar year
2021 losses is January 30, 2022.
If you were paid for the loss of a honeybee colony or hive in either
or both of the previous two years, you will be required to provide
additional documentation to substantiate how your current year
inventory was acquired.
If the honeybee colony loss was caused by Colony Collapse Disorder,
you must provide a producer certification that the loss was a direct
result of at least three of the five symptoms of Colony Collapse
Disorder, which include:
the loss of live queen and/or drone bee populations inside the
hives;
rapid decline of adult worker bee population outside the hives,
leaving brood poorly or completely unattended;
absence of dead adult bees inside the hive and outside the entrance
of the hive;
absence of robbing collapsed colonies; and
at the time of collapse, varroa mite and Nosema populations are not
at levels known to cause economic injury or population decline.
For more information contact your local County USDA Service Center
or visit farmers.gov/recover.
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.
The Importance of Responding to NASS Surveys
USDA’s National Agricultural Statistics Service (NASS) conducts
hundreds of surveys every year and prepares reports covering
virtually every aspect of U.S. agriculture.
If you receive a survey questionnaire, please respond quickly and
online if possible.
The results of the surveys help determine the structure of USDA farm
programs, such as soil rental rates for the Conservation Reserve
Program and prices and yields used for the Agriculture Risk Coverage
and Price Loss Coverage programs. This county-level data is critical
for USDA farm payment determinations. Survey responses also help
associations, businesses and policymakers advocate for their
industry and help educate others on the importance of agriculture.
NASS safeguards the privacy of all respondents and publishes only
aggregate data, ensuring that no individual operation or producer
can be identified.
NASS data is available online at nass.usda.gov/Publications and
through the searchable Quick Stats database. Watch a video on how
NASS data is used at youtube.com/watch?v=m-4zjnh26io&feature=youtu.be.
[Farmers.gov] |
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