|
 I am very pleased to have been appointed to serve as the State
Executive Director for Illinois FSA.
I have spent the last two weeks getting my feet on the ground
while in the FSA State Office meeting the staff, and getting
acclimated with day to day office operations.
As a farmer, I am excited to have the opportunity to learn how
things are done from the other side of the FSA counter and
welcome the opportunity to bring my farming experience of
raising corn, soybeans, silage, hay and both dairy and angus
cattle with me to the agency.
Previously I served many years with Illinois Farm Bureau as
chairman for the Member Services; Public Relations Committee;
and Young Leaders and most recently the President of the
Kendall/Grundy County Farm Bureau.
My wife Sarah and I have three children.
I look forward to visiting with producers throughout the state
of Illinois.
Sincerely,
Scott Halpin
State Executive Director
2022 ARC and PLC Election and Enrollment
USDA’s Farm Service Agency (FSA) is encouraging
producers to contact their local USDA Service Centers to make or
change elections and to enroll for 2022 Agriculture Risk
Coverage (ARC) and Price Loss Coverage (PLC) programs, providing
future protections against market fluctuations. The election
and enrollment period opened on Oct. 18, 2021 and runs through
March 15, 2022.
Producers can elect coverage and enroll in ARC-CO or PLC, which
are both crop-by-crop, or ARC-IC, which is for the entire farm.
Although election changes for 2022 are optional, producers must
enroll through a signed contract each year. Also, if a producer
has a multi-year contract on the farm and makes an election
change for 2022, it will be necessary to sign a new contract.
If an election is not submitted by the deadline of March 15,
2022, the election remains the same as the 2021 election for
crops on the farm. Farm owners cannot enroll in either program
unless they have a share interest in the farm.
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.
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:
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Gardner-farmdoc
Payment Calculator, a tool available through the University
of Illinois allows producers to estimate payments for farms
and counties for ARC-CO and PLC.
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ARC and PLC
Decision Tool, a tool available through Texas A&M tallows
producers to estimate payments and yield updates and
expected payments for 2022. Crop Insurance
Considerations
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More
Information
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Upland cotton
farmers who choose to enroll seed cotton base acres in ARC
or PLC are ineligible for the stacked income protection plan
(STAX) on their planted cotton acres for that farm.
-
Unlike SCO, the
Enhanced Coverage Option (ECO) is unaffected by an ARC
election. Producers may add ECO regardless of the farm
program election.
-
Producers on farms
with a PLC election have the option of purchasing
Supplemental Coverage Option (SCO) through their Approved
Insurance Provider; however, producers on farms where ARC is
the election are ineligible for SCO on their planted acres
for that crop on that farm.
-
Producers are
reminded that ARC and PLC elections and enrollments can
impact eligibility for some crop insurance products.
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ARC and PLC are
part of a broader safety net provided by USDA, which also
includes crop insurance and marketing assistance loans.
For more information on ARC and PLC, visit
the ARC and PLC webpage or contact your local USDA Service
Center.
Submit Loan Requests for Financing Early
The Farm Loan team in the Illinois county farm loan servicing
offices are already working on operating loans for spring 2022
and asks potential borrowers to submit their requests early so
they can be timely processed. The farm loan team can help
determine which loan programs are best for applicants.
FSA offers a wide range of low-interest loans that can meet the
financial needs of any farm operation for just about any
purpose. The traditional farm operating and farm ownership loans
can help large and small farm operations take advantage of early
purchasing discounts for spring inputs as well expenses
throughout the year.
Microloans are a simplified loan program that will provide up to
$50,000 for both Farm Ownership and Operating Microloans to
eligible applicants. These loans, targeted for smaller and
non-traditional operations, can be used for operating expenses,
starting a new operation, purchasing equipment, and other needs
associated with a farming operation. Loans to beginning farmers
and members of underserved groups are a priority.Other types of
loans available include:
Marketing Assistance Loans allow producers to use eligible
commodities as loan collateral and obtain a 9-month loan while
the crop is in storage. These loans provide cash flow to the
producer and allow them to market the crop when prices may be
more advantageous.
Farm Storage Facility Loans can be used to build permanent
structures used to store eligible commodities, for storage and
handling trucks, or portable or permanent handling equipment. A
variety of structures are eligible under this loan, including
bunker silos, grain bins, hay storage structures, and
refrigerated structures for vegetables and fruit. A producer may
borrow up to $500,000 per loan.
Farmers.gov Feature Helps Producers Find
Farm Loans that Fit Their Operation
Farmers and ranchers can use the Farm Loan
Discovery Tool on farmers.gov to find information on USDA farm
loans that may best fit their operations.
USDA’s Farm Service Agency (FSA) offers a variety of loan
options to help farmers finance their operations. From buying
land to financing the purchase of equipment, FSA loans can help.
USDA conducted field research in eight states, gathering input
from farmers and FSA farm loan staff to better understand their
needs and challenges.
How the Tool Works
Farmers who are looking for financing options to operate a farm
or buy land can answer a few simple questions about what they
are looking to fund and how much money they need to borrow.
After submitting their answers, farmers will receive information
on farm loans that best fit their specific needs. The loan
application and additional resources also will be provided.
Farmers can download application quick guides that outline what
to expect from preparing an application to receiving a loan
decision. There are four guides that cover loans to individuals,
entities, and youth, as well as information on microloans. The
guides include general eligibility requirements and a list of
required forms and documentation for each type of loan. These
guides can help farmers prepare before their first USDA service
center visit with a loan officer.
Farmers can access the Farm Loan Discovery Tool by visiting
farmers.gov/fund and clicking the “Start” button. Follow the
prompts and answer five simple questions to receive loan
information that is applicable to your agricultural operation.
The tool is built to run on any modern browser like Chrome,
Edge, Firefox, or the Safari browser, and is fully functional on
mobile devices. It does not work in Internet Explorer.
About Farmers.gov
In 2018, USDA unveiled farmers.gov, a dynamic, mobile-friendly
public website combined with an authenticated portal where
farmers will be able to apply for programs, process
transactions, and manage accounts.
The Farm Loan Discovery Tool is one of many resources on
farmers.gov to help connect farmers to information that can help
their operations. Earlier this year, USDA launched the My
Financial Information feature, which enables farmers to view
their loan information, history, payments, and alerts by logging
into the website.
USDA is building farmers.gov for farmers, by farmers. In
addition to the interactive farm loan features, the site also
offers a Disaster Assistance Discovery Tool. Farmers can visit
farmers.gov/recover/disaster-assistance-tool#step-1 to find
disaster assistance programs that can help their operation
recover from natural disasters.
For more information, contact your local County USDA Service
Center or visit farmers.gov.
USDA Announces Details of New Insurance
Option for Conservation-Minded Corn Farmers
Corn farmers who “split-apply” nitrogen now have another option
for insurance coverage. The U.S. Department of Agriculture’s
(USDA) Risk Management Agency (RMA) announced the details of its
Post Application Coverage Endorsement (PACE) in certain states
for non-irrigated corn, providing coverage for producers who use
this practice that saves producers money and is considered
better for natural resources.
We are proud to offer this new insurance option that encourages
the use of conservation practices that benefit not just the
environment, but also producers’ balance sheets. America’s
agricultural communities are on the frontlines crafting
solutions to address climate change and improve the environment.
Across USDA, we’re adapting our programs to meet the needs of
producers as well as the challenges they face.
PACE provides payments for the projected yield lost when
producers are unable to apply the post nitrogen application
during the V3-V10 corn growth stages due to field conditions
created by weather. PACE is offered in select counties in 11
states, including Illinois, Indiana, Iowa, Kansas, Michigan,
Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin. It is available as supplemental coverage for Yield
Protection (YP), Revenue Protection (RP), and Revenue Protection
with Harvest Price Exclusion (RP-HPE) policies. The first sales
closing date to purchase insurance is March 15, 2022.
To “split-apply” nitrogen, growers make multiple fertilizer
applications during the growing season rather than providing all
the crop’s nitrogen requirements with a single treatment before
or during planting. This practice can lead to lower input costs
and helps prevent runoff and leaching of nutrients into
waterways and groundwater.
This new crop insurance option builds upon RMA’s efforts to
encourage use of conservation practices, including cover crops.
For example, RMA recently provided $59.5 million in premium
support for producers who planted cover crops on 12.2 million
acres through the new Pandemic Cover Crop Program. Additionally,
RMA recently updated policy to allow producers with crop
insurance to hay, graze or chop cover crops at any time and
still receive 100% of the prevented planting payment. This
policy change supports use of cover crops, which can help
producers build resilience to drought.
More Information
To learn more about PACE, visit the RMA’s Conservation webpage,
which has frequently asked questions, a fact sheet and other
resources.
RMA staff are working with AIPs and other customers by phone,
mail, and electronically to support crop insurance coverage for
producers. Farmers with crop insurance questions or needs should
contact their insurance agents about conducting business
remotely (by telephone or email). More information can be found
at farmers.gov/coronavirus.
Crop insurance is sold and delivered solely through private crop
insurance agents. A list of crop insurance agents is available
at all USDA Service Centers and online at the RMA Agent Locator.
Learn more about crop insurance and the modern farm safety net
at rma.usda.gov.
USDA touches the lives of all Americans each day in so many
positive ways. Under the Biden-Harris Administration, USDA is
transforming America’s food system with a greater focus on more
resilient local and regional food production, fairer markets for
all producers, ensuring access to safe, healthy and nutritious
food in all communities, building new markets and streams of
income for farmers and producers using climate smart food and
forestry practices, making historic investments in
infrastructure and clean energy capabilities in rural America,
and committing to equity across the Department by removing
systemic barriers and building a workforce more representative
of America. To learn more, visit
www.usda.gov.
Illinois Conservation Cropping Seminars
Save The Date!
For 2022, the annual Illinois Conservation Cropping Seminars
will again be… VIRTUAL
Attention Illinois Farmers!
Find ways to improve soil health, learn about cover crops,
remain profitable—and even more marketable—by using sustainable
techniques that build up natural resilience to weather extremes,
pests, and weeds. State Conservationist Ivan Dozier encourages
farmers to learn from conservationists, partners, and other
Illinois farmers by participating in this Conservation Cropping
Seminar online event. There will be a Question & Answer session
as well as helpful resources to access. For the eighth year in a
row, conservation partners offer helpful information, data, and
farmer testimonials in a one day, 3-hour online virtual
conference session on Thursday February 3rd from 9 am to 12
noon.
"While it’s not like the normal full-day, in-person get-together
held at three different Illinois locations, it’s still critical
that we keep the conservation conversation going--COVID-19 or
not! The planning committee has gathered a GREAT keynote
speaker, helpful information, and a powerful IL Farmer Panel to
tell their story and offer advice and ideas other Illinois
farmers can use on their farms,” Dozier explains. We can’t feed
you lunch virtually, so for 2022, participation at the event is
FREE—and lunch is “on your own”!
Scheduled speakers include:
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Welcome message,
Ivan Dozier, IL State Conservationist
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Russell Hedrick,
First Generation Farmer, North Carolina
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Cade Bushnell, Ogle
County, IL Farmer
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Jerry Seidel,
Jefferson County, IL Farmer
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Rick Kaesebier,
Logan County, IL Farmer
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Carbon Markets -
Jean Brokish and Dr. Emily Bruner, American Farmland Trust
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Agroforestry
Topics, Katie Adams, Savanna Institute
Don’t miss the 2022 event! Please register
online at the Champaign County SWCD website at www.ccswcd.com,
and reserve your spot today! The Conservation Cropping Seminars,
held for the last seven years, are organized and made possible
with the involvement and support of Illinois Department of
Agriculture, USDA’s Natural Resources Conservation Service,
American Farmland Trust, the Illinois Stewardship Alliance,
Illinois Environmental Protection Agency, Illinois Sustainable
Ag Partnership, University of Illinois Extension, and local Soil
and Water Conservation Districts in Champaign, Jefferson, Logan,
and Ogle Counties.
Look for more information, newspaper stories, ads, tweets,
Facebook postings and other reminders up until the actual event.
About the Conservation Reserve Program
CRP is one of the world’s largest voluntary conservation
programs, with an established track record of preserving
topsoil, sequestering carbon, reducing nitrogen runoff and
providing healthy habitat for wildlife.
In exchange for a yearly rental payment, agricultural producers
enrolled in the program agree to remove environmentally
sensitive land from production and plant species that will
improve environmental health and quality. In general, land is
enrolled in CRP for 10 to 15 years, with the option of
re-enrollment. FSA offers multiple CRP signups, including the
general signup and continuous signup, as well as Grassland CRP
and pilot programs focused on soil health and clean water. In
2021, producers and landowners enrolled more than 5.3 million
acres in CRP signups, surpassing USDA’s 4-million-acre goal.
Earlier this year, USDA announced updates to CRP including
higher payment rates, new incentives for environmental
practices, and a more targeted focus on the program’s role in
climate change mitigation. This included a new Climate-Smart
Practice Incentive for CRP general and continuous signups that
aims to increase carbon sequestration and reduce greenhouse gas
emissions. Climate-Smart CRP practices include establishment of
trees and permanent grasses, development of wildlife habitat,
and wetland restoration. Download the “What’s New” fact sheet to
learn more about CRP updates.
Signature Policy
Using the correct signature when doing business
with FSA can save time and prevent a delay in program benefits.
The following are FSA signature guidelines:
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A married woman
must sign her given name: Mrs. Mary Doe, not Mrs. John Doe
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For a minor, FSA
requires the minor's signature and one from the minor’s
parent
Note, by signing a document with a minor, the
parent is liable for actions of the minor and may be liable for
refunds, liquidated damages, etc.
When signing on one’s behalf the signature must agree with the
name typed or printed on the form or be a variation that does
not cause the name and signature to be in disagreement. Example
- John W. Smith is on the form. The signature may be John W.
Smith or J.W. Smith or J. Smith. Or Mary J. Smith may be signed
as Mrs. Mary Joe Smith, M.J. Smith, Mary Smith, etc.
FAXED signatures will be accepted for certain forms and other
documents provided the acceptable program forms are approved for
FAXED signatures. Producers are responsible for the successful
transmission and receipt of FAXED information.
Spouses may sign documents on behalf of each other for FSA and
CCC programs in which either has an interest, unless written
notification denying a spouse this authority has been provided
to the county office.
Spouses cannot sign on behalf of each other as an authorized
signatory for partnerships, joint ventures, corporations or
other similar entities. Likewise, a spouse cannot sign a
document on behalf of the other in order to affirm the
eligibility of oneself.
Any member of a general partnership can sign on behalf of the
general partnership and bind all members unless the Articles of
Partnership are more restrictive. Spouses may sign on behalf of
each other’s individual interest in a partnership, unless
notification denying a spouse that authority is provided to the
county office. Acceptable signatures for general partnerships,
joint ventures, corporations, estates, and trusts must consist
of an indicator “by” or “for” the individual’s name,
individual’s name and capacity, or individual’s name, capacity,
and name of entity.
For additional clarification on proper signatures contact your
local county FSA office.
Disaster Assistance for 2021 Livestock
Forage Losses
Producers in Boone, Cook, DeKalb, Kane, Lake, McHenry and
Winnebago Counties in Illinois are eligible to apply for 2021
Livestock Forage Disaster Program (LFP) benefits.
Producers in Boone, Lake and McHenry Counties are eligible to
apply for LFP benefits for native pasture, improved pasture, and
forage sorghum.
Producers in Cook, DeKalb, Kane and Winnebago Counties are
eligible to apply for LFP benefits for native pasture and
improved pasture.
LFP provides compensation if you suffer grazing losses for
covered livestock due to drought on privately owned or cash
leased land or fire on federally managed land.
County committees can only accept LFP applications after
notification is received by the National Office of qualifying
drought or if a federal agency prohibits producers from grazing
normal permitted livestock on federally managed lands due to
qualifying fire.
You must complete a CCC-853 and the required supporting
documentation no later than February 1, 2022, for 2021 losses.
For additional information about LFP, including eligible
livestock and fire criteria, contact your local County USDA
Service Center or visit fsa.usda.gov.
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.
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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.
Deadline Extended to Apply for Pandemic Support
for Certified Organic and Transitioning Operations
The U.S. Department of Agriculture (USDA) has extended the deadline
for agricultural producers who are certified organic, or
transitioning to organic, to apply for the Organic and Transitional
Education and Certification Program (OTECP). This program provides
pandemic assistance to cover certification and education expenses.
The deadline to apply for 2020 and 2021 eligible expenses is now
February 4, 2022, rather than the original deadline of January.7,
2022.
Signup for OTECP, administered by USDA’s Farm Service Agency (FSA),
began November 8, 2021.
Certified operations and transitional operations may apply for OTECP
for eligible expenses paid during the 2020, 2021 and 2022 fiscal
years. Signup for the 2022 fiscal year will be announced at a later
date.
For each year, OTECP covers 25% of a certified operation’s eligible
certification expenses, up to $250 per certification category (crop,
livestock, wild crop, handling and State Organic Program fee). This
includes application fees, inspection fees, USDA organic
certification costs, state organic program fees and more.
Crop and livestock operations transitioning to organic production
may be eligible for 75% of a transitional operation’s eligible
expenses, up to $750, for each year. This includes fees charged by a
certifying agent or consultant for pre-certification inspections and
development of an organic system plan.
For both certified operations and transitional operations, OTECP
covers 75% of the registration fees, up to $200, per year, for
educational events that include content related to organic
production and handling in order to assist operations in increasing
their knowledge of production and marketing practices that can
improve their operations, increase resilience and expand available
marketing opportunities. Additionally, both certified and
transitional operations may be eligible for 75% of the expense of
soil testing required under the National Organic Program (NOP) to
document micronutrient deficiency, not to exceed $100 per year.
Producers apply through their local FSA office and can also obtain
one-on-one support with applications by calling 877-508-8364. The
program application and additional information can be found at
farmers.gov/otecp.
Additional Organic Support
OTECP builds upon USDA’s Organic Certification Cost Share Program (OCCSP)
which provides cost share assistance of 50%, up to a maximum of $500
per scope, to producers and handlers of agricultural products who
are obtaining or renewing their certification under the NOP.
Although the application period for OCCSP ended November 1, 2021,
FSA will consider late-filed applications for those operations who
still wish to apply.
Meanwhile, USDA’s Risk Management Agency (RMA) recently made
improvements to Whole-Farm Revenue Protection to make it more
flexible and accessible to organic producers.
To learn more about USDA’s broader assistance for organic producers,
visit usda.gov/organic.
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.
USDA Opens 2022 Signup for Dairy Margin
Coverage, Expands Program for Supplemental Production
As part of the Biden-Harris Administration’s ongoing efforts to
support dairy farmers and rural communities, today the U.S.
Department of Agriculture (USDA) opened signup for the Dairy Margin
Coverage (DMC) program and expanded the program to allow dairy
producers to better protect their operations by enrolling
supplemental production. This signup period – which runs from
December 13, 2021 to February 18, 2022 – enables producers to get
coverage through this important safety-net program for another year
as well as get additional assistance through the new Supplemental
DMC.
Supplemental DMC will provide $580 million to better help small- and
mid-sized dairy operations that have increased production over the
years but were not able to enroll the additional production. Now,
they will be able to retroactively receive payments for that
supplemental production. Additionally, USDA’s Farm Service Agency
(FSA) updated how feed costs are calculated, which will make the
program more reflective of actual dairy producer expenses.
Supplemental DMC Enrollment
Eligible dairy operations with less than 5 million pounds of
established production history may enroll supplemental pounds based
upon a formula using 2019 actual milk marketings which will result
in additional payments. Producers will be required to provide FSA
with their 2019 Milk Marketing Statement.
Supplemental DMC coverage is applicable to calendar years 2021, 2022
and 2023. Participating dairy operations with supplemental
production may receive retroactive supplemental payments for 2021 in
addition to payments based on their established production history.
Supplemental DMC will require a revision to a producer’s 2021 DMC
contract and must occur before enrollment in DMC for the 2022
program year. Producers will be able to revise 2021 DMC contracts
and then apply for 2022 DMC by contacting their local USDA Service
Center.
DMC 2022 Enrollment
After making any revisions to 2021 DMC contracts for Supplemental
DMC, producers can sign up for 2022 coverage. DMC provides eligible
dairy producers with risk management coverage that pays producers
when the difference between the price of milk and the cost of feed
falls below a certain level. So far in 2021, DMC payments have
triggered for nuary through October for more than $1.0 billion.
For DMC enrollment, producers must certify with FSA that the
operation is commercially marketing milk, sign all required forms
and pay the $100 administrative fee. The fee is waived for farmers
who are considered limited resource, beginning, socially
disadvantaged, or a military veteran. To determine the appropriate
level of DMC coverage for a specific dairy operation, producers can
use the online dairy decision tool.
Updates to Feed Costs
USDA is also changing the DMC feed cost formula to better reflect
the actual cost dairy farmers pay for high-quality alfalfa hay. FSA
will calculate payments using 100% premium alfalfa hay rather than
50%. The amended feed cost formula will make DMC payments more
reflective of actual dairy producer expenses.
Additional Dairy Assistance
Today’s announcement is part of a broader package to help the dairy
industry respond to the pandemic and other challenges. USDA
is also amending Dairy Indemnity Payment Program (DIPP) regulations
to add provisions for the indemnification of cows that are likely to
be not marketable for longer durations, as a result, for example, of
per- and polyfluoroalkyl substances. FSA also worked closely with
USDA's Natural Resources Conservation Service to target assistance
through the Environmental Quality Incentives Program) and other
conservation programs to help producers safely dispose of and
address resource concerns created by affected cows. Other recent
dairy announcements include $350 million through the Pandemic Market
Volatility Assistance Program and $400 million for the Dairy
Donation Program.
Additional details on these changes to DMC and DIPP can be found in
a rule that will be published soon in the Federal Register. This
rule also included information on the new Oriental Fruit Fly Program
as well as changes to FSA conservation programs. A copy of the rule
is available here.
More Information
To learn more or to participate in DMC or DIPP, producers should
contact their local USDA Service Center. Service Center staff
continue to work with agricultural producers via phone, email and
other digital tools. Because of the pandemic, some are open to
limited visitors. Producers should contact their Service Center to
set up an in-person or phone appointment. Additionally, more
information related to USDA’s response and relief for producers can
be found at farmers.gov/coronavirus.
USDA Provides Additional Pandemic Assistance to
Hog Producers
The U.S. Department of Agriculture (USDA) announced a new program to
assist hog producers who sold hogs through a negotiated sale during
the period in which these producers faced the greatest reduction in
market prices due to the COVID-19 pandemic. The Spot Market Hog
Pandemic Program (SMHPP) is part of USDA’s Pandemic Assistance for
Producers initiative and addresses gaps in previous assistance for
hog producers. USDA’s Farm Service Agency (FSA) will accept
applications December 15, 2021 through Feb. 25, 2022.
SMHPP provides assistance to hog producers who sold hogs through a
negotiated sale from April 16, 2020 through September 1, 2020.
Negotiated sale, or negotiated formula sale, means a sale of hogs by
a producer to a packer under which the base price for the hogs is
determined by seller-buyer interaction and agreement on a delivery
day. USDA is offering SMHPP as packer production was reduced due to
the COVID-19 pandemic due to employee illness and supply chain
issues, resulting in fewer negotiated hogs being procured and
subsequent lower market prices.
The Department has set aside up to $50 million in pandemic
assistance funds through the Coronavirus Aid, Relief and Economic
Security (CARES) Act for SMHPP.
SMHPP Program Details
Eligible hogs include hogs sold through a negotiated sale by
producers between April 16, 2020, and September. 1, 2020. To be
eligible, the producer must be a person or legal entity who has
ownership in the hogs and whose production facilities are located in
the United States, including U.S. territories. Contract producers,
federal, state and local governments, including public schools and
packers are not eligible for SMHPP.
SMHPP payments will be calculated by multiplying the number of head
of eligible hogs, not to exceed 10,000 head, by the payment rate of
$54 per head. FSA will issue payments to eligible hog producers as
applications are received and approved.
Applying for Assistance
Eligible hog producers can apply for SMHPP starting December 15,
2021, by completing the FSA-940, Spot Market Hog Pandemic Program
application. Additional documentation may be required. Visit farmers.gov/smhpp for
a copy of the Notice of Funds Availability, information on applicant
eligibility and more information on how to apply.
Applications can be submitted to the FSA office at any USDA Service
Center nationwide by mail, fax, hand delivery or via electronic
means. To find your local FSA office, visit farmers.gov/service-locator.
Hog producers can also call 877-508-8364 to speak directly with a
USDA employee ready to offer assistance.
FSA Outlines MAL and LDP Policy
The 2018 Farm Bill extends loan authority through 2023 for Marketing
Assistance Loans (MALs) and Loan Deficiency Payments (LDPs).
MALs and LDPs provide financing and marketing assistance for wheat,
feed grains, soybeans, and other oilseeds, pulse crops, rice,
peanuts, cotton, wool and honey. MALs provide you with interim
financing after harvest to help you meet cash flow needs without
having to sell your commodities when market prices are typically at
harvest-time lows. A producer who is eligible to obtain a loan, but
agrees to forgo the loan, may obtain an LDP if such a payment is
available. Marketing loan provisions and LDPs are not available for
sugar and extra-long staple cotton.
FSA is now accepting requests for 2021 MALs and LDPs for all
eligible commodities after harvest. Requests for loans and LDPs
shall be made on or before the final availability date for the
respective commodities.
Commodity certificates are available to loan holders who have
outstanding nonrecourse loans for wheat, upland cotton, rice, feed
grains, pulse crops (dry peas, lentils, large and small chickpeas),
peanuts, wool, soybeans and designated minor oilseeds. These
certificates can be purchased at the posted county price (or
adjusted world price or national posted price) for the quantity of
commodity under loan, and must be immediately exchanged for the
collateral, satisfying the loan. MALs redeemed with commodity
certificates are not subject to Adjusted Gross Income provisions.
To be considered eligible for an LDP, you must have form CCC-633EZ,
Page 1 on file at your local FSA Office before losing beneficial
interest in the crop. Pages 2, 3 or 4 of the form must be submitted
when payment is requested.
Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are
no longer subject to payment limitations, actively engaged in
farming and cash-rent tenant rules.
Adjusted Gross Income (AGI) provisions state that if your total
applicable three-year average AGI exceeds $900,000, then you’re not
eligible to receive an MLG or LDP. You 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,
contact your local County USDA Service Center or visit fsa.usda.gov.
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.
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.
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.
January Interest Rates and Important Dates
[ Farmers.gov] |
