AGRICULTURE DEPARTMENT EXPANDS LOAN OPPORTUNITIES FOR FARMERS

FROM:  U.S. DEPARTMENT OF AGRICULTURE
Agriculture Secretary Tom Vilsack Announces Increased Opportunity for Producers as part of New Farm Bill

Farm Loan Program Modifications Create Flexibility for New and Existing Farmers and Ranchers Alike

WASHINGTON, March 24, 2014 — Agriculture Secretary Tom Vilsack today announced increased opportunity for producers as a result of the 2014 Farm Bill. A fact sheet outlining modifications to the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) Farm Loan Programs is available here.

"Our nation's farmers and ranchers are the engine of the rural economy. These improvements to our Farm Loan Programs will help a new generation begin farming and grow existing farm operations," said Secretary Vilsack. "Today's announcement represents just one part of a series of investments the new Farm Bill makes in the next generation of agriculture, which is critical to economic growth in communities across the country."

The Farm Bill expands lending opportunities for thousands of farmers and ranchers to begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and socially disadvantaged producers.

Changes that will take effect immediately include:

Elimination of loan term limits for guaranteed operating loans.
Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier instead of the median farm size.
Modification of the Joint Financing Direct Farm Ownership Interest Rate to 2 percent less than regular Direct Farm Ownership rate, with a floor of 2.5 percent. Previously, the rate was established at 5 percent.
Increase of the maximum loan amount for Direct Farm Ownership down payments from $225,000 to $300,000.
Elimination of rural residency requirement for Youth Loans, allowing urban youth to benefit.
Debt forgiveness on Youth Loans, which will not prevent borrowers from obtaining additional loans from the federal government.
Increase of the guarantee amount on Conservation Loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.
Microloans will not count toward loan term limits for veterans and beginning farmers.

USDA REMINDS FARMERS OF AFFECTS OF SEQUESTRATION ON FARM PROGRAMS

FROM:  U.S. DEPARTMENT OF AGRICULTURE 
FSA Advises Producers to Anticipate Payment Reductions Due to Mandated Sequester 

WASHINGTON, Nov. 15, 2013 ---USDA’s Farm Service Agency (FSA) is reminding farmers and ranchers who participate in FSA programs to plan accordingly in FY2014 for automatic spending reductions known as sequestration. The Budget Control Act of 2011 (BCA) mandates that federal agencies implement automatic, annual reductions to discretionary and mandatory spending limits. For mandatory programs, the sequestration rate for FY2014 is 7.2%. Accordingly, FSA is implementing sequestration for the following programs:

Dairy Indemnity Payment Program; Marketing Assistance Loans; Loan Deficiency Payments; Sugar Loans; Noninsured Crop Disaster Assistance Program; Tobacco Transition Payment Program; 2013 Direct and Counter-Cyclical Payments; 2013 Average Crop Revenue Election Program; 2011 and 2012 Supplemental Revenue Assistance Program; Storage, handling; and Economic Adjustment Assistance for Upland Cotton.

Conservation Reserve Program payments are specifically exempt by statute from sequestration, thus these payments will not be reduced.

“These sequester percentages reflect current law estimates; however with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction. Today’s announcement intends to help producers plan for the impact of sequestration cuts in FY2014,” said FSA Administrator Juan M. Garcia. “At this time, FSA is required to implement the sequester reductions. Due to the expiration of the Farm Bill on September 30, FSA does not have the flexibility to cover these payment reductions in the same manner as in FY13. FSA will provide notification as early as practicable on the specific payment reductions. ”

2013 COMMODITY LOAN DISBURSEMENTS RESUME

FROM:  U.S. DEPARTMENT OF AGRICULTURE 
Farm Service Agency Announces the Resumption of 2013 Crop Commodity Loan Disbursements


WASHINGTON, Nov. 1, 2013 — U.S Department of Agriculture Farm Service Agency (FSA) Administrator Juan Garcia announced today that the processing and disbursement of 2013 crop commodity loans has resumed.The commodity loan programs provide interim financing to producers for agricultural commodities stored after harvest and then sold throughout the year. Crop year 2013 commodity loan-making was suspended Oct. 1, 2013, to make changes necessary to accommodate the automatic funding reductions known as sequester. Sequestration is mandated by the Budget Control Act of 2011.


“We must comply with the laws established by Congress in accordance with sequestration policy,” said Garcia. “We regret the delay this has created in USDA issuing marketing assistance loans because we know how critical the loans are to farmers’ cash flows at this time of year.”


Producers requesting 2013 crop commodity loans on their harvested commodities will have a 5.1 percent reduction to the loan amount upon its disbursement, due to the sequestration. Commodity loans issued by marketing associations and loan servicing agents are also subject to the sequestration reduction.


During the period that loan-making was suspended, producers were still able to submit loan applications to their county FSA offices, marketing associations and loan servicing agents.

USDA'S ONGOING EFFORTS TO ASSIST DROUGHT IMPACTED RANCHERS

FROM:  U.S. DEPARTMENT OF AGRICULTURE 
USDA Announces Ongoing Efforts to Assist Ranchers Impacted by Drought

WASHINGTON, Aug. 5, 2013 - As severe drought conditions persist in certain regions throughout the country, the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia today announced temporary assistance to livestock producers through FSA's Conservation Reserve Program (CRP). Under limited conditions, farmers and ranchers affected by drought will be allowed to use certain additional CRP acres for haying or grazing under emergency conditions while maintaining safeguards to the conservation and wildlife benefits provided by CRP. In addition, USDA announced that the reduction to CRP annual rental payments related to emergency haying or grazing will be reduced from 25 percent to 10 percent. Further, the sale of hay will be allowed under certain conditions. These measures take into consideration the quality losses of the hay and will provide needed assistance to livestock producers.

"Beginning today, state FSA offices are authorized, under limited conditions, to expand opportunities for haying and grazing on certain additional lands enrolled in CRP," said Garcia. "This local approach provides both the appropriate flexibility and ability to tailor safeguards specific to regional conditions. States must adhere to specific guidelines to ensure that additional haying and grazing still maintains the important environmental and wildlife benefits of CRP. These safeguards will be determined through consultation with the state conservationist, state fish and wildlife agency and stakeholders that comprise the state technical committee."


CRP is a voluntary program that provides producers annual rental payments on their land in exchange for planting resource-conserving vegetation on cropland to help prevent erosion, provide wildlife habitat and improve the environment. CRP acres enrolled under certain practices can already be used for emergency haying and grazing during natural disasters to provide much-needed feed to livestock. FSA state offices have already opened haying, grazing or both in 432 counties in response to natural disaster this year.

Given the continued multi-year drought in some regions, forage for livestock is already substantially reduced. The action today will allow lands that are not typically eligible for emergency haying and grazing to be used with appropriate protections to maintain the CRP environmental and wildlife benefits. The expanded haying and grazing will only be allowed following the local primary nesting season, which already has passed in many areas. Especially sensitive lands such as stream buffers are generally not eligible.

FSA also has taken action under the Emergency Conservation Program to authorize additional expenditures related to drought response to be eligible for cost share, including connection to rural water systems and installation of permanent pipelines. In addition, given the limited budgetary resources and better long term benefits, FSA has increased the maximum cost share rates for permanent practices relative to temporary measures.

FSA encourages all farmers and ranchers to contact their local USDA Farm Service Agency Service Center to report damage to crops or livestock loss. In addition, USDA reminds livestock producers to keep thorough records of losses, including additional expenses for such things as feed purchased due to lost supplies.

SECRETARY OF AGRICULTURE TO APPOINT SOCIALLY-DISADVANTAGED FARMERS AS VOTING MEMBERS OF COUNTY COMMITTEES

Photo:  Angus Cow.  Credit:  USDA
FROM:  U.S. DEPARTMENT OF AGRICULTURE
Agriculture Secretary Vilsack Intends to Appoint Socially-Disadvantaged Farmers as Voting Members of County Committees

WASHINGTON, June 4, 2012—Agriculture Secretary Tom Vilsack announced today that he intends to appoint voting members from socially disadvantaged (SDA) communities to serve on county committees in county jurisdictions that lack fair SDA representation.USDA’s Farm Service Agency (FSA), which works collaboratively with county committees, published an interim rule today in the Federal Register that is open for public comment for 60 days.

County committees have served as a direct link between the farm community and USDA for more than 75 years, helping to deliver FSA farm programs at the local level. Eligible farmers serving on committees provide feedback to USDA on the types of FSA agricultural programs that best serve the needs of local producers.

“As we continue to build a USDA that is responsive to the needs of an evolving, 21st century agricultural economy, we must ensure a strong and sustainable future for these important committees,” said Vilsack. “Appointing new voting members to committees that lack representation will help ensure that county committees continue to play a vital and relevant role in delivering important federal farm programs to citizens of rural communities across our nation.”

County committees were formed in the 1930s to oversee federal farm programs, a tool for grassroots engagement whereby locally elected committees give farmers effective self-government authority. That authority continues today, making farmers primary stewards of farm programs passed by Congress, including administration and outreach to all farmers and ranchers in their area.

Secretarial appointments would add SDA voting members to county jurisdictional areas where representation is lacking, according to a statistical review conducted by USDA. The appointments will supplement the existing election process where currently there are 7,700 elected county committee members representing 2,244 county jurisdictions.

“We are proud of the great diversity that makes up our rural communities,” said FSA Administrator Bruce Nelson, “and appointing voting members to committees that lack representation is an important step in helping to maintain a robust county committee system for all producers.”

Authority to appoint voting SDA members was granted in the 2002 Farm Bill passed by Congress. The interim rule allows the Secretary of Agriculture to ensure fair representation on county committees by appointing a voting member in areas identified under-representing the diversity of area producers. Each year, USDA will conduct a fresh statistical analysis, and appointments with voting authority will continue to occur in areas identified under-representing the diversity of area producers.

A copy of this interim rule is on display in today’s Federal Register. To submit comments, use any of the following methods:

The Obama Administration, with Agriculture Secretary Vilsack’s leadership, has worked tirelessly to strengthen rural America, implement the Farm Bill, maintain a strong farm safety net, and create opportunities for America’s farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers. A strong farm safety net is important to sustain the success of American agriculture. For example, in response to tighter financial markets, USDA has expanded the availability of farm credit, helping struggling farmers refinance loans. In the past 3 years, USDA provided 103,000 loans to family farmers totaling $14.6 billion. Over 50 percent of the loans went to beginning and socially disadvantaged farmers and ranchers.