USDA Update – February 15, 2022
IMPORTANT DATES TO REMEMBER:
- FEBRUARY 21, 2022 - SERVICE CENTER CLOSED – PRESIDENT’S DAY
- MARCH 11, 2022 - CRP SIGNUP 58 – DEADLINE TO SUBMIT OFFER FOR CONTRACTS THAT EXPIRE 9-30-2022.
- MARCH 15, 2022 - 2022 ARCPLC ELECTION AND ENROLLMENT DEADLINE
- MARCH 15, 2022 - DEADLINE TO REPORT COVER CROP
- MARCH 15, 2022 – DEADLINE TO PURCHASE NAP POLICY- SPRING PLANTED CROPS
Disclaimer: Information in this UPDATE is pertinent to Kiowa County FSA only. Producers reading this and that do not have FSA interest in Kiowa County are advised to contact their local FSA Office.
THE USDA SERVICE CENTER HAS A DROP BOX AVAILABLE ON THE EAST SIDE OF THE BUILDING.
COVID-19 UPDATE - The USDA Service Center received instructions last week that all customers visiting any Service Center will be required to wear a mask, regardless of vaccination status.
SERVICE CENTER CLOSED
The Service Center will be closed on Monday February 21, 2022, in observance of President’s Day. The offices will re-open on Tuesday, February 22, 2022.
NAP DEADLINE – MARCH 15, 2022
The 2022 application for coverage for spring seeded crop deadline for NAP eligible crops is fast approaching. Interested producers must apply for coverage using FSA form CCC-471, “Application for Coverage,” and pay the applicable service fee by Tuesday, March 15, 2022, 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. 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, socially disadvantaged, qualifying veteran, and limited resource farmers and rancher. These farmers and ranchers can also receive a 50 percent reduction in the premium.
NAP Buy-Up Coverage Option
NAP offers higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Buy-up levels of NAP coverage are available if the producer can show at least one year of previously successfully growing the crop for which coverage is being requested.
Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production.
NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production.
Buy-up coverage is not available for crops intended for grazing
CROP INSURANCE PREMIUM FOR COVER CROPS
Agricultural producers who have coverage under most crop insurance policies are eligible for a premium benefit from the U.S. Department of Agriculture (USDA) if they planted cover crops during the 2022 crop year. To receive the benefit from this year’s Pandemic Cover Crop Program (PCCP), producers must report cover crop acreage by March 15, 2022.
PCCP, offered by USDA’s Risk Management Agency (RMA), helps farmers maintain their cover crop systems, despite the financial challenges posed by the pandemic and is part of USDA’s Pandemic Assistance for Producers initiative, a bundle of programs to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions.
PCCP provides premium support to producers who insured their crop with most insurance policies and planted a qualifying cover crop during the 2022 crop year. The premium support is $5 per acre, but no more than the full premium amount owed.
CRP SIGNUP 58
The FSA Office was informed last week that the expiring contract letters were not mailed out on January 26, 2022; the letters were in fact just sent out last week. Therefore, producers with expiring contracts should be or have received their letter. It’s important to read the letter and become familiar with your options. Continuous signup that is mentioned in the letter is restrictive and most contracts in Kiowa County will not qualify.
The office is in the process of getting the information needed to make an offer out to the producers. Producers who meet the CP2 – 50-point grass practice will be receiving the information to submit an offer. The letter these producers receive from the office will explain the CRP process. Be reminded; only one signature is required to submit an offer.
The NRCS status reviews have determined there will be many contracts that do not currently meet compliance with the conservation practice which the contract is enrolled. If these offers are accepted; some type of enhancement will need to occur. These types of situations will take more time to work through with the producer.