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Agriculture USDA Service Center Update

USDA Update – November 6, 2023

Eads USDA Service Center Staff

IMPORTANT DATES TO REMEMBER

  • NOVEMBER 10, 2023 – SERVICE CENTER CLOSED – VETERAN’S DAY
  • NOVEMBER 17, 2023 – APPLICATION DEADLINE FOR CSP & EQIP at NRCS
  • NOVEMBER 15, 2023 - FALL ACREAGE REPORTING DEADLINE
  • NOVEMBER 23, 2023 – SERVICE CENTER CLOSED – THANKSGIVING HOLIDAY
  • DECEMBER 1, 2023 - NAP APPLICATON FOR COVERAGE DEADLINE -  Alfalfa and Grass 
  • DECEMBER 4, 2023 – DEADLINE TO MAIL OR RETURN COC BALLOT TO FSA
  • JANUARY 30, 2024- LIVESTOCK FORAGE PROGRAM or LFP – Kiowa County eligible. 

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. 

USDA to Provide More Than $3 Billion to Commodity and Specialty Crop Producers Impacted by 2022 Natural Disasters 

The U. S Department of Agriculture (USDA) will provide more than $3 billion to commodity and specialty crop producers impacted by natural disaster events in 2022. Eligible impacted producers can apply for financial assistance through the Emergency Relief Program (ERP) 2022. The program will help offset the financial impacts of crop yield and value losses from qualifying disasters occurring in 2022.

“2022 was another year of weather-related challenges — for some, the third consecutive year or more in a row. The financial impact to a family farm or ranch in one year is significant but the cumulative impact of multiple years can be devastating,” said USDA Farm Service Agency (FSA) Administrator Zach Ducheneaux. “In our continued commitment to improving our delivery of emergency relief assistance, we have further refined our Emergency Relief Program 2022 delivery process. Instead of two separate program phases, we will now run two tracks concurrently increasing our efficiencies in application and payment processing while ensuring equitable program delivery. We also listened to important input from producers and stakeholders and have enhanced ERP 2022 provisions to ensure shallow loss impacts on revenue are considered.” 

Background 

On Dec. 29, 2022, President Biden signed into law the Disaster Relief Supplemental Appropriations Act, 2023 (P.L. 117-328) that provides about $3.7 billion in financial assistance for agricultural producers impacted by eligible natural disasters that occurred in calendar year 2022.  

ERP 2022 covers losses to crops, trees, bushes, and vines due to qualifying, calendar year 2022 natural disaster events including wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought and related conditions.  

ERP 2022 program benefits will be delivered to eligible producers through a two-track process. FSA intends to make both tracks available to producers at the same time. 

This two-track approach enables USDA to: 

Streamline the application process. 

  • Reduce the paperwork burden on producers. 
  • Proactively include provisions for underserved producers who have not been well served by past emergency relief efforts. 
  • Encourage producer participation in existing risk management programs to mitigate the impacts of future severe weather events.    

It’s important to note that disaster-impacted producers may be eligible for ERP 2022 assistance under one or both tracks. To avoid duplicative benefits, if a producer applies for both tracks, the Track 2 payment calculation will take into account any payments received through Track 1.  

ERP 2022 Application Process – Track 1 

ERP 2022 Track 1 leverages existing federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) data as the basis for calculating payments for eligible crop producers who received indemnities through these risk management programs. 

Although FSA is sending pre-filled ERP 2022 Track 1 application forms to producers who have crop insurance and NAP data already on file with USDA, producers indemnified for losses resulting from 2022 natural disasters do not have to wait to receive the application before requesting ERP 2022 assistance. Effective Oct. 31, 2023, producers can apply for ERP 2022 benefits whether they have received the pre-filled application or not. Receipt of a pre-filled application is not confirmation that a producer is eligible to receive an ERP 2022 Track 1 payment.   

USDA estimates that ERP Track 1 benefits will reach more than 206,000 producers who received indemnities for losses covered by federal crop insurance and more than 4,500 producers who obtained NAP coverage for the 2022 crop year.    

ERP 2022 Application Process – Track 2 

Track 2 is a revenue-based certification program designed to assist eligible producers who suffered an eligible decrease in revenue resulting from 2022 calendar year disaster events when compared with revenue in a benchmark year using revenue information that is readily available from most tax records. In cases where revenue does not reasonably reflect a normal year’s revenue, Track 2 provides an alternative method for establishing revenue. Likewise, Track 2 affords producers of crops that are used within an operation and do not generate revenue from the sale of the crop a method for establishing revenue for the purpose of applying for ERP 2022 benefits. Producers are not required to submit tax records to FSA unless requested by the County Committee if required for an FSA compliance spot check. 

Although not required when applying for ERP 2022 Track 2, applicants might find the following documents useful to the process: 

  • Schedule F (Form 1040)  
  • Profit or Loss from Farming or similar tax documents for tax years 2018, 2019, 2022 and 2023. 

Track 2 targets gaps in emergency relief assistance for eligible producers whose eligible losses were not covered by crop insurance or NAP including revenue losses too small (shallow loss) to be covered by crop insurance. 

Producers interested in applying for ERP 2022 Track 2, should contact their local FSA county office.  Additional reference resources can be found on FSA’s emergency relief website at https://www.fsa.usda.gov/programs-and-services/emergency-relief/index

Additional Required Forms 

For both ERP 2022 tracks, all producers must have certain required forms on file with FSA within 60 days of the ERP 2022 deadline. Producers can apply for ERP 2022 starting Oct. 31, 2023. The application deadline has not yet been determined and will be announced later. If not already on file, producers can update, complete, and submit required forms to FSA at any time. 

Required forms: 

  • Form AD-2047, Customer Data Worksheet.
  • Form CCC-902, Farm Operating Plan for an individual or legal entity.    
  • Form CCC-901, Member Information for Legal Entities (if applicable).    
  • Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs (if applicable).    
  • Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, if applicable, for the 2022 program year.    
  • A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and applicable affiliates.   

Most producers, especially those who have previously participated in FSA programs, will likely have these required forms on file. However, those who are uncertain or want to confirm the status of their forms can contact their local FSA county office.   

Future Insurance Coverage Requirements  

All producers who receive ERP 2022 payments must purchase crop insurance, or NAP coverage where crop insurance is not available, in the next two available crop years as determined by the Secretary. Purchased coverage must be at the 60/100 coverage level or higher for insured crops or at the catastrophic coverage level or higher for NAP crops. 

USDA Reminds Producers of Fall Application Deadlines for Noninsured Crop Disaster Assistance Program (NAP)

Farm Service Agency (FSA) reminds producers of approaching application deadlines for purchasing risk coverage for some crops through the Noninsured Crop Disaster Assistance Program (NAP). NAP provides financial assistance to producers of non-insurable crops impacted by natural disasters that result in lower yields, crop losses, or prevented crop planting.

NAP covers losses from natural disasters on crops for which no permanent federal crop insurance program is available, including forage and grazing crops, fruits, vegetables, floriculture, ornamental nursery, aquaculture, turf grass and more.

Upcoming application deadlines for NAP coverage in Kiowa County for the 2024 production season include:

  • Perennial Forage – including Native Grass for Grazing, Alfalfa, etc.

NAP basic coverage is available at 55% of the average market price for crop losses that exceed 50% of expected production. Buy-up coverage is available in some cases. NAP offers higher levels of coverage, ranging from 50% to 65% of expected production in 5% increments, at 100% of the average market price. Producers of organic crops and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100% of the average market price at coverage levels ranging between 50% and 65% of expected production. Buy-up coverage is not available for crops intended for grazing.

For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums apply for buy-up coverage.

If a producer has a Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification (form CCC-860) on file with FSA, it may serve as an application for basic coverage for all eligible crops beginning with crop year 2022. These producers will have all NAP-related service fees for basic coverage waived.  These producers may also receive a 50% premium reduction if higher levels of coverage are elected on form CCC-471, prior to the application closing date for each crop.

To learn more about NAP visit fsa.usda.gov/nap or contact your local USDA Service Center.