USDA Update November 17, 2020

Agriculture USDA Service Center Update
Published Tuesday, November 17, 2020

IMPORTANT DATES TO REMEMBER:

  • SERVICE CENTER CLOSED - November 26, 2020 - Thanksgiving Day
  • CRP EMERGENCY GRAZING and HAYING - 30-DAY NO GRAZING HAS BEEN WAIVED FOR 2020.  FSA OFFICES CAN ACCEPT NEW REQUESTS FOR HAYING AND GRAZING UNTIL DECEMBER 31, 2020
  • CFAP2 SIGNUP - DEADLINE DECEMBER 11, 2020 - Call and schedule your appointment. 
  • 2021 NAP GRASS APPLICATION DEADLINE - December 1, 2020
  • 2021 ARCPLC signup - begins October 13 - ends March 15, 2021
  • LFP - Signup ends January 30, 2021

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. 

COVID- 19

As the virus has now reached Kiowa County and our neighboring counties; it's important that we all do our part in stopping the spread of the virus.  Here at the USDA Service Center we ask that if you MUST visit the office you abide by these rules: 

#1 - Wear a face covering or ask that we assist you outside in the parking lot.  

#2 - If you have documents that need dropped off - USE THE DROP BOX and do not ring the doorbell.  We assure you the drop box is secure and is checked daily.  

Please remember; FSA offices have the ability to allow producers to sign many documents with an electronic signature.  

Therefore, if you are only needing to sign documents; please ask FSA send those to you to sign electronically.  We assure you it's an easy process.  The office can also mail you any information that you are needing, and you can also return documents by mail.  

Making Farm Reconstitutions

When changes in farm ownership or operation take place, a farm reconstitution is necessary. The reconstitution -- or recon -- is the process of combining or dividing farms or tracts of land based on the farming operation. 

To be effective for the current Fiscal Year (FY), farm combinations and farm divisions must be requested by August 1 of the FY for farms subject to the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. A reconstitution is considered to be requested when all of the required signatures are on FSA-155 and all other applicable documentation, such as proof of ownership, is submitted.

Total Conservation Reserve Program (CRP) and non-ARC/PLC farms may be reconstituted at any time. 

The following are the different methods used when doing a farm recon: 

  • Estate Method -- the division of bases, allotments and quotas for a parent farm among heirs in settling an estate
  • Designation of Landowner Method -- may be used when (1) part of a farm is sold or ownership is transferred; (2) an entire farm is sold to two or more persons; (3) farm ownership is transferred to two or more persons; (4) part of a tract is sold or ownership is transferred; (5) a tract is sold to two or more persons; or (6) tract ownership is transferred to two or more persons. In order to use this method, the land sold must have been owned for at least three years, or a waiver granted, and the buyer and seller must sign a Memorandum of Understanding
  • DCP Cropland Method -- the division of bases in the same proportion that the DCP cropland for each resulting tract relates to the DCP cropland on the parent tract
  • Default Method -- the division of bases for a parent farm with each tract maintaining the bases attributed to the tract level when the reconstitution is initiated in the system.

Applying for Farm Storage Facility Loans

The Farm Service Agency's (FSA) Farm Storage Facility Loan (FSFL) program provides low-interest financing to help you build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.

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, loans between $50,000 and $100,000 may require additional security, and loans exceeding $100,000 require additional security.

You 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.

For more information, contact your local County USDA Service Center or visit fsa.usda.gov/pricesupport

Noninsured Crop Coverage 

The Farm Service Agency's (FSA) Noninsured Crop Disaster Assistance Program (NAP) helps you manage risk through coverage for both crop losses and crop planting that was prevented due to natural disasters. The eligible or "noninsured" crops include agricultural commodities not covered by federal crop insurance.   

You must be enrolled in the program and have purchased coverage for the eligible crop in the crop year in which the loss incurred to receive program benefits following a qualifying natural disaster.

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.

NAP Service Fees

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. 

NAP Enhancements for Qualified Military Veterans

Qualified veteran farmers or ranchers are eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria. 

Beginning, limited resource and targeted underserved farmers or ranchers remain eligible for a waiver of NAP service fees and premium reduction when they file form CCC-860, "Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification."

For NAP application, eligibility and related program information, contact your local County USDA Service Center or visit fsa.usda.gov/nap.

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