2014 Farm Bill

USDA Has Key Dates for New Farm Bill Safety Net Programs

October 10, 2014 By Ron Sylvester Leave a Comment

from the USDA

WASHINGTON – The U.S. Department of Agriculture (USDA) is announcing key dates for farm owners and producers to keep in mind regarding the new 2014 Farm Bill established programs, Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). The new programs, designed to help producers better manage risk, usher in one of the most significant reforms to U.S. farm programs in decades.

“The ARC and PLC programs are a significant reform in the farm safety net,” said Farm Service Agency (FSA) Administrator Val Dolcini. “FSA wants to keep producers well informed on all steps in the process. We will continue our outreach efforts and maintain resources online to help them understand the new programs before they come in to make decisions for their operations.”

Dates associated with ARC and PLC that farm owners and producers need to know:

Sept. 29, 2014 to Feb. 27, 2015: Land owners may visit their local Farm Service Agency office to update yield history and/or reallocate base acres.

Nov. 17, 2014 to March 31, 2015: Producers make a one-time election of either ARC or PLC for the 2014 through 2018 crop years.

Mid-April 2015 through summer 2015: Producers sign contracts for 2014 and 2015 crop years.

October 2015: Payments for 2014 crop year, if needed.

USDA leaders will visit with producers across the country to share information and answer questions on the ARC and PLC programs.

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Two Notes from USDA on Conservation Reserve Program

August 28, 2014 By Ron Sylvester Leave a Comment

USDA has issued two recent notices on the Conservation Reserve Program.

The first is just a reminder for farmers or landowners selling acres enrolled in CRP. Essentially, if CRP acres are sold, the original CRP contract must be revised and signed by the new owner within 60 days. If the contract is terminated by the new owner, the original CRP participant will be on the hook to refund USDA some payments:

If the new landowner elects not to continue the CRP contract, the contract will be terminated. When a contract is terminated, refund of the following payments plus interest is required from the original CRP participant: all annual rental payments, all cost share payments, signup incentive payments, and practice incentive payments. Liquidated damages are also assessed.

Refunds of payments will not be required in cases where the owner’s estate or the heirs do not succeed to the contract. There are other cases that do not require the refund of payments, when a participant loses control of the land, such as eminent domain.

The other notice was that under the new Farm Bill early termination of some CRP contracts will be allowed. Early outs are available for the following contract types:

CP1-establishment of permanent grasses
CP2-establishment of permanent grasses
CP3-tree planting
CP10-grass cover already established
CP11-tree cover already established

Here’s a link to a USDA fact sheet on early CRP contract terminations under the new Farm Bill

As always, you can receive more information by contacting your local USDA Farm Services Agency office.

USDA Update on 2014 Farm Bill Implementation

August 7, 2014 By Ron Sylvester Leave a Comment

Outlined below is a list, by Farm Bill title, of the components of the recently enacted Farm Bill and the U.S. Dept. of Agriculture’s progress in implementing the new law. This was released by USDA on August 6, 22014.

TITLE I – Commodity Programs

Agricultural Risk Coverage Program and Price Loss Coverage Program: On April 29, USDA began a competitive process to award funding for Farm Bill decision aids and outreach tools for the new Agricultural Risk Coverage Program and Price Loss Coverage Program. Awards totaling $6 million were announced in May 2014. On August 1, farmers and ranchers began receiving acreage history and yield updates to prepare them for later enrollment in these safety-net programs.

Supplemental Agricultural Disaster Assistance: On April 14, USDA published a final rule to implement the disaster assistance provisions. Sign up for these programs began on April 15, 2014.
- As of July 31, 2014, approximately 238,000 applications have been received and $1.85 billion in payments have been disbursed through the Livestock Indemnity Program, Livestock Forage Disaster Program, and Tree Assistance Program.
- On July 31, USDA extended the deadline for the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program to August 15, 2014.
- On July 22, USDA announced Noninsured Crop Disaster Assistance Program (NAP) assistance for losses to bush or tree fruit crops due to frost or freeze during the 2012 crop year.
Beginning Farmers and Ranchers: On June 23, USDA announced new support for beginning farmers and ranchers, including waiving fees for certain disaster assistance programs, eliminating payment reductions under the Conservation Reserve Program (CRP), and increasing payment rates by 50 percent under Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP).
Dairy Forward Pricing Program: On March 21, USDA re-established the Dairy Forward Pricing Program and on March 28, extended Milk Income Loss Contracts until September 1.
Loan Rates: On June 24, USDA announced loan rates for 2014 Crop Peanuts. County and regional loan rates were announced in a press release on March 28, 2014.
Extension of Programs: On March 28, the Farm Service Agency (FSA) published in the Federal Register notices for the extension of the following programs: (1) Marketing Assistance Loans; (2) Milk Income Loss Contract; (3) Dairy Indemnity Payment Program; (4) Non-Insured Crop Disaster Assistance Program; (5) Loan Deficiency Payments; and (6) Sugar.

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OFU to Present Farm Bill Implementation Forum

July 14, 2014 By Ron Sylvester Leave a Comment

The Ohio Farmers Union, with partners POET Biorefining, First Federal Bank and Superior Energy Solutions will present a public forum on the choices faced by farmers due to new agricultural commodity programs under the 2014 Farm Bill.

While USDA has not opened up new programs for enrollment, OFU is bringing together a panel of experts who can speak to the changes being made as farmers move away from the direct payment system and into either the Price Loss Coverage program or the Agricultural Risk Coverage program. See our news release below for more information.

The forum will be held July 25, 1 p.m. at Bowling Green State University, Bowen-Thompson Student Union in the Grand Ball Room. Moderated by OFU President Joe Logan, there will be a panel presentation and time for questions and answers from those attending. The event is free and open to the public, however, pre-registration is requested to help in planning. You may pre-register with an email or telephone call to Linda Borton at lborton@ohfarmersunion.org or 800-321-3671.

Map of Event Location

Panelists include:

Joe Shultz, Chief Economist, U.S. Senate Committee on Agriculture, Nutrition and Forestry
Jonathan McCracken, Legislative Agriculture Assistant, Office of Sen. Sherrod Brown
Carl Zulauf, Professor, OSU Department of Agricultural, Environmental and Development Economics
Terry Cosby, State Conservationist, USDA Natural Resources Conservation Service
Tony Logan, State Director, USDA Rural Development
Steve Maurer, State Executive Director, USDA Farm Service Agency

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Two New USDA Conservation Programs are Open for Application by Farmers

May 5, 2014 By Ron Sylvester Leave a Comment

The 2014 Farm Bill has yielded two new conservation programs at USDA which have opened their application processes to begin spending up to $368 million across the country to restore wetlands, support outdoor recreation opportunities and boost rural economies.

The new programs are Agricultural Conservation Easements Program (ACEP) and the Voluntary Public Access and Habitat Incentive Program (VPA-HIP).

ACEP is the consolidation of three former programs – the Farm and Ranch Land Protection Program, the Grassland Reserve Program and the Wetlands Reserve Program—into one to make conservation efforts more efficient while strengthening tools to protect land and water according to a USDA release.

ACEP contains two primary components. The first, agricultural lands, provides funds to those eligible for the purchase of agricultural land easements that protect the agricultural use and conservation value of eligible land.

Both ACEP programs have application for funding deadlines in early June 2014. Please check with your regional or county Farm Services Agency office for complete information.

The second is the wetland reserve component which provides landowners funds to purchase an easement and for restoration of wetlands and improving habitat for migratory birds and other wildlife. USDA said that lands that are eligible for a wetland reserve easement include farmed or converted wetlands that can be successfully and cost-effectively restored.

VPA-HIP is a competitive grant program that enables state and tribal governments to increase opportunities for landowners of private lands to make their land available for public recreation.

Landowners may learn more from their regional or county Farm Services Agency or by visiting the Natural Resources Conservation Service online.

Vilsack says farm loan program modifications will create more flexibility for new and existing farmers

March 28, 2014 By Ron Sylvester Leave a Comment

Agriculture Secretary Tom Vilsack announced several changes to USDA FSA Farm Loan Programs earlier this week. The changes come immediately as a result of passage of the 2014 Farm Bill.

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.
Additional modifications must be implemented through the rulemaking processes.

“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 Vilsack.

“(This) 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.”

Check out this FSA fact sheet on the loan program modifications.

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