California Ag Network

Tag: FSA

  • FSA Adjusts Farm Loan, Disaster, Conservation and Safety Net Programs

    FSA Services Available by Phone Appointment Only: USDA’s Farm Service Agency (FSA) county offices are open by phone appointment only until further notice, and FSA staff are available to continue helping agricultural producers with program signups, loan servicing and other important actions. Additionally, FSA is relaxing the loan-making process and adding flexibilities for servicing direct and guaranteed loans to provide credit to producers in need. FSA Service Centers are open for business by phone appointment only. While our program delivery staff will continue to come into to the office, they will be working with our agricultural producers by phone and using email and online tools whenever possible.

    “FSA programs and loans are critical to America’s farmers and ranchers, and we want to continue our work with customers while taking precautionary measures to help prevent the spread of coronavirus,” FSA Administrator Richard Fordyce said. “We recognize that farm loans are critical for annual operating and family living expenses, emergency needs and cash flow through times like this. FSA is working to find and use every option and flexibility to provide producers with credit options and other program benefits.”

    FSA is delivering programs and services, including:

    • Farm loans;
    • Commodity loans;
    • Farm Storage Facility Loan program;
    • Disaster assistance programs, including signup for the Wildfire and Hurricane Indemnity Program Plus (this includes producers now eligible because of losses due to drought and excess moisture in 2018 and 2019);
    • Safety net programs, including 2020 signup for the Agriculture Risk Coverage and Price Loss Coverage programs;
    • Conservation programs; and
    • Acreage reports.

    Relaxing the Farm Loan-Making Process

    FSA is relaxing the loan-making process, including:

    • Extending the deadline for applicants to complete farm loan applications;
    • Preparing Direct Loans documents even if FSA is unable to complete lien and record searches because of closed government buildings. Once those searches are complete, FSA would close the loan; and
    • Closing loans if the required lien position on the primary security is perfected, even for loans that require additional security and those lien searches, filings and recordings cannot be obtained because of closed government buildings.

    Servicing Direct Loans

    FSA is extending deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers.

    FSA will temporarily suspend loan accelerations, non-judicial foreclosures, and referring foreclosures to the Department of Justice. The U.S. Attorney’s Office will make the determination whether to stop foreclosures and evictions on accounts under its jurisdiction.

    Servicing Guaranteed Loans

    Guarantee lenders can self-certify, providing their borrowers with:

    • Subsequent-year operating loan advances on lines of credit;
    • Emergency advances on lines of credit.

    FSA will consider guaranteed lender requests for:

    • Temporary payment deferral consideration when borrowers do not have a feasible plan reflecting that family living expenses, operating expenses and debt can be repaid; and
    • Temporary forbearance consideration for borrowers on loan liquidation and foreclosure actions.

    Contacting FSA

    FSA will be accepting additional forms and applications by facsimile or electronic signature. Some services are also available online to customers with an eAuth account, which provides access to the farmers.gov portal where producers can view USDA farm loan information and payments and view and track certain USDA program applications and payments. Customers can track payments, report completed practices, request conservation assistance and electronically sign documents. Customers who do not already have an eAuth account can enroll at farmers.gov/sign-in.

    FSA encourages producers to contact their county office to discuss these programs and temporary changes to farm loan deadlines and the loan servicing options available. For Service Center contact information, visit farmers.gov/coronavirus.

  • USDA Extends Deadlines for Dairy Margin Coverage, Market Facilitation Programs

    Due to the prolonged and extensive impacts of weather events this year, the U.S. Department of Agriculture (USDA) today extended the deadline to December 20 for producers to enroll in the Dairy Margin Coverage (DMC) program for the 2020 calendar year. The deadline had been December 13.  USDA announced is also continuing to accept applications for the Market Facilitation Program through December 20.

    “2019 has challenged the country’s ag sector – prevented or late planting followed by a delayed harvest has been further complicated by wet and cold weather,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “Because some of our producers are still in the field, time to conduct business at the local USDA office is at a premium.  We hope this deadline extension will allow producers the opportunity to participate in these important programs.”

    Authorized by the 2018 Farm Bill and available through USDA’s Farm Service Agency (FSA), the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

    The Market Facilitation Program is part of a relief strategy to support American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals to open more markets to help American farmers compete globally. MFP payments are aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations.

     For more information, visit the DMC webpage, the MFP webpage or your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

  • USDA Opens 2020 Enrollment for Dairy Margin Coverage Program

    Dairy producers can now enroll in the Dairy Margin Coverage (DMC) for calendar year 2020. USDA’s Farm Service Agency (FSA) opened signup today for the program that helps producers manage economic risk brought on by milk price and feed cost disparities.

    “We know it’s tough out there for American farmers, including our dairy producers,” said Bill Northey, Under Secretary for Farm Production and Conservation. “As Secretary Perdue said, farmers are pretty good at managing through tough times, and we know that more dairy farmers will be able to survive with this 2018 Farm Bill and its risk mitigation measures, like the Dairy Margin Coverage program.”

    The DMC program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. The deadline to enroll in DMC for 2020 is Dec. 13, 2019.

    Dairy farmers earned more than $300 million dollars from the program in 2019 so far. Producers are encouraged to take advantage of this very important risk management tool for 2020.

    All producers who want 2020 coverage, even those who took advantage of the 25 percent premium discount by locking in the coverage level for five years of margin protection coverage are required to visit the office during this signup period to pay the annual administrative fee.

    “Dairy producers should definitely consider coverage for 2020 as even the slightest drop in the margin can trigger payments,” said Northey. “Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market.”

    More Information

    The 2018 Farm Bill created DMC, improving on the previous safety net for dairy producers. DMC is one of many programs that FSA and other USDA agencies are implementing to support America’s farmers.

    For more information on enrolling in DMC and taking advantage of an online dairy decision tool that assists producers in selecting coverage for 2020, visit the DMC webpage.

    For additional questions and assistance, contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

  • Dairy Producers Can Enroll or Elect to Opt-Out for 2018 MPP Coverage

    Washington, D. C., (September 8, 2017) – The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) announced that starting Sept. 1, 2017, dairy producers can enroll for 2018 coverage in the Margin Protection Program (MPP-Dairy). Secretary Sonny Perdue has utilized additional flexibility this year by providing dairy producers the option of opting out of the program for 2018.

    “Secretary Perdue is using his authority to allow producers to withdraw from the MPP Dairy Program and not pay the annual administrative fee for 2018,” said Acting Deputy Under Secretary for Farm Production and Conservation Rob Johansson. “The decision is in response to requests by the dairy industry and a number of MPP-Dairy program participants.”

    To opt out, a producer should not sign up during the annual registration period. By opting out, a producer would not receive any MPP-Dairy benefits if payments are triggered for 2018. Full details will be included in a subsequent Federal Register Notice. The decision would be for 2018 only and is not retroactive.

    The voluntary program, established by the 2014 Farm Bill, provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the producer.

    MPP-Dairy gives participating dairy producers the flexibility to select coverage levels best suited for their operation. Enrollment ends on Dec. 15, 2017, for coverage in calendar year 2018. Participating farmers will remain in the program through Dec. 31, 2018, and pay a minimum $100 administrative fee for 2018 coverage. Producers have the option of selecting a different coverage level from the previous coverage year during open enrollment.

    Dairy operations enrolling in the program must meet conservation compliance provisions and cannot participate in the Livestock Gross Margin Dairy Insurance Program. Producers can mail the appropriate form to the producer’s administrative county FSA office, along with applicable fees, without necessitating a trip to the local FSA office. If electing higher coverage for 2018, dairy producers can either pay the premium in full at the time of enrollment or pay 100 percent of the premium by Sept. 1, 2018. Premium fees may be paid directly to FSA or producers can work with their milk handlers to remit premiums on their behalf.

    USDA has a web tool to help producers determine the level of coverage under the MPP-Dairy that will provide them with the strongest safety net under a variety of conditions. The online resource, available at www.fsa.usda.gov/mpptool, allows dairy farmers to quickly and easily combine unique operation data and other key variables to calculate their coverage needs based on price projections. Producers can also review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, Smartphone, tablet or any other platform, 24 hours a day, seven days a week.

    For more information, visit FSA online at www.fsa.usda.gov/dairy or stop by a local FSA office to learn more about the MPP-Dairy. To find a local FSA office in your area, visit http:// offices.usda.gov.