Tag: President Trump 2018 Farm Bill

  • USDA Offers Producers Options to Re-enroll or Extend Expiring CRP Contracts

    Farmers and ranchers with expiring Conservation Reserve Program (CRP) contracts may now re-enroll in certain CRP continuous signup practices or, if eligible, select a one-year contract extension. USDA’s Farm Service Agency (FSA) also is accepting offers from those who want to enroll for the first time in one of the country’s largest conservation programs. FSA’s 52nd signup for CRP runs from June 3 to August 23.

    “Agricultural producers with expiring CRP contracts have set aside land to reduce soil erosion, improve water quality, provide habitat for wildlife and boost soil health for at least a decade,” said U.S. Under Secretary for Farm Production and Conservation Bill Northey. “We want to make sure they – and their neighbors who may not have a CRP contract – know they have opportunities within CRP to continue their valuable contribution to our country’s conservation successes.”

    FSA stopped accepting offers last fall for the CRP continuous signup when 2014 Farm Bill authority expired. The 2018 Farm Bill reauthorized the program this past December, and FSA has carefully analyzed the bill’s language and determined that a limited signup prioritizing water-quality practices furthers conservation goals and makes sense for producers as FSA works to fully implement the program.

    This year’s CRP continuous signup includes such practices as grass waterways, filter strips, riparian buffers, wetland restoration and others. View a full list of practices approved for this signup.  Continuous signup enrollment contracts last for 10 to 15 years. Soil rental rates are set at 90 percent of 2018 rates. Incentive payments are not offered for these practices.

    Producers with Expiring CRP Contracts

    Letters are in the mail to all producers with expiring CRP contracts, describing possible options.

    A one-year extension is being offered to existing CRP participants with expiring CRP contracts of 14 years or less that have practices not eligible for re-enrollment under this CRP signup.

    Alternatively, producers with expiring contracts may have the option to enroll in the Transition Incentives Program, which provides two additional annual rental payments on the condition the land is sold or rented to a beginning farmer or rancher or a member of a socially disadvantaged group.

    CRP Continuous CREP Signup

    This signup also enables producers to sign up under existing Conservation Reserve Enhancement Program (CREP) agreements. CREP is part of CRP and targets high-priority conservation concerns identified by a state, and federal funds are supplemented with non-federal funds to address those concerns. Download this fact sheet to learn more.

    Other Future CRP Signup Options

    FSA is still planning a CRP general signup in December 2019, with a CRP Grasslands signup to follow. Those that extend their contracts may be eligible for one of these signup types or another continuous signup in the future.

    More Information

    On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.

    Producers interested in applying for CRP continuous practices, including those under existing CREP agreements, or who want to extend their contract, should contact their USDA service center by August 23. To locate your local FSA office, visit www.farmers.gov. More information on CRP can be found at www.fsa.usda.gov/crp.

  • February Income over Feed Cost Margin Triggers Second 2019 Dairy Safety Net Payment

    USDA’s Farm Service Agency (FSA) announced that the February 2019 income over feed cost margin was $8.22 per hundredweight (cwt.), triggering the second payment for dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.

    DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers 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.

    Sign up for DMC will open by mid-June of this year. At the time of sign up, producers who elect a DMC coverage level between $8.50 and $9.50 would be eligible for a payment for February 2019.

    For example, a dairy operation that chooses to enroll an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level on 95 percent of production would receive $3,040 for February.

    Sample calculation:

    $9.50 – $8.22 margin = $1.28 difference$1.28 x 95 percent of production x 2,500 cwt. (30,000 cwt./12) = $ 3,040DMC premiums are paid annually. The calculated annual premium for coverage at $9.50 on 95 percent of a 3-million-pound production history for this example would be $4,275.

    Sample calculation:3,000,000 x 95 percent = 2,850,000/100 = 28,500 cwt. x 0.150 premium fee = $4,275

    The dairy operation in the example calculation will pay $4,275 in total premium payments for all of 2019 and receive $6,626.25 in Dairy Margin Coverage payments for January and February combined. Additional payments will be made if calculated margins remain below the $9.50/cwt level.All participants are also required to pay an annual $100 administrative fee in addition to any premium, and payments will be subject to a 6.2% reduction to account for federal sequestration.

    Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates. For the example above, this would reduce the annual premium by $1,068.75.

    “The Dairy Margin Coverage program will provide an important financial safety net for dairy producers, helping them weather shifting milk and feed prices,” FSA Administrator Richard Fordyce said. “We continue to work diligently to implement the DMC program and other FSA programs authorized by the 2018 Farm Bill.”

    On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.

    Additional details about DMC and other Farm Bill program changes can be found at farmers.gov/farmbill.