USDA Farm Service Agency (FSA)

Doreen Beruck County Executive Director

Serving Hunterdon, Somerset, and Union Counties

Farm Service Agency

•   Administers: –  disaster assistance programs

•   Non-Insured Crop Disaster Assistance Program (NAP)

–   farm loan programs •   Direct operating and farm ownership loans

•   Emergency loans

•   Guaranteed farm operating and ownership loans

•   Rural youth loans

Farm Service Agency

–  conservation programs •   Grassland Reserve Program (GRP)

•   Conservation Reserve Program (CRP)

•   Conservation Reserve Enhancement Program (CREP)

•   Emergency Conservation Program (ECP)

–   income support programs •   Direct and Counter Cyclical Program (DCP)

•   Average Crop Revenue Election (ACRE)

Farm Service Agency

–  Price Support •   Farm Storage Facility Loans (FSFL)

•   Commodity Loans

NAP

NAP provides crop loss protection for

crops where federal crop insurance is not

available.

NAP

NAP provides financial assistance to producers of non-insurable crops when:

•   low yields,

•   loss of inventory, or

•   prevented planting

occur due to a natural disaster

(i.e. excessive rain, excessive heat, drought)  

 

NAP

NAP provides up to

$100,000 in benefits per crop year

for each qualifying producer

NAP

Eligible crops must be commercially produced agricultural commodities where catastrophic risk protection (CAT) coverage of crop insurance is not available and must be: •   Grown for food •   Planted and grown for livestock consumption •   Grown for fiber •   Grown in a control led environment

(mushrooms, floriculture)

NAP

•   Eligible Crops continued –  Specialty crops (honey)

–  Value loss crops (aquaculture, Christmas trees, ornamental nursery, turf grass sod)

–  Seed crops where the propagation stock is produced for sale as seed stock for eligible NAP crop production

NAP

•   Eligible Natural Disasters –  Damaging weather such as drought, freeze, hail,

excessive moisture, excessive wind, or hurricane –  An adverse natural occurrence such as earthquake

or flood –  A condition related to damaging weather or adverse

natural occurrence such as excessive heat, disease, or insect infestation

The disaster must occur before or during harvest and must directly affect the eligible crop.

NAP

NAP covers the amount of loss:

•   greater than 50% of the expected production based on the approved yield and reported acreage

or

•  Prevented you from planting more than thirty five (35) percent of your intended acreage for that crop

NAP

How much of my loss does NAP cover? •   Amount of NAP benefits paid is directly

related to the Producer’s ability to document through good records their actual history of producing the crop

•   If at least four (4) years of acceptable production records are not provided, a yield will be assigned, which may be lower than your actual average yield

 

NAP

       Eligible producers need to pay the applicable service fee by the crop’s sales closing

date. The NAP fee is

$250 per crop group/ planting period, not to exceed $750 per producer per

administrative county or $1,875 per producer with multiple counties

NAP

•   Remaining sales closing date for the 2012 crop year is March 15th

beans, brussel sprouts, cantaloupes, celery, cucumbers, eggplant, honeydew, oats, okra,

peppers, pumpkins, sorghum, soybeans, squash, sunflowers, sweet potatoes, tomatillos, tomatoes,

watermelon, yams

NAP

Sales Closing dates for the 2013 crop year: –  May 1—nursery –  Aug 1—strawberries –   Sept 1—Christmas Trees, fin fish, flowers, grass sod –   Sept 30—clover, grass, mixed forage, rye –  Nov 20—apricots, blueberries, cane berries, cherries,

grapes, honey, onions, pears, plums –  Dec 31—asparagus, beets, broccoli, cabbage, carrots,

cauliflower, greens, herbs, horseradish, leeks, lettuce, peas, potatoes, radishes, turnips

NAP Eligibility Requirements

To get the most out of your NAP coverage: –  Report your crop acreage, yield, and production

annually

–  Provide documentation to establish actual production

–  Timely file your notice of loss and application for payment

NAP Production Evidence

Production records must be –   verifiable evidence which can be verified through an

independent source, are dated, shows crop, quantity and price, and must be provided if they exist

Or –   reliable evidence which includes copies of receipts, income ledgers, deposit slips, register tapes, harvesting

receipts, or pick records For aquaculture, floriculture, and ornamental

nursery operations, producers must maintain records according to industry standards, including daily crop inventories

NAP

REMEMBER! •   NAP will not make you “whole” financially, but

can provide much needed dollars in times of disaster •   NAP coverage is INSURANCE: Something

you have to have, but hope never to use!

Hail  Storm  August  10,  2008,  Gloucester  County,  NJ  

Farm Loans

       FSA’s loan program is designed to help family farmers obtain loans and loan guarantees and conduct business planning.

 

Farm Loans

•   Direct Loans –  FSA makes and services direct loans and provides

supervised credit

•   Guaranteed Loans –  Lender makes and services the loan

–  FSA guarantees loans made by conventional lenders for up to 95% of any loss

FARM LOANS

•   Direct loan requests are processed and serviced in the local FSA office.

•   Guaranteed requests are completed by the lender and producer and then submitted to FSA for processing.

•   Upon request, FSA staff must assist applicants in completing paperwork.

Types of Farm Loans  •   Direct Farm Ownership (FO)—up to $300,000

•   Direct Farm Operating (OL)—up to $300,000

•   Youth– up to $5,000

•   Emergency (EM) up to $500,000, or amount of loss

whichever is lower

•   Guaranteed—combined guaranteed farm ownership and guaranteed operating loans cannot exceed $1,119,000

Types of Farm Loans  

Farm Ownership loans

•   Maximum repayment term is 40 years

•   Funds can be used for –  purchasing a farm

–  Making capital improvements

–  promoting soil and water conservation

–  Loan closing and related expenses

Types of Farm Loans cont  

Farm Operating Loans

•   Repayment typically does not exceed 7 years

•   Generally repaid within 12 months or when the commodity is sold

•   Funds can be used for –  Purchase of equipment or livestock

–  Production expenses

–  Refinancing operating expenses (other than FSA)

Types of Farm Loans cont

Emergency Loans •   Available as direct loans only •   Assist farmers who have suffered physical or production

losses in areas declared by the President or designated by the Secretary of Agriculture as disaster areas

•   purposes include -refinance debts

-Repair/ replace farm property •   Buildings

•   Machinery/ livestock •   Feed

•   Other items

Types of Farm Loans cont

Youth Loans  Available as direct loans only

 Made to individuals who are sponsored by a project advisor, such as a 4-H Club, FFA, or local vocational advisor

 Must meet eligibility requirements and be between the ages of ten (10) and twenty (20)

Farm Loan General Eligibility Requirements

Direct and guaranteed applicants must: •   Be unable to obtain sufficient credit elsewhere

•   Be a citizen or a legal resident alien

•   Possess legal capacity to incur the loan obligation

•   Have acceptable credit history

•   Be the owner-operator or tenant-operator of a family farm

Farm Loan Eligibility cont

•   Not be delinquent on federal debt

•   Not have caused the agency a loss by receiving debt forgiveness (some exceptions)

•   Not have been convicted of planting, cultivating, growing, producing, harvesting, or storing a controlled substance within the last five (5) years

Farm Loan Program

Socially disadvantaged applicant (SDA)

•   As defined by law, an SDA applicant is one who is a member of a socially disadvantaged

group.

•   SDA groups are African Americans, American Indians, Alaskan Natives, Hispanics, Asians,

Pacific Islanders, and Women

Farm Loan Program

FSA does not have a specific SDA loan program, but rather targets funds in existing programs to

applicants that meet the definition

SDA loan applicants must meet loan program requirements

Farm Loan Program

Beginning Farm Loans

–  FSA provides direct and guaranteed loans to

beginning farmers and ranchers

–  The law requires FSA to target a portion of the direct and guaranteed farm ownership and operating funds to beginning farmers

Farm Loan Programs

Beginning farmers or ranchers are an individual or entity who: –  Have not operated a farm or ranch for more than 10

years

–  Meets the loan eligibility requirements of the program to which he/ she is applying

–  For a farm ownership loan, does not own a farm greater than 30 percent of the average size farm in the county

   

Questions???