1. USDA Farm Service Agency –
Beginning Farmer-Rancher Programs
Women Managing
the Farm
2014 Conference
FSA’s Vision: A market-oriented, economically and
environmentally sound American agriculture delivering
an abundant, safe and affordable food and fiber supply
while sustaining quality agricultural communities.
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2. USDA FARM SERVICE AGENCY
• USDA Service Centers:
• Farm Service Agency (FSA)
• Natural Resources Conservation Service (NRCS)
• Rural Development (RD)
• Kansas FSA:
– 96 County Offices in 105 Counties
– Management Team
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County Executive Director
Farm Loan Manager/Officer
Program Technicians
County Committee (Farmer Elected)
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3. Fiscal Year 2013 Accomplishments
Fiscal Year: October 1, 2012 – September 30, 2013
• Farm Loans
• Farm Programs
$ 94,467,744
$675,431,558
“The USDA Farm Service Agency delivered nearly $770 million in federal program
payments and loans to Kansas farmers and ranchers during FY 2013. Kansas
agriculture benefits greatly from the tireless efforts of our dedicated employees and
locally elected County Committees.” ~ Adrian J. Polansky - State Executive
Director
FSA’s Mission is to equitably serve all farmers, ranchers, and agricultural partners through the delivery
of effective, efficient agricultural programs for all Americans.
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4. FARM LOAN PROGRAMS
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Farm Loan Programs provide loans, loan guarantees, and business
planning to eligible farmers, ranchers, and others to promote, build, and
sustain family farms in support of a thriving agricultural economy.
Who are our potential customers?
Beginning farmers and ranchers
Farmers whose needs may not be met by commercial credit
Multigenerational family farms
Socially disadvantaged farmers and ranchers
Value added farming operations
Organic and specialty farmers
Farmers who have hit hard times and now require a safety net
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5. FARM LOAN PROGRAMS
Definition of Socially Disadvantaged for Farm Loan Purposes:
A group whose members have been subject to racial, ethnic, or gender
prejudice because of their identity as members of the group without regard to
their individual qualities.
These groups consist of:
Women
American Indians
Alaskan Natives
Asians
Hispanics
Native Hawaiians or other Pacific Islanders
Blacks or African Americans
A certain percentage of farm loan program funding is targeted for SDA Applicants.
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8. ~ FSA Microloans can include ~
Initial start-up expenses; such as: hoop houses to extend the
growing season
Essential tools or equipment needed for the operation
Irrigation equipment
Marketing and distribution expenses
Purchase of livestock
Minor farm improvements such as
wells and coolers
Annual operating expenses such as
seed, fertilizer, utilities and land rents
Loan amount limited to $50,000
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9. FARM LOAN PROGRAMS
• Loans to Beginning Farmers & Ranchers
– In addition to general eligibility requirements, a beginning
farmer/rancher may qualify to purchase real estate with the following
additional conditions:
• Has not operated a farm for more than 10 years.
• Does not own real farm property or who, directly or through interests
in family farm entities owns real farm property, the aggregate
acreage of which does not exceed 30% of the median acreage of
the farms in the county where the property is located.
• The average farm size will be based upon information obtained from
the 2012** Census of Agriculture. Average farm size by acres is
available at the local FSA County Office to assist in this
requirement.
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10. FARM LOAN PROGRAMS
• Loans to Beginning Farmers & Ranchers (or SDA) –
Downpayment Program
– In addition to general eligibility requirements, a beginning
farmer/rancher or SDA that has a 5% down payment may qualify to
purchase real estate with the following as follows:
• The maximum loan amount does not exceed 45% the least of
– (a) the purchase price of the farm to be acquired;
– (b) the appraised value of the farm to be acquired; or
– (c) $667,000** (Note: this results in a maximum loan amount $300,000 from FSA)
• The term of the loan is 20 years with a floor of 1.5% interest.
• The remaining balance may be obtained from a commercial lender
or private party. That party must have an amortization period of at
least 30 years and cannot balloon their payment in the first 20 years
of the loan.
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12. FSA Farm Programs
• Conservation Programs
• Price Support
• Farm Programs
• With the passage of the 2012 Farm Bill,
limited information is provided due changes
forthcoming.
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13. CONSERVATION PROGRAM
Conservation Reserve Program (CRP)
– Voluntary program to help safeguard environmentally
sensitive land by planting long-term resource
conserving covers to improve water quality, control
soil erosion, and enhance wildlife habitat.
– Annual rental payment and Cost-share assistance for
applying practices.
– Contracts are 10-15 years.
– 25.3 million acres currently enrolled nationally
– Kansas has just under 2 million acres enrolled
– New Farm Bill – CRP acreage limitation will gradually
decline to 24 million in 2018
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14. CONSERVATION PROGRAM
• CRP consists of General, Continuous, and
CREP Signups
• General Signup’s are announced – competitive
bidding based on Environmental Benefits Index.
• Conservation Reserve Enhancement Program
(CREP) – Kansas – To help preserve water
quality along the Kansas Upper Arkansas River
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15. CONSERVATION PROGRAM
Continuous Conservation Reserve Program (CCRP)
– Can signup anytime. Not subject to competitive
bidding.
– Environmentally desirable land devoted to certain
conservation practices that address resource
concerns of water quality, wildlife, wind erosion,
wetland, tree planting
– Annual Rental and Cost Share Payments to establish
practices
– Incentive Payments of up to 20% of the Soil Rental
Rate for field windbreaks, grass waterways, filter
strips, riparian and wildlife habitat buffers and
farmable wetland buffers.
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16. CONSERVATION PROGRAM
Important Facts to Remember when Ownership Changes are Made to CRP
Land
• Notify the local FSA of changes being made to the owner and/or operator
of the CRP contract as soon as transaction is completed
• The current CRP participant is responsible for the CRP contract acreage
until the new participant has signed and the FSA County Committee has
approved the new revised contract
• The successor in interest must understand that any outstanding adjustments
because of violations or any refunds due because of termination of the CRP
contract will be the successor’s responsibility when they sign the CRP-1
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17. CONSERVATION PROGRAM
Emergency Conservation Program (ECP)
• Funding to rehabilitate farmlands and
conservation facilities damaged by natural
disasters. Such as debris removal, fence repair,
etc. The local County Committee and State
Committee must determine if the conditions are
severe enough to warrant recommending
program implementation. Congress has to
approve funding.
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18. PRICE SUPPORT PROGRAMS
• Marketing Assistance Loans (MAL)
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9 month commodity loans.
Warehouse or Farm-stored.
County Loan Rate w/ applicable adjustments.
2013 crop Loans subject to 5.1% Sequestration Reduction.
2014 crop Loans subject to 7.2% Sequestration Reduction.
Non-recourse or Recourse Loans.
Beneficial Interest (title/control during loan period).
Market Gain Repayment, repay at Principal + Interest, or Forfeit
to Commodity Credit Corporation (CCC).
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19. PRICE SUPPORT PROGRAMS
Commodity Loan & LDP Final Availability
Dates:
March 31
June 2
Wheat
Corn
Oats, Barley
Grain Sorghum
Honey
Soybeans, Sunflowers
Canola, Crambe
Dry Peas, Lentils, Chickpeas
Flaxseed, Rapeseed
Safflower Seed, Rice
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20. PRICE SUPPORT PROGRAMS
• Loan Deficiency Payments (LDP)
– Forgo a Marketing Assistance Loan.
– Beneficial Interest (title/control/risk). Must File CCC633EZ Page 1 prior to losing Beneficial Interest.
– When CCC determined value is below County Loan Rate.
– File CCC-633EZ Page 2, 3 or 4 to request LDP.
– Rate will be date of request if still have Beneficial Interest,
otherwise rate will be date when Beneficial Interest was
lost.
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21. WEBSITES
• www.fsa.usda.gov - FSA National Website.
• www.fsa.usda.gov/ks - Kansas FSA Website
• www.usda.gov – USDA National Website
Obtain news releases, fact sheets, LDP rates,
interest rates, forms, program handbooks,
program regulations, etc.
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22. ACREAGE REPORTS
Acreage certifications are required to remain eligible
for most FSA programs.
Producer certifies what is planted in each field, planting date, intended use, and who receives
a share of the crop.
2014 Acreage Certification Deadlines for Kansas:
November 15, 2013 – Perennial Forage crops which includes all grasses
(brome, fescue, native, etc.), alfalfa, clover, etc.
December 15, 2013 - Fall-seeded small grains which includes wheat, barley,
etc.
July 15, 2014 – Spring-seeded crops.
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24. •Due to budget, FSA will not be mailing newsletters to producers as in the
past.
•Timely FSA news now available direct to your email or Smartphone
through the GovDelivery system.
•FSA’s electronic news service is free and convenient. All personal
information is protected under the Privacy Act.
•We can get you started today! Provide your email and cell phone
number on Form AD-2047.
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25. Presentation by Kansas Farm Service Agency
• Presenters – March 13, 2013:
– Shelly Wolf, Farm Loan Specialist – FSA
Farm Loan Programs
– Carla Wikoff, Farm Program Specialist – FSA
Conservation Programs
• Joshua Ridder, Outreach and Public Affairs
Coordinator – KS Farm Service Agency – 3600
Anderson Avenue, Manhattan, KS 66503
• Phone: 785.539.3531
THANK YOU!!
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