FOR IMMEDIATE RELEASE
Farm Service Agency
November Newsletter
USDA launched the trade mitigation package aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations. Producers of certain commodities can now sign up for the Market Facilitation Program (MFP).
USDA’s Farm Service Agency (FSA) will administer MFP to provide payments to corn, cotton, dairy, hog, sorghum, soybean, wheat, shelled almond, and fresh sweet cherry producers. An announcement about further payments will be made in the coming months, if warranted.
The initial MFP
payment rates are:
• Corn - $0.01 per bushel
• Cotton - $0.06 per pound
• Dairy (milk) - $0.12 per cwt.
• Fresh Sweet Cherries - $0.16
per pound
• Pork (hogs) - $8.00 per head
• Shelled Almonds - $0.03
per pound
• Soybeans - $1.65 per bushel
• Sorghum - $0.86 per bushel
• Wheat - $0.14 per bushel
The sign-up period for MFP runs through Jan. 15, 2019, with information and instructions provided at http://www.farmers.gov/mfp. MFP provides payments to producers of eligible commodities who have been significantly impacted by actions of foreign governments resulting in the loss of traditional exports. Eligible producers should apply after harvest is complete, as payments will only be issued once production is reported.
A payment will be issued on 50 percent of the producer’s total production, multiplied by the MFP rate for a specific commodity. A second payment period, if warranted, will be determined by the USDA.
MFP payments are capped per person or legal entity as follows:
• A combined $125,000 for eligible crop commodities
• A combined $125,000 for dairy production and hogs
• A combined $125,000 for fresh sweet cherries and almonds
Applicants must also have an average adjusted gross income for tax years 2014, 2015, and 2016 of less than $900,000. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.
Expanded Hog Timeline
USDA has expanded the timeline for producers with whom the Aug. 1, 2018, date does not accurately represent the number of head of live hogs they own. Producers may now choose any date between July 15 to Aug. 15, 2018 that correctly reflects their actual operation.
MFP applications are available online at http://www.farmers.gov/mfp. Applications can be completed at a local FSA office or submitted electronically either by scanning, emailing, or faxing. To locate or contact your local FSA office, visit http://www.farmers.gov. Link to Market Facilitation Program Fact Sheet.
USDA Commodity Loans Available to Montana Producers
Farm Service Agency reminds Montana producers that Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) are available to help producers through periods of low market prices. The 2014 Farm Bill authorized MALs and LDPs for the 2014 to 2018 crop years.
MALs provide interim financing and allow producers to delay the sale of the commodity at harvest-time lows and wait until more favorable market conditions emerge. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available.
The Final Availability Date for Loans and Loan Deficiency Payment (LDP) for 2018 Mohair, Unshorn Pelts (LDP only) and Wool is Feb. 1, 2019. The Final availability date for Loans and LDPs for 2018 Barley, Canola, Crambe, Flaxseed, Honey, Oats, Rapeseed, Wheat and Sesame Seed is April 1, 2019.
FSA offices are accepting requests for 2018 MALs and LDPs for all eligible commodities after harvest.
Before MAL and LDP disbursements can be made, producers must meet the requirements of actively engaged in farming, cash-rent tenant and member contribution. In order to meet eligibility requirements, producers must retain beneficial interest in the commodity, meaning they have control of the commodity or a title to the commodity, until the MAL is repaid or the Commodity Credit Corporation takes title to the commodity.
The 2014 Farm Bill also establishes payment limitations per individual or entity not to exceed $125,000 annually on certain commodities for the following program benefits: Agriculture Risk Coverage and Price Loss Coverage payments, Marketing Loan Gains and LDPs. These payment limitations do not apply to MAL disbursements.
Producers or legal entities whose total applicable three-year average adjusted gross income exceeds $900,000 are not eligible for Marketing Loan Gains and LDPs, but are eligible for MALs repaid at principal plus interest.
For more information, please visit your local FSA office or http://www.fsa.usda.gov. To find your local USDA service center, visit http://www.farmers.gov.
Reminder to Submit 2018 Year End Financial Data for Supervised Credit
FSA Direct Loan borrowers are reminded of their responsibility (per loan closing conditions) to submit 2018 yearend financial data to their local FSA office. This includes the following:
• Year end or current balance sheet
• Profit and loss
• Complete copies of both corporate and personal tax returns of all entity members – many producers had extensions to file their returns from the disaster last year
• Proof of current insurance coverage on all assets pledged as security for the FSA loans.
FSA Direct Loans are considered a temporary source of credit that is available to producers who do not meet normal underwriting criteria for commercial banks. The FSA team will help borrowers identify their goals to ensure financial success. Through this process, FSA staff will assist borrowers in developing strategies and a plan to meet your operation’s goals and graduate to commercial credit. Ultimately, the borrower is responsible for the success of the farming operation, but FSA’s staff will help in an advisory role to provide the tools necessary to help you achieve your operational goals and manage your finances.
It is crucial for borrowers to communicate with their farm loan staff when changes occur and it is the borrower’s responsibility to alert FSA to any of the following:
• Any proposed or significant changes in the farming operation;
• Any significant changes to family income or expenses;
• The development of problem situations;
• Any losses or proposed significant changes in security
In addition, if a farm loan borrower cannot make payments to suppliers, other creditors, or FSA on time, contact your farm loan staff immediately to discuss loan servicing options. There are some benefits to FSA’s servicing options BEFORE the loans go delinquent and being proactive is important to being able to take advantage of them.
Failure to submit financial information when requested by FSA could result in acceleration of your loan accounts.
For more information on FSA farm loan programs, visit http://www.fsa.usda.gov.
Message from State Executive Director
It’s that time of year again. The 2018 Farm Service Agency’s (FSA) county committee elections are officially underway and we’re asking for your help. Please take a few minutes to vote in your local county committee election. FSA county committees are a vital and direct link between our farm community and the U.S. Department of Agriculture.
Earlier this summer, we put out a call for nominations for individuals who would be willing to serve on the committee. Elections are held annually in every county when FSA accepts nominations for a certain Local Administrative Area (LAA). The area up for election rotates each year. Nominations have been made and now it’s time for you to decide who will fill this role.
Ballots are mailed out the week of Nov. 5 to eligible voters. If your LAA had a committee seat open this year, and you are an eligible voter, you can expect to receive a ballot in the mail. Producers who did not receive a ballot can pick one up at the local FSA office.
In states like Montana, it’s important to know that members of American Indian tribes holding agricultural land are eligible to vote in an FSA county committee election if the tribal member meets the voting requirements. For purposes of FSA county committee elections, every member of an American Indian tribe is considered an agricultural landowner if the land on which the tribal member’s voting eligibility is based is tribally owned, or held in trust by the United States for the tribe, even if the individual does not personally produce a crop on that land.
The individuals you elect to serve on your behalf operate within official federal regulations so that local input is provided on federal programs such as:
• Income safety-net loans and payments, including setting county average yields for commodities;
• Conservation programs;
• Incentive, indemnity and disaster payments for some commodities;
• Emergency programs, and
• Payment eligibility.
Our FSA county committees make a difference and if you won’t take it from me, I encourage you to check out stories from county committee members from around the nation. Read their testimonials at http://www.fsa.usda.gov/elections. While you’re there, you can find other information about the elections.
Ballots must be returned to your local FSA office by Dec. 3, 2018. Ballots returned by mail must be postmarked no later than Dec. 3.
Don’t miss out on this opportunity to make an impact in your local community.
Sincerely, Mike Foster
