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 LDPs for 2018 Barley, Canola, Crambe, Flaxseed, Honey, Oats, Rapeseed, Wheat and Sesame Seed is April 1.
The final availability date for Loans and LDPs for 2018 Corn, Dry Peas, Grain Sorghum, Lentils, Mustard Seed, Rice, Safflower Seed, Chickpeas, Soybeans and Sunflower Seed is May 31.
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. Before loan disbursement, applicants will be required to provide a form CCC-679, Lien Waiver, for each lienholder discovered on a lien search. 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.
Market Facilitation Program (MFP) – Certify 2018 Production by May 1, 2019
The final day to certify 2018 production for the Market Facilitation Program (MFP) is May 1, 2019. Payments will not be issued without certification, which must be provided to your local FSA county office. Producers of corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries and shelled almonds were eligible to sign up for a MFP payment by Feb. 14, 2019. MFP is designed to help producers significantly impacted by actions of foreign governments resulting in the loss of traditional exports. Contact your local FSA county office for more information.
Farm Reconstitutions
When changes in farm ownership or operation take place, a farm reconstitution is necessary. The reconstitution - or recon - is the process of combining or dividing farms or tracts of land based on the farming operation.
To be effective for the current Fiscal Year (FY), farm combinations and farm divisions must be requested by August 1 of the FY for farms subject to the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. A reconstitution is considered to be requested when all:
• of the required signatures are on FSA-155
• other applicable documentation, such as proof of ownership, is submitted.
Total Conservation Reserve Program (CRP) and non-ARC/PLC farms may be reconstituted at any time.
The following are the different methods used when doing a farm recon:
Estate Method - the division of bases, allotments and quotas for a parent farm among heirs in settling an estate;
Designation of Landowner Method - may be used when (1) part of a farm is sold or ownership is transferred;
(2) an entire farm is sold to two or more persons; (3) farm ownership is transferred to two or more persons; (4) part of a tract is sold or ownership is transferred; (5) a tract is sold to two or more persons; or (6) tract ownership is transferred to two or more persons. In order to use this method the land sold must have been owned for at least three years, or a waiver granted, and the buyer and seller must sign a Memorandum of Understanding;
DCP Cropland Method - the division of bases in the same proportion that the DCP cropland for each resulting tract relates to the DCP cropland on the parent tract;
Default Method - the division of bases for a parent farm with each tract maintaining the bases attributed to the tract level when the reconstitution is initiated in the system.
2019 CRP Spring Managed Grazing Period: March 16-May 14
Spring Managed Grazing: Livestock must be removed from CRP by May 14 Primary Nesting Season: May 15 to July 15
The Conservation Reserve Program (CRP) 2019 Spring Managed Grazing Period is March 16 to May 14. Livestock must be removed when the calculated AUMs have been utilized but no later than May 14th.
Summer/Fall Managed Harvesting Period begins July 16 following Montana's Primary Nesting Season and ends no later than Sept. 30. Summer/Fall Grazing Period begins July 16 and ends when the calculated AUMs have been utilized or no later than Sept. 13.
Producers must sign up at their local FSA office and complete a CRP-117 form for office approval before conducting any managed harvesting and/or grazing activity. Any harvesting and/or grazing activity without prior approval is a violation of the CRP contract, and standard payment reductions will apply.
Farm Loan Program Availability
FSA has a number of loan programs available to assist applicants to begin or continue in agricultural production. As a farmer or rancher, whether you are just starting out or have many years of experience, loans are available for farm operating purposes and/or to purchase or improve a farm or ranch. As the "Lender of First Opportunity" FSA targets some of the direct and guaranteed loan funds for beginning and/or underserved farmers or ranchers. For purposes of this program, a beginning farmer/rancher is defined as someone who started in farming or ranching less than 10 years ago and does not currently own more land than 30 percent of the average farm size in the county; underserved individuals are women, African Americans, American Indians, Alaskan Natives, Hispanics, Asian Americans and Pacific Islanders. FSA loans are only available to applicants who meet all the eligibility requirements and are unable to obtain the needed credit elsewhere.
FSA's farm loan program is a temporary source of credit. Farmers/ranchers with FSA farm loan programs are required to "graduate" their FSA loans to commercial credit when they are able to do so. Periodically FSA will request financial information to evaluate the producer's ability to obtain credit from commercial resources. Failure to provide financial information when requested could jeopardize your current and future loans.
For more information, contact your local FSA office who can schedule an appointment with the Farm Loan Program (FLP) staff serving your area and/or visit the National FLP Web site.
