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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)
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
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