Hello fellow Terry County Farmers and Ranchers,
Thank you for reading another edition of our monthly newsletter. We have several important dates we would like to share with you.
We have a CRP general sign-up going on. Rena McNiel and the crew have been working hard to get offers ready for new and expiring CRP contracts as well as answer producers questions. If you wish to submit an offer for the CPR program please contact us for an appointment. Contract acreage that is set to expire September 30, 2020 may also be offered/bid. Producers who have expiring CPR contracts should received a letter in the mail. We ask those of you with a expiring contract to please let us know of your plans to submit an offer or plan not to submit. We have 245 contracts expiring in 2020, we have talked to producers on all contracts except 12 contracts. We do not want to miss anyone interested in offering land during this sign up period. We would like to remind producers who are thinking about it to please let s know. The deadline to have all offers and supporting documents submitted is February 28, 2020.
Producers are also reminded when they sign-up for 2019 & 2020 ARC/PLC to bring copies of their current and/or new cash leases as the county office needs a copy for the respective farm record. I post card was sent out by the National Office reminding producers our deadline to sign-up for 2019 ARC/PLC is March 15, 2020. Deadline to sign-up for 2020 ARC/PLC is June 30th, 2020.
Upcoming Important Deadlines
February 28, 2020- Deadline to have all offers and supporting documents submitted for this years CRP sign-up.
March 15, 2020- Deadline to Sign-up for 2019 ARC/PLC
March 15, 2020- Deadline to purchase 2020 NAP Coverage for spring planted crops (watermelons, Pumpkins, etc..)
March 15, 2020- Deadline to report Pecan acreage
USDA Announces Buy-Up Coverage Availability and New Service Fees for Noninsured Crop Coverage Policies
USDA’s Farm Service Agency (FSA) announced that higher levels of coverage will be offered through the Noninsured Crop Disaster Assistance Program (NAP), a popular safety net program, beginning April 8, 2019. The 2018 Farm Bill also increased service fees and made other changes to the program, including service fee waivers for qualified military veterans interested in obtaining NAP coverage.
NAP provides financial assistance to producers of commercial crops for which insurance coverage is not available in order to protect against natural disasters that result in lower yields or crop losses, or prevent crop planting.
NAP Buy-Up Coverage Option
The 2018 Farm Bill reinstates higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production. NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production.
Buy-up coverage is not available for crops intended for grazing.
NAP Service Fees
For all coverage levels, the new NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. These amounts reflect a $75 service fee increase for crop, county or multi-county coverage. The fee increases apply to obtaining NAP coverage on crops on or after April 8, 2019.
NAP Enhancements for Qualified Military Veterans
The 2018 Farm Bill NAP amendments specify that qualified veteran farmers or ranchers are now eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria.
Beginning, limited resource and targeted underserved farmers or ranchers remain eligible for a waiver of NAP service fees and premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.”
For NAP application, eligibility and related program information, visit www.fsa.usda.gov/nap or contact your local USDA Service Center. To locate your local FSA office, visit www.farmers.gov.
ARC/PLC Acreage Maintenance
Producers enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs must protect all cropland and noncropland acres on the farm from wind and water erosion and noxious weeds. Producers who sign ARC county or individual contracts and PLC contracts agree to effectively control noxious weeds on the farm according to sound agricultural practices. If a producer fails to take necessary actions to correct a maintenance problem on a farm that is enrolled in ARC or PLC, the County Committee may elect to terminate the contract for the program year.
Farm Loan Graduation Reminder
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.
FSA periodically conducts Direct Loan graduation reviews to determine a borrower’s ability to graduate to commercial credit. If the borrower’s financial condition has improved to a point where they can refinance their debt with commercial credit, they will be asked to obtain other financing and partially or fully pay off their FSA debt.
By the end of a producer’s operating cycle, the Agency will send a letter requesting a current balance sheet, actual financial performance and a projected farm budget. The borrower has 30 days to return the required financial documents. This information will be used to evaluate the borrower’s potential for refinancing to commercial credit.
If a borrower meets local underwriting criteria, FSA will send the borrower’s name, loan type, balance sheet and projected cash flow to commercial lenders. The borrower will be notified when loan information is sent to local lenders.
If any lenders are interested in refinancing the borrower’s loan, FSA will send the borrower a letter with a list of lenders that are interested in refinancing the loan. The borrower must contact the lenders and complete an application for commercial credit within 30 calendar days.
If a commercial lender rejects the borrower, the borrower must obtain written evidence that specifies the reasons for rejection and submit to their local FSA farm loan office.
If a borrower fails to provide the requested financial information or to graduate, FSA will notify the borrower of noncompliance, FSA’s intent to accelerate the loan, and appeal rights.
