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Programs

FSA Administered Programs

 
The agricultural mediation program helps agricultural producers and their creditors resolve disputes confidentially in a non-adversarial setting, thus avoiding the traditional process of litigation, appeals, bankruptcy, and foreclosure. This is crucial as America's family farmers continue to deal with a fluctuating economy, low commodity prices, and a seemingly endless rash of natural disasters.
Areas of disputes the Mediation Program specializes into include farm loans, price support payments, wetland determinations, conservation compliance, and Conservation Reserve Program payment eligibility/limitation.

 
The Farm Service Agency (FSA) provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers and ranchers.

 

 
Provides a voluntary program to agricultural producers to help them safeguard environmentally sensitive land. Producers enrolled in CRP plant long-term, resource-conserving covers to improve the quality of water, control soil erosion, and enhance wildlife habitat. In return, CCC provides participants rental payments and cost-share assistance. Contract duration is between 10 and 15 years. CRP was authorized by section 1231 of the Food Security Act of 1985, as amended (Pub. L. 99-198)(16 U.S.C. 3831, et seq.).

 

 
As the name implies, this program is an enhanced version of the very successful Conservation Reserve Program (CRP). CREP is a special conservation program that allows the CRP to be tailored to meet the needs of the State. CREP is a Federal-State conservation partnership program that targets significant environmental effects related to Agriculture.

 
CREP in Washington State
The program is tailored in Washington State to meet the States goals of restoring and enhancing salmon habitat. Through CREP, agricultural landowners can receive annual rental payments and cost-share assistance to establish long-term, resource conserving vegetation on eligible land. The Washington Conservation Commission represents the State in the federal-state partnership.

 

 

 
The Direct and Counter-cyclical Payment Program (DCP) provides payments to eligible producers on farms enrolled for the 2008 through 2012 crop years. There are two types of DCP payments - direct payments and counter-cyclical payments. Both are computed using the base acres and payment yields established for the farm. DCP is authorized by the Food, Conservation and Energy Act of 2008 (2008 Farm Bill) and is administered by the U.S. Department of Agriculture's Farm Service Agency (FSA).
2009 State ACRE Guarantees are based on the Benchmark State Yields and ACRE Guarantee Prices for ACRE-eligible commodities. 2009 Benchmark State Yields are finalized for all ACRE-eligible commodities. Preliminary 2009 ACRE Guarantee Prices and State ACRE Guarantees will be updated bi-monthly based on the most recent USDA price forecasts and finalized when the final estimates become available

 

 
"Direct" farm loans are made by FSA with Government funds. We also service these loans and provide our Direct loan customers with supervision and credit counseling so they have a better chance for success. Farm Ownership, Operating, Emergency and Youth loans are the main types of loans available under the Direct program. Direct loan funds are also set aside each year for loans to minority applicants and beginning farmers (see links below). To apply for a Direct loan, contact your local FSA office. For Direct loan interest rates, click here.
A loan made to eligible applicants to purchase, enlarge, or make capital improvements to family farms, or to promote soil and water conservation and protection. Maximum loan amount is $300,000. A percentage of direct farm ownership loan funds is targeted for beginning farmers and socially disadvantaged applicants as mandated by sections 346 and 355 of the Consolidated Farm and Rural Development Act (Pub. L. 87-128) (CONACT) (7 U.S.C. 1994 and 7 U.S.C. 2003), respectively. The statutory authority for direct farm ownership loans is section 302 of the CONACT (7 U.S.C. 1922).

 

 
A loan made to an eligible applicant to assist with the financial costs of operating a farm. Maximum loan amount is $300,000. A percentage of direct operating loan funds is targeted for beginning farmers as mandated sections 346 and 355 of the Consolidated Farm and Rural Development Act (Pub. L. 87-128) (CONACT) (7 U.S.C. 1994 and 7 U.S.C. 2003), respectively. The statutory authority for direct operating loans is section 311 of the CONACT (7 U.S.C. 1911).

 

 
USDA Farm Service Agency's (FSA) Emergency Conservation Program (ECP) provides emergency funding and technical assistance for farmers and ranchers to rehabilitate farmland damaged by natural disasters and for carrying out emergency water conservation measures in periods of severe drought. Funding for ECP is appropriated by Congress.

 

 
Loans are available to eligible applicants who have incurred substantial financial losses from a disaster. Maximum outstanding loan amount is $500,000. The statutory authority for emergency loans is section 321 of the Consolidated Farm and Rural Development Act (Pub. L. 87-128) (7 U.S.C. 1961).

 
The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Farm Storage Facility Loan Program (FSFL) provides low-interest financing for producers to build or upgrade farm storage and handling facilities. The FSA is authorized to implement the program through USDA's Commodity Credit Corporation (CCC).

 

 
GRP is a voluntary program for landowners to protect, restore, and enhance grasslands on their property. USDA's NRCS, FSA, and Forest Service implement GRP to conserve vulnerable grasslands from conversion to cropland or other uses and conserve valuable grasslands by helping maintain viable ranching operations.

 

 
FSA guaranteed loans provide lenders (e.g., banks, Farm Credit System institutions, credit unions) with a guarantee of up to 95 percent of the loss of principal and interest on a loan. Farmers and ranchers apply to an agricultural lender, which then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender's normal underwriting criteria.

 

 
Indian Tribal Land Acquisition Program
A loan available to Indian tribes for purchasing privately held lands within their respective reservations boundaries. The statutory authority for Indian Tribal Land Acquisition loans is Pub. L. 91-229 (25 U.S.C 490).

 

 
The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) reauthorizes the Milk Income Loss Contract (MILC) Program through September 30, 2012. The USDA Farm Service Agencys (FSA) MILC Program supports the dairy industry by providing direct counter-cyclical style payments to milk producers on a monthly basis when the Boston Federal Milk Marketing Order Class I price for fluid milk falls below the benchmark of $16.94 per hundredweight (cwt.). The 2008 Farm Bill changed the $16.94 per cwt of milk trigger for MILC payments to a variable trigger that may be adjusted monthly for variations in feed costs above $7.35 per cwt of a 16-percent protein feed ration. Monthly MILC payment rates will be determined and payments issued to eligible dairy operations when the Boston Class I price falls below the feed-cost-adjusted trigger. Certain per year per operation eligibility pound limits also apply.
More (Factsheet)

 

 
USDA's Farm Service Agency's (FSA) Noninsured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of noninsurable crops when low yields, loss of inventory or prevented planting occurs due to natural disasters.

 

 
Provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. Allowing producers to store production at harvest facilitates more orderly marketing of commodities throughout the year. Marketing assistance loans for covered commodities are nonrecourse because the commodities are pledged as loan collateral and producers have the option of delivering the pledged collateral to CCC as full payment for the loan at maturity. A producer who is eligible to obtain a loan, but who agrees to forgo the loan, may obtain an LDP. The LDP rate equals the amount by which the applicable loan rate where the commodity is stored exceeds the alternative loan repayment rate for the respective commodity.

 

 
The 2002 Farm Bill authorized loans to processors of domestically-produced sugarcane and sugar beets for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars. The Sugar Storage Facility Loan Program (SSFL) is administered by USDA's Farm Service Agency (FSA).

 

 
The U.S. Department of Agriculture's Farm Service Agency (FSA) makes operating loans of up to $5,000 to eligible individual rural youths age 10 through 20 to finance income-producing, agriculture-related projects. The project must be of modest size, educational, and initiated, developed and carried out by rural youths participating in 4-H clubs, FFA or a similar organization.

 
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Last Modified: 11/20/09 12:21:49 PM


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