USDA Seed Cotton Recourse Loans Available through March 31, 2019

Cotton producers can now request a seed cotton recourse loan from USDA’s Farm Service Agency (FSA). This year’s adverse weather has resulted in delayed ginning in many locations. Seed cotton loans provide interim financing to producers until the cotton is ginned.

Seed cotton recourse loans are available from the beginning of harvest through March 31, 2019. Seed cotton loans must be repaid by May 31, 2019, either by cash repayment by the producer, or with proceeds from a ginned cotton loan.

The loan rate is the base loan rate for upland cotton, which is $0.52 per pound, and $0.7977 per pound for extra-long staple cotton.

Repaying Recourse Loans with Proceeds

FSA staff will send a written or e-mail notification to every cooperative marketing association or loan servicing agent used by the producer to ensure that the proceeds from a ginned cotton loan are used to repay a seed cotton loan obligation.

If after ginning, the seed cotton loan collateral is placed under loan or loan deficiency payment from a cooperative marketing association or loan servicing agent, the proceeds will be applied to the recourse loan as a repayment.

More Information

To apply for a loan or get more information, contact the FSA staff at your local USDA service center.

USDA Market Facilitation Program

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 (fresh and processed), cotton, dairy, hog, sorghum, soybean (fresh and processed), wheat, shelled almond, and fresh sweet cherry producers. An announcement about further payments will be made in the coming months, if warranted. 

The sign-up period for MFP runs through Feb. 14 2019, with information and instructions provided at 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. 

For a list of initial MFP payments rates, view the MFP Fact Sheet.

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.

USDA Acreage Reporting Deadline for Perennial Forage Changes to July 15

USDA Farm Service Agency (FSA) has established a new acreage reporting deadline for perennial forage for 2019 and subsequent years. Previously set in the fall, the new deadline is July 15 for all states, except for Hawaii and Puerto Rico. 

Timely and accurate acreage reports for all crops and land uses, including prevented planting or failed acreage, are the foundation for many FSA program benefits, including disaster programs for livestock owners. Producers must report their acreage to maintain program eligibility.

Producers who have coverage for perennial forage under the Noninsured Crop Disaster Assistance Program (NAP) must report their crop acreage by the earlier of any of the following:

• the established acreage reporting date (July 15)
• 15 calendar days before the onset of harvest or grazing of the specific crop acreage being reported
• the established normal harvest date for the end of the coverage period.

Livestock Losses

The Livestock Indemnity Program (LIP) provides assistance to eligible producers for livestock deaths in excess of normal mortality caused by adverse weather, disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law.

LIP compensates livestock owners and contract growers for livestock death losses in excess of normal mortality due to adverse weather, including losses due to hurricanes, floods, blizzards, wildfires, extreme heat or extreme cold.

For disease losses, FSA county committees can accept veterinarian certifications that livestock deaths were directly related to adverse weather and unpreventable through good animal husbandry and management.

For 2018 livestock losses, eligible livestock owners must file a notice within 30 calendar days of when the loss is first apparent. Producers who were prevented from reporting livestock losses during the government shutdown have until Feb. 14, 2019, to file a notice of loss.

Participants must provide the following supporting documentation to their local FSA office no later than 90 calendar days after the end of the calendar year in which the eligible loss condition occurred.

• Proof of death documentation
• Copy of growers contracts
• Proof of normal mortality documentation

In addition to filing a notice of loss, producers must also submit an application for payment by March 1, 2019.

Additional Information about LIP is available at your local FSA office or online at: www.fsa.usda.gov.

Emergency Assistance for Livestock, Honeybee, and Farm-Raised Fish Program (ELAP)

The Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) provides emergency assistance to eligible livestock, honeybee, and farm-raised fish producers who have losses due to disease, adverse weather or other conditions, such as blizzards and wildfires, not covered by other agricultural disaster assistance programs.

Eligible livestock losses include grazing losses not covered under the Livestock Forage Disaster Program (LFP), loss of purchased feed and/or mechanically harvested feed due to an eligible adverse weather event, additional cost of transporting water because of an eligible drought and additional cost associated with gathering livestock to treat for cattle tick fever.              

Eligible honeybee losses include loss of purchased feed due to an eligible adverse weather event, cost of additional feed purchased above normal quantities due to an eligible adverse weather condition, colony losses in excess of normal mortality due to an eligible weather event or loss condition, including CCD, and hive losses due to eligible adverse weather.

Eligible farm-raised fish losses include death losses in excess of normal mortality and/or loss of purchased feed due to an eligible adverse weather event.

Producers who suffer eligible livestock, honeybee, or farm-raised fish losses from Oct. 1, 2018 to Sept. 30, 2019 must file:

• A notice of loss within 30 calendar days after the loss is apparent. Producers who were prevented from reporting losses during the government shutdown (12/31/18-1/23/19) have until Feb. 14, 2019, to file a notice of loss.
• An application for payment by Nov. 1, 2019

The following ELAP Fact Sheets (by topic) are available online:

• ELAP for Farm-Raised Fish Fact Sheet
• ELAP for Livestock Fact Sheet
• ELAP for Honeybees Fact Sheet

To view these and other FSA program fact sheets, visit the FSA fact sheet web page at www.fsa.usda.gov/factsheets. 

Tree Assistance Program (TAP) Sign-up

Orchardists and nursery tree growers who experienced losses from natural disasters during calendar year 2018 must submit a TAP application either 90 calendar days after the disaster event or the date when the loss is apparent. Producers who were prevented from reporting losses during the government shutdown have until Feb. 14, 2019, to file a notice of loss.

TAP provides financial assistance to qualifying orchardists and nursery tree growers to replant or rehabilitate eligible trees, bushes and vines damaged by natural disasters.

Eligible tree types include trees, bushes or vines that produce an annual crop for commercial purposes. Nursery trees include ornamental, fruit, nut and Christmas trees that are produced for commercial sale. Trees used for pulp or timber are ineligible.

To qualify for TAP, orchardists must suffer a qualifying tree, bush or vine loss in excess of 15 percent mortality from an eligible natural disaster, plus an adjustment for normal mortality. The eligible trees, bushes or vines must have been owned when the natural disaster occurred; however, eligible growers are not required to own the land on which the eligible trees, bushes and vines were planted.

If the TAP application is approved, the eligible trees, bushes and vines must be replaced within 12 months from the date the application is approved. The cumulative total quantity of acres planted to trees, bushes or vines, for which a producer can receive TAP payments, cannot exceed 500 acres annually.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).