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USDA Farm Service Agency – Beginning Farmer-Rancher Programs

Women Managing the Farm

2014 Conference

FSA’s Vision: A market-oriented, economically and environmentally sound American agriculture delivering an abundant, safe and affordable food and fiber supply while sustaining quality agricultural communities.

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USDA FARM SERVICE AGENCY

• Kansas FSA:

– 96 County Offices in 105 Counties – Management Team

• County Executive Director • Farm Loan Manager/Officer • Program Technicians • County Committee (Farmer Elected)

• USDA Service Centers: • Farm Service Agency (FSA) • Natural Resources Conservation Service (NRCS) • Rural Development (RD)

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Fiscal Year 2013 Accomplishments

• Farm Loans $ 94,467,744 • Farm Programs $675,431,558

“The USDA Farm Service Agency delivered nearly $770 million in federal program payments and loans to Kansas farmers and ranchers during FY 2013. Kansas agriculture benefits greatly from the tireless efforts of our dedicated employees and locally elected County Committees.” ~ Adrian J. Polansky - State Executive Director

Fiscal Year: October 1, 2012 – September 30, 2013

FSA’s Mission is to equitably serve all farmers, ranchers, and agricultural partners through the delivery of effective, efficient agricultural programs for all Americans.

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FARM LOAN PROGRAMS

Farm Loan Programs provide loans, loan guarantees, and business planning to eligible farmers, ranchers, and others to promote, build, and sustain family farms in support of a thriving agricultural economy.

Who are our potential customers? • Beginning farmers and ranchers • Farmers whose needs may not be met by commercial credit • Multigenerational family farms • Socially disadvantaged farmers and ranchers • Value added farming operations • Organic and specialty farmers • Farmers who have hit hard times and now require a safety net

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Definition of Socially Disadvantaged for Farm Loan Purposes: A group whose members have been subject to racial, ethnic, or gender

prejudice because of their identity as members of the group without regard to their individual qualities.

These groups consist of: Women American Indians Alaskan Natives Asians Hispanics Native Hawaiians or other Pacific Islanders Blacks or African Americans

A certain percentage of farm loan program funding is targeted for SDA Applicants.

FARM LOAN PROGRAMS

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FSA Farm Loan Programs

• Operating Loans (includes Microloans) • Farm Ownership Loans • Guaranteed Operating and Farm

Ownership Loans • Land Contract Guarantee • Emergency Loans • Youth Loans

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Marketing and distribution expenses Purchase of livestock Minor farm improvements such as

wells and coolers Annual operating expenses such as

seed, fertilizer, utilities and land rents Loan amount limited to $50,000

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~ FSA Microloans can include ~ Initial start-up expenses; such as: hoop houses to extend the

growing season Essential tools or equipment needed for the operation Irrigation equipment

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• Loans to Beginning Farmers & Ranchers – In addition to general eligibility requirements, a beginning

farmer/rancher may qualify to purchase real estate with the following additional conditions:

• Has not operated a farm for more than 10 years. • Does not own real farm property or who, directly or through interests

in family farm entities owns real farm property, the aggregate acreage of which does not exceed 30% of the median acreage of the farms in the county where the property is located.

• The average farm size will be based upon information obtained from the 2012** Census of Agriculture. Average farm size by acres is available at the local FSA County Office to assist in this requirement.

FARM LOAN PROGRAMS

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• Loans to Beginning Farmers & Ranchers (or SDA) – Downpayment Program – In addition to general eligibility requirements, a beginning

farmer/rancher or SDA that has a 5% down payment may qualify to purchase real estate with the following as follows:

• The maximum loan amount does not exceed 45% the least of – (a) the purchase price of the farm to be acquired; – (b) the appraised value of the farm to be acquired; or – (c) $667,000** (Note: this results in a maximum loan amount $300,000 from FSA)

• The term of the loan is 20 years with a floor of 1.5% interest. • The remaining balance may be obtained from a commercial lender

or private party. That party must have an amortization period of at least 30 years and cannot balloon their payment in the first 20 years of the loan.

FARM LOAN PROGRAMS

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FARM LOAN TEAM OFFICES

FSA Farm Programs

• Conservation Programs • Price Support • Farm Programs

• With the passage of the 2012 Farm Bill,

limited information is provided due changes forthcoming.

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CONSERVATION PROGRAM Conservation Reserve Program (CRP)

– Voluntary program to help safeguard environmentally sensitive land by planting long-term resource conserving covers to improve water quality, control soil erosion, and enhance wildlife habitat.

– Annual rental payment and Cost-share assistance for applying practices.

– Contracts are 10-15 years. – 25.3 million acres currently enrolled nationally – Kansas has just under 2 million acres enrolled – New Farm Bill – CRP acreage limitation will gradually

decline to 24 million in 2018 13

CONSERVATION PROGRAM

• CRP consists of General, Continuous, and CREP Signups

• General Signup’s are announced – competitive bidding based on Environmental Benefits Index.

• Conservation Reserve Enhancement Program (CREP) – Kansas – To help preserve water quality along the Kansas Upper Arkansas River

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CONSERVATION PROGRAM Continuous Conservation Reserve Program (CCRP)

– Can signup anytime. Not subject to competitive bidding.

– Environmentally desirable land devoted to certain conservation practices that address resource concerns of water quality, wildlife, wind erosion, wetland, tree planting

– Annual Rental and Cost Share Payments to establish practices

– Incentive Payments of up to 20% of the Soil Rental Rate for field windbreaks, grass waterways, filter strips, riparian and wildlife habitat buffers and farmable wetland buffers.

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CONSERVATION PROGRAM Important Facts to Remember when Ownership Changes are Made to CRP

Land

• Notify the local FSA of changes being made to the owner and/or operator of the CRP contract as soon as transaction is completed

• The current CRP participant is responsible for the CRP contract acreage until the new participant has signed and the FSA County Committee has approved the new revised contract

• The successor in interest must understand that any outstanding adjustments because of violations or any refunds due because of termination of the CRP contract will be the successor’s responsibility when they sign the CRP-1 contract

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CONSERVATION PROGRAM

Emergency Conservation Program (ECP) • Funding to rehabilitate farmlands and

conservation facilities damaged by natural disasters. Such as debris removal, fence repair, etc. The local County Committee and State Committee must determine if the conditions are severe enough to warrant recommending program implementation. Congress has to approve funding. 17

PRICE SUPPORT PROGRAMS • Marketing Assistance Loans (MAL)

– 9 month commodity loans. – Warehouse or Farm-stored. – County Loan Rate w/ applicable adjustments. – 2013 crop Loans subject to 5.1% Sequestration Reduction. – 2014 crop Loans subject to 7.2% Sequestration Reduction. – Non-recourse or Recourse Loans. – Beneficial Interest (title/control during loan period). – Market Gain Repayment, repay at Principal + Interest, or Forfeit

to Commodity Credit Corporation (CCC).

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PRICE SUPPORT PROGRAMS

Commodity Loan & LDP Final Availability Dates:

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March 31 June 2 Wheat Corn Oats, Barley Grain Sorghum Honey Soybeans, Sunflowers Canola, Crambe Dry Peas, Lentils, Chickpeas Flaxseed, Rapeseed Safflower Seed, Rice

PRICE SUPPORT PROGRAMS • Loan Deficiency Payments (LDP)

– Forgo a Marketing Assistance Loan. – Beneficial Interest (title/control/risk). Must File CCC-

633EZ Page 1 prior to losing Beneficial Interest. – When CCC determined value is below County Loan Rate. – File CCC-633EZ Page 2, 3 or 4 to request LDP. – Rate will be date of request if still have Beneficial Interest,

otherwise rate will be date when Beneficial Interest was lost.

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• www.fsa.usda.gov - FSA National Website. • www.fsa.usda.gov/ks - Kansas FSA Website • www.usda.gov – USDA National Website

WEBSITES

Obtain news releases, fact sheets, LDP rates, interest rates, forms, program handbooks, program regulations, etc.

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ACREAGE REPORTS

Acreage certifications are required to remain eligible for most FSA programs.

Producer certifies what is planted in each field, planting date, intended use, and who receives

a share of the crop.

2014 Acreage Certification Deadlines for Kansas: November 15, 2013 – Perennial Forage crops which includes all grasses (brome, fescue, native, etc.), alfalfa, clover, etc. December 15, 2013 - Fall-seeded small grains which includes wheat, barley, etc. July 15, 2014 – Spring-seeded crops.

ON-LINE SERVICES WITH AN E-AUTHENTICATION ACCOUNT

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www.fsa.usda.gov

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•Due to budget, FSA will not be mailing newsletters to producers as in the past.

•Timely FSA news now available direct to your email or Smartphone through the GovDelivery system.

•FSA’s electronic news service is free and convenient. All personal information is protected under the Privacy Act.

•We can get you started today! Provide your email and cell phone number on Form AD-2047.

Presentation by Kansas Farm Service Agency

• Presenters – March 13, 2013: – Shelly Wolf, Farm Loan Specialist – FSA

Farm Loan Programs – Carla Wikoff, Farm Program Specialist – FSA

Conservation Programs • Joshua Ridder, Outreach and Public Affairs

Coordinator – KS Farm Service Agency – 3600 Anderson Avenue, Manhattan, KS 66503

• Phone: 785.539.3531 THANK YOU!! 25