What's Up at the USDA Office?
Upcoming Deadlines/Dates
November 28: Office closed in observance of Thanksgiving
November 29: Deadline to apply for the Organic Dairy Marketing Assistance Program (ODMAP)
December 2: Deadline to return COC ballots to FSA Office
December 15: Deadline to certify fall-seeded crops - Note: Although cover crops can be reported at any time, we encourage you to do it this fall (2024)
FSA Outlines MAL and LDP Policy
Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool and honey. MALs provide you with interim financing after harvest to help you meet cash flow needs without having to sell your commodities when market prices are typically at harvest-time lows. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available. Marketing loan provisions and LDPs are not available for sugar and extra-long staple cotton.
FSA is now accepting requests for 2024 MALs and LDPs for all eligible commodities after harvest. Requests for loans and LDPs shall be made on or before the final availability date for the respective commodities.
Loan Rates:
Corn - $2.13
Soybeans - $6.20
Oats - $2.05
Wheat - $3.33
Current Interest Rate for
November: 5.125%
Commodity certificates are available to loan holders who have outstanding nonrecourse loans for wheat, upland cotton, rice, feed grains, pulse crops (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds. These certificates can be purchased at the posted county price (or adjusted world price or national posted price) for the quantity of commodity under loan, and must be immediately exchanged for the collateral, satisfying the loan. MALs redeemed with commodity certificates are not subject to Adjusted Gross Income provisions.
Commodity certificates are available to loan holders who have outstanding nonrecourse loans for wheat, upland cotton, rice, feed grains, pulse crops (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds. These certificates can be purchased at the posted county price (or adjusted world price or national posted price) for the quantity of commodity under loan, and must be immediately exchanged for the collateral, satisfying the loan. MALs redeemed with commodity certificates are not subject to Adjusted Gross Income provisions.
To be considered eligible for an LDP, you must have form CCC-633EZ, Page 1 on file at your local FSA Office before losing beneficial interest in the crop. Pages 2, 3 or 4 of the form must be submitted when payment is requested.
Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.
Adjusted Gross Income (AGI) provisions state that if your total applicable three-year average AGI exceeds $900,000, then you’re not eligible to receive an MLG or LDP. You must have a valid CCC-941 on file to earn a market gain of LDP. The AGI does not apply to MALs redeemed with commodity certificate exchange.
For more information and additional eligibility requirements, contact your Allamakee County USDA Service Center at 563-568-2148 or visit fsa.usda.gov.
Signature Policy
Using the correct signature when doing business with FSA can save time and prevent a delay in program benefits. The following are FSA signature guidelines:
• Married individuals must sign their given name.
• Example - Mary Doe and John Doe are married. When signing FSA forms, each must use their given name, and may not sign with the name of their spouse. Mrs. Mary Doe may not sign documents as Mrs. John Doe. For Farm Loan Purposes, spouses may not sign on behalf of the other as an authorized signatory, a signature will be needed for each. For a minor, FSA requires the minor’s signature and one from the minor’s parent. There are certain exceptions where a minor’s signature may be accepted without obtaining the signature of one of the parents. Despite minority status, a youth executing a promissory note for a Youth Loan will incur full personal liability for the debt and will sign individually. Note: By signing a document with a minor, the parent is liable for actions of the minor and may be liable for refunds, liquidated damages, or other penalties, etc.
When signing on one’s behalf the signature must agree with the name typed or printed on the form or be a variation that does not cause the name and signature to be in disagreement. Example - John W. Smith is on the form. The signature may be John W. Smith or J.W. Smith or J. Smith. Or Mary J. Smith may be signed as Mrs. Mary Joe Smith, M.J. Smith, Mary Smith, etc.
Faxed signatures will be accepted for certain forms and other documents provided the acceptable program forms are approved for faxed signatures. Producers are responsible for the successful transmission and receipt of faxed information.
Examples of documents not approved for faxed signatures include:
• Promissory note
• Assignment of payment
• Joint payment authorization
• Acknowledgement of commodity certificate purchase
Spouses may sign documents on behalf of each other for FSA and CCC programs in which either spouse has an interest, unless written notification denying a spouse this authority has been provided to the county office.
Spouses cannot sign on behalf of each other as an authorized signatory for partnerships, joint ventures, corporations or other similar entities. Likewise, a spouse cannot sign a document on behalf of the other in order to affirm the eligibility of oneself.
Any member of a general partnership can sign on behalf of the general partnership and bind all members unless the Articles of Partnership are more restrictive. Spouses may sign on behalf of each other’s individual interest in a partnership, unless notification denying a spouse that authority is provided to the county office. Acceptable signatures for general partnerships, joint ventures, corporations, estates, and trusts must consist of an indicator “by” or “for” the individual’s name, individual’s name and capacity, or individual’s name, capacity, and name of entity.
USDA Launches Online Debt Consolidation Tool to Increase Farmer And Rancher Financial Viability
The U.S. Department of Agriculture (USDA) is announcing the launch of the Debt Consolidation Tool, an innovative online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.
A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt may also provide farmers and ranchers additional cash flow flexibilities.
The Debt Consolidation Tool is a significant addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs. The tool enhances customer service and increases opportunities for farmers and ranchers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming and ranching operation, retirement accounts, or college savings accounts.
Producers can access the Debt Consolidation Tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox, or the Safari browser. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.
Additional Farm Loan Programs Improvements
FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes, to take effect September 25, 2024, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.
FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made several impactful improvements including:
• The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
• The Online Loan Application, an interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet, and build a farm operating plan.
• An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
• A simplified direct loan paper application, reduced from 29 pages to 13 pages.
• A new educational hub with farm loan resources and videos.
USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation. To conduct business with FSA, contact your local USDA Service Center.
Meet Local Administrative Area (LAA) 3’s County Committee Nominees!
LAA 3 covers the townships of Iowa, Lansing, Center, Lafayette, Paint Creek, and Taylor. This year the nomination period ended as of August 1, 2024, and we are fortunate to have four great nominees running and willing to serve on our Allamakee County FSA Committee board (COC). The following is a short synopsis of each nominee and their background in Allamakee County.
Our first nominee is Kim Welsh. Kim is currently serving in the last year of her original 3-year term as a member of the Allamakee COC and is seeking re-election. Kim and her husband Gary Welsh have been actively involved in agriculture since 1983 in Center Township. They have been an organic farm since its inception and take deep pride in the agricultural products they produce. The family farm they’ve created is diversified with raising beef cattle, custom raising pullets and laying hens, finishing out hogs, and having row crops. Kim retired from being a Farm Loan Program Technician for FSA after 30 years of service in 2020. Along with her farming background Kim is an active volunteer for the local food shelf and VITA.
Our next nominee is Lynn Reburn. Lynn and her husband Tom have been farming in Iowa Township in Allamakee County for the last 40+ years on their heritage farm that dates back over 150 years to 1866. Currently Lynn and Tom raise beef cattle and have a row crop operation. Lynn works at Murphy Roverud Law office working with taxes and probate. When she isn’t at work or farming, she serves as the Clerk for the Upper Iowa River Drainage District and has served on the Iowa State Extension Council in the past.
Up next is Terry Oesterle. Terry and his wife Diane operated a dairy farm in Paint Creek Township for years along with a row crop operation until they retired. During their time farming they milked 40 cows and raised all their own replacements while operating about 350 acres of row crops. Since retirement they’ve put some ground into the Conservation Reserve Program (CRP) along with renting the balance out. Terry has been a Farm Bureau member for 45 years, served as a trustee for Paint Creek Twp in the past and also currently, along with sitting on the board of Directors for Acentek Communications for 21 years, which he has just retired from.
Finally, our last nominee is Shane Gavin. Shane and his wife Beth, along with their three children, Weston, Wyatt, and Wrenley, farm in Lafayette Township in Allamakee County. Shane and his family have been running a beef cattle operation and row crops since 2012. Shane is a 2010 graduate from Lansing High School and a 2014 Iowa State University graduate with a major in Ag Systems Technology and a minor in Agronomy. Currently Shane is serving as the Allamakee County Cattleman Association’s president.
All our nominees are wanting and willing to serve Allamakee County’s agricultural producers to the best of their ability. Ballots were mailed to this voting district November 4th and are due by December 2nd. We wish each nominee the best of luck!
