What's Up at the USDA Office?
Upcoming Deadlines/Dates
December 13: Deadline to apply for Organic Dairy Marketing Assistance Program (ODMAP)
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)
December 25: Office closed in observance of Christmas Day
January 1: Office closed in observance of New Years Day
USDA Extends Deadline for Organic Dairy Marketing Assistance Until Dec. 13
USDA is extending the application deadline for the Organic Dairy Marketing Assistance Program (ODMAP) 2024 to Dec.13, 2024. This extension gives organic dairy producers two additional weeks to apply for the program. Eligible producers include certified organic dairy operations that produce milk from cows, goats and sheep.
ODMAP 2024 helps mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. Specifically, through ODMAP 2024, USDA’s Farm Service Agency (FSA) is assisting organic dairy operations with projected marketing costs in 2024 calculated using their marketing costs in 2023.
ODMAP 2024 Program Improvements
Dairy producers who participate in ODMAP 2024 will benefit from improvements to provisions outlined in the program. Specifically, ODMAP 2024 provides a payment rate increase to $1.68 per hundredweight compared to the previous $1.10 per cwt. Additionally, the production cap has increased to nine million pounds compared to the previous five million pounds.
How ODMAP 2024 Works
FSA is providing financial assistance for a producer’s projected marketing costs in 2024 based on their 2023 costs. ODMAP 2024 provides a one-time cost-share payment based on marketing costs on pounds of organic milk marketed in the 2023 calendar year or estimated 2024 marketing costs for organic dairy operations that have increased milk production.
ODMAP 2024 provides financial assistance that immediately supports certified organic dairy operations during 2024 keeping organic dairy operations sustainable until markets return to more normal conditions.
How to Apply
FSA is now accepting applications through Dec. 13. To apply, producers should contact FSA at their local USDA Service Center. To complete the ODMAP 2024 application, producers must certify pounds of 2023 milk production, show documentation of their organic certification and submit a completed application form.
Organic dairy operations are required to provide their USDA certification of organic status confirming operation as an organic dairy in 2024 and 2023 along with the certification of 2023 milk production or estimated 2024 milk production in hundredweight.
ODMAP 2024 complements other assistance available to dairy producers, including Dairy Margin Coverage (DMC), with more than $36 million in benefits paid for the 2024 program year to date. Learn more on the FSA Dairy Programs webpage.
Applying for Farm Storage Facility Loans
The Farm Service Agency’s (FSA) Farm Storage Facility Loan (FSFL) program provides low-interest financing to help you build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.
Eligible commodities include corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as whole grain, pulse crops (lentils, chickpeas and dry peas), hay, honey, renewable biomass, fruits, nuts and vegetables for cold storage facilities, floriculture, hops, maple sap, rye, milk, cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and aquaculture (excluding systems that maintain live animals through uptake and discharge of water). Qualified facilities include grain bins, hay barns and cold storage facilities for eligible commodities.
Loans up to $50,000 can be secured by a promissory note/security agreement, loans between $50,000 and $100,000 may require additional security, and loans exceeding $100,000 require additional security.
You do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.
For more information, contact the Allamakee County USDA Service Center at 563-568-2148 or visit fsa.usda.gov/pricesupport.
Payment Limitation
Program payments may be limited by direct attribution to individuals or entities. A legal entity is defined as an entity created under Federal or State law that owns land or an agricultural commodity, product or livestock.
Through direct attribution, payment limitation is based on the total payments received by a person or legal entity, both directly and indirectly. Qualifying spouses are eligible for a separate payment limitation.
Payments and benefits under certain FSA programs are subject to some or all of the following:
• payment limitation by direct attribution (including common attribution)
• payment limitation amounts for the applicable programs
• substantive change requirements when a farming operation adds persons, resulting in an increase in persons to which payment limitation applies
• actively engaged in farming requirements
• cash-rent tenant rule
• foreign person rule
• average AGI limitations
• programs subject to AGI limitation
No program benefits subject to payment eligibility and limitation will be provided until all required forms for the specific situation are provided and necessary payment eligibility and payment limitation determinations are made.
Payment eligibility and payment limitation determinations may be initiated by the County Committee or requested by the producer.
Statutory and Regulatory rules require persons and legal entities provide the names and Tax Identification Numbers (TINs) for all persons and legal entities with an ownership interest in the farming operation to be eligible for payment.
Payment eligibility and payment limitation forms submitted by persons and legal entities are subject to spot check through FSA’s end-of-year review process.
Persons or legal entities selected for end-of-year review must provide the County Committee with operating loan documents, income and expense ledgers, canceled checks for all expenditures, lease and purchase agreements, sales contracts, property tax statements, equipment listings, lease agreements, purchase contracts, documentation of who provided actual labor and management, employee time sheets or books, crop sales documents, warehouse ledgers, gin ledgers, corporate or entity papers, etc.
A finding that a person or legal entity is not actively engaged in farming results in the person or legal entity being ineligible for any payment or benefit subject to the actively engaged in farming rules.
Noncompliance with AGI provisions, either by exceeding the applicable limitation or failure to submit a certification and consent for disclosure statement, will result in payment ineligibility for all program benefits subject to AGI provisions. Program payments are reduced in an amount that is commensurate with the direct and indirect interest held by an ineligible person or legal entity in any legal entity, general partnership, or joint operation that receives benefits subject to the average AGI limitations.
If any changes occur that could affect those actively engaged in farming, cash-rent tenant, foreign person, or average Adjusted Gross Income (AGI) determination, producers must timely notify the County FSA Office by filing revised farm operating plans and/or supporting documentation, as applicable. Failure to timely notify the County Office may adversely affect payment eligibility.
USDA Farm Loan Program Changes Now in Effect
The U.S. Department of Agriculture’s (USDA) long-awaited updates to the Farm Service Agency’s (FSA) Farm Loan Programs are officially in effect. These changes, part of the Enhancing Program Access and Delivery for Farm Loans rule, are designed to increase financial flexibility for agricultural producers, allowing them to grow their operations, boost profitability, and build long term savings.
These program updates reflect USDA’s ongoing commitment to supporting the financial success and resilience of farmers and ranchers nationwide, offering critical tools to help borrowers manage their finances more effectively.
What the new rules mean for you:
• Low-interest installment set-aside program: Financially distressed borrowers can now defer up to one annual loan payment at a reduced interest rate. This simplified option helps ease financial pressure while keeping farming operations running smoothly.
• Flexible repayment terms: New repayment options give borrowers the ability to increase their cash flow and build working capital reserves, allowing for long-term financial planning that includes saving for retirement, education, and other future needs.
• Reduced collateral requirements: FSA has lowered the amount of additional loan security needed for direct farm loans, making it easier for borrowers to leverage their existing equity without putting their personal residence at risk.
These new rules provide more financial freedom to borrowers. By giving farmers and ranchers better tools to manage their operations, we’re helping them build long-term financial stability. It’s all about making sure they can keep their land, grow their business, and invest in the future.
If you’re an FSA borrower or considering applying for a loan, now is the time to take advantage of these new policies. We encourage you to reach out to your local FSA farm loan staff to ensure you fully understand the wide range of loan making and servicing options available to assist with starting, expanding, or maintaining your agricultural operation.
