What's Up at the USDA Office?
Upcoming Deadlines/Dates
December 25: Office closed in observance of Christmas Day
January 1: Office closed in observance of New Years Day
January 2: Deadline to report number of honeybee colonies for NAP and ELAP programs
January 9: FSA County Committee Meeting
January 20: Office closed in observance of Birthday of Martin Luther King Jr
January 31: Deadline to request 2024 MALs and LDPs for all eligible wool, mohair and unshorn pelts
Loans Now Available to Agricultural Producers for Controlled Atmosphere Storage to Extend the Shelf Life of Perishable Commodities
Agricultural producers of perishable commodities including fruits, vegetables and floriculture can now get funding for controlled atmosphere storage through Farm Storage Facility Loans (FSFL) offered by the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA). Controlled atmosphere storage regulates the concentrations of oxygen, carbon dioxide and nitrogen in a storage room to increase the shelf life of crops.
In addition to now supporting controlled atmosphere storage, FSFLs also provide low-interest financing to help producers build or upgrade storage facilities and to purchase portable (new or used) structures, equipment and storage and handling trucks.
The low-interest funds can also be used for controlled atmosphere storage monitoring equipment, designed to notify facility owners immediately if potential atmospheric concerns are detected. Producers may renovate existing storage facilities to include controlled atmosphere storage monitoring equipment. Authorized loan terms for FSFL renovations are three and five years only.
To assist with monitoring gases and particle concentrations for controlled atmosphere storage, the following equipment, but not limited to, is eligible for an FSFL:
• Optical oxygen sensor.
• Low power CO2 sensor.
• Air quality sensor.
• Gas detection devices.
• Air temperature and relative humidity sensor.
• Water activity meter.
• Temperature stabilized water activity analyzer.
• Precision and performance humidity and temperature transmitter.
Loans of 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.
FSFL borrowers do not need to demonstrate lack of commercial credit availability to apply. The loans are designed to assist a diverse range of agricultural operations, including small and mid-sized businesses, new farmers and ranchers, operations supplying local food and farmers markets, non-traditional farm products and underserved producers.
For more information, see the FSFL fact sheet and contact FSA at your local USDA Service Center.
FSA Offers Safety Net Programs for Honeybee Producers
The Farm Service Agency (FSA) administers two programs that have specific safety net benefits for producers of honeybees and honey. The Noninsured Crop Disaster Assistance Program (NAP) and the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) assist producers when disasters impact honey production or damage or destroy colonies, hives or honeybee feed.
NAP is designed to reduce financial losses when natural disasters result in lower yields or crop losses, including honey. NAP coverage is equivalent to catastrophic insurance, meaning it covers up to 50 percent of a producer’s normal yield (must have at least a 50 percent loss) at 55 percent of the average market price. The 2018 Farm Bill reinstates higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production.
The NAP service fee is the lesser of $325 per crop or $825 per producer per administrative county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties.
You must apply for NAP coverage by December 31 prior to the year for which you’re seeking coverage.
ELAP covers colony losses, honeybee hive losses (the physical structure) and honeybee feed losses in instances where the colony, hive or feed has been destroyed by a natural disaster or, in the case of colony losses, because of Colony Collapse Disorder. Colony losses must be in excess of normal mortality.
Both the NAP and ELAP programs require you to report the number of colonies you have in production to FSA by Jan. 2, 2025. You must notify FSA within 30 calendar days of changes in the total number of colonies or when honeybees are moved to another county.
For NAP, you must notify FSA within 15 calendar days of when a loss occurs or from when the loss is apparent. For ELAP, you must file a notice of loss and application for payment by Jan. 30, 2025.
To learn more about programs for honey and honeybee producers, contact your Allamakee County USDA Service Center at 563-568-2148 or visit fsa.usda.gov.
Marketing Assistance Loans and Loan Deficiency Payments for Wool, Mohair and Unshorn Pelts
Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for producers of many commodities, including graded and non-graded wool, mohair, and unshorn pelts. MALs and LDPs are available during shearing and provide interim financing to help you meet cash flow needs without having to sell commodities when market prices are low, enabling you to delay selling until more favorable marketing conditions emerge. LDPs are payments made to producers who, although eligible to obtain an MAL, agree to forgo the loan in return for a payment on the eligible commodity.
FSA is now accepting requests for 2024 MALs and LDPs for all eligible wool, mohair and unshorn pelts. These requests should be made on or before the final availability date of Jan. 31, 2025. USDA recently announced 2024 wool and mohair marketing assistance loan rates.
Eligibility
To be eligible for a wool or mohair MAL or LDP, producers must produce and shear eligible mohair and wool in the U.S. during the applicable crop year and must:
• comply with conservation and wetland protection requirements;
• report all cropland acreage on applicable farms where the eligible commodity is produced;
• have and retain beneficial interest in the commodity until the MAL is repaid or the Commodity Credit Corporation (CCC) takes title to the commodity, and;
• meet Adjusted Gross Income (AGI) limitations.
Unshorn pelts are eligible for LDPs only. In addition to the criteria above, producers of unshorn pelts must have sold the unshorn lamb for immediate slaughter or slaughter the lambs for personal use. LDPs and marketing loan gains are not subject to payment limitation, including actively engaged in farming and cash rent tenant provisions.
In addition to producer eligibility, the loan commodity must have been produced and shorn from live animals by an eligible producer, be in storable condition, and meet specific CCC minimum grade and quality standards. Producers are responsible for any loss in quantity or quality of the wool or mohair pledged as loan collateral.
To retain beneficial interest, the producer must have control and title of the wool, mohair, or unshorn pelt. If beneficial interest in the commodity is lost, the commodity loses eligibility for an MAL or LDP and remains ineligible even if the producer later regains beneficial interest. The producer must be able to make all decisions affecting the commodity including movement, sale, and the request for an MAL or LDP.
Producers may repay an MAL any time during the loan period at the lesser of the loan rate plus accrued interest and other charges or an alternative loan repayment rate, the national posted price, which is announced weekly. Visit the Farm Service Agency (FSA) website for posted loan and LDP rates.
How to Apply
Producers can apply for an MAL by contacting their local FSA county office. To be considered for a LDP, producers must first have the form CCC-633 EZ, Page 1, on file with FSA prior to losing beneficial interest in the wool, mohair or unshorn pelt. It is best to visit the county office and submit the CCC-633 Page 1 right before you shear. This is completed one time per crop year and indicates your intention to receive LDP benefits.
To apply and learn more information, contact your local USDA Service Center or visit fsa.usda.gov.
USDA Reminds Producers of Climate-Smart Opportunities Using Farm Loan Programs
The U.S. Department of Agriculture’s Farm Service Agency (FSA) reminds agricultural producers that Farm Loan Programs can be used to support a variety of climate-smart agriculture practices, which build on many practices that farmers and ranchers already use, like cover cropping, nutrient management and conservation tillage.
Climate-smart agricultural practices generate significant environmental benefits by capturing and sequestering carbon, improving water management, restoring soil health and more. Farm loan funding complements other tools to help producers adopt climate-smart practices, such as FSA’s Conservation Reserve Program, crop insurance options that support conservation, and conservation programs offered by USDA’s Natural Resources Conservation Service (NRCS).
FSA offers multiple types of loans to help farmers and ranchers start, expand or maintain a family agricultural operation. These loans can provide the capital needed to invest in climate-smart practices and equipment including the establishment of rotational grazing systems, precision agriculture equipment or machinery for conversion to no-till residue management. Additionally, for programs like Conservation Reserve Program and NRCS conservation programs where USDA and the producer share the implementation cost, a farm loan could be used for the producer’s share, if consistent with the authorized loan purpose.
Some additional ways farm loans can be leveraged to invest in climate-smart agriculture practices or equipment include:
• Precision Agriculture Equipment - Eligible producers could use a Term Operating Loan to purchase equipment like GPS globes, monitors, or strip till fertilizer equipment.
• Cover Crops - Eligible producers could use an Annual Operating Loan for seed costs.
• No/Reduced Till - Eligible producers could use a Term Operating Loan to purchase equipment.
• Livestock Facility Air Scrubber or Waste Treatment - Eligible producers could use a Farm Ownership Loan for capital improvements to livestock facilities.
• Cross Fencing - Eligible producers could use an Annual or Term Operating Loan to purchase fencing and installation equipment.
Visit the Climate-Smart Agriculture and Forestry webpage on farmers.gov to learn more and see detailed examples of how an FSA farm loan can support climate-smart agriculture practices.
