FARM PROGRAM INFORMATION
Speaker: Jimmy
Dunn
District Director, FSA
Surry
804.246.8541
The Farm Service Agency administers Farm Programs as established by Congress to producers and landowners. Many different programs are established and administered on the local level by the employee of the Farm Service Agency (FSA). USDA Service Center Offices are located in most localities. This is where individuals should visit to find out more details about the many different programs administered by the Farm Service Agency.
The
U.S. Department of Agriculture (USDA) prohibits discrimination in all its’
programs and activities on the basis of race, color, national origin, gender,
religion, age, disability, political beliefs, sexual orientation, and marital
or family status.
·
Highly Erodible Land and Wetland Conservation Program – a program to ensure
producers do not plant agricultural crops on land determined either highly
erodible or wetlands without and approved plan from USDA.
Note: This program will be discussed more in the Conservation
section.(link to DCR section)
·
Payment Limitations – the maximum dollar amount a person is eligible for
under the given program. E.g. $40,000
per year for the Production Flexibility Program. See form CCC-502 1.
·
Acreage Reports – these are required for loans, loan deficiency payments, peanuts,
cotton, and tobacco. Others may require
reports but these are the main ones.
See form ASCS-578 1.
·
Begun
with the enactment of the Ag. Marketing Transition Act (AMTA). Ended set-asides, bases, and deficiency
payments. Farms with base had a one-time
chance to enroll in the program.
·
Any farm enrolled by signing a production flexibility contract is eligible for payments.
·
Producers can sign a contract through the year 2002 if a long-term lease is in
effect. Most farms have to enroll each
year. Advanced payments up to 100% of
the projected payments are available if signed up by August 1, 2000
·
Producers who participate in the Production Flexibility Program are eligible
to place commodities grown on participating farms into the program.
·
Advantages to the loan program are that it provides low interest operating
capitol until the price rebounds or if price doesn’t rebound, the commodity can
be forfeited to CCC.
·
The loan matures (see: Reference # 7 CFR1421)
the last day of the
ninth month following the month in which the loan was disbursed or it can be
repaid at any time. Rates can be
locked in for 60 days and can only be done one time during the life of the
loan.
·
Loan Deficiency
Payments (LDP’s) are available in lieu of loans.
LDP’s are a per bushel payment made when the posted county price falls
below the loan rate.
·
Producers who sell directly from the field need to file a form CCC-709
1. Those who will retain
beneficial interest after harvest may request an LDP on a form CCC-666 1
until the interest is lost (i.e. commodity is sold).
·
Loans, LDP’s and marketing loan repayments (see: Reference # 7 CFR1421)
are probably the most important marketing tool associated with USDA
programs. Local offices have specifics
pertaining to individual situations.
·
1999
– Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act.
1.
Crop
Disaster Program – Insured crops compensated at 65% of crop insurance market
price elections. Uninsured crops will
be compensated at 60% of market price elections if losses were greater than 35%
of historic yields.
2.
Advance
payments may be eligible for producers requesting benefits.
3.
Supplemental
PFC payments equal to 100% of participating farm payments made the first week
of November, ’99.
4.
Livestock
Indemnity Program – sign-up begins 11/15/99 and ends 1/21/00.
5.
Oilseed
supplemental payments – (Includes soybeans) benefits based on 1997 or 1998
production. Sign-up to be announced.
6.
One
time doubling of payment limitation for LDP’s and Marketing Loan Gains from
$75,000 to $150,000.
7.
Peanut
producers – to receive $30.50 per ton in support payments for quota and $8.75
per ton for additionals. No specifics
yet.
8.
$328
million to Tobacco Producers is also in the bill.
9.
Non-Insured
Assistance Program – initiated by county request. Payments based on 55% of established prices and compensation on
50% of established yields.
1FSA Forms and links to other Federal Forms can be
found at this site: http://www.fsa.usda.gov/dam/forms/fsaforms.asp