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USDA Farm Service AgencyIowa
July 2012
Iowa Farm Service Agency
• Local County Offices/Service Centers• County Committee• Both Farm Programs and Farm Loans• http://www.fsa.usda.gov/ia
FSA Programs• Price Support• Conservation Programs• Disaster Assistance• Farm Credit• Direct and Counter-cyclical Payment Program• Average Crop Revenue Election (ACRE)
Program• Energy Programs• Commodity Operations
Price Support• Commodity Loans provides interim financing
at harvest time to meet cash flow needs. • Loan Deficiency Payment is a marketing
assistance loan• Market Loss Assistance Payment Program– Trade Adjustment Assistance Program– Milk Income Loss Contract Program
• Facility Loan Programs
Farm Storage Facility Loan Program• Provides loan interest financing for
producers to build and upgrade farm storage and handling facilities. – Loan on 85% of net cost of eligible facility– Terms of 7, 10, 12 years depending on amount of
loan– Interest rates vary monthly and are based on the
rate CCC borrows from the Treasury Department– Maximum loan is $500,000
FSFL Program cont. • Eligible commodities include:– Corn, soybeans, oat, wheat, etc. Contact your
local office for other eligible crops. – Hay/Biomass• Structures suitable for hay storage
– Cold Storage for fruits and vegetables, including nuts• Facilities designed and constructed for cold
temperature storage of perishable commodities
Conservation Programs• Conservation Reserve Program (CRP)• Conservation Reserve Enhancement Program• Emergency Conservation Program• Emergency Forest Restoration Program• Farmable Wetlands Program • Grassland Reserve Program• Source Water Protection Program• Public Access Program
Disaster Assistance ProgramsFSA provides assistance for natural disaster losses, resulting from drought, flood, fire, freeze, tornadoes, pest infestation and other calamities.
Prerequisite for Assistance:– Have insurance through USDA’s Risk Management
Agency (RMA) or– Noninsured Crop Disaster Assistance Program
(NAP)
Disaster Assistance ProgramsUnder the 2008 Farm Bill
• For Crop Losses– Supplemental Revenue Assistance Payments– Tree Assistance Program (TAP)
• Livestock Losses– Emergency Assistance for Livestock, Honey bees
and Farm Raised Fish (ELAP)– Livestock Forage Disaster Program (LFP)– Livestock Indemnity Program (LIP)
• Disaster Assistance– Emergency Farm Loans– Emergency Conservation Loans
Farm LoansTypes of Farm Loans• Direct Farm Ownership Loan
⁻ Limit is $300,000• Direct Farm Operating Loan
⁻ Limit is $300,000• Guaranteed Farm Ownership Loan
⁻ Limit is $1,214,000• Guaranteed Farm Operating Loan
⁻ Limit is $1,214,000
• Emergency (EM) Loans (only direct)
• Youth Loans
Farm Loans cont.
FSA defines a Beginning Farmer as:
• Has operated a farm for not more that 10 years• Will materially and substantially participate in
the operation of the farm• Does not own farm acreage greater than 30 % of
the median size farm in the county (for real estate loan eligibility)
Farm Loans cont.
Farm Ownership Loans can be used for:• Purchasing real estate• Making improvements• Develop land to promote soil and water
conservation
Farm Operating Loans:• 1 – 7 year repayment• Fixed rate• Finance all types of annual operating and
intermediate-term capital (non-real estate)
Farm Loans cont. Emergency Farm Loans • Restore or replace essential property;• Pay all or part of production costs associated
with the disaster year;• Pay essential family living expenses;• Reorganize the farming operation; and• Refinance certain debts
Rural Youth Loans• Help rural youth 10-20 years old to establish and
operate income producing projects
Farm Loans cont. Land Contact Guarantee Program• Promote the sale of farmland to a beginning, female, or
minority farmer. • Assists in that transition of land to the next generation. • Options to guarantee the seller’s interest in a land sale
contract.
There are two types of guarantees available:• The Standard Guarantee offers protection against loss for
up to 90 percent of the outstanding principal balance under the land contract.
• The Prompt Payment Guarantee covers up to three annual installments, plus the cost of any related real estate taxes and insurance.
Farm Loans cont. Microloan Program• To provide more flexibility in meeting the
credit needs of small farms to finance their operation costs by:– Adding flexibility in meeting farm experience
requirements– Offering more efficient processing time – Streamlining application process
• For loans up to $35,000
Direct and Counter-cyclical Program/ACREUnder the 2008 Farm Bill
• The Direct and Counter-cyclical Payment Program (DCP) provides payments to eligible producers on farms enrolled for the 2008 through 2012 crop years. There are two types of DCP payments - direct payments and counter-cyclical payments. Both are computed using the base acres and payment yields established for the farm.
• 2009 State ACRE Guarantees are based on the Benchmark State Yields and ACRE Guarantee Prices for ACRE-eligible commodities.
Energy Programs• Biomass Crop Assistance Program– provides financial assistance to producers or
entities that deliver eligible biomass material to designated biomass conversion facilities for use as heat, power, biobased products or biofuels.
Commodity Operations• Purchase and deliver processed commodities under
various domestic distribution• Purchase and deliver commodities to foreign countries
under Titles II and III of Public Law• Purchase from vendors or processors Dairy Price Support
program commodities, such as butter and cheese and nonfat dry milk.
• Establish Posted County Prices for locations throughout the U.S. to develop loan rates,
• Market and manage CCC inventories such as cotton, grain, oilseeds, nonfat dry milk, and rice.
FSA Contact Information
John R. Whitaker State Executive Director10500 Buena Vista Court
Des Moines, Iowa515-254-1540
www.fsa.usda.gov/ia