FARM STORAGE FACILITY LOANS The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Farm Storage Facility Loan Program (FSFL) provides low-interest financing for producers to build or upgrade farm storage and handling facilities. FSFL loans are limited to new facilities and equipment only. The FSA is authorized to implement the program through USDA's Commodity Credit Corporation (CCC).
Eligible Facility Loan Commodities
The following commodities are eligible for farm storage facility loans:
Corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley or minor oilseeds harvested as whole grain
Corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain
Pulse crops – lentils, chickpeas and dry peas
Hay
Renewable biomass
Fruits (includes nuts) and vegetables – cold storage facilities Where to File the Application Loan applications should be filed in the administrative FSA Office that maintains the farm's records. More Information For more information about FSA programs, contact your local FSA office or USDA Service Center, or visit the World Wide Web at www.fsa.usda.gov HIGHLY ERODIBLE AND WETLAND COMPLIANCE
Landowners and operators are reminded that in order to receive payments from USDA, they must be compliant with Highly Erodible Land (HEL) and Wetland Conservation (WC) provisions. Farmers with HEL determined soils must apply tillage, crop residue and rotation requirement as specified in their conservation plan. Producers are required to notify FSA prior to conducting land clearing or drainage projects to ensure compliance. If you intend to clear any trees, drain, dredge, fill, or otherwise manipulate the land so as to bring new land into production, these areas will need to be reviewed to ensure any planned work will not jeopardize your eligibility for benefits. These provisions also apply to land that was in the Conservation Reserve Program (CRP) but the contract has expired or has been cancelled.
Landowners and operators can complete form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification to determine whether a referral to Natural Resources Conservation Service (NRCS) is necessary. 2014 CROP LOANS AND LDP's USDA Farm Service Agency has begun accepting requests for marketing assistance loans (MALs) and loan deficiency payments (LDPs) for eligible 2014 commodities. MALs and LDPs for the 2014 crop year become available to eligible producers beginning with harvest/shearing season and extending through a specific commodity's final loan availability date. MALs and LDPs provide financing and marketing assistance for the following crops: wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool, mohair and honey. MAL's provide producers interim financing after harvest to help them meet cash flow needs without having to sell their 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.
Eligibility Requirements: To be eligibile for loans and LDPs, producers must: 1. Certify planted acreage for all crops and account for all cropland, 2. Have beneficial interest in the commodity, 3. Share in the risk of producing the commodity, 4. Comply with HELC/WC Provisions, 5. Comply with Adjusted Gross Income Provisions for loan market gains or LDP's, 6. Not owe a delinquent nontax federal debt, once the debt is resolved, the producer is eligible to participate, 7. Not violate controlled substance provisions.
Maintaining the Quality of Loaned Grain: Bins are ideally designed to hold a level volume of grain. When bins are overfilled and grain is heaped up, airflow is hindered and the chance of spoilage increases. Producers who take out marketing assistance loans and use the farm-stored grain as collateral should remember that they are responsible for maintaining the quantity and the quality of the grain through the term of the loan.
Beneficial Interest Requirements: For a commodity to be eligible for a loan or LDP, the producer must have beneficial interest in the commodity. Beneficial interest means the producer has complete control, risk of lossand title to the commodity. Once beneficial interest is lost, the commodity is ineligible for loan and LDP, even if beneficial interest is regained. For loans, producers must either maintain beneficial interest through the date the commodity is redeemed from loan, or the date CCC takes title to the commodity. For LDPs, beneficial interest must be maintained through the date the LDP is requested.
All commodities pledged for CCC loan must be free, and clear of all liens, judgments and other encumbrances. If not, lien waivers must be provided. Commodities pledged for CCC loan must be stored in approved on-farm storage, or in State or Federally approved warehouses willing to store the commodity and issue a warehouse receipt for the loan period.
Unauthorized Disposition of Grain: Producers MUST request an authorization from FSA, PRIOR TO MOVING, delivering to buyers, selling or feeding any commodities mortgaged to CCC. Severe penalties apply for non-compliance with this requirement.
If grain under a CCC loan has been disposed of through feeding, selling or any other form of disposal without prior written authorization from the county office, it is considered unauthorized disposition. The financial penalities for unauthorized disposition are severe and a producer's name will be placed on a loan violation list for a two-year period. ALWAYS "call before you haul" any grain under loan.
2014 Loan rates and interest rates are available at the Woodruff Co. FSA Office. BEGINNING FARMER LOANS
FSA assists beginning farmers to finance agricultural enterprises. Under these designated farm loan programs, FSA can provide financing to eligible applicants through either direct or guaranteed loans. FSA defines a beginning farmer as a person who: has operated a farm for not more than 10 years; will materially and substantially participate in the operation of the farm; agrees to participate in a loan assessment, borrower training and financial management program sponsored by FSA; does not own a farm in excess of 30 percent of the county's average size farm. Contact our Farm Loan Officer, Jason Floriani for details. Additional program information, loan applications and other materials are available at your local USDA Service Center. You may also visit www.fsa.usda.gov. USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay),
(866) 377-8642 (Relay voice users). |
No comments:
Post a Comment