USDA Farm Service Agency
Iowa
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 Programs
FSA 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 Programs
Under 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 Loans
Types 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/ACRE
Under 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 Director
10500 Buena Vista Court
Des Moines, Iowa
515-254-1540
www.fsa.usda.gov/ia