Indiana FSA Illiana Vegetable Growers Symposium. Schererville, IN January 6, 2015
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1 Indiana FSA Illiana Vegetable Growers Symposium Schererville, IN January 6,
2 Farm Service Agency - Who We Agency of USDA Are Local offices throughout Illinois and Indiana to locate local Service Center Provider of Lending Disaster Assistance Conservation Programs 2
3 Farm Service Agency - Why We Are Here Many changes to programs over past year: 2014 Farm Bill Discretionary Improvements Many changes targeted for improved programs to specialty and diversified operations 3
4 Non Insured Crop Disaster Assistance Program (NAP) 4
5 What is NAP? NAP is a disaster assistance program available to producers of noninsurable crops. Noninsurable crops are those crops for which crop insurance is not available. 5
6 What are NAP eligible crops? Commercially produced crops for which crop insurance is not available in county. Common examples: Alfalfa and other forages Fruit Vegetables Honey Christmas Trees Nursery Floriculture Among many others! 6
7 What is an eligible cause of loss? Eligible causes of loss include these examples: Damaging weather Drought, freeze, hail Adverse natural occurrence Flood Condition related to a natural occurrence (cannot stand alone as primary) Plant disease, insect infestation, excessive heat Combination of these conditions MUST OCCUR WITHIN CROP S COVERAGE PERIOD 7
8 NAP Coverage - Basic Historically, all NAP coverage was based on Catastrophic or CAT Levels 50% of expected production, and 55% of average market price or, if a value loss crop 50% loss in value and only paid 55% of loss value 8
9 Buy-Up Coverage Beginning Crop Year 2015 In addition to CAT-level coverage NAP will offer buy-up coverage for the 2015 through 2018 crop years Producer Elects: Coverage between 50% and 65% of expected production (or value) Losses Paid: 100% of price (or value loss) 9
10 Buy-Up Coverage (Continued) Buy-up coverage levels: Elected Coverage Level (Yield/Price) Loss Trigger 50/ percent 55/ percent 60/ percent 65/ percent Basic 50/55 50 percent Buy Up NAP loss is paid at 100 % of NAP Price 10
11 NAP Coverage Basic Application Service Fee of $250/crop (not to exceed $750 in county or $1875 in all counties). Remains the same for Basic CAT level coverage. Now 11
12 Buy-Up Coverage (Continued) In addition to the service fee, producers who elect buy-up coverage must pay a premium Premium is equal to: 5.25% of the guarantee (yield based crops) 5.25% of Max Dollar Amount selected (value loss crops) Total premiums for producer will not exceed $ /year 12
13 Buy-Up Coverage (Continued) For value loss crops: Buy-up coverage will be based on the maximum dollar value for which the producer requests coverage Examples of Value Loss: Sod, Nursery, Christmas Trees, Onion Sets 13
14 Buy-Up Coverage (Continued) If the 2015 application closing date for a crop had passed before publication of the NAP rule on December 15, 2014 Producers have until January 14 to apply for retroactive buy-up coverage for that crop Indiana: All perennial fruit, floriculture, nursery, forage, small grains, and honey have passed. 14
15 Service Fee & Premium FSA will waive NAP service fees and reduce buy-up premiums by 50% for: Beginning farmers (BF) Limited resource farmers (LR) Traditionally underserved farmers (SDA), including gender 15
16 NAP Coverage Key Dates For 2015 Coverage: January 14 Deadline to apply for buy-up coverage, (both existing and new participants) March 15 Deadline to apply for basic and buy-up coverage for spring planted annual crops (watermelons, squash, pumpkins, etc.) 16
17 Farm Storage Facility Loan Program 17
18 Farm Storage Facility Loans (FSFL) Low-interest financing for producers to build or upgrade farm storage and handling facilities Commodities include: Fruits (includes nuts) and vegetables - cold storage facilities Honey Pulse crops - lentils, chickpeas and dry peas Hay 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 Renewable biomass 18
19 Farm Storage Facility Loans (FSFL) (cont.) Financing only for eligible facilities and upgrades Eligible facilities and upgrades include (but not limited to): New cold storage buildings, including prefabricated buildings, suitable for storing fruits and vegetables. Permanently affixed cooling, circulating, and monitoring equipment; electrical equipment, motors and wiring integral to the proper operation of a cold storage facility. 19
20 Farm Loan Programs 20
21 Farm Loan Programs (FLP) The Farm Service Agency makes and guarantees loans and provides credit counseling and supervision to farmers and ranchers who are temporarily unable to obtain private, commercial credit. 21
22 Farm Loan Programs (FLP) Direct Loans Farm Ownership, Operating and Emergency Conservation and Youth Micro loans (next slide) Guaranteed Loans Farm Ownership, Conservation, Land Contract and Term Operating Lines of Credit up to 5 years 22
23 Farm Loan Programs (FLP) Microloans Developed to better serve unique financial operating needs Microloans can be used for all approved operating expenses Simplified application process Loan limit of $50,000, variable repayment terms depending on use 23
24 On the Web: Contacting FSA Askfsa.custhelp.com Local Service Center 24
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