USDA Assists Farmers Impacted by Unjustified Retaliation

(Washington, D.C., July 24, 2018) – U.S. Secretary of Agriculture Sonny Perdue today announced that the U.S. Department of Agriculture (USDA) will take several actions to assist farmers in response to trade damage from unjustified retaliation. President Trump directed Secretary Perdue to craft a short-term relief strategy to protect agricultural producers while the Administration works on free, fair, and reciprocal trade deals to open more markets, in the long run, to help American farmers compete globally.  Specifically, USDA will authorize up to $12 billion in programs, which is in line with the estimated $11 billion impact of the unjustified retaliatory tariffs on U.S. agricultural goods. These programs will assist agricultural producers to meet the costs of disrupted markets.

“This is a short-term solution to allow President Trump time to work on long-term trade deals to benefit agriculture and the entire U.S. economy,” Secretary Perdue said.  “The President promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong. Unfortunately, America’s hard-working agricultural producers have been treated unfairly by China’s illegal trading practices and have taken a disproportionate hit when it comes illegal retaliatory tariffs.  USDA will not stand by while our hard-working agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations. The programs we are announcing today help ensure our nation’s agriculture continues to feed the world and innovate to meet the demand.”

Background: Of the total unjustified retaliatory tariffs imposed on the United States, a disproportionate amount was targeted directly at American farmers. Trade damage from such retaliation has impacted a host of U.S. commodities, including field crops like soybeans and sorghum, livestock products like milk and pork, and many fruits, nuts, and other specialty crops. High tariffs disrupt normal marketing patterns, affecting prices and raising costs by forcing commodities to find new markets. Additionally, there is evidence that American goods shipped overseas are being slowed from reaching the market by unusually strict or cumbersome entry procedures, which can affect the quality and marketability of perishable crops.  This can boost marketing costs and discount our prices, and adversely affect our producers.  USDA will use the following programs to assist farmers:

  • The Market Facilitation Program, authorized under The Commodity Credit Corporation (CCC) Charter Act and administered by Farm Service Agency (FSA), will provide payments incrementally to producers of soybeans, sorghum, corn, wheat, cotton, dairy, and hogs. This support will help farmers manage disrupted markets, deal with surplus commodities, and expand and develop new markets at home and abroad.
  • Additionally, USDA will use CCC Charter Act and other authorities to implement a Food Purchase and Distribution Program through the Agricultural Marketing Service to purchase unexpected surplus of affected commodities such as fruits, nuts, rice, legumes, beef, pork and milk for distribution to food banks and other nutrition programs.
  • Finally, the CCC will use its Charter Act authority for a Trade Promotion Program administered by the Foreign Agriculture Service (FAS) in conjunction with the private sector to assist in developing new export markets for our farm products.

Nearly $2 Billion Now Available for Eligible Producers Affected by 2017 Hurricanes and Wildfires

WASHINGTON, July 16, 2018 – Agriculture Secretary Sonny Perdue today announced that agricultural producers affected by hurricanes and wildfires in 2017 now may apply for assistance to help recover and rebuild their farming operations. Sign up begins July 16, 2018, and continues through November 16, 2018.

“Hurricanes and wildfires caused billions of dollars in losses to America’s farmers last year. Our objective is to get relief funds into the hands of eligible producers as quickly as possible,” said Secretary Perdue. “We are making immediate, initial payments of up to 50 percent of the calculated assistance so producers can pay their bills.”

Additional payments will be issued, if funds remain available, later in the year.

The program, known as the 2017 Wildfires and Hurricanes Indemnity Program (2017 WHIP) was authorized by Congress earlier this year by the Bipartisan Budget Act of 2018.

Eligible crops, trees, bushes, or vines, located in a county declared in a Presidential Emergency Disaster Declaration or Secretarial Disaster Designation as a primary county are eligible for assistance if the producer suffered a loss as a result of a 2017 hurricane. Also, losses located in a county not designated as a primary county may be eligible if the producer provides documentation showing that the loss was due to a hurricane or wildfire in 2017. A list of counties that received qualifying hurricane declarations and designations is available at www.fsa.usda.gov/programs-and-services/disaster-assistance-program/wildfires-and-hurricanes-indemnity-program/index. Eligibility is determined by Farm Service Agency (FSA) county committees.

Agricultural production losses due to conditions caused by last year’s wildfires and hurricanes, including excessive rain, high winds, flooding, mudslides, fire, and heavy smoke, could qualify for assistance through the program. Typically, 2017 WHIP is only designed to provide assistance for production losses, however, if quality was taken into consideration under the insurance or Noninsured Crop Disaster Assistance Program (NAP) policy, where production was further adjusted, the adjusted production will be used in calculating assistance under this program.

Eligible crops include those for which federal crop insurance or NAP coverage is available, excluding crops intended for grazing. A list of crops covered by crop insurance is available through the U.S. Department of Agriculture’s (USDA) Actuarial Information Browser at webapp.rma.usda.gov/apps/actuarialinformationbrowser.

Eligibility will be determined for each producer based on the size of the loss and the level of insurance coverage elected by the producer. A WHIP factor will be determined for each crop based on the producer’s coverage level. Producers who elected higher coverage levels will receive a higher WHIP factor.

The 2017 WHIP payment factor ranges from 65 percent to 95 percent, depending upon the level of crop insurance coverage or NAP coverage that a producer obtained for the crop. Producers who did not insure their crops in 2017 will receive 65 percent of the expected value of the crop. Insured producers will receive between 70 percent and 95 percent of expected value; those who purchased the highest levels of coverage will receive 95-percent coverage.

Each eligible producer requesting 2017 WHIP benefits will be subject to a payment limitation of either $125,000 or $900,000, depending upon their average adjusted gross income, which will be verified. The payment limit is $125,000 if less than 75 percent of the person or legal entity’s average adjusted gross income is average adjusted gross farm income. The payment limit is $900,000 if 75 percent or more of the average adjusted gross income of the person or legal entity is average adjusted gross farm income.

Both insured and uninsured producers are eligible to apply for 2017 WHIP. However, all producers receiving 2017 WHIP payments will be required to purchase crop insurance and/or NAP, at the 60 percent coverage level or higher, for the next two available crop years to meet statutory requirements. Producers who fail to purchase crop insurance for the next two applicable years will be required to pay back the 2017 WHIP payment.

To help expedite payments, a producer who does not have records established at the local USDA service center are encouraged to do so early in the process. To establish a record for a farm, a producer needs:

  • Proof of identity: driver’s license and Social Security number/card;
  • Copy of recorder deed, survey plat, rental, or lease agreement of the land. A producer does not have to own property to participate in FSA programs;
  • Corporation, estate, or trust documents, if applicable

Once signup begins, a producer will be asked to provide verifiable and reliable production records. If a producer is unable to provide production records, USDA will calculate the yield based on the county average yield. A producer with this information on file does not need to provide the information again.

For more information on FSA disaster assistance programs, please contact your local USDA service center or visit www.farmers.gov/recover/whip.

Source: USDA

USDA Report Highlights Benefits of Tax Cuts and Jobs Act for Farmers

U.S. Secretary of Agriculture Sonny Perdue today highlighted a new report showing the positive impacts of President Trump’s Tax Cuts and Jobs Act (TCJA) on American farms. Six months after the President signed the tax cuts and reforms into law, the U.S. Department of Agriculture (USDA) Economic Research Service (ERS) has released a report, titled “Estimated Effects of the Tax Cuts and Jobs Act on Farms and Farm Households.”  The report examines in detail how the historic tax cuts and reforms will alleviate the tax burden on American farms to help them grow and prosper.  According to the report, average tax rates are expected to decline across all farm sizes and commodity specializations and fewer farm estates will be subject to the Death Tax.

“Most family farms are run as small businesses, and they should be able to keep more of what they earn to reinvest in their operations and take care of their families,” Perdue said.  “Simplifying the tax code and easing the burden on farmers will free them up to make choices for themselves, create jobs, and boost the overall American economy.  This report just shows what we knew all along: the tax cuts and reforms will benefit farmers.”

The TCJA significantly reformed the Federal income tax system, including individual and business income tax rates, business expenses, taxable income deductions, and the alternative minimum tax. The TCJA also doubled the Federal estate tax exclusion. The USDA ERS report estimates the impact of current Federal income tax provisions on farm households by using 2016 tax-year data.

Montana Department of Agriculture Awarded USDA Farm to School Grant

Funding will help schools with procurement, distribution of local foods

Helena, Mont. – Producers and students throughout Montana have reason to celebrate, as the Montana Department of Agriculture (MDA) has been awarded a grant from the United States Department of Agriculture (USDA) to enhance farm to school efforts throughout the state. MDA was awarded $99,980 and will partner with the National Center for Appropriate Technology and Montana Farm to School to increase the procurement and distribution of local food in K-12 schools in Montana.

“Farm to school initiatives continue to grow throughout Montana and this grant will build upon those efforts,” said Ben Thomas, Director of MDA. “When we can give our producers another market opportunity, while also providing our students with nutritious, local foods, everyone wins.”

The project will focus on three school districts in Montana: Browning, Fort Benton, and Malta. Each of these districts are in the early stages of implementing farm to school activities but have limited access to local foods. Sourcing and access to Montana foods is one of the key challenges to farm to school initiatives in Montana. The Montana Farm to School Leadership Team will research distribution opportunities and challenges on a statewide level while learning first-hand from the participating school districts. By coordinating with state-level farm to school partners, including supply-chain stakeholders, and bringing together local teams in each of the communities, the project will create a plan that will impact the entire state.

“By working with local-level teams in these communities, we expect to expand connectivity and distribution of local foods throughout the state, especially in north and eastern Montana,” said Aubree Roth, Montana Farm to School Coordinator, Montana Team Nutrition. “Our larger goal here is to take the lessons learned from this project, and scale it up so that we can better implement these activities on a state-wide level.”

The Montana Farm to School Leadership Team, sponsored by Montana Office of Public Instruction, works through partnerships across the state to build farm to school initiatives that help kids eat healthy, connect kids with agriculture and nutrition through education, support Montana farmers and food producers, foster economic vitality, and strengthen communities.

The Montana Department of Agriculture’s mission is to protect producers and consumers, and to enhance and develop agriculture and allied industries. For more information on the Montana Department of Agriculture, visit www.agr.mt.gov.

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USDA Resumes Continuous Conservation Reserve Program Enrollment

One-Year Extension Available to Holders of Many Expiring Contracts through Continuous Signup

As part of a 33-year effort to protect sensitive lands and improve water quality and wildlife habitat on private lands, the U.S. Department of Agriculture (USDA) will resume accepting applications for the voluntary Conservation Reserve Program (CRP). Eligible farmers, ranchers, and private landowners can sign up at their local Farm Service Agency (FSA)office between June 4 and Aug. 17, 2018.

“The Conservation Reserve Program is an important component of the suite of voluntary conservation programs USDA makes available to agricultural producers, benefiting both the land and wildlife. On the road, I often hear firsthand how popular CRP is for our recreational sector; hunters, fishermen, conservationists and bird watchers,” U.S. Secretary of Agriculture Sonny Perdue said. “CRP also is a powerful tool to encourage agricultural producers to set aside unproductive, marginal lands that should not be farmed to reduce soil erosion, improve water quality, provide habitat for wildlife and boost soil health.”

FSA stopped accepting applications last fall for the CRP continuous signup (excluding applications for the Conservation Reserve Enhancement Program (CREP) and CRP grasslands). This pause allowed USDA to review available acres and avoid exceeding the 24 million-acre CRP cap set by the 2014 Farm Bill. New limited practice availability and short sign up period helps ensure that landowners with the most sensitive acreage will enroll in the program and avoid unintended competition with new and beginning farmers seeking leases. CRP enrollment currently is about 22.7 million acres.

2018 Signup for CRP

For this year’s signup, limited priority practices are available for continuous enrollment. They include grassed waterways, filter strips, riparian buffers, wetland restoration and others. To view a full list of practices, please visit the CRP Continuous Enrollment Period page.

FSA will use updated soil rental rates to make annual rental payments, reflecting current values. It will not offer incentive payments as part of the new signup.

USDA will not open a general signup this year, however, a one-year extension will be offered to existing CRP participants with expiring CRP contracts of 14 years or less. Producers eligible for an extension will receive a letter with more information.

CRP Grasslands

Additionally, FSA established new ranking criteria for CRP Grasslands. To guarantee all CRP grasslands offers are treated equally, applicants who previously applied will be asked to reapply using the new ranking criteria. Producers with pending applications will receive a letter providing the options.

About CRP

In return for enrolling land in CRP, USDA, through FSA on behalf of the Commodity Credit Corporation (CCC), provides participants with annual rental payments and cost-share assistance. Landowners enter into contracts that last between 10 and 15 years. CRP pays producers who remove sensitive lands from production and plant certain grasses, shrubs and trees that improve water quality, prevent soil erosion and increase wildlife habitat.

Signed into law by President Reagan in 1985, CRP is one of the largest private-lands conservation programs in the United States. Thanks to voluntary participation by farmers, ranchers and private landowners, CRP has improved water quality, reduced soil erosion and increased habitat for endangered and threatened species.

The new changes to CRP do not impact the Conservation Reserve Enhancement Program, a related program offered by CCC and state partners.

Producers wanting to apply for the CRP continuous signup or CRP grasslands should contact their USDA service center. To locate your local FSA office, visit www.farmers.gov. More information on CRP can be found at www.fsa.usda.gov/crp.

Secretary Perdue Applauds Red Tape Reduction for Farmers

U.S. Secretary of Agriculture Sonny Perdue applauded the removal of a burdensome regulation that has long plagued family farms. The rule requiring producers to obtain Data Universal Number System (DUNS) and System for Award Management (SAM) numbers to participate in U.S. Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS) programs has been eliminated. Congress included this repeal in the FY 2018 Omnibus spending package, USDA’s official regulatory change will be published in the Federal Register tomorrow.

“I’m pleased Congress helped us to achieve one of our regulatory goals of cutting red tape for producers utilizing conservation programs by exempting them from SAM and DUNS requirements,” Secretary Perdue said. “These numbers were designed for billion-dollar government contractors, not everyday farmers trying to support their families. These changes help streamline the customer experience for farmers, which is a top priority at USDA.”

Prior to this rule change in the 2018 Omnibus spending bill, DUNS and SAM numbers were required for any federal contract application. This became an onerous regulation for small farms when it was intended for large government contractors. DUNS and SAM registration is still required for the following:

  • Partnership agreements entered through the Regional Conservation Partnership Program (RCPP).
  • All agreements with eligible entities under the Farm and Ranchland Protection Program (FRPP)
  • Agreements under the Agricultural Land Easement (ALE) component of ACEP.
  • Partnership agreements under the Wetland Reserve Enhancement Program (WREP) component of ACEP-Wetland Reserve Easements (WRE).
  • Watershed operations agreements with project sponsors.
  • Emergency Watershed Protection Program (EWP) agreements with project sponsors, including Recovery and Floodplain Easements.
  • All cooperative, contribution, interagency, or partnership agreements of Federal contracts used by NRCS to procure goods or services.

NRCS advises participants in its programs to ignore any emails, phone calls or other communications from third-party vendors offering assistance for registering in SAMS or applying for a DUNS number.

To learn more about NRCS financial and technical assistance, go to www.nrcs.usda.gov.

 

Source: USDA

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Secretary Perdue Names FSA Administrator

From USDA: U.S. Secretary of Agriculture Sonny Perdue announced the appointment of Richard Fordyce to serve as Administrator of the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA). In his role, Fordyce will provide leadership for FSA and its mission to support agricultural production across America through a network of over 2,100 county and 50 state offices.

“As a fourth-generation farmer, Richard brings firsthand knowledge and experience to this role,” Secretary Sonny Perdue said. “I am confident that he will continue to help USDA become the most efficient, effective customer-focused agency in the federal government as he leads this customer-focused mission area.”

Richard Fordyce most recently served as State Executive Director for FSA in Missouri. Prior to his appointment by the Trump Administration, Fordyce served as the director of the Missouri Department of Agriculture from 2013 to 2017. In 2015, Fordyce was awarded the Missouri Farm Bureau Distinguished Service Award and the Agricultural Leaders of Tomorrow Alumnus of the Year. He and his wife, Renee, have two children and grow soybeans, corn and beef cattle on the family farm.

Secretaries Perdue and Zinke Join Forces to Combat 2018 Wildfire Season

Secretary of Agriculture Sonny Perdue and Secretary of the Interior Ryan Zinke today hosted a fire briefing for Members of Congress at the U.S. Department of Agriculture (USDA) to hear the forecast for this year’s wildfire season. Following the meeting, the secretaries sent a memorandum to wildland fire leadership highlighting the importance of inter-departmental collaboration to increase firefighter, public, and community safety as the 2018 wildfire season approaches. The 2017 wildfire season was one of the most challenging years on record, stressing the need for the USDA and the Department of the Interior to work together in combating this year’s fires.

“As we begin this year’s fire season, we want to remind everyone that the protection of firefighters and public safety is the single highest priority in every fire management activity and decision that we make,” Perdue and Zinke said. “Last year we lost 14 wildland firefighters who sacrificed their own lives to protect the lives of others and that is something we hope to prevent this year.”

“Additionally, both Departments will continue to collaborate to ensure all firefighting assets are being used in an efficient and effective manner. It is essential that firefighters have the right tools, resources, and flexibility to allow them to do their jobs safely. As we explore opportunities to improve efficiencies, we will look to integrate technology, such as the use of unmanned aircraft systems, into our operations and capitalize on other advancements to promote firefighter safety, support planning, and protect communities.”

To view the memorandum in its entirety, please click here.

Perdue Announces Additional Hurricane and Wildfire Recovery Details

Under the direction of President Donald J. Trump, U.S. Secretary of Agriculture Sonny Perdue today announced new details on eligibility for a new U.S. Department of Agriculture (USDA) disaster program, 2017 Wildfires and Hurricanes Indemnity Program (2017 WHIP). In total, USDA’s Farm Service Agency (FSA) will deploy up to $2.36 billion that Congress appropriated through the Bipartisan Budget Act of 2018 to help producers with recovery of their agricultural operations in at least nine states with hurricane damage and states impacted by wildfire. Following the announcement, Secretary Perdue issued this statement:

“Last year our nation experienced some of the most significant disasters we have seen in decades, some back-to-back, at the most critical time in their production year. While USDA has a suite of disaster programs as well as crop insurance available to help producers manage their risk, Congress felt it was important to provide extra assistance to our nation’s farms and ranches that were the hardest hit last year,” Secretary Perdue said. “At President Trump’s direction, our team is working as quickly as possible to make this new program available to farmers in need. Our aim is to provide excellent customer service, building on efforts which began the day the storm hit.”

Key Updates Include:

  • Hurricane Recovery: To be eligible a crop, tree, bush or vine must be located in a primary disaster county with either a Presidential declaration or a Secretarial designation due to a 2017 hurricane. Crops, trees, bushes or vines located in other counties may also be eligible if the producer provides documentation the loss was caused by a 2017 hurricane.
  • Wildfire Recovery: Any crop, tree, bush or vine, damaged by a 2017 wildfire is eligible.
  • Eligible Producers: Eligibility will be determined on an individual basis, using the level of insurance coverage purchased for 2017 for the total crop acres on the area for which the WHIP application is made. Eligible producers who certify to an average adjusted gross income (AGI) of at least 75 percent derived from farming or ranching, including other agriculture and forestry-based businesses during the tax years 2013, 2014 and 2015, will be eligible for a $900,000 payment limitation with verification. All other eligible producers requesting 2017 WHIP benefits will be subject to a $125,000 payment limitation.
  • Crop Insurance Requirement: Both insured and uninsured producers are eligible to apply for WHIP. However, all producers opting to receive 2017 WHIP payments will be required to purchase crop insurance at the 60% coverage level, or Noninsured Crop Disaster Assistance Program (NAP) at the 60% buy up coverage level if crop insurance is not available. Coverage must be in place for the next two applicable crop years to meet program requirements.
  • Acreage Reporting Requirements: In addition, for the applicable crop years, all producers are required to file an acreage report and report production (if applicable).
  • Payment Formula: FSA will calculate WHIP payments with this formula:

    Payment = Expected Value of the Crop x WHIP Factor – Value of Crop Harvested – Insurance Indemnity

    The WHIP factor ranges from 65 percent to 95 percent. Producers who did not insure their crops in 2017 will receive a 65 percent WHIP Factor. Insured producers, or producers who had NAP, will receive between 70 percent and 95 percent WHIP Factors; those purchasing higher levels of coverage will receive higher WHIP Factors.

Other USDA Disaster Assistance:

Drought, wildfires and other disasters continue to impact farmers and ranchers, and 2017 WHIP is just one of many programs available through USDA to help with recovery. From crop insurance to on-the-ground rehabilitation programs like the Emergency Conservation Program (ECP) and Environmental Quality Incentives Program (EQIP), USDA is here to help. The Bipartisan Budget Act of 2018 provided funding for ECP and the Emergency Watershed Protection Program. The Act also provided amendments to make programs like the Emergency Assistance for Livestock, Honeybees and Farm-raised Fish Program, Tree Assistance Program and Livestock Indemnity Program even more responsive.

More Information:

FSA will hold a sign-up for 2017 WHIP no later than July 16. Additional information on WHIP is available on FSA’s 2017 WHIP webpage. For immediate assistance under any of our other disaster programs, please contact a local USDA service center or learn more at www.fsa.usda.gov/disaster.

-Source: USDA

Montana to Exercise Animal Disease Response

The Montana Department of Livestock (MDOL) is collaborating with the United States Department of Agriculture (USDA) and other state and local agencies to conduct an animal disease response exercise, May 8-10, 2018.

The three-day functional exercise will enable MDOL to practice the state’s animal disease response plan. Numerous federal, state and local government agencies will participate in the exercise, which will be based on an outbreak of foot-and-mouth disease (FMD) in the United States.

“Foot-and-mouth disease would have devastating consequences for Montana’s livestock industry and how we handle the initial response would be crucial,” said State Veterinarian Marty Zaluski. “Testing our response plan in an exercise format will be very beneficial and we look forward to participating in the exercise.”

Foot-and-mouth disease was last identified in the United States in 1929. FMD is a highly contagious disease of cattle, sheep, swine, goats, deer and other cloven-hooved animals. It is not a human food safety concern nor a public health threat; however, it is a major concern for animal health officials because it could have potentially devastating economic consequences due to disrupted trade and lost investor confidence. Montana is home to over 2.5 million head of cattle which bring around $1 billion each year in cash receipts.

“This exercise will be a positive experience that will make Montana’s livestock industry more resilient and better prepare us for an outbreak,” said MDOL Executive Officer Mike Honeycutt. “The public should not be concerned if they hear anything about foot-and-mouth disease during the days of the exercise.”

The mission of the Montana Department of Livestock is to control and eradicate animal diseases, prevent the transmission of animal diseases to humans, and to protect the livestock industry from theft and predatory animals. For more information on the Montana Department of Livestock, visit www.liv.mt.gov.