What's Up at the FSA Office?
by Jeremy Leitz, Allamakee County Executive Director (563) 568-2148
Mid-Contract Management (MCM) on CRP Acres
As we start to see warmer temps and melting snow, please start thinking about your MCM, if you are scheduled for this year. Those that are scheduled for this year would have received a packet from our office this past fall detailing what needs to be done. You do have until May 14, 2018 to complete the work, but now is a good time to start lining up contractors if you haven’t already done so, buy seed if needed, and get equipment ready. If you have technical questions, need a seeding plan, or contractor list please contact the NRCS office. Any other questions can be directed to FSA.
Once you complete your MCM, please notify the FSA office, sign the FSA-848B form, and provide acceptable evidence of practice completion to determine proper cost share payment.
No MCM can be performed during the CRP nesting or brood rearing season of May 15 – August 2. Participants with maintenance issues that require attention prior to the end of nesting season must contact the county FSA office for permission prior to performing any spot spraying or spot mowing on CRP acres. Failure to contact the county FSA office prior to any maintenance on CRP acres during nesting season may result in payment reductions or possible contract termination.
Maintenance of CRP Acres
Please monitor your CRP acres that are in a grass practice, such as a CP1, CP2, or CP8A , for trees growing in them. These trees need to be removed to stay in compliance, and be eligible for reenrollment, if a sign-up were to occur. Trees in the proposed acres could negatively impact whether you qualify for another contract with FSA.
No matter your practice, it is always a good idea to routinely check your acres to make sure they are in compliance.
Reporting Organic Crops
Producers who want to use the Noninsured Crop Disaster Assistance Program (NAP) organic price and selected the “organic” option on their NAP application must report their crops as organic.
When certifying organic acres, the buffer zone acreage must be included in the organic acreage.
Producers must also provide a current organic plan, organic certificate or documentation from a certifying agent indicating an organic plan is in effect. Documentation must include:
• name of certified individuals
• address
• telephone number
• effective date of certification
• certificate number
• list of commodities certified
• name and address of certifying agent
• a map showing the specific location of each field of certified organic, including the buffer zone acreage
Certification exemptions are available for producers whose annual gross agricultural income from organic sales totals $5,000 or less. Although exempt growers are not required to provide a written certificate, they are still required to provide a map showing the specific location of each field of certified organic, transitional and buffer zone acreage.
Using FSA Direct Farm Ownership Loans for Construction
The USDA Farm Service Agency’s (FSA) Direct Farm Ownership loans are a resource to help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations.
Depending on the applicant’s needs, there are three types of Direct Farm Ownership Loans: regular, down payment and joint financing. FSA also offers a Direct Farm Ownership Microloan option for smaller financial needs up to $50,000.
Amongst other purposes, Direct Farm Ownership Loans can be used to construct, purchase or improve farm dwellings, service buildings or other facilities and improvements essential to an operation.
To do this, applicants must provide FSA with an estimate of the total cost of all planned development that completely describe the work, prior to loan approval and must show proof of sufficient funds to pay for the total cost of all planned development at or before loan closing. In some instances, applicants may be asked to provide certified plans, specifications or contract documents. The applicant cannot incur any debts for materials or labor or make any expenditures for development purposes prior to loan closing with the expectation of being reimbursed from FSA funds.
Construction and development work may be performed either by the contract method or the borrower method. Under the contract method, construction and development contractors perform work according to a written contract with the applicant or borrower. An applicant for a direct loan to finance a construction project must obtain a surety bond that guarantees both payment and performance in the amount of the construction contract from a construction contractor.A surety bond is required when a contract exceeds $100,000, an authorized agency official determines that a surety bond appears advisable to protect the borrower against default of the contractor or a contract provides for partial payments in excess of the amount of 60 percent of the value of the work in place.
Under the borrower method, the applicant or borrower will perform the construction and development work. The borrower method may only be used when the authorized agency official determines, based on information from the applicant, that the applicant possesses or arranges to obtain the necessary skill and managerial ability to complete the work satisfactorily and that such work will not interfere with the applicant’s farming operation or work schedule.
Potential applicants should visit with FSA early in the initial project planning process to ensure environmental compliance.
