Wednesday January 27 Ag News

 Farm Bureau President Says Property Tax Relief, Tax Reform Must Remain Priority for Legislature

Property tax relief and tax reform must remain a high priority for the Nebraska Legislature. That was the message delivered by Nebraska Farm Bureau President Mark McHargue during recent testimony before the Legislature’s Revenue Committee. McHargue’s remarks were made while offering support for LR 22CA, a proposed constitutional amendment that would limit the amount of property taxes that could be collected by K-12 schools, counties, community colleges, and other local political subdivisions.

“The Legislature’s passage of LB 1107 last year was an important step forward in providing property tax relief, but it’s critical our elected leaders know there is still much work to be done when it comes to reducing the property tax burden on Nebraskans,” said McHargue. “From a big picture perspective, it is vital we continue to work toward reforms that better balance the way we fund state priorities like education, while enacting a tax structure that invites growth opportunities not just for farmers and ranchers, but for all Nebraskans.”

LR 22CA was introduced by Revenue Committee Chair Sen. Lou Ann Linehan of Elkhorn at the request of Gov. Pete Ricketts.

“We thank Sen. Linehan and Gov. Ricketts for immediately putting the property tax issue back in front of the Legislature at a time when some may believe the issue has been addressed. LR 22CA is one of several legislative measures that keeps the door open for the much-needed discussions about how we tackle this important issue,” said McHargue. “Nebraska Farm Bureau will continue to be an advocate for taxpayers, and we look forward to working with all of our elected leaders to make property tax relief and tax reform a reality.”



Extension farm and ranch record-keeping course begins March 4

The next session of “Know Your Numbers, Know Your Options,” Nebraska Extension’s four-part farm and ranch record-keeping course, will be held virtually on four consecutive Thursdays, beginning March 4, from 10 a.m. to noon Central time each day.

Participants will need an internet connection and should plan on attending each of the four workshop dates.

The course is designed to help farmers and ranchers understand their current financial position and how big decisions like large purchases, new leases or changes in production will affect their bottom line. Participants will work through the financial statements of a case study farm, watch pre-recorded videos, complete assignments and participate in video chats. Upon completion of this program, participants will have a better understanding of how financial records can be used to make decisions and confidently discuss their financial position with their family, business partners and lenders.

The course fee is $20 per participant and class size is limited to 20 people. Register online at wia.unl.edu/know by Feb. 25.

This course is hosted by Nebraska Extension and made possible by Annie's Project, which is supported by Farm Credit Services of America in Nebraska. This material is based upon work supported by USDA/NIFA under Award Number 2020-70017-32735.



DECIPHERING A HAY TEST: MOISTURE
– Ben Beckman, NE Extension Educator
 
Having hay tested for nutrient quality is critical in getting the most out of the feedstuffs you have.  Once the results come back, the next step is understanding what the report you receive means.
 
The first thing we notice on most feed or hay tests are the results are given in two different groups or columns.  One is labeled along the lines of “as received” or “as fed” and another “dry basis.”  Understanding the difference in these two columns is key to properly using the information provided when feeding.
 
“As received” represents the analysis of the sample as it was provided.  This is what we will use to figure out rations or how much hay animals need to be provided.  The “dry basis” is the sample after all moisture has been removed and doesn’t accurately represent the sample as it sits in the yard.
 
So why bother with “dry basis” if we don’t use it to figure feed amounts?  Because when it comes to comparing feeds and finding the correct ratios in a ration, we need to compare things on an equal playing field.
 
For example, let’s say you and I both cooked up a large amount of rice, then scooped out one cup as a comparison.  Since the volume was the same, we might assume they were equal, but if I cooked my rice with ½ cup of water to every cup of dry rice and you added 1 cup of water to every cup of dry rice, the actual end result will be different weights, densities, and nutritionally.  Comparing hay stored outside to a bale kept under a roof is not fair, so we even things out by using a dry matter comparison.
 
Now that we have a firm grasp on the “as received” and “dry basis” columns, we can take a look at rest of the feed report next time.



CVA HOSTS WINTER GRAIN MEETINGS

This year Central Valley Ag will host virtually via zoom a three-part series over the course of February 2-4th. Each day a brief meeting will be held from 1:00-1:30 PM where they will cover a new topic each day. Sign up to participate by using the registration links beneath each meeting below.

Tuesday, February 2, 2021 @ 1:00-1:30 PM | Marketing Plan Best Practices
    At CVA, we've worked with some of the best grain marketers over the years. Join us as Grain Specialists Caleb Pelster, James Droescher, Ross Schindler, and Rachel Steffen share best practices on how to build a successful grain marketing plan.​

Wednesday, February 3, 2021@ 1:00-1:30 PM | 2021 Market Outlook
    It's been a wild 12 months in the grain industry. Join us as Grain Sales Manager, Luke Beckman, discusses market fundamentals and provides you with ideas on how to navigate the grain markets in 2021.

Thursday, February 4, 2021 @ 1:00-1:30 PM | Big Picture Thinking
    What do the next 3-5 years have in store for agriculture? How is CVA positioning to help you take advantage of the opportunities and mitigate the risks? Join us as CVA CEO, Carl Dickinson and SVP of Agronomy, Nic McCarthy discuss the changing dynamics in global agriculture.

REGISTER HERE:  www.cvacoop.com/wgm .  



 Senator Fischer Stands up for Trump WOTUS Rule

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, today joined 25 of her Senate colleagues in a resolution calling for the Senate not to eliminate the Navigable Waters Protection Rule, which replaced the Obama-era Waters of the United States (WOTUS) Rule.

“The 2015 WOTUS was a massive government overreach that came at the expense of our families, communities, and businesses – which is why I long advocated for its repeal. The new, more flexible WOTUS rule has helped put Nebraskans back in charge of our state’s precious water resources. I urge my Senate colleagues and the Biden administration not to punish hard-working Americans with these burdensome regulations,” said Senator Fischer.

More information:
In 2015, the Obama Administration finalized a rule that greatly expanded the definition of federally regulated Waters of the United States for Nebraska’s agriculture and business communities. Now, President Biden signed an executive order that would roll back the Trump Administration’s executive order which began the process of rescinding Obama’s WOTUS rule and could lead to the elimination of the Navigable Waters Protection Rule released in April of 2020.

Senator Fischer has been a leader in efforts to stop the 2015 WOTUS rule and applauded the Trump Administration’s rescinding of the rule. After the Obama administration announced WOTUS, Senator Fischer chaired a field hearing by the Senate Environment and Public Works Committee in Lincoln regarding the rule. She also helped introduce the Federal Water Quality Protection Act, which would have required the Obama administration to consult states and stakeholders before imposing federal regulations on state-owned water resources, as well as the Defending Rivers from Overreaching Policies (DROP) Act. This bill targeted the flawed science used by the EPA to expand the definition of water.



Market Development Team Aims to Boost Demand for Corn

Nearly 70-percent of annual corn demand is covered under the National Corn Growers Association (NCGA) Market Development Action Team (MDAT) portfolio. From exports to animal agriculture to new uses of corn, the team is focused on growing and driving demand for America's corn farmers.

"This team had a lot of wins in 2020, and we will continue that momentum into our planning for 2021 and beyond," said MDAT Chair and Iowa farmer Bob Hemesath. "I look forward to leading the team and tackling the challenge that faces us -- how to grind more corn. Our team's portfolio includes initiatives like the Consider Corn Challenge, which we will be announcing details on our third open-innovation challenge soon; the Cattlemen's Education Series, a virtual program that focuses on issues that impact cattle producers such as protein and energy supplementation; and Trade School, a joint venture with the U.S. Grains Council (USGC), in which we are able to give our members the tools they need to be able to better talk to members of Congress about the importance of trade, just to name a few."

The team's 2021 priorities include increasing demand for U.S. Animal Agriculture exports; supporting research into corn and corn co-product use within animal feed; identifying new & support existing industrial uses of corn; and supporting development of trade policy that opens markets, removes trade barriers and advances international demand for corn and corn products.



Iowans Can Apply Now for 2021 Specialty Crop Block Grants

Iowa Secretary of Agriculture Mike Naig announced today that the Iowa Department of Agriculture and Land Stewardship is now accepting applications for the 2021 Specialty Crop Block Grant Program. To qualify, the grants must be used to support projects that raise awareness about and increase demand for specialty crops grown in Iowa.

“Specialty crop block grants are a win-win for producers, distributors and consumers,” said Secretary Naig. “The programs they support help strengthen local distribution channels, which gives specialty crop producers more markets to sell their products, and they make it easier for consumers to buy protein and produce grown right here in Iowa.”

Eligible specialty crops include both fresh and processed fruits and vegetables, tree nuts, dried fruits, and horticulture and nursery crops, including floriculture.

Successful grant applications should explain how projects will improve specialty crop production through marketing and promotions, research and development, expanding availability and access to specialty crops, and addressing local, regional and national challenges confronting specialty crop producers. All projects must have an educational component. Preference will be given to projects that have the potential to significantly expand, enhance and improve production and demand.

Iowa agencies, universities, institutions, producers, industry associations and community-based organizations are eligible to apply. Single organizations, institutions and individuals are encouraged to participate as project partners. Grant applications for projects that directly benefit a particular product or generate a profit for a single organization, institution or individual will not be awarded.

Awardees may receive up to $24,000 and projects can have a duration of up to 30 months.

Proposals must be received by the Iowa Department of Agriculture on or before 4 p.m./CT on March 11, 2021. For more information, visit the Specialty Crop Block Grant program website.

The Department is establishing a review committee to help evaluate and make recommendations on the submitted grant proposals. Those interested in participating in the review committee should be knowledgeable about specialty crops and/or have grant writing or grant management experience, and be able to devote the time to complete the review process. Additional information about reviewer responsibilities, meeting dates and an application form can also be found at iowaagriculture.gov/agricultural-diversification-market-development-bureau/specialty-crop-block-grant-program. Applications to participate in the Review Committee are due Feb. 11, 2021 by 4 p.m./CT.



Weekly Ethanol Production for 1/22/2021

According to EIA data analyzed by the Renewable Fuels Association for the week ending January 22, ethanol production decreased 1.3%, or 12,000 barrels per day (b/d), to 933,000 b/d—equivalent to 39.19 million gallons daily and a 14-week low. Production remained 9.3% below the same week last year. The four-week average ethanol production rate was unchanged at 938,000 b/d, equivalent to an annualized rate of 14.38 billion gallons (bg).

Ethanol stocks ticked 0.1% lower to 23.6 million barrels, which was 2.6% below a year-ago. Inventories drew down across all regions except the East Coast (PADD 1) and Rocky Mountains (PADD 4).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, scaled back by 3.4% to 7.83 million b/d (120.08 bg annualized). Gasoline demand was 10.9% less than a year ago.

Refiner/blender net inputs of ethanol rose 0.9% to 785,000 b/d, equivalent to 12.03 bg annualized. This was 10.1% below the year-earlier level as a result of the continuing effects of the COVID-19 pandemic.

There were zero imports of ethanol recorded for the week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of November 2020.)



Urea, MAP, Anhydrous Lead Retail Fertilizer Complex Higher

Average retail prices for all eight of the major fertilizers were higher the third week of January 2021 compared to last month, according to retailers surveyed by DTN. The trend of all eight major fertilizers' prices being higher has been seen on and off again in the last couple of months.

Three of the fertilizers were up a significant amount, which DTN designates as 5% or more. Urea was up 7% compared to last month with an average price of $387 per ton. Also higher were MAP and anhydrous, which were both up 5% from last month. MAP had an average price of $563/ton, while anhydrous was at $482/ton.

Of the remaining five fertilizers, the average price of DAP, potash and 10-34-0 each increased by 4%. DAP had an average price of $493/ton, up $19/ton; potash was $379/ton, up $14/ton; and 10-34-0 was $481/ton, up $18/ton.

The average price of UAN28 was $215/ton, an increase of $5/ton from the prior month, while UAN32 was $251/ton, $1/ton more expensive than last month.

On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.29/lb.N, UAN28 $0.38/lb.N and UAN32 $0.39/lb.N.

With retail fertilizer prices moving up over recent months, most fertilizers are now higher in price from a year ago, but there are a few exceptions. Potash is 1% more expensive, 10-34-0 is 2% higher, urea is 8% more expensive, DAP is 19% higher and MAP is 29% more expensive compared to last year.

Three fertilizers are lower. Anhydrous is 1% lower, while both UAN28 and UAN32 are 9% less expensive from last year at this time.



Registration for 2021 Special Edition Commodity Classic Now Open

Registration for the 2021 Special Edition of Commodity Classic is now open at CommodityClassic.com. The 2021 Commodity Classic will be delivered digitally March 2-5, 2021.

The registration fee is waived for the first 5,000 farmers, thanks to the generous support of sponsors.  All other registrants and farmers after the first 5,000 will be charged $20. The registration covers all online educational sessions and events as well as access to all archived sessions through April 30, 2021.

In October 2020, Commodity Classic announced that it was pivoting to a digital event due to restrictions related to the COVID-19 pandemic. The 2021 Commodity Classic, originally scheduled for San Antonio, Texas, in early March, is the Silver Anniversary of America’s largest farmer-owned, farmer-focused agricultural and educational experience.

The digital experience will focus on providing top-quality educational sessions and farmer networking opportunities that are hallmarks of Commodity Classic.  A list of educational sessions is available at CommodityClassic.com—and that list will continue to grow over the next few weeks.

Attendees will have a wide variety of educational sessions from which to choose on a range of topics including soil health, grain marketing, biologicals, global weather forecasts, pest management, and stress management.

Participating companies will showcase new products, services and innovation through a variety of online presentations, educational sessions and interactive discussions. An impressive lineup of agriculture thought leaders, top-yielding farmers, agribusiness representatives, and Commodity Classic association leaders will also be featured.

To stay up to date on registration information, event schedule, speakers, educational sessions and other event details, sign up for email updates at CommodityClassic.com.

Premier Sponsors of the 2021 Special Edition of Commodity Classic are AGCO, Bayer, Case IH, Corteva AgriScience, John Deere and United Soybean Board/Soy Checkoff.

Champion Sponsors are BASF and Syngenta.  Key Sponsors are Kubota/Great Plains, New Holland, Pioneer, Precision Planting and Valent.

Established in 1996, Commodity Classic is presented annually by the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers and the Association of Equipment Manufacturers.



Court Seeks Status Report on EPA Compliance with Order on Renewable Volumes  

The U.S. Court of Appeals for the District of Columbia Circuit today directed the U.S. Environmental Protection Agency to submit a status report every 60 days “on its progress in complying with the court’s remand” stemming from the July 2017 ruling in Americans for Clean Energy v. EPA. The 2017 ruling required EPA to address its improper waiver of 500 million gallons of 2016 renewable fuel blending requirements under the Renewable Fuel Standard (RFS).  

Today’s order from the D.C. Circuit was in response to a motion filed in December 2020 by biofuel and farm organizations, in which the groups asked the court to enforce its 2017 decision by requiring EPA to fully restore the 500-million-gallons that were inappropriately waived from the 2016 RFS requirements. While the court denied the motion, the groups welcomed the court’s requirement that EPA provide status reports every 60 days on its progress in responding to the court’s decision.

The coalition, which includes Growth Energy, the Renewable Fuels Association, National Biodiesel Board, American Coalition for Ethanol, National Corn Growers Association, National Farmers Union, and National Sorghum Producers, issued the statement following the court’s announcement today:    

“While we are disappointed by the court’s order on our motion, we are glad to see that the court is holding EPA accountable by requiring it to submit a report every 60 days on the status of the court’s remand on the improper waiver. This time of transition provides EPA the opportunity to move boldly and address prior missteps when it comes to the need for a low-carbon future for our nation’s fuel supply; adjusting quickly for the court-ordered remand would do just that. America’s biofuel producers, rural communities and farm families look forward to working with EPA and the Biden administration to make progress on restoring integrity and growth to the RFS.”  

In the July 2017 ruling in the case Americans for Clean Energy et al. v. EPA et al., the court invalidated the EPA’s improper waiver of 500 million gallons in the 2016 RVO rule and ordered EPA to revisit the rule. The court held that EPA’s interpretation of the “inadequate domestic supply” waiver provision “runs contrary to how the Renewable Fuel Program is supposed to work.” To date, EPA has failed to complete any proceedings to reconsider the 2016 RVO and has not restored the 500 million lost RIN gallons.



Growth Energy Statement on Biden Executive Order to Tackle the Climate Crisis at Home and Abroad, Create Jobs, and Restore Scientific Integrity Across Federal Government

Following today’s sweeping executive order focused on tackling the climate crisis at home and abroad, creating jobs, and restoring scientific integrity across federal government signed by President Biden, Growth Energy CEO Emily Skor issued the following statement:

“This executive order is another reminder of how inextricably linked addressing climate change is to our economy, and we're eager to help President Biden’s administration deliver on his promise to unleash biofuels as a key solution to climate change and restore economic opportunity for rural America.

“Ethanol plays a critical role in reducing the impact of the transportation sector on climate and achieving net-zero emissions. Just this week groundbreaking research led by David MacIntosh, Chief Science Officer of Environmental Health & Engineering, Inc. (EH&E) and Adjunct Associate Professor of Environmental Health at Harvard, found that greenhouse gas emissions from corn ethanol are 46% lower than gasoline, and last week, analysis by the Rhodium Group concluded that biofuels must be in the mix if we are to attain net-zero emissions by 2050.

“Importantly, ethanol is a homegrown, ready solution now that improves air quality by replacing toxic fuel additives and dramatically reduces emissions of pollutants that most adversely impact our most vulnerable communities. We need to quickly transition to fuels that burn cleaner, pollute less, and reduce greenhouse gas emissions while brining farmers into the fold of addressing climate change and helping the rural economy. We look forward to partnering with the President and his Administration to do just that with biofuels.”



Farmer and Rancher Input is Critical for Climate Success

American Farm Bureau President Zippy Duvall commented today on President Biden’s executive order calling on USDA to collect input from farmers and ranchers on climate-related federal programs.

“The American Farm Bureau Federation appreciates that President Biden has committed to seek input from America’s farmers and ranchers as the administration works on new climate solutions. It’s crucial that as new strategies are implemented our leaders listen to the people who will be affected the most. While the president has invited us to the table, we’d like to invite him to the table we’ve already set through the Food and Agriculture Climate Alliance (FACA). Co-chaired by AFBF, FACA has outlined more than 40 recommendations to guide the development of federal climate policy. We stand ready to work with the administration on science-based, voluntary and market-driven programs. American agriculture already leads the world in climate-smart practices, but we are always looking for new ways to improve. We must ensure a healthy environment while creating income and job opportunities for rural America.”

The Executive Order outlines broad goals without details of how they will be achieved. AFBF will be closely monitoring federal implementation efforts to ensure all proposed policies and programs are responsible, fair-minded and enable farmers, ranchers and rural America to thrive.



Cattle Producers to Work with Biden Administration to Demonstrate Cattle Production is a Solution to Climate Concerns

The National Cattlemen’s Beef Association (NCBA) today issued the following statement in response to the Executive Orders from the Biden Administration addressing climate change and sustainability in the U.S. agriculture sector:

"NCBA looks forward to working with President Biden and his Administration as they recognize the positive role agriculture plays in addressing climate concerns. U.S. cattle producers use advanced technologies, genetics and grazing management to make their herds the most sustainable in the world," said NCBA CEO Colin Woodall. "We appreciate the outreach and opportunity to provide feedback, demonstrating U.S. cattle producers are the model for global, sustainable beef production. As the administration works to carry out today’s executive orders, NCBA remains committed to ensuring that cattle producers have the resources and freedom they need to continue producing the world’s most sustainable beef."



Growth in the Number of Certified Organic Operations Continues in 2020

Farmers and consumers choose the organic option for many reasons. Our goal at the National Organic Program is to protect that choice by taking the profit out of fraud and ensuring organic integrity from farm to table, so consumers trust the organic label. One measure of that trust is continued growth in the number of farms and businesses receiving USDA organic certification.

USDA has released the annual count of certified organic operations calculated from the USDA National Organic Program - Organic INTEGRITY Database.

The number of certified organic operations worldwide grew to 45,578 in 2020 with 28,454 — more than 62 percent — located in the United States. California remains the leader domestically with more than 5,000 certified operations. The Great Lakes Region, Pacific Northwest, and Iowa continue to round out the top ten.
 
The federal organic regulations currently require certifiers to annually submit a set of basic facts regarding all certified operations to the Organic Integrity Database. The database also includes many optional fields, like acreage, that can aid in oversight and enforcement.




ADM Reports Fourth Quarter Earnings of $1.22 per Share, $1.21 per Share on an Adjusted Basis, Affirms Earnings Growth Expectation for 2021
-    Q4 net earnings of $687 million; adjusted net earnings of $684 million
-    Q4 adjusted EPS up 49 percent excluding prior-year impact of retroactive biodiesel tax credit
-    Full-year reported EPS of $3.15; record adjusted EPS of $3.59
-    Expect growth in operating profit and EPS in 2021

ADM today reported financial results for the quarter and fiscal year ended December 31, 2020.

“I want to thank our team, which performed exceptionally well during truly unprecedented times to deliver four straight quarters of year-over-year adjusted segment operating profit growth in 2020, along with solid returns and record full-year adjusted EPS of $3.59,” said Chairman and CEO Juan Luciano. “Around the globe, ADM colleagues demonstrated their resourcefulness, creativity and commitment by keeping our work environment safe from COVID-19, maintaining our operations and serving our customers. The team delivered on our strategic objectives, maintained a solid balance sheet, managed a wide variety of risks superbly, and showed the strength of our diversified and global value chain.

“Our Ag Services and Oilseeds team delivered outstanding results in 2020, crossing the $2 billion profit mark by capitalizing on our unparalleled and flexible global footprint to meet strong demand. With continued strong global demand for grains and oilseeds as well as meal and oils, we are confident in another outstanding performance from Ag Services & Oilseeds in 2021.

“In Carbohydrate Solutions,” Luciano continued, “the team achieved higher full-year results, demonstrating the power of our diversified product portfolio by pivoting quickly and effectively to meet incremental demand for industrial starches, retail flour and high-grade alcohol. The Carbohydrate Solutions business is well positioned to generate solid profit growth in 2021 as lockdown impacts dissipate.

“Our Nutrition business continued to harvest investments, lead in consumer growth trend areas, and partner with customers to deliver new products and solutions in 2020, driving 37 percent annual operating profit growth. Based on our current organic growth plans, we expect the Nutrition team to deliver solid revenue expansion and profit growth in 2021.

“For ADM, based on the continued delivery of drivers under our control and improving market conditions as the year progresses, we expect strong growth in segment operating profit and another record year of EPS in 2021. I am extremely proud of our team’s performance: Our momentum is strong, and our future is bright.”



USDA Temporarily Suspends Debt Collections, Foreclosures and Other Activities on Farm Loans for Several Thousand Distressed Borrowers Due to Coronavirus

Due to the national public health emergency caused by coronavirus disease 2019 (COVID-19), the U.S. Department of Agriculture today announced the temporary suspension of past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs administered by the Farm Service Agency (FSA). USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice; and USDA will work with the U.S. Attorney’s Office to stop judicial foreclosures and evictions on accounts that were previously referred to the Department of Justice. Additionally, USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers.

Today’s announcement by USDA expands previous actions undertaken by the Department to lessen financial hardship. According to USDA data, more than 12,000 borrowers—approximately 10% of all borrowers—are eligible for the relief announced today. Overall, FSA lends to more than 129,000 farmers, ranchers and producers.

“USDA and the Biden Administration are committed to bringing relief and support to farmers, ranchers and producers of all backgrounds and financial status, including by ensuring producers have access to temporary debt relief,” said Robert Bonnie, Deputy Chief of Staff, Office of the Secretary. “Not only is USDA suspending the pipeline of adverse actions that can lead to foreclosure and debt collection, we are also working with the Departments of Justice and Treasury to suspend any actions already referred to the applicable Agency. Additionally, we are evaluating ways to improve and address farm related debt with the intent to keep farmers on their farms earning living expenses, providing for emergency needs, and maintaining cash flow.”

The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place.

USDA’s Farm Service Agency provides several different loans for producers, which fall under two main categories:
    Guaranteed loans are made and serviced by commercial lenders, such as banks, the Farm Credit System, credit unions and other non-traditional lenders. FSA guarantees the lender’s loan against loss, up to 95 percent.
    Direct loans are made and serviced by FSA using funds from the federal government.

The most common loan types are Farm Ownership, Farm Operating, and Farm Storage Facility Loans, with Microloans for each:
    Farm Ownership: Helps producers purchase or enlarge a farm or ranch, construct a new or improve an existing farm or ranch building, pay closing costs, and pay for soil and water conservation and protection.
    Farm Operating: Helps producers purchase livestock and equipment and pay for minor real estate repairs and annual operating expenses.
    Farm Storage Facility Loans are made directly to producers for the construction of cold or dry storage and includes handling equipment and mobile storage such as refrigerated trucks.
    Microloans: Direct Farm Ownership, Operating Loans, and Farm Storage Facility Loans have a shortened application process and reduced paperwork designed to meet the needs of smaller, non-traditional, and niche-type operations.

Contact FSA
FSA encourages producers to contact their county office to discuss these programs and temporary changes to farm loan deadlines and the loan servicing options available.



USDA Debt Relief Will Help Keep Farmers in Business

To ease mounting financial pressures, the U.S. Department of Agriculture (USDA) today announced that it will temporarily suspend past-due debt collections and foreclosures for farmers borrowing under the Farm Storage Facility Loan and the Direct Farm Loan programs while also offering flexibilities under the Guaranteed Loan Program. Additionally, the agency plans to halt foreclosures and evictions that are already underway. Approximately 12,000 farmers, representing 10 percent of Farm Service Agency borrowers, will be eligible for this assistance.

The announcement comes as a relief to National Farmers Union (NFU), which has been pushing legislators and administration officials to provide family farmers and ranchers with the support they need to withstand the added challenges caused by the pandemic. In a statement, NFU President Rob Larew lauded the action, saying that it will be particularly beneficial to beginning and socially disadvantaged farmers:

“With so many factors beyond their control, farmers know to be prepared for a bad year here and there. But it hasn’t just been just one bad year because of the pandemic – it’s been five bad years because of trade wars, climate change, and stubbornly low prices. Even the most established farmers may not have the reserves to cope with this kind of enduring financial strain – and beginning and historically underserved farmers almost certainly do not.

“As a country, we really can’t afford to lose these farmers. The agriculture industry has already experienced rapid consolidation over the last several decades, to the detriment of rural communities and national food security. The pandemic could have accelerated this trend – but fortunately, the USDA’s ongoing support will likely prevent the worst-case outcome. By suspending debt collections and foreclosures, the agency will help struggling farmers stay on their land and continue growing food for their fellow Americans.”