Farm safety net programs saw a record signup this go-around.
Producers signed a record 1.77 million contracts for the U.S. Department of Agriculture’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 crop year, which is more than 107 percent of the total farm safety net contracts signed compared with a 5-year average. USDA also reminds producers that June 30 is the deadline to enroll in ARC and PLC for the 2020 crop year.
2019 farm safety net program signups set a record. With the trade wars, weather problems, and prices in the dumper, is anyone surprised by that? (Photo from agweb.com)
“Producers for several years have experienced low commodity prices, a volatile trade environment and catastrophic natural disasters,” said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). “Farmers looking to mitigate these risks recognize that ARC and PLC provide the financial protections they need to weather substantial drops in crop prices or revenues.”
Producers interested in enrolling for farm safety net programs in 2020 should contact their FSA county office. Producers must enroll by June 30 and make their one-time update to PLC payment yields by September 30.
FSA attributes the significant participation in the 2019 crop year ARC and PLC programs to increased producer interest in the programs under the 2018 Farm Bill and to an increase in eligible farms because of the selling and buying of farms and new opportunities for beginning farmers and military veterans with farms having 10 or fewer base acres. Enrollment for 2019 ended March 16.
USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.
High school seniors are typically looking toward future career possibilities at this time of year. The sheer number and variety of careers in the agricultural sector of the economy might come as a shock. Erika Osmundson is Director of Marketing Communications with AgCareers.com. She says they posted a whole lot of job opportunities in 2019.
“Last year, we posted 50,000 open positions within agriculture on the site. While production agriculture is key to the world, there is more to agriculture in terms of careers than production, that ‘cows, plows, and sows’ is what we always say.”
The career options in the Ag sector are both blue collar and white-collar jobs.
“Sales and marketing always tend to do quite well. We do a lot of agronomy and research. Animal health is always a good area and tends to have a lot of opportunities. And then, when you look at what really entices young folks to get excited, I think we really have to play up all the technologies growing and evolving within the industry.”
Like most other sectors in the economy, the Ag sector is seeing an explosive growth in technology careers, which is creating demand for a lot of skilled workers.
“The Ag-Tech sector is huge when you start looking at GPS, drone technology, the plant genetics side, some of the traceability stuff. There are just opportunities for a new variety of people. Software developers, IT, process engineers, that type of thing. So, it’s really just expanding.”
AgCareers.com, in conjunction with the Farm Service Agency, put together profiles of more than 250 agricultural careers on the site, just to help career-seekers better understand what was out there in agriculture. Those profiles talk about things like responsibilities with each position, what the future holds for a particular job, and some of the profiles even deal with salaries. She says the salaries for agricultural positions may come as a surprise to some job seekers.
“Even some of those skilled trade jobs, we’re seeing those salary levels continue to rise, just because of the demand. Even in some of those traditional ones where people might not think that the salary would be good, they’re mistaken. But then, you look at some of the business-focused type of roles, the IT, the finance, we’re competitive with other industry sectors out there, and we work in a pretty great industry that’s pretty viable, I mean, we’re even seeing this through the COVID pandemic.”
Agriculture has been deemed an “essential service” by government officials, which means most of the people in the sector can continue to go to work and maintain their careers.. Osmundson says that means the demand for skilled workers is going to be there for the long term.
The Minnesota Department of Agriculture (MDA) is reopening enrollment in its Dairy Assistance, Investment, and Relief Initiative (DAIRI) program for eligible milk producers through the end of the year.
Producers who have locked in five years of coverage through the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program and who have not already successfully enrolled in the Dairy Assistance program can apply.
The MDA has already issued $3.4 million to about 1,800 producers representing more than 1,550 farms in Minnesota through the program in its first round of payments.
Producers not yet successfully enrolled will not receive the first round of payment, but may receive a check for the second round of dairy assistance, which will be determined after all new enrollments have been received.
In order to qualify, farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. They will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.
An application form, an IRS Form W-9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are required to complete an application. All materials must be postmarked by December 31, 2019.
Producers who are already successfully enrolled and have received their first check do not need to take any action. They will automatically receive a second payment. However, producers who submitted incomplete applications and have not received a check must return any requested information by December 31, 2019, to be eligible for the second payment.
For additional information and the application form, visit the DAIRI program page of the MDA website.
The U.S. Department of Agriculture’s Farm Service Agency (FSA) reminds dairy producers that the deadline to enroll in the Dairy Margin Coverage (DMC) program for 2019 is Sept. 20, 2019.
The USDA wants to remind dairy farmers that signup for the Dairy Margin Coverage Program ends on Sept. 20. (Photo from AgDaily.com)
Authorized by the 2018 Farm Bill, the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
“Over 19,100 operations have signed up for DMC since the new program opened enrollment on June 17,” said FSA Administrator Richard Fordyce. “DMC is a great risk management tool that protects against narrowing margins caused by down turns in the market and increased feed costs. I encourage farmers who have not yet enrolled to sign up as soon as possible.”
As the 2019 enrollment period draws to a close, FSA estimates over $257.7 million in payments to producers who are currently registered. Also, nearly half of the producers are taking advantage of the 25 percent premium discount by locking in for five years of margin protection coverage. FSA has launched a new web visualization of the Dairy Margin Coverage Program data, which is available here.
Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium.
For example, a dairy operation that chooses to enroll for 2019 an established production history of 3 million pounds (30,000 cwt.) and elects the $9.50 coverage level on 95 percent of production will pay $4,275 in total premium payments for all of 2019 and receive $15,437.50 in DMC payments for all margin payments announced to date. Additional payments will be made if calculated margins remain below the $9.50/cwt level for any remaining months of 2019.
Enrollment for 2020
For 2020, dairy producers can sign up for coverage under DMC beginning Oct. 7 through Dec. 13, 2019. At the time of signup, dairy producers can choose between the $4.00 to $9.50 coverage levels.
DMC offers catastrophic coverage at no cost to the producer, other than an annual $100 administrative fee. Producers can opt for greater coverage levels for a premium in addition to the administrative fee. Operations owned by limited resource, beginning, socially disadvantaged or veteran farmers and ranchers may be eligible for a waiver on administrative fees. Producers have the choice to lock in coverage levels until 2023 and receive a 25-percent discount on their DMC premiums.
Producers who locked in coverage in the 2019 sign-up must certify the operation is producing and commercially marketing milk and pay the annual administrative fee during the 2020 enrollment period.
To assist producers in making coverage elections, USDA partnered with the University of Wisconsin to develop a DMC decision support tool, which can be used to evaluate various scenarios using different coverage levels through DMC.
2019 Retroactive Intergenerational Transfers
Participating dairy operations who had an intergenerational transfer between 2014 and 2019 will a have a one-time opportunity to increase their established production history during the 2019 and 2020 annual coverage election periods. Retroactive payments based on the increased production history will apply for 2019 and not prior years.
A dairy operation may add to their approved production history for an intergenerational transfer when a spouse, child or grandchild join a participating dairy operation. Non-lineal relatives, such as siblings, cousins, nieces or nephews, that join the operation will not be eligible for a production history increase.
The increase to the established production history of the participating dairy operation will be determined based on multiplying both the national rolling herd average data for the current year in effect at the time of the intergenerational transfer and the quantity of cows purchased by the joining family member within 60 days of joining the dairy operation. For an intergenerational transfer to be recognized by FSA, the requesting dairy operation will meet all eligibility requirements including an ownership provision for those entering the business.
Applications for an intergenerational transfer must be submitted by Dec. 6, 2019, for approval by the local FSA county committee, to be eligible for the increased production history effective on January 1, 2019.
More Information
On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.
The U.S. Department of Agriculture’s Farm Service Agency (FSA) opened enrollment for the Dairy Margin Coverage (DMC) program on June 17 and has started issuing payments to producers who purchased coverage. Producers can enroll through Sept. 20, 2019.
“Times have been especially tough for dairy farmers, and while we hope producers’ margins will increase, the Dairy Margin Coverage program is providing support at a critical time for many in the industry,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “With lower premiums and higher levels of assistance than previous programs, DMC is already proving to be a good option for a lot of dairy producers across the country. USDA is committed to efficiently implementing the safety net programs in the 2018 Farm Bill and helping producers deal with the challenges of the ever-changing farm economy.”
Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. To date, nearly 10,000 operations have signed up for the new program, and FSA has begun paying approximately $100 million to producers for January through May.
May Margin Payment
DMC provides coverage retroactive to January 1, 2019, with applicable payments following soon after enrollment.
The May 2019 income over feed cost margin was $9.00 per hundredweight (cwt.), triggering the fifth payment for eligible dairy producers who purchase the $9.50 level of coverage under DMC. Payments for January, February, March and April also were triggered.
With the 50 percent hay blend, FSA’s revised April 2019 income over feed cost margin is $8.82 per cwt. The revised margins for January, February and March are, respectively, $7.71, $7.91 and $8.66.
Coverage Levels and MPP Reimbursements
Dairy producers can choose coverage levels from $4 up to $9.50 at the time of signup. More than 98 percent of the producers currently enrolled have elected $9.50 coverage on up to 95 percent of their production history.
More Information
On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.
The U.S. Department of Agriculture (USDA) extended the acreage reporting deadline for farmers in states impacted by flooding and heavy moisture. The new deadline is July 22 for producers to report spring-seeded crops to USDA’s Farm Service Agency (FSA) county offices and crop insurance agents. The new deadline applies to producers in Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Minnesota, North Dakota, Ohio, Tennessee and Wisconsin.
“These are challenging times and we are here to help,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “This deadline extension is part of our broader effort to increase program flexibility and reduce overall regulatory burden for producers who are having to make some tough choices for their operations.”
Producers not in the selected states must file reports or be added to a county register by the original July 15 deadline.
“Producers in many parts of the country are experiencing a challenging spring and early summer. However, producers in these states are struggling with large delays and are unable to complete their other fieldwork,” Northey said.
Filing a timely crop acreage report helps farmers maintain eligibility for USDA conservation, disaster assistance, safety net, crop insurance, and farm loan programs. A crop acreage report documents all crops and their intended uses. It’s also an important part of record-keeping for your farm or ranch.
FSA offices are asking producers to set up appointments ahead of time before they come in to file a report. Producers who schedule appointments before the deadline will be on time, even if the appointment is after July 22.
Likewise, reports from producers in non-affected states who set up appointments before July 15 will be considered timely filed.
“We encourage you to contact your FSA county office today to set up an appointment,” Northey said. “Our team is standing by to help you complete this important process that keeps you eligible for key USDA programs.”
Other USDA Efforts to Help Producers
USDA is taking additional steps to help producers across the country, including:
Updating the haying and grazing date for producers who have planted cover crops on prevented plant acres;
Offering special sign-ups through the Environmental Quality Incentives Program for assistance to plant cover crops; and
Extending the deadline to report prevented plant acres in certain places.
Dairy farmers have had a tough go of it lately as milk prices continue to struggle. The Minnesota Department of Agriculture (MDA) is rolling out its new Dairy Assistance, Investment and Relief Initiative (DAIRI) program to provide financial assistance for farmers. To be eligible, the state’s milk producers have to sign up for five years of coverage in the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program.
The Minnesota Dairy Assistance, Investment, and Relief Initiative is now taking applications. The program is designed to help the state’s dairy farmers stay afloat during very tough economic times. (Photo from nal.used.gov)
“Minnesota farmers are the cornerstone of our state’s economy,” said Governor Tim Walz. “We know that this has been a tough year for agriculture, and our dairy farmers need our support. I’m proud that our budget secured $8 million for the Dairy Assistance, Investment and Relief Initiative, The new initiative will help make sure our dairy farmers can continue doing the work they love and providing for our state.”
Applications to the program are being accepted now through October 1, 2019. In order to qualify, Minnesota farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. Again, they also need to have signed up for five years of coverage through the DMC program during its current enrollment period, which is open between June 17, 2019 and September 20, 2019.
The MDA will issue payments on a rolling basis. Producers can expect to receive their first payments roughly two to four weeks after successfully applying. Minnesota dairy farmers will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.
An application form, a W9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are all required to complete an application.
Dairy farmers may receive a second payment this fall after the application period has ended, depending on remaining available funds.
U.S. Secretary of Agriculture Sonny Perdue says all Farm Service Agency (FSA) offices nationwide will soon reopen to provide additional administrative services to farmers and ranchers during the government shutdown. Certain FSA offices have been providing limited services for existing loans and tax documents since January 17, and will continue to do so through January 23. Starting on Thursday, January 24, all FSA offices will open and offer a longer list of services they’ll offer to farmers.
Farm Service Agency offices are set to reopen full time on Thursday, January 24. They’ll be open regular hours for two full weeks. After that, FSA offices will be open Tuesdays, Wednesday, and Thursday.
Additionally, Secretary Perdue announced that the deadline to apply for the Market Facilitation Program has been extended to February 14. The program is designed to help American farmers hurt by retaliatory tariffs. Other program deadlines may be modified and will be announced as they are addressed.
“At President Trump’s direction, we have been working to alleviate the effects of the lapse in federal funding as best we can, and we are happy to announce the reopening of FSA offices for certain services,” Perdue said. “The FSA provides vital support for farmers and ranchers and they count on those services being available. We want to offer as much assistance as possible until the partial government shutdown is resolved.”
The U.S. Department of Agriculture has temporarily recalled all of the more than 9,700 FSA employees. Offices will be open from 8 am to 4:30 pm weekdays, beginning January 24. President Trump has already signed legislation that guarantees employees will receive all backpay missed during the shutdown.
For the first two full weeks under this operating plan (January 28 through February 1 and February 4 through February 8), FSA offices will be open Mondays through Fridays. After that, offices will be open Tuesdays, Wednesdays, and Thursdays, if needed, to provide the additional administrative services. That schedule will be in effect until the government shutdown ends and full funding is restored
Agricultural producers who have business with the agency can contact their FSA service center to make an appointment.
Farm service Agency offices will be able to provide a list of critical services to farmers, which are listed below. The offices are allowed to do so, because failure to perform these services would harm funded programs. FSA staff will work on the following transactions:
Market Facilitation Program.
Marketing Assistance Loans.
Release of collateral warehouse receipts.
Direct and Guaranteed Farm Operating Loans, and Emergency Loans.
Service existing Conservation Reserve Program contracts.
Sugar Price Support Loans.
Dairy Margin Protection Program.
Agricultural Risk Coverage and Price Loss Coverage.
Livestock Forage Disaster.
Emergency Assistance Livestock, Honey Bees, and Farm-raised Fish Program.
Livestock Indemnity Program.
Noninsured Crop Disaster Assistance Program.
Tree Assistance Program.
Remaining Wildfires and Hurricanes Indemnity Program payments for applications already processed.
Transactions that will not be available include, but are not limited to:
New Conservation Reserve Program contracts.
New Direct and Guaranteed Farm Ownership Loans.
Farm Storage Facility Loan Program.
New or in-process Wildfires and Hurricanes Indemnity Program applications.
Emergency Conservation Program.
Emergency Forest Rehabilitation Program.
Biomass Crop Assistance Program.
Grassroots Source Water Protection Program.
With the Office of Management and Budget, USDA reviewed all of its funding accounts that are not impacted by the lapse in appropriation. After the reviewal process, USDA was able to except more employees. Those accounts that are not impacted by the lapse in appropriation include mandatory, multiyear, and no year discretionary funding including FY 2018 Farm Bill activities.
The link above will show you which Minnesota FSA offices are open.
The Minnesota Department of Agriculture is encouraging farmers who are experience difficulties because of the government shutdown to remember that MDA can help. While the USDA did announce today that Farm Service Agency (FSA) Offices will temporarily reopen January 17, 18, and 22, some farmers may still need to get additional resources heading into the spring planting season.
“I’m pleased that the FSA offices will reopen for a few days to help farmers get their existing loans processed,” said Minnesota Agriculture Commissioner Thom Petersen. “FSA is an important federal partner and provides critical services to farmers. My understanding is that the FSA staff will be available to assist farmers with existing farm loans.”
Petersen encourages Minnesota farmers to contact their local FSA office immediately during this temporary reopening. He also reminds farmers who may be in need of financial assistance or other resources to remember these programs run by the MDA.:
Rural Finance Authority low interest loan programs. Contact Ryan Roles at 651-201-6666, or visit www.mda.state.mn.us/agfinance
Farm Advocate Program for farmers needing one-on-one financial advice or other assistance. Contact Matt McDevitt at 651-201-6311, or visit www.mda.state.mn.us/farmadvocates.
