5 Things you want to know about the Farm Bill
It’s been about 10 months since Congress passed the 2018 Farm Bill, but a lot has happened since then! Here are the top 5 things you want to know about the latest legislation and how it affects your decisions now and as you prepare for next season:
Credit & Loan Updates - FSA raised loan amounts
Hemp - USDA making adjustments for interstate transport and licensing eligibility
Crop Insurance - You can now enroll for 2019 and 2020 in one visit to FSA. Hemp insurance available for some in 2020
Conservation - A lot of amendments to NRCS’ programs including $25 million per year allocated for conservation innovation trials
Feral Swine Eradication - $75 Million for 10 states to address this issue. If you have your permit, it is open season.
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1. Credit & Loans
The FSA already makes direct and guaranteed farm loans to family-size farmers and others who cannot obtain commercial credit from a traditional bank or other farm lenders. These loans can be used to purchase land, livestock, equipment, feed, seed, and supplies. Loans can also be used to construct buildings or make farm improvements.
Loan Limits
On May 17, 2019, FSA doubled loan limits for farm ownership or real estate loans to $600,000 for direct loans and increased the limit from $1,399,000 to $1,750,000 for guaranteed loans.
Farm Ownership Loans
On May 8, 2019, the FSA Clarified eligibility requirements for farm ownership loans, including increased loan limits and waiving the three years of experience requirement for qualified beginning farmer or ranchers.
You can view your current and past USDA farm loans on farmers.gov. This fact sheet shares details on how to do that.
2. Hemp
On May 28, 2019, the USDA Agricultural Marketing Service (AMS) issued updates regarding hemp production.
One update allows the interstate transportation of hemp so that no state or tribal council can block transportation. Another clarifies who may or who may not obtain a license to produce hemp. Anyone with a felony conviction of a controlled substance will be ineligible for a 10 year period.
3. Crop Insurance
Just a couple of days ago, agricultural producers could begin enrolling in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. Here are a few helpful calculators to help you estimate expected payments:
Gardner-farmdoc Payment Calculator
Sign up for the 2020 crop year closes June 30, 2020, while sign up for the 2019 crop year closes March 15, 2020. Producers who have not yet enrolled for 2019 can enroll for both 2019 and 2020 during the same visit to an FSA county office.
Industrial hemp growers that are under Section 7606 along with state or university research pilots will be able to obtain insurance coverage under the Whole-Farm Revenue Protection (WFRP) program for crop year 2020. Other producers cannot obtain coverage until a USDA-approved plan is in place.
Photo by Wynand Uys on Unsplash
4. Conservation
NRCS announced that it is investing $25 million per year over the next five years to help support on farm conservation innovation trials, part of the Conservation Innovation Grant (CIG) program and available to farmers that are eligible to participate in the EQIP program.
On May 30, 2019, the NRCS announced the availability of $12.5 million to support CIG on agricultural lands.
Environmental Quality Incentives Program (EQIP)
The NRCS offers about 200 practices depending on where your land is located. This includes Irrigation water management (IWM) plans that help pay for soil moisture sensors! In 2018, over $1.87 Billion was obligated to support over 42,800 EQIP contracts covering more than 13.6 million acres. Click here to find the EQIP payment rates for each conservation practice in your state.
Conservation Reserve Program (CRP)
FSA began accepting applications on June 3, 2019, for certain practices under the continuous CRP, offering a one-year extension to existing participants who have expiring contracts of 14 years or less, and reopening enrollment for existing Conservation Reserve Enhancement Program (CREP) agreements.
The FSA plans to offer a General CRP sign-up in December 2019.
Conservation Stewardship Program (CSP)
On May 10, 2019, NRCS posted guidance for state conservationists regarding the handling of participant requests to apply for new contracts, as well as extending unexpired contracts from 2014. Additional guidance was posted regarding changes needed for existing RCPP partnership agreements to enroll in new CSP contracts.
5. Feral Swine Eradication & Control Pilot Program (FSCP)
On June 20, 2019, USDA announced $75 million in funding for the eradication of feral swine. Applications were accepted through August 19, 2019, for partners to carry out activities as part of these pilot projects in select areas of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas.
Further Reading
USDA Farm Bill Implementation Progress Update
https://www.fsa.usda.gov/news-room/news-releases/2019/higher-limits-now-available-on-usda-farm-loans