USDA Farm Service Agency Iowa July 2012

Iowa Farm Service Agency Local County Offices/Service Centers County Committee Both Farm Programs and Farm Loans

FSA Programs Price Support Conservation Programs Disaster Assistance Farm Credit Direct and Counter-cyclical Payment Program Average Crop Revenue Election (ACRE) Program Energy Programs Commodity Operations

Price Support Commodity Loans provides interim financing at harvest time to meet cash flow needs. Loan Deficiency Payment is a marketing assistance loan Market Loss Assistance Payment Program – Trade Adjustment Assistance Program – Milk Income Loss Contract Program Facility Loan Programs

Farm Storage Facility Loan Program Provides loan interest financing for producers to build and upgrade farm storage and handling facilities. – Loan on 85% of net cost of eligible facility – Terms of 7, 10, 12 years depending on amount of loan – Interest rates vary monthly and are based on the rate CCC borrows from the Treasury Department – Maximum loan is $500,000

FSFL Program cont. Eligible commodities include: – Corn, soybeans, oat, wheat, etc. Contact your local office for other eligible crops. – Hay/Biomass Structures suitable for hay storage – Cold Storage for fruits and vegetables, including nuts Facilities designed and constructed for cold temperature storage of perishable commodities

Conservation Programs Conservation Reserve Program (CRP) Conservation Reserve Enhancement Program Emergency Conservation Program Emergency Forest Restoration Program Farmable Wetlands Program Grassland Reserve Program Source Water Protection Program Public Access Program

Disaster Assistance Programs FSA provides assistance for natural disaster losses, resulting from drought, flood, fire, freeze, tornadoes, pest infestation and other calamities. Prerequisite for Assistance: – Have insurance through USDA’s Risk Management Agency (RMA) or – Noninsured Crop Disaster Assistance Program (NAP)

Disaster Assistance Programs Under the 2008 Farm Bill For Crop Losses – Supplemental Revenue Assistance Payments – Tree Assistance Program (TAP) Livestock Losses – Emergency Assistance for Livestock, Honey bees and Farm Raised Fish (ELAP) – Livestock Forage Disaster Program (LFP) – Livestock Indemnity Program (LIP) Disaster Assistance – Emergency Farm Loans – Emergency Conservation Loans

Farm Loans Types of Farm Loans Direct Farm Ownership Loan ⁻ Limit is $300,000 Direct Farm Operating Loan ⁻ Limit is $300,000 Guaranteed Farm Ownership Loan ⁻ Limit is $1,214,000 Guaranteed Farm Operating Loan ⁻ Limit is $1,214,000 Emergency (EM) Loans (only direct) Youth Loans

Farm Loans cont. FSA defines a Beginning Farmer as: Has operated a farm for not more that 10 years Will materially and substantially participate in the operation of the farm Does not own farm acreage greater than 30 % of the median size farm in the county (for real estate loan eligibility)

Farm Loans cont. Farm Ownership Loans can be used for: Purchasing real estate Making improvements Develop land to promote soil and water conservation Farm Operating Loans: 1 – 7 year repayment Fixed rate Finance all types of annual operating and intermediate-term capital (non-real estate)

Farm Loans cont. Emergency Farm Loans Restore or replace essential property; Pay all or part of production costs associated with the disaster year; Pay essential family living expenses; Reorganize the farming operation; and Refinance certain debts Rural Youth Loans Help rural youth years old to establish and operate income producing projects

Farm Loans cont. Land Contact Guarantee Program Promote the sale of farmland to a beginning, female, or minority farmer. Assists in that transition of land to the next generation. Options to guarantee the seller’s interest in a land sale contract. There are two types of guarantees available: The Standard Guarantee offers protection against loss for up to 90 percent of the outstanding principal balance under the land contract. The Prompt Payment Guarantee covers up to three annual installments, plus the cost of any related real estate taxes and insurance.

Farm Loans cont. Microloan Program To provide more flexibility in meeting the credit needs of small farms to finance their operation costs by: – Adding flexibility in meeting farm experience requirements – Offering more efficient processing time – Streamlining application process For loans up to $35,000

Direct and Counter-cyclical Program/ACRE Under the 2008 Farm Bill The Direct and Counter-cyclical Payment Program (DCP) provides payments to eligible producers on farms enrolled for the 2008 through 2012 crop years. There are two types of DCP payments - direct payments and counter-cyclical payments. Both are computed using the base acres and payment yields established for the farm State ACRE Guarantees are based on the Benchmark State Yields and ACRE Guarantee Prices for ACRE-eligible commodities.

Energy Programs Biomass Crop Assistance Program – provides financial assistance to producers or entities that deliver eligible biomass material to designated biomass conversion facilities for use as heat, power, biobased products or biofuels.

Commodity Operations Purchase and deliver processed commodities under various domestic distribution Purchase and deliver commodities to foreign countries under Titles II and III of Public Law Purchase from vendors or processors Dairy Price Support program commodities, such as butter and cheese and nonfat dry milk. Establish Posted County Prices for locations throughout the U.S. to develop loan rates, Market and manage CCC inventories such as cotton, grain, oilseeds, nonfat dry milk, and rice.

FSA Contact Information John R. Whitaker State Executive Director Buena Vista Court Des Moines, Iowa