News

Several announcements from USDA on Wednesday

Ag Secretary Tom Vilsack says enrollment for the 2010 Direct and Counter-cyclical Program (DCP) and the Average Crop Revenue Election (ACRE) program has begun and will continue through June 1, 2010. Producers need to calculate as to whether it is to their advantage to use the DBP program or the new ACRE option keeping in mind that once you switch to ACRE, it is irrevocable and runs through the 2012 crop year. The owner of the farm and all producers on the farm must agree to enroll in ACRE.

The June 1, 2010, deadline is mandatory for all participants. USDA will not accept any late-filed applications. For more information on DCP or ACRE, visit your FSA county office or www.fsa.usda.gov.

 

Farm Service Agency also announced the loan limit for its Guaranteed Loan Program has been increased to $1,112,000, effective October 1st. The limit is adjusted annually based on the “Prices Paid to Farmers Index,” compiled by the National Agricultural Statistics Service. The increased limit will enhance the agency’s ability to meet the credit needs of farmers and ranchers throughout the country.

The Guaranteed Loan Program allows commercial and farm credit lenders to extend credit to qualified applicants, who otherwise would not meet their standard lending criteria. Participating lenders can use the Guaranteed Loan Program to strengthen a loan’s viability through a guarantee of up to 95 percent of the loan amount. Farmers interested in guaranteed loans should apply through a conventional lender.

 FSA also offers the Direct Loan Program as an alternative for those unable to obtain financing from commercial credit sources. Direct farm loans are government-funded, and made by FSA. The loan limit for loans under the Direct Program is $300,000 (except for Emergency Loans). Farmers interested in applying for a direct loan should contact their local FSA office.

 

Agriculture Secretary Tom Vilsack says USDA will distribute approximately $1.7 billion in Conservation Reserve Program (CRP) rental payments to participants across the country in fiscal year 2010.

Producers holding about 758,000 contracts on 424,000 farms will receive an average of $51.52 per acre. Included in the totals are 391,000 contracts, approximately 4.4 million acres, for CRP’s continuous sign-up and 369,000 contracts, approximately 29.4 million acres, for general sign-up.

Currently, enrollment stands at approximately 31 million acres, making CRP the largest public-private partnership for conservation and wildlife habitat in the United States.