USDA Extends Disaster Set-Aside for Direct Loans Until 2022

WASHINGTON, Oct. 4, 2021 – The U.S. Department of Agriculture (USDA) is announcing a higher loan limit will be available for borrowers seeking a guaranteed farm loan starting Oct. 1, 2021, from $1.776 million to $1.825 million.

“Farm loans are critical for our customers’ annual operating and family living expenses, emergency needs, and cash flow,” FSA Administrator Zach Ducheneaux said. “Raising the guaranteed loan limit will allow FSA to better meet the financial needs of producers as natural disasters and the pandemic continue to impact their operations.”

FSA farm loans offer access to funding for a wide range of producer needs, from securing land to financing the purchase of equipment. Guaranteed loans are financed and serviced by commercial lenders. FSA provides up to a 95% guarantee against possible financial loss of principal and interest. Guaranteed loans can be used for both farm ownership and operating purposes.

In fiscal year 2021, FSA saw continued strong demand for guaranteed loans. FSA obligated more than $3.4 billion in guaranteed farm ownership and operating loans. This includes nearly $1.2 billion for beginning farmers. The number of guaranteed borrowers has grown by 10% to more than 38,750 farmers and ranchers over the last decade. FSA expects the increasing demand for farm loans to continue into fiscal year 2022.

Disaster Set-Aside Extension

USDA has additional support available to producers given the recent outbreaks of the COVID-19 Delta variant and has extended the availability of COVID-19 Disaster Set-Aside (DSA) for installments due through Jan. 31, 2022. In addition, FSA will permit a second DSA for COVID-19 and a second DSA for natural disasters for those who had an initial COVID-19 DSA. Requests for a COVID-19 DSA or a second DSA must be received no later than May 1, 2022.

Last year, FSA broadened the use of the DSA. Normally used in the wake of natural disasters, the DSA can now allow farmers with USDA farm loans who are affected by COVID-19 and determined to be eligible, to have their next payment set aside. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. This will improve the borrower’s cashflow in the current production cycle.

More Information

Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center. Service Center staff continue to work with agricultural producers via phone, email and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Contact your Service Center to set up an in-person or phone appointment. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

WASHINGTON, July 30, 2021 – The U.S. Department of Agriculture today announced 2021 crop loan rates for four types of peanuts. The rates take effect August 1, 2021, the beginning of the peanut crop year.

Eligible producers can obtain peanut loans through their local Farm Service Agency (FSA) county offices or alternative delivery partners, such as Designated Marketing Associations (DMA) and Cooperative Marketing Associations (CMA). These loans provide producers with interim financing on their production and facilitate the orderly distribution of loan-eligible peanuts throughout the year.

The 2018 Farm Bill established the national loan rate for peanuts at $355 per ton. USDA’s Commodity Credit Corporation (CCC) calculated the price support levels for each peanut type using the same method as last year. The 2021 Crop Peanut Loan Rate was calculated using the national loan rate and five-year average quality factors, along with a three-year simple average weighted production.  For an average grade ton of 2021 crop peanuts, loan levels by type are:

CCC applies premiums and discounts for quality factors to compute the loan value for an individual ton of peanuts. The actual loan level depends on the percent of various sizes of kernels in each ton. CCC uses the percentage of sound mature kernels (SMK) and sound splits to compute the basic loan value of the load. SMKs are whole kernels that pass over the testing screen officially designated for each type of peanut. Sound splits are whole kernels split into two pieces. Excess sound splits receive discounts. There are discounts for other kernels, damaged kernels and foreign materials. An additional discount occurs for loose shell kernels. Other quality discounts also may apply.

For each percent of SMK in a ton of peanuts, plus each percent of sound splits, the loan levels are:

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

The July/August 2021 issue of the Southeastern Peanut Farmer is now available online.
Click here!

This issue features:

• Peanuts in the Big Easy – Peanut Leadership Academy graduates Class XI
• Upcoming Peanut Field Days
• 2021 Georgia Peanut Tour set for Tifton area
• Harvest Guidebook
• Check off reports from the state grower organizations
• Legislative Update
• Southern Peanut Growers Update

Recently, some farmers may have received an email or letter in the mail regarding an antitrust litigation notice. Do not disregard the notice! If you received the notice then check the peanut sales information listed on the letter and file your claim by July 13, 2021.

If you do not submit a valid Claim Form by the deadline, you will not receive a payment from the Settlement Fund, but you will be bound by the Court’s judgment in these actions.

The notice was sent to farmers or entities who sold raw, harvested runner peanuts in the U.S. to Birdsong Peanuts, Golden Peanut or Olam Peanut Shelling Company from Jan. 1, 2014 through Dec. 31, 2019. The full notice regarding the proposed settlement is available at www.PeanutFarmersAntitrustLitigation.com.

Continue to check the website to be kept informed about any future developments. If you believe you are a member of the Class, you are urged to obtain a copy of the Notice, which explains your rights regarding the settlements and related matter. The Notice is available at www.PeanutFarmersAntitrustLitigation.com.

If you have any questions concerning this litigation, you may contact the Settlement Administrator at (844) 754-7469 and Info@PeanutFarmersAntitrustLitigation.com.

WASHINGTON, March 5, 2021 – The U.S. Department of Agriculture (USDA) is extending the deadline from March 5 to April 9 for agricultural producers to apply for the Quality Loss Adjustment (QLA) Program because of recent winter storms and some clarifications to program rules. This program assists producers who suffered crop quality losses due to qualifying 2018 and 2019 natural disasters.

“Because of recent winter storms and some program updates, we want to provide five additional weeks for producers to apply for the program,” said Zach Ducheneaux, Administrator of the Farm Service Agency (FSA). “I want to make sure eligible producers have the opportunity to apply and to work with our team members to help with any questions. We recently clarified policy to ensure producers who sold grain to the feed market due to quality issues are adequately compensated.”

About the Program

The QLA program assists producers whose eligible crops suffered quality losses due to qualifying drought, excessive moisture, flooding, hurricanes, snowstorms, tornadoes, typhoons, volcanic activity, or wildfires.

Eligible crops include those for which federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage is available, except for grazed crops and value loss crops, such as honey, maple sap, aquaculture, floriculture, mushrooms, ginseng root, ornamental nursery, Christmas trees, and turfgrass sod. Additionally, crops that were sold or fed to livestock or that are in storage may be eligible.

Assistance is available in counties that received a Presidential Emergency Disaster Declaration or Secretarial Disaster Designation, or for drought, a county rated by the U.S. Drought monitor as having a D3 (extreme drought) or higher. Producers in counties that did not receive a qualifying declaration or designation may still apply but must also provide supporting documentation.

FSA will issue payments once the application period ends. If the total amount of calculated QLA payments exceeds available program funding, payments will be prorated.

More Information

FSA began accepting applications on January 6 and has received more than 8,100 applications so far.

To apply, contact your local USDA Service Center. Additional information is also available at farmers.gov/quality-loss. Producers can also obtain one-on-one support with applications by calling 877-508-8364.

While USDA offices are currently closed to visitors because of the pandemic, Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. To conduct business, please contact your local USDA Service Center. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus.

Press release from the U.S. Department of Agriculture.