Puerto Rico Farm Service Agency Programs. Juan M. Ortiz Serbiá State Executive Director Wanda J. Pérez Farm Programs Director

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1 Puerto Rico Farm Service Agency Programs Juan M. Ortiz Serbiá State Executive Director Wanda J. Pérez Farm Programs Director

2 FSA Farm Programs Farm Loans Direct Program Guaranteed Program Farm Programs Disaster Assistance Programs Conserva7on Program Price Support

3 Farm Loans Direct Program - Farm Ownership Loans - Farm Opera8ng Loans - Emergency Loans Guaranteed Program - Farm Ownership Loans - Farm Opera8ng Loans

4 Farm Ownership Loans Eligible applicants may obtain direct loans up to a maximum indebtedness of $300,000. The maximum repayment term is 40 years. Loan funds may be used to purchase a farm, enlarge an exis8ng farm, construct new farm buildings and/or improve structures, pay closing costs, and promote soil and water conserva8on and protec8on.

5 Farm Opera8ng Loans Eligible applicants may obtain direct loans for up to a maximum indebtedness of $300,000. The repayment term may vary, but typically it will not exceed 7 years, annual opera8ng loans are generally repaid within 12 months or when the commodi8es produced are sold. Loan funds may be used for normal opera8ng expenses, machinery and equipment, real estate repairs, and refinancing debt.

6 Emergency Loans Emergency Loans assist farmers who have suffered physical or produc8on losses in areas declared by the President as disaster areas or designated by the Secretary of Agriculture as disaster or quaran8ne areas. For produc8on loss loans, applicants must demonstrate a 30 percent loss in a single farming or ranching enterprise. Applicants may receive loans up to 100 percent of produc8on or physical losses.

7 Emergency Loans Loan purposes include opera8ng and real estate, restoring/ replacing essen8al property, produc8on costs for disaster year, essen8al family living expenses, reorganiza8on and refinancing certain debts. The maximum indebtedness under the Emergency Loan program is $500,000.

8 Guaranteed Loan Program Guaranteed Farm Ownership Loans Guaranteed Farm Ownership Loans may be made to purchase farmland, construct or repair buildings and other fixtures, develop farmland to promote soil and water conserva8on, or to refinance debt.

9 Guaranteed Loan Program Guaranteed Loans may be available from local commercial lenders who apply for loan guarantees from FSA. Under a Guaranteed Loan, a commercial lender makes and services the loan, and FSA guarantees it against loss up to a maximum of 90 percent in most cases. In certain limited circumstances, a 95 percent guarantee is available. FSA has the responsibility of approving all eligible loan guarantees and providing oversight of lenders' ac8vi8es.

10 Guaranteed Loan Program Guaranteed Opera7ng Loans Guaranteed Opera8ng Loans may be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other opera8ng expenses. Opera8ng Loans can also be used to pay for minor improvements to buildings, costs associated with land and water development, family living expenses, and to refinance debts under certain condi8ons.

11 Guaranteed Loan Program Any combina8on of direct Farm Ownership and Opera8ng loans, guaranteed Farm Ownership and Opera8ng loans have a maximum of $1,214,000. Repayment terms vary according to the type of loan made, the collateral securing the loan, and the producer's ability to repay. OL Loans are normally repaid within 7 years and FO loans cannot exceed 40 years. The Guaranteed loan interest rate and payment terms are nego8ated between the lender and the borrower.

12 Be a family- size farmer General Eligibility Requirements Have a sa8sfactory history of mee8ng credit obliga8ons For direct OL loans, have sufficient educa8on; training, or at least 1- year's experience in managing or opera8ng a farm or ranch within the last 5 years. For direct FO loans, applicants must have par8cipated in the business opera8ons of a farm or ranch for 3 years. Be a ci8zen of the United States or qualified alien under federal immigra8on law.

13 General Eligibility Requirements Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs Possess legal capacity to incur loan obliga8ons Not be delinquent on a Federal debt Not have caused FSA a loss by receiving debt forgiveness (certain excep8ons apply) Be within the 8me restric8ons as to the number of years they can receive FSA assistance.

14 Farm Programs Disaster Assistance Programs Recovering the farmland from the natural disaster effects Conserva7on Programs Conserving land and water resources Price Support Programs Stabilizing farm income

15 Noninsured Crop Disaster Assistance Program (NAP) NAP provides financial assistance to producers of nonisurable crops when losses occur due to natural disasters and for which the catastrophic risk protec8on level of crop insurance is not available. Eligible producers must apply for coverage of noninsurable crops and pay the applicable service fees at their local Farm Service Agency (FSA) office. The service fee is $250 per crop up to $750 per producer per FSA office, not to exceed a total of $1,875 for a producer with farming interests in mul8ple FSA offices.

16 Noninsured Crop Disaster Assistance Program (NAP) Crop producers must file and pay the NAP coverage on or before December 1 of each year. Nursery ornamentals producers must file and pay the NAP coverage on or more May 1 of each year. The natural disaster must have reduced the expected unit produc8on of the crop by more than 50 percent based on the approved yield and reported acreage. Producers must no8fy the local FSA office and complete the No8ce Loss Applica8on within 15 calendar days acer a crop is affected by a natural disaster.

17 Supplemental Revenue Assistance Payment Program (SURE) SURE provides financial assistance to producers suffering crop losses due to natural disasters. SURE began with the 2008 crop year and ending with losses incurred on or before September 30, Signup for the SURE Program for 2010 crop losses will begin November 14, 2011, and end June 1, To be eligible for SURE, producers must have suffered at least a 10 percent produc8on loss on a crop of economic significance.

18 Supplemental Revenue Assistance Payment Program (SURE) SURE payments are calculated in an amount equal to 60 percent of the difference between the SURE farm guarantee and total farm revenue. Crop losses must have occurred in a municipality declared as a primary or con8guous disaster area under a US Secretarial Disaster Designa8on or individual producers must demonstrate that the produc8on on the farm is less than 50 percent of the normal produc8on.

19 Livestock Indemnity Program (LIP) Livestock Indemnity Program (LIP) provides benefits to livestock producers for livestock deaths in excess of normal mortality caused by adverse weather including the livestock losses due to natural disasters. LIP began on January 1, 2008, and ending with losses incurred on or before October 1, Producers who suffer livestock death losses should submit a no8ce of loss and an applica8on for payment to the local FSA office. To be eligible, the no8ce of loss must be submifed: 30 calendar days acer the loss is apparent; 30 calendar days acer the end of the calendar year in which the loss of livestock occurred.

20 Conserva7on Reserve Program (CRP) The Conserva8on Reserve Program (CRP) is a voluntary program for agricultural landowners. Through CRP, par8cipants can receive annual rental payments and cost- share assistance to establish long- term, resource conserving covers on eligible farmland. Par8cipants enroll in CRP contracts for 10 to 15 years. FSA administers CRP, while technical support func8ons are provided by: USDA's Natural Resource Conserva8on Service (NRCS); Puerto Rico Department of Natural Resources and Environmental (PR- DRNA)

21 Conserva7on Reserve Program (CRP) To be eligible for CRP enrollment, a producer must have owned or operated the land for at least 12 months prior to close of the CRP sign- up period. To be eligible for placement in CRP, land must be either: Cropland that is planted or considered planted to an agricultural commodity 4 of the previous 6 crop years from 2002 to 2007, and which is physically and legally capable of being planted in a normal manner to an agricultural commodity; or Certain marginal pastureland that is suitable for use as a riparian buffer or for similar water quality purposes.

22 Conserva7on Reserve Program (CRP) - State Acres for Wildlife Enhancement (SAFE) SAFE is a voluntary program available under CRP's con8nuous sign- up, is designed to address state and regional high- priority wildlife objec8ves. Producers within a SAFE area can submit offers to voluntarily enroll acres in CRP contracts for years. In exchange, producers receive annual CRP rental payments, incen8ves and cost- share assistance to establish, improve, connect or create higher- quality habitat.

23 Conserva7on Reserve Program (CRP) - State Acres for Wildlife Enhancement (SAFE) The goal of the Puerto Rico Forest SAFE project is to enroll 1,300 acres to improve, connect or restore healthier quality habitat and to promote healthier ecosystems. The project will benefit high priority species including Puerto Rican boa, Puerto Rican sharp- shinned hawk, Puerto Rican pigeon, Puerto Rican rock frog and candidate specie Elfin- woods warbler.

24 Grassland Reserve Program (GRP) The Grassland Reserve Program (GRP) is a voluntary program for landowners and operators to protect grazing uses and related conserva8on values by conserving grassland, including rangeland, pastureland, shrubland, and certain other lands. Par8cipants voluntarily limit future development and cropping uses of the land while retaining the right to conduct common grazing prac8ces and opera8ons related to the produc8on of forage and seeding.

25 Grassland Reserve Program (GRP) Par8cipants may choose a 10- year, 15- year, or 20- year contract. USDA will provide annual payments established by the Farm Service Agency. Applica8ons may be filed for a rental contract or an easement with NRCS or FSA.

26 Emergency Conserva7on Program (ECP) Emergency Conserva8on Program (ECP) provides funding and technical assistance for farmers to rehabilitate farmland damaged by natural disasters. ECP program par8cipants receive cost- share assistance of up to 75 percent of the cost to implement approved emergency conserva8on prac8ces, as determined by FSA commifees. To rehabilitate farmland, ECP program par8cipants may implement emergency conserva8on prac8ces, such as: remove debris restore fences and conserva8on structures

27 Emergency Conserva7on Program (ECP) Technical assistance may be provided by Natural Resources Conserva8on Service (NRCS). ECP Sign- up started on November 14, 2011 and will end on January 12, Producers may file an ECP applica8on at the local FSA field offices during the Sign- up period.

28 Price Support Programs Reimbursement Transporta7on Cost Payment Program (RTCP) Reimbursement Transporta8on Cost Payment Program reimburses producers for a por8on of the transporta8on cost of their agricultural commodity, or transpor8ng inputs used to produce an agricultural commodity during a fiscal year. RTCP will be calculated based on the amount of costs incurred by the producer for transporta8on of the agricultural commodity or inputs during a fiscal year and mul8plied by applicable percentage of allowance (COLAs) for the applicable fiscal year. Milk Income Loss Contract Program (MILC) Milk Income Loss Contract Program (MILC) compensates dairy producers when domes8c milk prices fall below a specified level. The 2008 Farm Bill authorized MILC through September 30, 2012.

29 Ques8ons?

30 FSA is at the service of all Farmers in Puerto Rico Adjuntas (787) Arecibo (787) Barranquitas (787) Caguas (787) Corozal (787) Lares (787) Mayaguez (787) Ponce (787) Utuado (787) State Office (787)