FARM SERVICE AGENCY Jason Shitanishi County Executive Director

Transcription

1 FARM SERVICE AGENCY Jason Shitanishi County Executive Director

2 USDA Farm Service Agency USDA has17 different agencies FSA serves farmers, ranchers, and agricultural producers We offer: Farm Loans Conservation Programs Disaster Assistance Crop Insurance Various Legislated Programs

3 REIMBURSEMENT TRANSPORTATION COST PAYMENT (RTCP) PROGRAM

4 PURPOSE Reimbursement Transportation Cost Payment (RTCP) Provides cost assistance to farmers and ranchers by reimbursing them for a portion of the transportation cost of their agricultural commodity, or transporting inputs used to produce an agricultural commodity during a fiscal year. 4

5 Eligible Input Costs Costs are eligible for reimbursement if it was used to transport any of the following inputs used to produce an agricultural commodity, including, but not limited to: chemicals and fertilizer equipment and parts feed supplies plants seeds IMPORTANT: You did not have to pay directly for the cost 5 of transportation for the expense to be eligible.

6 What are the Eligible Commodities? Agricultural commodities eligible for benefits under RTCP are any agricultural commodity (including aquaculture, and floriculture), food, feed, fiber, livestock or insects such as honey bees, or any product thereof. 6

7 7 When and Where to Apply? The application period usually starts in early July and ends shortly after the first week in September. Apply with your local USDA Farm Service Agency Office

8 Farm Loan Programs Targeted to assist family sized farms and producers with limited financial resources Microloans Farm Ownership Loans Operating Loans Emergency Loans Youth Loans

9 Direct & Guaranteed Loan Programs Direct Loan Program Maximum: $300,000 Apply with FSA Funds provided by FSA Low subsidized rates Guaranteed Loan Program Maximum: $1,392,000 Apply with local lender Bank loan is guaranteed up to 90% by FSA Rates and terms set by the lender (Interest rate not to exceed lender s average loan rate to agricultural customers)

10 Farm Ownership Loans Purchase land Construct buildings or improvements Soil and water conservation Direct loan rate: 3.75% Fixed (as of March, 2015), up to 40-year term May only refinance real estate debt under Guaranteed Loan Program

11 Operating Loans Annual operating expenses (seed, fertilizer, labor, water, lease rent, etc) Equipment (farm vehicles, tractors, etc) Minor Real Estate Repairs or Improvements Refinance Farm Related Debts (non-real Estate) Direct Loan Rate: 2.625% Fixed (as of Mar. 2016), Up to 7-year term

12 Microloans Operating Loan up to $50,000 Streamlined Application Process Flexible Eligibility Requirements Finance Annual Operating Expenses, Supplies, Farm Equipment, Farm Vehicles, Family Living Expenses, 2.625% Fixed interest rate (as of Mar. 2016) Up to 7-year term

13 Loan Application Documents Historical tax returns and Year to Date Income and Expenses --or-- Business Plan with budget & marketing plan Recent bank statement (personal & farm) Copy of farm lease Check for credit report fees Entity documents & Certificate of Good Standing (if corporation, LLC, partnership etc)

14 Disaster Preparedness & Risk Management

15 USDA Risk Management Agency (RMA) Farm Service Agency (FSA) USDA sister agencies providing risk management and disaster programs/services to producers. Risk Management Agency Provides Federal crop insurance on select crops. Hawaii crops Banana, Coffee, Papaya, Mac nuts/trees, and Nursery Primary Programs are Crop Insurance and Revenue Based Insurance based on adjusted gross gevenue Farm Service Agency Provides disaster assistance on crops for which crop insurance is not available. Primary Program is the Noninsured Crop Disaster Assistance (NAP)

16 FSA Crop Disaster Programs Provide relief for losses due to natural disaster Noninsured Crop Disaster Assistance Program (NAP) Tree Assistance Program (TAP) Emergency Loans (EM) Emergency Conservation Program (ECP) Programs that provide a safety net for farmers

17 The Key Piece to the Puzzle How do I prepare for disaster, and what is the key piece to unlock the puzzle of USDA Farm Service Agency disaster assistance programs? DOCUMENTATION! Keep good records

18 Noninsured Crop Disaster Assistance Program Provides financial help to producers of crops affected by natural disasters

19 Noninsured Crop Disaster Assistance Program Loss must be due to damaging weather or natural disaster drought, hail, excessive heat, excessive moisture, freeze, tornado, hurricane, excessive wind, volcano, flood, earthquake insect damage and disease caused by adverse weather conditions

20 Noninsured Crop Disaster Assistance Program The New 2014 Farm Bill Expands NAP: Allows producer to buy up coverage. Service fee is waived for Limited Resource, Beginning, and Socially Disadvantaged Farmers. Buy up premium for Limited Resource, Beginning Farmer, and Socially Disadvantaged Farmers would be cut by 50%. Maximum payment limit on losses is $125,000.

21 Noninsured Crop Disaster Assistance Program Service Fee is the lesser of $250 per crop or $750 per producer per county for basic coverage. Service fee is waived for socially disadvantaged (minorities and women), limited resource, and new/beginning farmers.

22 Noninsured Crop Disaster Assistance Program PRODUCERS MUST apply by application closing dates Crop year 2017 deadline for annual crops is Dec. 01, 2016 annually report: Plantings by field, acreage, and date Production by crop type in pounds Natural disaster losses within 15 days Documentation is the KEY!

23 Documentation is the key! Whether it be records of crop plantings and production, or inventory of trees. Keep good records!

24 For Further Information Contact: Jason Shitanishi Honolulu County FSA Office 3375 Koapaka Street Suite #B-211 Honolulu, HI Phone: , x 104 Visit the FSA website: