Juan M. Ortiz Serbiá State Executive Director Wanda J. Pérez Farm Programs Director

Puerto Rico Farm Service Agency Programs

FSA  Farm  Programs  •  Farm  Loans          

–  Direct  Program  –  Guaranteed  Program  

•  Farm  Programs  –  Disaster  Assistance  Programs      –  Conserva7on  Program  –  Price  Support  

       

Farm  Loans  •  Direct  Program  

     -­‐Farm  Ownership  Loans        -­‐Farm  Opera8ng  Loans        -­‐Emergency  Loans  

•  Guaranteed  Program        -­‐Farm  Ownership  Loans        -­‐Farm  Opera8ng  Loans          

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.  

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.  

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.    

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.  

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.    

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.  

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.    

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.      

General  Eligibility  Requirements  

•  Be  a  family-­‐size  farmer  

•  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.  

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.  

     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  

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.  

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.    

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,  2011.  

•  Signup  for  the  SURE  Program  for  2010  crop  losses  will  begin  November  14,  2011,  and  end  June  1,  2012.  

•  To  be  eligible  for  SURE,  producers  must  have  suffered  at  least  a   10   percent   produc8on   loss   on   a   crop   of   economic  significance.  

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.  

 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,  2011.  

•  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.  

 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)  

 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.  

 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   10-­‐15   years.   In   exchange,  producers   receive   annual   CRP   rental   payments,   incen8ves  and   cost-­‐share   assistance   to   establish,   improve,   connect   or  create  higher-­‐quality  habitat.    

 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.    

 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.  

 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.  

 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  

 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,  2012.    Producers  may  file  an  ECP  applica8on  at  the  local  FSA  field  offices  during  the  Sign-­‐up  period.  

 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.    

Ques8ons?  

FSA is at the service of all Farmers in Puerto Rico

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