Agricultural Act of 2014 2014 Farm Bill was signed

into law by President Obama on February 7, 2014.

Considered almost two years late.

959 pages long. Will take considerable time to implement.

Most Farm Bills take 1 –2 years to implement.

Most important reform: elimination of direct payments.

Still provides a safety net, keeps and consolidates conservation programs, and provides assistance to new farmers and ranchers, including Vets.

2014 Farm Bill continued

First roll out is disaster programs: Livestock Forage Program (LFP) and Livestock Indemnity Program (LIP). Priority is to start applications by April 15, 2014, due to drought and disaster situations, especially in the West.

FSA currently offers ECP as of February 24, 2014. More on ECP later.

LFP: Now a permanent program and retroactive to Oct. 1, 2011, for grazing losses due to fire or drought.

LFP payments for drought are equal to 60% of the monthly feed cost up to 5 months.

Payments for fire on federally managed rangeland equal to 50% of the monthly feed cost for the # of days producer is prohibited from grazing the managed rangeland not to exceed 180 calendar days that occurred after 10/1/11.

2014 Farm Bill continued Possible types of records

needed:

Feed purchases if supplies or grazing pastures are destroyed.

Crop records, including seed and fertilizer purchases, planting and production records.

Pictures of on-farm storage facilities that were destroyed by wind or flood waters.

Evidence of damaged farm land.

Sign up at any FSA service center.

Additional details on the types of information required for an application will be provided as part of the sign up announcement. Losses have to be within the grazing period.

D2 (severe drought) for 8 consecutive weeks - assistance equals 1 monthly payment.

D3(extreme drought) for 4 weeks or D4 for anytime – assistance equals 3 monthly payments.

D4 (exceptional drought) for 4 weeks -equals 5 monthly payments.

2014 Farm Bill continued LIP: Livestock losses

retroactive to Oct. 1, 2011.

Compensation to eligible livestock producers that suffered livestock losses in excess of normal mortality due to adverse weather.

Payments are equal to 75% of the market value of the applicable livestock on the day before the date of death of the livestock.

Signups begin on or before April 15, 2014. Some eligibility restrictions may apply. Now permanent program.

Eligibility:

Owners must have legally owned the eligible livestock on the day the death occurred.

Eligible contract growers must be in possession the eligible livestock at the time death occurred.

Eligible Livestock: Beef cattle, Dairy cattle, Bison, Poultry, Sheep, Swine, Horses, other acceptable livestock.

2014 Farm Bill continued

LIP Documentation:

Owners should record all pertinent information of livestock death losses due to adverse weather (the # and kind of livestock that died) supplemented by:

Photographs or video records

Purchase records, veterinarian records, production records, bank or other loan documents

Written contracts, records assembled for tax purposes, private insurance documents, and similar reliable documents.

FSA Offices:

Fallon: 775-423-5124

Lovelock: 775-273-2922

Winnemucca: 775-623-5025

Elko: 775-738-6445

Ely: 775-738-6445

Yerington: 775-463-2855

More information will be coming shortly, in time for the signups on or before April 15, 2014.

2014 Farm Bill continued Other FB Changes:

Producers will choose between the Price Loss Coverage and Agricultural Risk Coverage. No information yet.

Establishes the Dairy Margin Protection program. No information yet.

We will provide that information as we get it. Until then, we are not to discuss in order not to raise false expectations.

Provide $100 million for the Beginning Farmers and Ranchers Development Program.

Increase access to capital and support crop insurance and risk management tools, including reducing crop insurance premiums during the first 5 years of farming.

FSA will continue to provide updates as they come in through:

FSA Newsletters

Info Bulletins

Press Releases

Releases to Nevada Cattlemen’s and Farm Bureau

Additional producer meetings and road trips.

2014 Farm Bill continued

FSA’s Emergency Conservation Program (ECP) for Drought only includes:

Installing pipelines or other facilities for livestock water.

Constructing and deepening wells for livestock water.

Supplemental emergency livestock water hauling.

Implemented on February 24, 2014, for 60 day period. Eligible counties are: Churchill, Douglas, Elko, Eureka, Esmeralda, Humboldt, Lander, Lyon, Nye, Pershing, Storey, Washoe, Mineral and Carson City.

Producers qualifying for assistance may receive cost shares not to exceed 50% of the cost of installing eligible temporary measures. Cost sharing for permanent measures is based on 75% of the total eligible cost. Is limited to $200,000.00 per person or legal entity per natural disaster.

To be eligible for cost shares, practices shall not be started until a request has first been filed at the FSA County Committee Office and an onsite inspection of the problem area has been made by the FSA County Committee.

2014 Farm Bill continued

Payment Eligibility:

The average Adjusted Gross Income (AGI) limitation is $900,000.00 and it covers all programs (including conservation in 2015). The AGI limitation is the total AGI amount for the person or legal entity, and does not require any division of income between farm and non-farm for compliance purposes. KEEP IN MIND:

Program payments and benefits disbursed under the Agricultural Act of 2014, including LFP, LIP, and ELAP for previous years’ losses, are subject to the $900,000.00 AGI limitation. The payment limitation for LFP, LIP, and ELAP benefits is a combined total of $125,000.00 annual per person and legal entity represents a change from pervious years.

2014 Farm Bill continued

ELAP is the Emergency

Assistance for Livestock,

Honeybees, and Farm-

Raised Fish Program that

covers losses not covered

by LFP and LIP.

The 2014 ELAP has not

been released as of yet.

Nevada FSA Staff:

Fallon CED: Imelda Anderson

Lovelock CED: Terry Goldsworthy

Winnemucca CED: Katie Nuffer

Elko/Ely CED: Claire Kehoe

Yerington CED: Betty Hodik

District Director: Gus Wegren

Farm Loan Officer in Winnemucca:

Dan Ferraro

Farm Loan Officer in Fallon: Carly

Brown

Farm Loan Manager in Elko:

Micki Wines

SED in Reno State Office: Clint

Koble

2014 Farm Bill continued Farm Loans:

Not affected by a new Farm Bill.

Under separate appropriations from Congress.

For 2015 however, we will see a substantial increase in Farm Loan funding due to the fact that overall, the delinquency rate has been very low, as low as most major banks in many cases.

Emergency Loans:

Funding to recover from losses incurred due to natural disasters (drought)

Loan funds may be used to restore or replace property, pay production costs for the disaster year (all or part), pay family living expenses, reorganize the farming or ranching operation, refinance certain debts.

2014 Farm Bill continued More on Ems:

Max of $500,000 or 100% of actual production or physical loss:

Production Loss: a yield of at least 30% below normal

Physical Loss: disaster related damage to chattel, real estate, and harvested, stored, or perennial crops

Currently @ 3.25%

See our Loan Staff!

MicroLoans:

Offers streamlined and flexible access by modifying the application, eligibility, and security requirements.

Up to $35,000.

Used for initial start-up expenses, annual expenses such as fertilizer and feed, family living expenses, purchase of livestock and equipment, irrigation, hoop houses, essential tools, minor improvements and more.

Currently: 2.25% approx.

2014 Farm Bill continued Don’t forget our NAP -

Noninsured Crop Disaster Assistance Program:

Financial assistance to eligible producers affected by drought, flood, hurricane, or other natural disasters.

Landowners, tenants or sharecroppers who share in the risk are eligible.

Natural disaster must have either reduced the expected unit production by more than 50% or prevented the producer from planting more than 35% of the intended crop acreage.

Covers the amount of loss greater than 50% of the expected production based on the approved yield and reported acreage.

Payments limited to $100,000 per crop year per individual or entity.

Service Fee is the lesser of $250 per crop or $750 per producer per administrative county not to exceed $1,875 for a producer.

See our County Staff!

2014 Farm Bill continued 2008 Farm Bill Accomplishments and

Payments:

DCP: 5 yrs. : $3,385,922

NAP: 5 yrs. : $5,366,010

FSFLs: 2 yrs. : $393,353

MILC: 4 yrs. : $2,163,243

DELAP: 1 yr. $25,469

ECP: 5 yrs. : $1,036,693

Other Conservation: 5 yrs. : $11,278

GRP: 4 yrs. : $2,734,799

LDP: 1 yr. : $116,922

Biomass: 1 yr. : $80,322

CDR: 1 yr. : $147,683

LFP: 4 yrs. : $5,060,841

Other Disaster: 1 yr. : $17,218

LIP: 5 yrs. : $1,449,135

SURE: 4 yrs. : $1,762,600

TOTAL: 5 yrs. : $23,726,019

TOTAL LOANS: 5 yrs. $60,200,000

TOTAL PROGRAM PAYMENTS AND LOANS MADE:

$83,926,019

Completed with a County Staff of 13 staff in 6 offices around the state.

Average distance between County Offices is 238 miles.

NV FSA had 27 staff in 2009 and 7 County Offices

Now has 23 staff and 6 County Offices

Nevada has approximately 3000 producers. NV FSA also services about 275 producers in Mono, Inyo, and Alpine Counties in California.

We hope to keep serving you through these tough and challenging times.