FSA Offers Joint Financing Option on Direct Farm Ownership Loans

Mississippi Newsletter - May 25, 2021

Table of Contents

• FSA Offers Joint Financing Option on Direct Farm Ownership Loans

• American Rescue Plan Socially Disadvantaged Farmer Debt Payments

• New to Farming Because of the Pandemic? USDA Can Help

• USDA Encourages Completion of Cash Rents and Leases Survey

• New Farmers.gov Features Help You Manage Your USDA Business Online

FSA Offers Joint Financing Option on Direct Farm

Ownership Loans

The USDA Farm Service Agency’s (FSA) Direct Farm Ownership

loans can help farmers and ranchers become owner-operators of

family farms, improve and expand current operations, increase

agricultural productivity, and assist with land tenure to save

farmland for future generations.

There are three types of Direct Farm Ownership Loans: regular,

down payment and joint financing. FSA also offers a Direct Farm

Ownership Microloan option for smaller financial needs up to $50,000.

Joint financing allows FSA to provide more farmers and ranchers with access to capital. FSA

lends up to 50 percent of the total amount financed. A commercial lender, a State program or

the seller of the property being purchased, provides the balance of loan funds, with or without

an FSA guarantee. The maximum loan amount for a joint financing loan is $600,000, and the

repayment period for the loan is up to 40 years.

The operation must be an eligible farm enterprise. Farm Ownership loan funds cannot be

used to finance nonfarm enterprises and all applicants must be able to meet general eligibility

requirements. Loan applicants are also required to have participated in the business

operations of a farm or ranch for at least three years out of the 10 years prior to the date the

application is submitted. The applicant must show documentation that their participation in the

business operation of the farm or ranch was not solely as a laborer.

For more information about farm loans, contact your local County USDA Service Center or

visit fsa.usda.gov.

American Rescue Plan Socially Disadvantaged

Farmer Debt PaymentsUSDA recognizes that

socially disadvantaged farmers and ranchers have faced

systemic discrimination with cumulative effects that have, among

other consequences, led to a substantial loss in the number of

socially disadvantaged producers, reduced the amount of

farmland they control, and contributed to a cycle of debt that was

exacerbated during the COVID-19 pandemic. During the

pandemic, socially disadvantaged communities saw a disproportionate amount of COVID-19

infection rates, loss of property, hospitalizations, death, and economic hurt.

To address these systemic challenges, the American Rescue Plan Act of 2021 provides

historic debt relief to socially disadvantaged producers including Black/African American,

American Indian or Alaskan native, Hispanic or Latino, and Asian American or Pacific

Islander.

USDA is now reviewing and working to gather feedback to implement the Act, and more

guidance will be forthcoming for socially disadvantaged borrowers with direct or guaranteed

farm loans as well as Farm Storage Facility Loans. As information becomes available, it will

be provided directly to socially disadvantaged borrowers and stakeholder groups representing

socially disadvantaged producers, posted here on farmers.gov, and shared through our social

media channels, email newsletters, and the media.

Who qualifies for this debt relief?

Any socially disadvantaged borrower with direct or guaranteed farm loans as well as Farm

Storage Facility Loans qualifies. The American Rescue Plan Act uses the 2501 definition of

socially disadvantaged, which includes Black/African American, American Indian or Alaskan

native, Hispanic or Latino, and Asian American or Pacific Islander. Gender is not a criterion in

and of itself, but of course women are included in these categories.

I qualify as socially disadvantaged under the American Rescue Plan definition, but I am

not late on my payments. Do I still qualify?

Yes. Any socially disadvantaged borrower with direct or guaranteed farm loans as well as

Farm Storage Facility Loans qualifies.

When will qualified borrowers begin to see a loan pay-off or other payment in response

to the American Rescue Plan?

USDA is now reviewing and working to gather feedback to implement the Act, and more

guidance will be forthcoming for socially disadvantaged borrowers with direct or guaranteed

farm loans as well as Farm Storage Facility Loans. For borrowers in arrears, the moratorium

established on January 26th to stop all debt collections, foreclosures and evictions for all

borrowers, including socially disadvantaged producers, remains in effect.

Producers who have worked with USDA’s Farm Service Agency previously may have their

ethnicity and race on file. A borrower, including those with guaranteed loans, can contact their

local their local USDA Service Center to verify, update or submit a new ethnicity and race

designation using the AD-2047. Find your nearest service center at farmers.gov/service-

locator.

To learn more about USDA’s work to implement the American Rescue Plan Act of 2021,

visit www.usda.gov/arp.

New to Farming Because of the Pandemic? USDA

Can Help

USDA Service Centers across the country, are hearing from

people who are interested in more space and working the land

and we want to let you know we can help. Are you new to

farming because of the pandemic? USDA can help you get

started in farming – on everything from helping you register your

farm to getting financial assistance and advice.

Get Started with USDA

First, you want to make sure your farm is registered. If you purchased land, it might already be

established with USDA’s Farm Service Agency (FSA) with a farm number on file. If not, FSA

can help you register your farm.

To obtain a farm number, you’ll bring an official tax ID (Social Security number or an employer

ID) and a property deed. If you do not own the land, bring a lease agreement to your FSA

representative to show you have control of the property. If your operation is incorporated or an

entity, you may also need to provide proof that you have signature authority and the legal

ability to enter into contracts with USDA.

Access to Capital

USDA can provide access to capital through its farm loans, which is a great resource when

producers aren’t able to get a loan from a traditional lender. Loans can help with purchasing

land or equipment or with operating costs, and FSA even offers microloans, which are

especially popular among producers with smaller farms. For more information, check out our

Farm Loan Discovery Tool.

Conservation Practices

We can help you make conservation improvements to your farm, which are good for your

bottom line and your operation. We’ll help you develop a conservation plan and apply for

financial assistance that’ll cover the bulk of the costs for implementing. To learn more about

some of the conservation practices that we help producers with, check out our Conservation

at Work Video Series.

If you purchase land, and you don’t want to farm all of it, you can look at either a conservation

easement or managing for native shrubs and grasses through either the Agricultural

Conservation Easement Program (ACEP) or Conservation Reserve Program (CRP).

Easements are long-term, while a CRP contract is 10-15 years. These are good options for

land that is not optimal for production or sensitive lands like wetlands and grasslands.

Additional Resources

Depending on your farm, you may want to look at crop insurance. The USDA’s Risk

Management Agency provides crop insurance to help you manage risks on your farm. There

are many types of insurance products available for a wide variety of production practices,

including organic and sustainable agriculture.

Your local communities also have great resources for farmers including conservation districts,

Rural Development, cooperative extensions, and different farming groups. To get started with

USDA, contact your local USDA service center.

USDA Encourages Completion of Cash Rents and

Leases Survey

You may have received a Cash Rents and Leases survey from the U.S. Department of

Agriculture’s National Agricultural Statistics Service (NASS). This survey provides the basis

for estimates of the current year’s cash rents paid for irrigated cropland, non-irrigated

cropland, and permanent pasture. Please complete your Cash Rents and Leases survey by

June 21. This survey can be completed and returned by mail, over the phone, or at

agcounts.usda.gov.

Information from this survey is used in the Farm Service Agency (FSA) Conservation Reserve

Program (CRP) as an alternative soil rental rate prior to finalizing new rates each year. Survey

responses from as many localities as possible help calculate more accurate rental rates.

Completion of the survey ensures cash rental rates accurately represent your locality. Survey

results will also give you a useful tool in negotiating your rental agreements, and financial

planning for your agricultural operation.

In accordance with federal law, survey responses are kept confidential. Survey results will be

available in aggregate form only to ensure that no individual producer or operation can be

identified. NASS will publish the survey results on August 27 at quickstats.nass.usda.gov/.

If you have any questions about this survey, please call 888-424-7828, or visit:

https://www.nass.usda.gov/Surveys/Guide_to_NASS_Surveys/Cash_Rents_by_County/index.

php.

New Farmers.gov Features Help You Manage Your

USDA Business Online

Last June, NRCS’ Conservation Client Gateway moved to farmers.gov enabling USDA

customers to access multiple conservation features through a platform that provides a

customer-centric digital experience. Farmers.gov provides a secure, single desktop- and

mobile device-accessible authenticated portal for FSA, NRCS and RMA customer-facing

features.

As we’ve continued to add more content and capabilities, farmers.gov has quickly become the

premier online hub for customers to find resources, submit applications and assistance

requests, and make connections.

Another new feature is coming to farmers.gov to help you manage your USDA business.

You’ll now receive an email letting you know that an NRCS document needs your signature,

which you can quickly and easily sign online in the portal.

The farmers.gov portal also enables you to:

• View, upload, download, and e-sign documents.

• Request financial assistance, including submitting a program application.

• View and submit conservation requests.

• View technical references and submit questions.

• Access information on current and past conservation practices and plans.

• Report practice completion and request practice certification.

• View detailed information on all previous and ongoing contracts.

• Have the authority as an FSA and/or NRCS customer to work in the portal and act on

behalf of your active power-of-attorney entitlements and your current authorities for

business entities.

These conservation features join several others already available through the farmers.gov

portal, including the ability to view farm loan information. We’ll continue to update you about

new features as they become available.

If you do not have login information for farmers.gov, you can create your login profile, or

eAuthentication by following the instructions at farmers.gov/sign-in.

Reasonable Accommodation

Persons with disabilities who require accommodations to attend or participate in this

meeting/event/function should contact Federal Relay Service at 1-800-877-8339.

Mississippi Farm Service Agency State Office

6311 Ridgewood Rd. Suite 100 Phone:601-965-4300

Jackson, MS 39211 Fax: 844-325-6966

Acting State Executive Director

Patty W. Roberts

Next STO Committee Meeting: TBA

State Committee:

Bobby Moody-Chairman

Scott Flowers

Rita Seward

Henry Reed

Gale Martin