USDA Farm Service Agency: 2014 farm bill presentation

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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

10. 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.

11. 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.

12. 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!

13. 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.