When changes in ownership or farming take place, a replenishment of the farm is necessary. Reconstitution – or reconstitution – is the process of regrouping or dividing farms or plots of land according to the farm.
To be in effect for the current fiscal year, farm groups and farm divisions must be requested before August 1 of the fiscal year for farms subject to the agricultural risk coverage program (ARC) and price loss protection (PLC). A replenishment is considered requested when all required signatures are on FSA-155 and all other applicable documents, such as proof of ownership, are submitted.
Total Conservation Reserve Program (CRP) and non-ARC / PLC farms can be replenished at any time.
Here are the different methods used when discovering a server farm:
• Inheritance method – the distribution of the bases, allowances and quotas of a parent farm between the heirs when settling an inheritance
• Landowner designation method – can be used when (1) part of a farm is sold or ownership is transferred; (2) an entire farm is sold to two or more people; (3) agricultural ownership is transferred to two or more persons; (4) part of a parcel is sold or ownership is transferred; (5) a parcel is sold to two or more people; or (6) ownership of the land is transferred to two or more persons. To use this method, the land sold must be held for at least three years, or a waiver granted, and the buyer and seller must sign a memorandum of understanding.
• DCP cropland method – the division of bases in the same proportion as DCP cropland for each resulting plot relates to DCP cropland on the parent plot
• Default method – division of bases for a parent farm, with each plot keeping the bases assigned to the plot level when replenishment is initiated in the system.
Market Assistance Loans (MAL) and Credit Deficiency Payments (LDP)With most of the harvest behind us, producers may want to consider taking out a Market Support Loan for their harvested grain.
The 2018 Farm Bill extends the lending authorization until 2023 for marketing assistance loans and bad credit payments.
The MALs and LDPs provide financial and trade assistance for wheat, feed grains, soybeans and other oilseeds, legumes, rice, peanuts, cotton, wool and honey. MALs provide producers with interim post-harvest financing to help them meet cash flow needs without having to sell their produce when market prices are typically lowest at harvest time. A producer who is eligible for a loan, but agrees to forgo the loan, can obtain an LDP if such payment is available. The FSA will accept MAL and PLD 2020 applications for all eligible products after harvest. Loan and PLD requests must be made no later than the final availability date of the respective products.
Commodity Daviess County Loan Rate Final availability date
• Wheat $ 3.33 / bushel on March 31, 2021
• Corn $ 2.37 / bushel May 31, 2021
• Soybeans $ 6.41 / bushel May 31, 2021
Commodity certificates are available to loan holders who have outstanding non-recourse loans for wheat, upland cotton, rice, feed grains, pulses (dry peas, lentils, large and small chickpeas), peanuts, wool, soybeans and designated minor oilseeds. These certificates can be purchased at the posted county price (or adjusted world price or posted national price) for the quantity of product loaned, and must be immediately exchanged for collateral, thereby satisfying the loan. MALs exchanged with commodity certificates are not subject to the adjusted gross income provisions.
To be considered eligible for an LDP, growers must have form CCC-633EZ, Page 1 on file with their local FSA office before losing their beneficial interest in the crop. Pages 2, 3 or 4 of the form must be submitted when requesting payment.
Marketing loan earnings (MLG) and loan compensation payments (LDP) are no longer subject to payment limitations, they are actively engaged in farming and cash rental rules.
The Adjusted Gross Income (AGI) provisions state that a producer with a three-year total average applicable AGI exceeding $ 900,000 is not eligible to receive an MLG or PLD. Producers must have a valid CCC-941 on file to earn a LDP Market Winner. The AGI does not apply to MALs traded with the exchange of commodity certificates.
For more information and additional eligibility requirements, please visit a nearby USDA service center or the FSA website fsa.usda.gov.
Important dates to remember in FSA• November 26, 2020: the FSA closed its doors for the Thanksgiving holidays
• November 30, 2020: deadline to report blocked wheat plantations
• December 11, 2020: deadline to apply for the Coronavirus Food Assistance Program 2.0
• December 15, 2020: deadline for declaring sown wheat and other small grains sown in the fall