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U.S. Department of AgricultureFarm Service Agency Hawaii & Pacific Basin
Diane L. Ley, State Executive Director
2nd Tropical Pasture & Livestock Management Conference
June 4-7, 2013 Tinian, CNMI
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Farm Service Agency Providing services to assist small farmers and ranchers:
Helping to stabilize farm income
Working with producers to conserve land and water
Providing loans to new, minority and family-sized farms and ranches
Assisting agricultural operations recover from the impact of disasters
FSA delivers these services through 2 primary program areas
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Risk Management &Disaster Recovery
Non-Insured Crop Disaster Assistance
Program
Livestock Forage Program*
Livestock Indemnity Program*
Emergency Livestock, Honey Bee
& Farm Raised Fish Program** Pending Farm Bill Legislation
NAP-Forage excellent risk management tool; well worth the upfront fees
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Producer Support Programs
Reimbursement of Transportation Cost Payment Program serving geographically disadvantaged producers*
Pending Appropriation in FY 2014
Producer Engagement
Elected producers make up County Committees which lend local guidance to the delivery of FSA’s programs
Nominations are now being accepted for the CNMI & Guam County Committee
Nominees should be producers in Saipan or Central Guam
• Supports geographically isolated producers • Up to 25% payment for inputs and export/transportation costs • Payments range from > $100 to $8,000 • Payments pending now for 2012; No appropriation in 2013; pending action for 2014 • Total available $2.3 to $1.98 mil Who Can Hold Office • A county committee member, a person must meet the basic eligibility criteria: Participate or cooperate in a program administered by FSA; Be eligible to vote in a county committee election; and Reside in the local administrative area (LAA) in which the person is a candidate. • Not have been: Removed or disqualified from the office of county committee member, alternate or employee; or Removed for cause from any public office or have been convicted of fraud, larceny, embezzlement or any other felony; or dishonorably discharged from any branch of the armed services. Nominations To become a nominee, eligible individuals must sign nomination form that is available at USDA Service Centers and online at http://www.fsa.usda.gov/Internet/FSA_File/fsa0669a_commiteeelectform.pdf Nomination forms for the 2013 election must be postmarked or received in the local USDA Service Center by close of business on August 1, 2013.
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Farm Loan Programs
Microloans
Direct Operating Loans
Guaranteed Operating Loans
Conservation Loans
Beginning Farmer Loans
Rural Youth Loans
Emergency Loans
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Microloans for new, beginning & experienced producers
Credit up to $35,000 Less paperwork to apply Security required
Interest 1.250%, with variable term up to 7 years
Offering the Microloan (ML) program • to better serve the unique financial operating needs of beginning, niche and the smallest of
family farm operations, who may be marketing directly to restaurants and grocery stores, organic production, community supported agriculture (CSA’s) and farmers markets ML assists applicants who have limited experience by providing them with an opportunity to gain ranch management experience while working with a mentor Eliminate use of high cost personal loans and high interest credit cards Providing a bridge for Youth Loan borrowers to transition to larger-scale operations Assisting the agricultural community by creating opportunities to start new businesses
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Use a Microloan to… Initial start-up expenses
Annual expenses such as seed, fertilizer, utilities, land rents
Marketing and distribution expenses
Family living expenses
Purchase of livestock, equipment, and other materials
Minor farm and ranch improvements and tools
Irrigation
Delivery vehicles
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Microloans
Are a direct operating loan with a maximum loan
amount of $35,000
Have a shortened application process and reduced
paperwork
Allow some applicants that do not currently meet
the experience and managerial requirements to
qualify through a self-guided mentorship
Microloans are direct farm operating loans, either annual or term • Do not exceed $35,000 • Simplified application process and paperwork • verification requirements that are more proportional to smaller loans and operations Experience:
• Applicants not meeting the general requirement for farm management and experience may still be eligible.
• Alternatives include an apprentice relationship; past participation with organizations such as FFA, 4-H, Beginning Farmer programs, and Community Based Organizations;
• Or prior small business management experience combined with a self-directed apprenticeship can allow applicant to start farming with a Microloan.
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Microloans Provide some flexibility in loan security
Assist the agricultural community by creating opportunities to start new businesses
Fulfill financial operating needs of
beginning, niche and the smallest of family farm operations
Security: oFor an annual operating purpose, such as purchasing seed, fertilizer and other crop input costs, these loans are generally secured by the crop or products produced, however equipment or other security can be used. o Loans for other purposes such as purchasing equipment or foundation livestock are usually secured by the equipment or livestock being purchased but other types of security can be used. oAll loans need adequate security.
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Guaranteed Loans FSA guarantees agricultural
loans made and serviced by
conventional lenders
Producers must apply with a
conventional lender, which then
arranges for the FSA guarantee
Maximum loan $1,302,000
FSA guarantees up to 90% for the commercial lender Reducing the risk for the commercial lender Interest rate set by Commercial lender
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Direct Operating Loans
Loan Purposes:
- Purchase equipment, livestock
- Ranch operating expenses
- Refinance ranch-related debts
- Minor real estate repairs and
improvements
- Other ranch needs
To be repaid in 1 to 7 years
$300,000 Loan limitation
Loans made and serviced by FSA for borrowers who meet eligibility requirements show sufficient repayment ability, and pledge enough collateral to fully secure the loan Interest rates adjust monthly; currently 1.375%
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Rural Youth Loans
Youth interested in learning the business of agriculture
Support the establishment and operational of modest size income-producing projects
Each project is part of an organized and supervised work program
Ages 10 to 20 years
$5,000 Loan limitation
10 to 20 years of age Participating in 4-H, Future Farmers of America, or similar organizations, or with a vocational teacher or county extension agent.
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Emergency Loans
Assist farmers and ranchers who have suffered physical or production losses where a disaster or quarantine has been declared
$500,000 Loan limitation or amount of loss, whichever is lower
Interest Rate is 3.75%
Physical Losses: If insurance is readily available and cost effective and not obtained prior to a natural disaster, you would probably not be eligible. •Production Losses: Disaster yield at least 30% below normal. •Recordkeeping is important in order to verify your losses.
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Eligibility RequirementsDifferent types of loans have different eligibility requirements. Generally a producer must:
Be an operator of a farm or ranch or will meet the
definition of a producer after a loan is made
Have applicable education, training, and/or farm
experience that provides reasonable prospects of success
Have sufficient managerial ability
Be a U.S. citizen, non-citizen national, or qualified alien
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Eligibility RequirementsApplicants must:
Not be delinquent on any U.S. Federal debt
Not have previous loss with FSA
Be unable to obtain credit elsewhere
Have acceptable credit history
Possess legal capacity to incur the loan obligation
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How To Get Started
Obtain information on programs, applications, and other forms available at FSA offices or online at www.fsa.usda.gov
Call or visit your nearest FSA office
to discuss individual financing
needs and applicable programs
Applications for direct loan assistance may be submitted to our FSA offices If you have questions or need assistance to complete the application, call our FSA office and ask for help.
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• Grants, research, marketing, product outreach and more
• KYF2 is not just about “food” but rather understanding and supporting agriculture and our rural communities
• All USDA agencies and programs working in concert to support producers.
• www.usda.gov/knowyourfarmer
FSA’s programs are clustered about natural disasters and loans and more traditional production systems FSA’s programs do not include grants, marketing and other initiatives; however, other USDA agencies do provide such resources, so as I close I want to bring your attention to a New USDA-wide effort to create new economic opportunities by better connecting consumers with local producers. A national conversation about the importance of understanding where your food comes from and how it gets to your plate Programs available to strengthen our rural communities and farms •Appropriate Technology Transfer for Rural Areas (RD) •Business and Industry (B&I) Guaranteed Loan Program (RD) •Farm and Ranch Lands Protection Program (NRCS) •EQIP Organic conversion cost share (NRCS)
•Farm Loan Programs (FSA) •Conservation and Farm Storage Facility Loans (FSA)
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USDA Farm Service AgencyCNMI & Guam County Office770 East Sunset Blvd., Suite 265Barrigada, GU 96913670-234-0896
Thomas Camacho [email protected]
Fred San Nicolas [email protected]
Diane Ley [email protected]
FSA Hawaii & Pacific Basin Website: www.fsa.usda.gov/hi
