FSA Notes by Keith Zanter Clay County FSA office CRP sign up May 5-30
South Dakota rental rates increased
South Dakota Farm Service Agency State Executive Director Steve Cutler is expecting plenty of interest in South Dakota for the new Conservation Reserve Program (CRP) general sign up which began May 5 and runs through May 30. Producers have not had the opportunity to sign up for CRP since early in 2000.
Cutler said, "This sign up is especially important as South Dakota has been approved for increased CRP rental rates and producers can now include haying and grazing management in the 10-15 year CRP conservation plans." South Dakota currently has more than 22,000 CRP contracts on 1.4 million acres. Annual rental payments exceed $58 million.
CRP enrollment is based on nationwide competition, the premise of which is to provide the greatest environmental benefit per tax dollar spent.
Bids are ranked on the basis of several criteria, including benefits to wildlife and surface and ground water quality. South Dakota producers with land in any of the eight Priority Areas that cover much of South Dakota, receive extra points, which helps in their environmental index ranking process.
Land will be eligible to bid if it is cropland that was planted to an agricultural commodity four of the previous six crop years from 1996 to 2001, and is physically and legally capable of being planted in a normal manner to an agricultural commodity.
Interested producers and landowners should contact their local FSA office for complete eligibility requirements and to set up appointments.
Farm Storage Facility Loan
This program is available for producers who need additional grain storage or would like to renovate existing storage. These loans can be for new construction or expansion of existing facilities, including bunker-type silage structures, permanent drying and grain handling equipment. These loans will be at a fixed rate for a seven-year term. The rate is based on the interest rate in effect at the time of County Committee Approval. The May FSFLP interest rate was 3.50 percent per annum.
Applicants must show a need for additional storage, which is based on the reported acres for the last three crop years and two years' production. Producers may not accept delivery or begin site preparation prior to approval, but you may sign purchase agreements or pay for the facilities prior to loan approval. You may accept delivery if a UCC-1 financing Statement is recorded by FSA at the Register of Deeds prior to delivery of parts. Requirements are:
* Current financial statement and cash flow showing repayment ability.
* $45 non-refundable application fee and 15 percent cash down payment.
* Crop insurance on all FSFLP crops.
* Insurance required on structure with FSA/CCC listed as loss payee.
* Credit report will be ordered and must show a satisfactory rating.
* Applicant must not be delinquent on a federal debt.
If you are interested or have additional questions, please stop by the Clay County Farm Service Agency Office.