NEW FARM BILL OFFERS INCREASED OPPORTUNITIES FOR PRODUCERS The 2014 Farm Bill offers increased opportunities for producers including farm loan program modifications that create flexibility for new and existing farmers. A fact sheet outlining modifications to the U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) Farm Loan Programs is available. The Farm Bill expands lending opportunities for thousands of farmers and ranchers to begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and socially disadvantaged producers. Changes that will take effect immediately include: · Elimination of the 15 year term limit for guaranteed operating loans.
· Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier, instead of the median farm size.
· Modification of the Joint Financing Direct Farm Ownership Interest Rate to 2 percent less than regular Direct Farm Ownership rate, with a floor of 2.5 percent. Previously, the rate was established at 5 percent.
· Increase of the maximum loan amount for Direct Farm Ownership Down Payment Loan Program from $225,000 to $300,000.
· Elimination of rural residency requirement for Youth Loans, allowing urban youth to benefit.
· Debt forgiveness on Youth Loans, which will not prevent borrowers from obtaining additional loans from the federal government.
· Increase of the guaranteed percentage on Conservation Loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.
· Microloans will not count toward direct operating loan term limits for veterans and beginning farmers. Additional modifications must be implemented through the rulemaking processes. Visit the FSA Farm Bill website for detailed information and updates to farm loan programs. USDA AWARDING $6 MILLION TO PREPARE FARMERS FOR NEW FARM BILL PROGRAMS USDA is awarding $6 million to universities and cooperative state extension services to develop online decision tools and other materials and train experts to educate producers about several key farm bill programs. The new Web tools will help farmers and ranchers determine what participation in programs established by the 2014 Farm Bill will mean for their businesses. The University of Illinois (lead for the National Coalition for Producer Education), along with the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri and the Agricultural and Food Policy Center at Texas A&M (co-leads for the National Association of Agricultural and Food Policy), will receive a total of $3 million to develop the new online tools and train state-based extension agents who can in turn help educate farmers. The new resources will help farmers and ranchers make an educated choice between the new Agriculture Risk Coverage (ARC) program and the Price Loss Coverage (PLC) program. Using the new online tools, producers will be able to use data unique to their specific farming operations combined with factors like the geographical diversity of crops, soils, weather and climates across the country to test a variety of financial scenarios before officially signing up for the new program options later this year. Once a producer enrolls in the ARC or PLC program, he or she must remain in the program through the 2018 crop year. New tools will be provided for other programs as well. Sign-up for the newly established Margin Protection Program for Dairy (MPP) begins late this summer and enrollment for "buy-up" provisions under the Noninsured Crop Disaster Assistance Program (NAP) will begin early next year. An online MPP tool will be available when sign up begins and the NAP buy-up provision resource will become available to producers in the fall for the 2015 crop year. USDA will also award $3 million to state cooperative extension services—a nationwide network of experts based at land-grant universities—for outreach and education on the new Farm Bill programs. Funds will be used to conduct public education outreach meetings where producers can speak with local extension agents and Farm Service Agency (FSA) staff. Outreach meetings will begin late this summer to help farmers and ranchers understand the new programs and their options. While universities work to create new online tools, producers now have access to a preliminary website that gives them a chance to begin familiarizing themselves with the new programs and the type of information they will need to consider when deciding which program options work better for them. At this site, farmers and ranchers can view ARC and PLC projected payments, ARC guarantees, and PLC payment rate projections. These tables are available on the FSA website. Visit www.fsa.usda.gov or the local FSA office for information about FSA and the 2014 Farm Bill programs.. Questions?
Please contact Sharon Hoch, County Executive Director, at 269-467-6336 x 2,
sharon.hoch@mi.usda.gov or for Farm Loans, please contact Mack Francoeur Jr, Farm Loan Manager, at 269-781-4263 x 2, mack.francoeur@mi.usda.gov. | 
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