SAVE TIME – MAKE AN APPOINTMENT WITH FSA As we roll out the Farm Bill programs administered by FSA, there will be related signups and in some cases multiple management decisions that need to be made by you, the producer. To insure maximum use of your time and to insure that you are afforded our full attention to your important business needs, please call our office ahead of your visit to set an appointment and to discuss any records or documentation that you may need to have with you when you arrive for your appointment. For local FSA Service Center contact information, please visit: http://offices.sc.egov.usda.gov/locator/app . LIVESTOCK FORAGE DISASTER PROGRAM (LFP) SIGN-UP IS UNDERWAY
The Agricultural Act of 2014 (2014 Farm Bill) makes the Livestock Forage Disaster Program (LFP) a permanent program and provides retroactive authority to cover eligible losses back to Oct. 1, 2011. LFP provides compensation to eligible livestock producers that have suffered grazing losses for covered livestock on land that is native or improved pastureland with permanent vegetative cover or is planted specifically for grazing. The grazing losses must be due to a qualifying drought condition during the normal grazing period for the county. LFP also provides compensation to eligible livestock producers that have suffered grazing losses on rangeland managed by a federal agency if the eligible livestock producer is prohibited by the federal agency from grazing the normal permitted livestock on the managed rangeland due to a qualifying fire. Eligible Producers To be eligible for LFP, producers must: - Own, cash or share lease, or be a contract grower of covered livestock during the 60 calendar days before the beginning date of a qualifying drought or fire;
- Provide pastureland or grazing land for covered livestock, including cash-rented pastureland or grazing land that is either:
- Physically located in a county affected by a qualifying drought during the normal grazing period for the county, or;
- Rangeland managed by a federal agency for which the otherwise eligible livestock producer is prohibited by the federal agency from grazing the normally permitted livestock because of a qualifying fire.
- Certify that they have suffered a grazing loss because of a qualifying drought or fire;
- Timely file an acreage report for all grazing land for which a loss of grazing is being claimed.
*Important Change for LFP Eligibilty* In past years in order to participate in the Livestock Forage Disaster Program (LFP) producers had to have either a policy or plan of insurance under the Federal Crop Insurance Act (FCIA) or Non-Insured Assistance Program (NAP) coverage to be eligible. This is no longer a requirement for LFP. Although these coverages are a very important and useful tool for producers to use to help mitigate their losses they are not required for LFP. Eligible Livestock Eligible livestock types under LFP include alpacas, beef cattle, buffalo, beefalo, dairy cattle, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep or swine that have been or would have been grazing the eligible grazing land or pastureland: - During the normal grazing period for the specific type of grazing land or pastureland for the county, or;
- When the federal agency excluded the livestock producer from grazing the normally permitted livestock on the managed rangeland due to fire.
Eligible livestock must: - Have been owned, purchased or entered into a contract to purchase during the 60 days prior to the beginning date of a qualifying drought or fire condition;
- Have been held by a contract grower or sold or otherwise disposed of due to a qualifying drought condition during the current production year or one or both of the two production years immediately preceding the current production year;
- Have been maintained for commercial use as part of a farming operation on the beginning date of the eligible drought or fire condition;
- Not have been produced and maintained for reasons other than commercial use as part of a farming operation. (Such excluded uses include, but are not limited to, wild free roaming animals or animals used for recreational purposes such as pleasure, hunting, pets, roping or for show);
- Not have been livestock that were or would have been in a feedlot on the beginning date of the qualifying drought or fire as part of the normal business operation of the producer.
Payments FSA will calculate LFP payments for an eligible livestock producer for grazing losses because of a qualifying drought equal to 1, 3, 4 or 5 times the LFP monthly payment rate. The LFP monthly payment rate for drought is equal to 60 percent of the lesser of the monthly feed cost: - For all covered livestock owned or leased by the eligible livestock producer;
- Calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer.
Total LFP payments to an eligible livestock producer in a calendar year for grazing losses will not exceed five monthly payments for the same livestock. In the case of an eligible livestock producer who sold or otherwise disposed of livestock because of drought conditions in one or both of the two previous production years immediately preceding the current production year, the payment rate will equal 80 percent of the monthly payment rate. Example of 2012 Monthly Payment Rate Calculation Rancher has 50 head of adult beef cows. The monthly feed cost per head equals the monthly payment rate of $51.81 for 2012. In this example the rancher has 400 acres of eligible grazing land with a 10 acre per animal unit carrying capacity (carrying capacities vary by grazing type and county). The daily feed cost for adult beef is $1.7270 per animal unit ($51.81 / 30days = $1.7270). The total monthly feed cost for the ranchers Adult Beef Cattle is: 50 head X $51.81 = $2,590.50 The ranchers monthly feed cost based upon carrying capacity is: 400 acres divided by 10 acres per animal unit X $1.7270 daily feed cost X 30 days = $2,072.40 The Ranchers LFP monthly payment rate will be 60% of the smaller of $2,590.50 (monthly feed cost for all livestock) or $2,072.40 (Monthly feed cost using carrying capacity) In this example the ranchers LFP monthly payment rate is equal to $2,072.40 X 60% = $1,243.44 Since the county in this example qualified for 5 monthly payments in 2012 the rancher would receive an estimated payment of $6,217.20 ($1,243.44 X 5 months). Remember this is just an example. Sign-Up For grazing losses that occurred between Oct. 1, 2011 through Dec. 31, 2014, sign-up began on April 15, 2014, and will end on Jan. 30, 2015. Call for your appointment today. MICROLOAN PROGRAM The Farm Service Agency (FSA) developed the Microloan (ML) program to better serve the unique financial operating needs of beginning, niche and small family farm operations. FSA offers applicants a Microloan designed to help farmers with credit needs of $35,000 or less. The loan features a streamlined application process built to fit the needs of new and smaller producers. This loan program will also be useful to specialty crop producers and operators of community supported agriculture (CSA). Eligible applicants can apply for a maximum amount of $35,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, irrigation and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution expenses. As financing needs increase, applicants can apply for a regular operating loan up to the maximum amount of $300,000 or obtain financing from a commercial lender under FSA's Guaranteed Loan Program. Individuals who are interested in applying for a microloan or would like to discuss other farm loan programs available should contact their local FSA office to set up an appointment with a loan official.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay),
(866) 377-8642 (Relay voice users). | 
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