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FSA programs open to all producers

Kansas

The Kansas Farm Service Agency is reaching out to women and minority farmers in the state in an effort to get more of them involved in its farm programs.

"We're in the business of helping our farmers and ranchers-all of them," said Bill Fuller emphasizing the word "all." Fuller is State Executive Director of the Kansas Farm Service Agency.

"Our programs are generally well known throughout the ag community," he said. "We do not have to promote their availability to the producers who have traditionally used them. But there may be producers, especially among women, minority, and limited resource farmers, who still are not aware of our programs and the benefits that may be available to them. We want to reach those producers and tell them the Farm Service Agency is here for them too."

Fuller said that while Farm Service Agency programs remain available to all producers, "We want to increase participation by traditionally underrepresented groups. We want to see more women and minorities take advantage of these programs."

Fuller summarized FSA's major programs and stressed that they are open to all qualified producers.

--Farm Loans. FSA offers direct and guaranteed farm ownership and operating loan programs to farmers who are temporarily unable to obtain private, commercial credit and who meet other regulatory criteria. Each year a portion of the funding FSA receives for loan programs is specifically targeted for socially disadvantaged persons and beginning farmers. "In Fiscal Year 2007, Kansas obligated $2,157,819 for a total of 57 loans to qualified farmers under the Socially Disadvantaged Persons Loan Program. We also obligated $12,244,381 for a total of 174 loans to qualified farmers under the Beginning Farmer Program," Fuller said.

FSA defines a socially disadvantaged person as one of a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of the group without regard to their individual qualities. For purposes of this program, these groups are women, African Americans, American Indians and Alaskan Natives, Hispanics, and Asians and Pacific Islanders.

To qualify for an FSA loan, applicants must be U.S. citizens or resident aliens, have a satisfactory history of meeting credit obligations, a set amount of experience operating or managing a farm, and be unable to obtain credit elsewhere at reasonable rates and terms.

--Youth Loans. Loans up to $5,000 are available to rural youths to establish and operate income-producing projects of modest size in connection with their participation in 4-H, Future Farmers of America, and similar organizations. Eligible youth must be U.S. citizens between 10 and 20 years old, live in a town of less than 50,000 people and be unable to obtain a loan from other sources. Loan proceeds may be used to buy livestock, equipment, and supplies; buy, rent, or repair needed tools and equipment; and pay operating expenses for running the project. In Fiscal Year 2007, Kansas obligated $370,729 for a total of 98 youth loans.

--Disaster Assistance. The Non-insured Crop Disaster Assistance Program helps farmers who grow crops that are not eligible for regular crop insurance to recover from natural disasters. "NAP provides farmers growing eligible crops with protection that is comparable to the catastrophic risk protection plan provided by crop insurance," Fuller said. This fall, FSA announced sign-up dates for disaster assistance programs approved in the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007. The Crop Disaster Program provides benefits to farmers who suffered quantity losses to the 2005-2007 crops from natural disasters and related conditions. The Livestock Compensation Program provides benefits to livestock producers who suffered feed losses or incurred additional feed costs directly resulting from natural disasters occurring between Jan. 1, 2005, and Dec. 31, 2007. The Livestock Indemnity Program provides benefits to livestock producers for livestock deaths caused by natural disasters that occurred between Jan. 1, 2005, and Dec. 31, 2007. For LCP and LIP, the disaster declaration must have been made between Jan. 1, 2005 and Dec. 31, 2007. A sign-up ending date for CDP, LCP or LIP has not been announced.

--Emergency Loans. FSA provides emergency loans to help cover production and physical losses in counties declared disaster areas by the president, or designated as such by the secretary of agriculture or the FSA administrator. Emergency loans are also available in counties that are contiguous to a declared area. The interest rate is 3.75 percent.

--Emergency Conservation Program. Emergency cost-share funding is available in some circumstances for farmers to rehabilitate farmland damaged by natural disasters. The natural disaster must have created new conservation problems that, if not treated, would impair or endanger the land. It must also have affected the productive capacity of the land and represent unusual damage that is not likely to recur frequently in the same area. Finally, it must be so costly that federal assistance is required to return the land to productive agriculture use

--Conservation Programs. The Conservation Reserve Program protects the nation's most fragile farmland by encouraging farmers to stop growing crops on highly erodible and environmentally sensitive land. Owners receive an annual rental payment in exchange for planting a protective cover of grass or trees on the land. CRP offers under a general CRP Sign-up are only accepted during an announced sign-up period. Under the continuous sign up provisions, producers can enroll eligible land at any time.

--Marketing Assistance Loans. This commodity loan program is for barley, corn, honey, grain sorghum, lentils, wool and mohair, oats, oilseeds (including soybeans), peanuts, wheat, and upland cotton. "This program provides short-term loans that allow producers to borrow the value of their crops and use the crops as collateral," Fuller said. In lieu of a commodity loan, producers may request loan deficiency payments when the Posted County Price is below the County Loan Rate for a specific commodity.

--Farm Storage Facility Loans. Loans are available to build or upgrade farm storage and handling facilities. Loans have a maximum term of seven years. The current interest rate is 3.5 percent for those applications approved in February 2008.

Applicants must meet the eligibility requirements for a given program before FSA can extend program benefits. For more information on these programs and other programs available through FSA, contact the Farm Service Agency at the county USDA Service Center, or on the Internet at www.fsa.usda.gov/ks. USDA is an equal opportunity employer and provider.

3/10/08
1 Star WK\15-B

Date: 3/4/08


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