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Thinking about selling land that’s enrolled in the CRP? Here’s what you should know

By Diana Strouse • Sep 30, 2017 at 12:00 PM

For anyone who may have missed it our 2017 County Committee Election is under way.

For the producers and landowners or producers in LAA 1 in Huron County which encompasses the Townships of Greenfield, Lyme, Norwich, Peru, Ridgefield and Sherman you will be voting for either John Fries or Gerald Bollenbacher.

If you are a landowner or producer in LAA 5 of Erie County which includes the Townships of Berlin, Florence, Milan and Vermilion, you will be voting for either Howard Schuster or Marty DeMuth. Eligible voters will receive their ballots by mail around November 6 th and they must be returned to our office or postmarked by Dec. 4. If you have any questions in regard to the voting process, who is eligible or about what your county committee does don’t hesitate to give our office a call.

In other news:

Thinking about selling land that’s enrolled in the CRP?: If you plan to sell farmland that’s enrolled in the Conservation Reserve Program (CRP), our office would like to remind you about the terms and conditions of your contract. Under the CRP program, the original contract (CRP-1) will need to be revised to reflect the change in participants and/or shares on the contract. The new CRP participant(s) must sign a revised contract within 60 calendar days from the date of notification by the county committee or county executive director.

If a revised contract isn’t signed within the 60-day time frame, the contract will be terminated with respect to the affected portions of such land and the original CRP participant will be held liable. If the new landowner elects not to continue the CRP contract, the contract will be terminated. When a contract is terminated, refund of the following payments plus interest is required from the original CRP participant: all annual rental payments, all cost share payments, signup incentive payments, and practice incentive payments.

Liquidated damages are also assessed. Refunds of payments will not be required in cases where the owner’s estate or the heirs do not succeed to the contract. There are other cases that do not require the refund of payments, when a participant loses control of the land, such as eminent domain. Lastly, contact the Huron/Erie County FSA office before you sell if you have any questions regarding the terms and conditions of your CRP contract.

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FSA offers improved program to limit losses on forages: Reduced forage quality is now considered a production loss for weather disaster assistance coverage under the new buy-up provisions of the FSA Non-insured Crop Disaster Assistance Program (NAP). This safety net is important for cattlemen who produce non-insurable forages for feeding livestock. Previously, FSA only considered a decrease in overall forage tonnage produced when determining if the producer suffered a compensable loss after a qualifying weather event.

Under FSA’s new NAP buy-up provisions, a decrease in forage quality — such as protein content — is also considered. To receive coverage for the 2018 crop year, producers must enroll their eligible forage in NAP by Nov. 20. Beginning, limited resource and targeted underserved farmers or producers are eligible for a waiver of the NAP service fee and a 50 percent premium reduction in buy-up provisions. For more information on NAP, visit www.fsa.usda.gov/nap or contact your local FSA Office.

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Adjusted gross income requirements: 

The average adjusted gross income (AGI) limitation for commodity and disaster programs under the 2014 Farm Bill was changed to a $900,000 limitation from all income sources. A person or legal entity, other than a joint venture or general partnership, is eligible to receive, directly or indirectly, certain program payments or benefits if the average adjusted gross income of the person or legal entity falls below the $900,000 threshold for the three taxable years preceding the most immediately preceding complete taxable year.

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Save time — Make an appointment with FSA 

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.

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Office closed: 

All FSA Offices will be closed on Monday October 9 th in honor of Columbus Day a Federal Holiday. We will resume our normal hours on Tuesday, Oct. 10.

 

Diana Strouse is the county executive director for the Huron and Erie County Farm Service Agency. For more information, call the agency at 419-668-4113.

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