Don't forget to file for adjusted gross income
Mar 10, 2018 at 10:00 AM
Certification to receive Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) payments, Loan Deficiency Payments (LDPs) and Market Gains on Marketing Assistance Loans (MALs). LDPs will not be paid until all eligible producers, including landowners who share in the crop, have filed a valid CCC-941. Producers without a valid CCC-941 certifying their compliance with the average adjusted gross income provisions will not receive payments that have been processed.
All farm operator/tenants/owners who have not filed a CCC-941 and have pending payments should IMMEDIATELY file the form with their recording county FSA office. Farm operators and tenants are encouraged to ensure that their landowners have filed the form. FSA can accept the CCC-941 for 2015, 2016, 2017 and 2018. Unlike the past, producers must have the CCC-941 certifying their AGI compliance before any payments can be issued.
In other news...
Guaranteed loan program: FSA guaranteed loans allow lenders to provide agricultural credit to farmers who do not meet the lender’s normal underwriting criteria. Farmers and producers apply for a guaranteed loan through a lender, and the lender arranges for the guarantee. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. Guaranteed loans can be used for both farm ownership and operating purposes. Guaranteed farm ownership loans can be used to purchase farmland, construct or repair buildings, develop farmland to promote soil and water conservation or to refinance debt. Guaranteed operating loans can be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance and other operating expenses. FSA can guarantee farm ownership and operating loans up to $1,399,000. Repayment terms vary depending on the type of loan, collateral and the producer’s ability to repay the loan. Operating loans are normally repaid within seven years and farm ownership loans are not to exceed 40 years. Please contact your lender or local FSA farm loan office for more information on guaranteed loans.
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Loans available for small-scale operators: Options Help More Beginning, Small and Urban Producers Gain Access to Credit A streamlined version of USDA guaranteed loans, which are tailored for smaller scale farms and urban producers is now available. The program, called EZ Guarantee Loans, uses a simplified application process to help beginning, small, underserved and family farmers apply for loans of up to $100,000 from USDA-approved lenders to purchase farmland or finance agricultural operations. USDA also unveiled a new category of lenders that will join traditional lenders, such as banks and credit unions, in offering USDA EZ Guarantee Loans.
Microlenders, which include Community Development Financial Institutions and Rural Rehabilitation Corporations, will be able to offer their customers up to $50,000 of EZ Guaranteed Loans, helping to reach urban areas and underserved producers. Banks, credit unions and other traditional USDA-approved lenders, can offer customers up to $100,000 to help with agricultural operation costs. EZ Guarantee Loans offer lower interest rates that are determined by the lender, but must be below maximum levels established by FSA. USDA-approved lenders can issue these loans with the Farm Service Agency (FSA) guaranteeing the loan up to 95 percent. Individuals interested in applying for a FSA EZ Guarantee loan or would like to discuss other farm loan programs available, should contact their FSA County office to setup an appointment with a Loan Approval Official.