USDA Update

by Rod Johnson

August 1, 2003

The computer system in the USDA Service Center is still experiencing various intermittent problems. The problems we are having now are at times keeping us from running program forms in the office. If you are traveling any distance to the office, I would suggest you call before coming to the office. We have become so dependent on computers, when they are not working, it causes real delays in the office.

The guidelines for CRP managed haying and grazing should be available shortly. The State NRCS has been finalizing the instructions for modifying CRP Conservation Plans. We still have not received the final word on how long managed haying and grazing will be allowed. Give the FSA or NRCS Office a call if you are interested in beginning haying or grazing as soon as possible. We will contact you as soon as we have the final instructions.

Producers applying for the 2001/2002 Crop Disaster Program may submit documentation to support quality losses on crops. To obtain a quality loss adjustment on the disaster application, the quality loss must be documented with a test from a State university or from a lab approved by the Colorado State FSA Committee. The documentation must show grade and other discount factors. The low quality must have been a result of an eligible disaster condition. Samples of crops that have not previously been disposed of must be submitted to an approved lab no later than August 25, 2003.

The Debt Collection Improvement Act of 1996 (DCIA) provides that a person owing a delinquent non-tax debt to the Federal Government is ineligible for Federal financial assistance including many loans. Persons with delinquent Federal debt are ineligible for crop loans, Loan Deficiency Payments (LDP's), and other FSA loan assistance (other than disaster loans). A question has been added to the LDP application asking if the producer has delinquent Federal debt.

Producers who violate the terms and conditions of Crop Loan or Loan Deficiency Payment (LDP) contracts will be require to repay disbursed amounts with interest and may also subject to liquidated damages and other administrative actions. Violations include such things as providing incorrect certifications of production, removing or disposing of a commodity that is collateral for a loan and violations of any other terms and conditions of the loan contract.