USDA UPDATE

By Rod Johnson

October 24, 2003

The U.S. Department of Agriculture's Farm Service Agency (FSA) makes loans to individual rural youths age 10 through 20 to establish and operate income producing projects. These projects must be of modest size and be initiated, developed, and carried out by rural youths participating in 4-H Clubs, FFA or similar organizations, or with a vocational teacher or county extension agent. The project must be an organized and supervised program of work. It must be planned and operated with the assistance of the organization advisor, produce significant income to repay the loan, and provide the youth with practical business and educational experience. Contact the Kiowa County FSA office for details.

Recent legislation provides that a person owing a delinquent non-tax debt to the Federal Government is ineligible for Federal assistance including direct loans (other than disaster loans) or loan insurance or guarantee. Producers with any delinquent Federal non-tax debts are ineligible for Loan Deficiency Payments (LDP's) and Marketing Assistance Loans. Producers requesting loans or LDP's will be required to certify their eligibility.

A husband and wife may sign documents on behalf of each other for FSA and Commodity Credit Corporation programs in which either has an interest. This option is automatically available unless a written request for exclusion is made to the County Office from either spouse. Exceptions include: claim settlements and lien filings.

The Farm Security and Rural Investment Act of 2002 provides for counter-cyclical payments. Advance counter-cyclical payments are to be issued in October and February following the crop year. The 2003 advance counter-cyclical payment rates have been announced. The rates are as follows: Wheat $.09, Corn $.22, and Sorghum $.04. Producers who requested to receive a counter-cyclical advance will be paid at 35 percent of the payment rate. If applicable, a second 35 percent advance will be issued in February 2004. Kiowa County FSA currently does not have anyone who has requested an advance, however, if you would like to make such a request, please contact our office.