USDA Update

By Rod Johnson

January 30, 2004

A link has been provided to USDA’s "KIDS’ CORNER" site on the Kiowa County FSA Offices’ web site. This is a fun, informative and educational web site for children of all ages. The Kiowa County FSA web site also has an archive of the USDA Update articles published in the Kiowa County Press newspaper. The web address is: http://www.fsa.usda.gov/co/County%20Webs/Kiowa_county.htm

Friday, January 30, 2004 is the final date to sign-up for the 2001/2002 Crop Disaster Program. FSA Offices have been working on this program since June, 2003. Hopefully we have received applications from everyone who is eligible. It has been a difficult program to administer but it really helped put some money back in the local economy that has been lost due to the record setting drought of the past few years. Kiowa County FSA has currently paid out over $7,340,313. Colorado FSA Offices have issued a total of $97,501,395.

Mark your calendars for Tuesday, February 10. CSU Cooperative Extension is hosting a workshop on SITE SPECIFIC FARMING. This workshop will provide the latest information about using GPS and GIS tools that farmers can use to increase net returns. The workshop will focus on how to get more than "just pretty pictures" from the new technology. The Kiowa and Prowers Counties FSA Office Staffs will also give an update on the new digital photography and how it will benefit agricultural producers. The meeting starts at 1:00 pm in the Trustee’s Building of Lamar Community College, room 121. There is a $10 registration fee that includes a roast beef dinner at 6:00 pm. Please preregister at the CSU Cooperative Extension in Eads, 719-438-5321 by February 3.

All participants in USDA programs are required to have a conservation system in place on all highly erodible land (HEL). Several areas where compliance problems can arise include: renting new cropland, purchasing new land, breaking out additional cropland, changing cropping rotations, and changing or removing existing conservation practices. It is very important that you contact the FSA and/or NRCS office before doing any of the above. Also, it is very important that you contact our office before modifying - tiling, draining, dredging, filling or leveling - any wetland or drainage ditch. Failure to obtain advance approval for any of these actions may result in loss of all Federal payments and eligibility.

CCC-502s (Farm Operating Plan for Payment Eligibility Review) and related forms are subject to spot check through an end-of-year review process. If selected for a spot check, producers will be asked to submit proof of their contribution to the operation such as seed, fertilizer and chemical bills, land lease agreements, land contracts or property tax payments, equipment lists, cancelled checks for paid labor or hired management and any other items the FSA County Committee determines are necessary.

The producer is required to provide these documents for the spot check so that the FSA County Committee can make a determination that the farming operation is actually being performed as was stated on the applicable CCC-501 or CCC-502 that was originally completed.

The status of an individual or entity on April 1 of the applicable program year is the basis for determining the number of "persons" for payment limitation purposes for that year. Actions taken by an individual or entity after that date to increase the number of "persons" will not be recognized for the current program. For example, if an individual holds more than 50 percent interest in a corporation, as of the status date, the individual and entity will be considered one "person" for the applicable year.

A "person" for payment limitation purposes may be: an individual; a limited liability partnership; a limited liability company; a corporation; a joint stock company; an association; a limited stock company; a limited partnership; an irrevocable trust; a revocable trust together with the grantor of the trust, an estate; a charitable organization; and a State, political subdivision, or agency thereof or any grouping of entities and individuals with substantial interest in more than one entity.

For an individual or entity to be considered a separate "person", the individual or entity must have a separate and distinct interest in the land or crop involved, exercise separate responsibility for this interest, and maintains funds or accounts separate from that of any other individual or entity for this interest. An individual may select no more than three "permitted entities" through which payments are earned.

Any person who is convicted under federal or state law of a controlled substance violation could be ineligible for USDA payments or benefits for one or more years. Violations include planting, harvesting or growing a prohibited plant. Prohibited plants include marijuana, opium poppies and other drug producing plants. Additional controlled substance requirements for certain USDA programs could include violations for possession and distribution.