USDA Update

By Rod Johnson

The interest rate for commodity loans disbursed in July is 3.000 percent per annum. The interest rate for farm stored facility loans "approved pending funding" in July is 4.375 percent per annum.

If you intend to use the Commodity Credit Corporation (CCC) Loan or Loan Deficiency Payment (LDP) program for your 2004 crops, you must maintain beneficial interest in the commodity through the date the loan is repaid or through the date of the request for LDP’s. Beneficial interest is defined as full control of, title to, and risk of loss in the commodity. If you will lose beneficial interest in your crop as soon as it is harvested, you may want to consider applying for LDP prior to harvest by signing form CCC-709. If you will not lose beneficial interest upon harvest and the commodity will be placed in storage, the request for LDP must still be made at the FSA Office prior to the time of sale (loss of beneficial interest) of the crop. Currently no LDP is payable, but the rate changes daily, so before selling your crop you may wish to check the LDP rate.

Colorado State FSA and NRCS representatives recently announced the availability of 1.45 million dollars for the Grassland Reserve Program (GRP) in Colorado. The GRP is designed to help landowners protect grasslands from conversion to other uses and to support continued stewardship on viable, working ranch lands. Applications must be received by July 23, 2004, to be considered for the 2004 funding limit. Grasslands eligible for enrollment may be native grassland, improved rangeland or improved pastureland. Other acreage which may qualify includes land containing forbs or shrubs, or land located in an area historically dominated by grassland. The program has several enrollment options including easements and agreements. Producers can enroll in a permanent or 30-year easement or choose to enroll in a 10, 15, 20, or 30-year

agreement. NRCS will evaluate each offer and rate the eligibility for the land according to specific criteria, including current vegetative cover, susceptibility to urban sprawl, and the potential for conversion to cropland. Landowners whose applications are selected for enrollment in GRP will receive assistance to support grazing operations, to increase and maintain land and animal biodiversity, and to protect grass and range lands under greatest threat of conversion. Due to the limited funding, it is anticipated that the competition for enrollment will be intense. A contract cap will be instituted that will limit easements to a $400,000 maximum and agreements to a $250,000 maximum. If you are interested in making an application, contact the USDA Service Center for further details and assistance.

The election of responsible agricultural producers to FSA county committees is important to ALL farmers and ranchers with large or small operations. It is crucial that every eligible producer take part in this election because county committees are a direct link between the farm community and the U.S. Department of Agriculture. Committee members are a critical component of the day-to-day operations of FSA. They help deliver FSA farm programs at the local level. Farmers who serve on committees help decide the kind of programs their counties will offer. They work to make FSA agricultural programs serve the needs of local producers. Beginning July 15^th, nomination forms for the Kiowa County Committee LAA#2 (Local Administrative Area - the area between Chivington and Galatea) will be available at the FSA office. Leslie Rittgers currently is the representative on the county committee for this area. The nominee must either reside or have their farm headquarters in the LAA#2 area. Individuals may nominate themselves or others as a candidate. The form includes a statement that the candidate agrees to serve if elected. Farm owners, operators, tenants, and sharecroppers of legal voting age can be nominated if they meet the eligibility requirements. The final date to file a nomination form is September 3^rd. The form must be either postmarked or received in the FSA office by close of business that day.