End rows Nov. 2, 2010

Tuesday, November 2, 2010

November interest rates

The Farm Storage Facility Loan program is a program that provides low-interest financing for producers to build or upgrade farm storage and handling facilities.

Interest rates for Farm Storage Facility Loans approved for November 2010 are as follows,

1.875 percent with seven-year loan terms, down from 2.125 in October 2010, 2.5 percent with 10-year loan terms, down from 2.625 in October 2010, and 2.750 percent with 12-year loan terms, down from 2.875 percent in October 2010.

The current commodity loan rate is 1.250-Unchanged from the October interest rate

These loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.

Average Crop Revenue Election (ACRE) payments to go out

Under the ACRE program, producers may receive revenue-based payments as an alternative to receiving price-based counter-cyclical (CC) payments. ACRE is an option that is used in conjunction with DCP.

For this area, Eligible crops include: wheat, barley, oats, grain sorghum, corn and soybeans

ACRE payments are tied to crop production and the National Average Market Price for planted, and considered planted, covered commodity crops on the farm. ACRE payment acreage is limited to the total amount of base acres on the farm, and can only be issued for a crop if both the state and farm level triggers are met for the covered commodity.

Once elected into ACRE, the farm will stay in the program until 2012.

If ACRE is elected, a 20% reduction in DCP direct payments will be In addition, Counter cyclical payments will be forgone. Along with a 30% reduction in marketing assistance loan rates.

Producers who enrolled in 2009 ACRE and planted wheat, will receive an ACRE payment during November for their 2009 crop year.

Specifically, Saline County's producers who enrolled in ACRE for 2009 and planted wheat, will receive payments that range from $55-75/acre.

Producers can still elect into ACRE for the 2011-2012 crop years.

Highly erodible land and wetland consservation


Landowners and operators are reminded that in order to receive payments from

USDA, compliance with Highly Erodible Land (HEL) and Wetland Conservation (WC) provisions are required.

Farmers with HEL determined soils are reminded of tillage, crop residue and rotation requirements as specified per their conservation plan.

Contact should be made to the USDA service center prior to conducting land clearing or drainage projects to insure compliance, which may be recorded on for AD-1026.