farm loans

Download Your Free Facilitated Lease Discussion Handbook

man's hand holding a pen and signing a paper lease on a desktop

By claudia kenny, statewide director, new york state mediation program

Facilitated lease discussion is a process where landowners and farmers work together to reach arrangements that meet the needs of both groups. A facilitator provides structure, to consider and create plans based on each groups’ priorities.

Facilitators encourage you to communicate what is most important. Throughout discussions, facilitators will focus on understanding you and your context— helping you clarify what you hope to make decisions about and what your desired outcomes are—and will assist you in looking for answers that benefit all parties involved.

During the process, you may need to consult with outside experts and gather information to make informed decisions— for example, the advice of a tax expert or a business consultant.

After your sessions, we recommend a consultation with your lawyer to review any decisions that could affect your lease. We also recommend seeking their help in translating those decisions into legal language, which can then become a part of your formal lease agreement.

Download the free PDF workbook here.

How to Write a Successful Grant for Your Farm Business

man's hand holding a pen and writing in notebook

Looking for grants for your ag business?  CCE Eastern New York has a new recording of a webinar that discussed tips and tricks for writing a successful grant application.

The presenter, Elizabeth Higgins, is an Extension Associate from Cornell Cooperative Extension and a successful grant writer and frequent USDA grant reviewer. The video covered identifying a good project for grant funding, determining if a specific grant actually makes sense for your business, steps you should take to be ready to apply for grants, what makes a project a likely winner and how to write a grant application like a pro.

The program was hosted in September 2023 by the Mid-Hudson Small Business Development Center and the Cornell Cooperative Extension Eastern NY Commercial Horticulture Program. This program is funded in part through a Cooperative Agreement with the U.S. Small Business Administration.

Watch the video for free on YouTube.

USDA Develops Simplified Direct Loan Application

Submitted by the USDA Farm Service Agency

The U.S. Department of Agriculture (USDA) has developed a simplified direct loan application to provide improved customer experience for producers applying for loans from the Farm Service Agency (FSA). The simplified direct loan application enables producers to complete a more streamlined application, reduced from 29 to 13 pages. Producers will also have the option to complete an electronic fillable form or prepare a traditional, paper application for submission to their local FSA farm loan office. The paper and electronic versions of the form will be available starting March 1, 2023.  

  

“USDA is committed to improving our farm loan processes to better serve all of our borrowers,” said FSA Administrator Zach Ducheneaux. “We’re consistently looking for ways to make the application process easier to navigate, so more producers are able to complete it. Our new direct loan application is a critical step forward in our efforts to improve customer service and build equity into not just our programs but also our services.” 

  

Approximately 26,000 producers submit a direct loan application to the FSA annually, but there is a high rate of incomplete or withdrawn applications, due in part to a challenging and lengthy paper-based application process. Coupled with the Loan Assistance Tool released in October 2022, the simplified application will provide all loan applicants access to information regarding the application process and assist them with gathering the correct documents before they begin the process. This new application will help farmers and ranchers submit complete loan applications and reduce the number of incomplete, rejected, or withdrawn applications.   

  

In October 2022, USDA launched the Loan Assistance Tool, an online step-by-step guide that provides materials to help an applicant prepare their farm loan application in one tool. Farmers can access the Loan Assistance Tool by visiting farmers.gov/farm-loan-assistance-tool and clicking the ‘Get Started’ button. The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser. A version compatible with mobile devices is expected to be available by the summer. It does not work in Internet Explorer.    

  

The simplified direct loan application and Loan Assistance Tool are the first of multiple farm loan process improvements that will be available to USDA customers on farmers.gov in the future. Other improvements that are anticipated to launch in 2023 include:   

  • An interactive online direct loan application that gives customers a paperless and electronic signature option, along with the ability to attach supporting documents such as tax returns.    

  • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.   

   

USDA provides access to credit to approximately 115,000 producers who cannot obtain sufficient commercial credit through direct and guaranteed farm loans. With the funds and direction Congress provided in Section 22006 of the Inflation Reduction Act, USDA took action in October 2022 to provide relief to qualifying distressed borrowers while working on making transformational changes to loan servicing so that borrowers are provided the flexibility and opportunities needed to address the inherent risks and unpredictability associated with agricultural operations.   

  

Soon, all direct loan borrowers will receive a letter from USDA describing the circumstances under which additional payments will be made to distressed borrowers and how they can work with their FSA local office to discuss these options. Producers can explore all available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center.  

  

3 New Funding Opportunities for Farms and Farmers’ Markets

Blue skies over a field of strawberries at an upstate New York farm

Read on for how you can apply for new funding opportunities through the USDA.

 

$700,000 Available to Support New York’s Farmers’ Markets

New York has more than 400 farmers’ markets, 250 farm stands, and 10 mobile markets. New York State Agriculture Commissioner Richard A. Ball has announced that $700,000 in funding available to New York’s markets through the Farmers’ Market Resiliency Grant Program.

Grant funding will help farmers strengthen their markets and make local food more accessible to consumers by establishing online sales, improving infrastructure, and enhancing marketing and promotion efforts. Funding for the program was included in this year’s enacted budget and is a part of Governor Hochul’s State of the State commitment to New York’s agricultural industry and increasing the resiliency of the state’s food supply chain following COVID-19.

Money is available for projects that help markets build out infrastructure, including booths and signage, and electronic infrastructure like internet platform development for online sales capabilities. Projects can also include marketing and promotion initiatives for markets across the state, expanding their reach to even more consumers.

Eligible applicants include non-profit organizations, local municipalities, business improvement districts, local chambers of commerce, and public benefit corporations that currently operate one or more farmers’ markets in New York State.

For more information on the program and how to apply, visit here. The deadline for proposals is 4:00 p.m. on December 14, 2022. Applications for funding must conform to the format provided in the Grants Gateway

 

$26 Million New York Food for New York Families Program

The US Department of Ag and Markets is now accepting applications for its nearly $26 million New York Food for New York Families program. The program, which is funded through the USDA, will provide a boost to New York farmers, increase communities’ access to local foods, and further enhance the resiliency of New York’s food system. 

 

The main goals of the program are to establish and broaden partnerships between New York farmers/producers, the food distribution community and local food networks to ensure distribution of fresh nutritious foods in rural, remote, and/or underserved areas; improve food access for underserved communities by considering regional challenges; and support local and traditionally disadvantaged farmers/producers by expanding and creating marketing and economic opportunities. Eligible applicants include not-for-profit organizations, agricultural cooperatives, tribal organizations, public educational institutions and local or municipal governments.

 

Applications are due January 18, 2023. Additional information is available here.

 

Natural Disaster Emergency Loans

This Secretarial natural disaster designation allows the United States Department of Agriculture (USDA) Farm Service Agency (FSA) to extend much-needed emergency credit to producers recovering from natural disasters through emergency loans. Emergency loans can be used to meet various recovery needs including the replacement of essential items such as equipment or livestock, reorganization of a farming operation, or the refinance of certain debts. FSA will review the loans based on the extent of losses, security available and repayment ability.

 

According to the U.S. Drought Monitor, these counties suffered from a drought intensity value during the growing season of 1) D2 Drought-Severe for 8 or more consecutive weeks or 2) D3 Drought-Extreme or D4 Drought-Exceptional:

  • Ulster (primary county eligible)

  • Columbia

  • Delaware

  • Dutchess

  • Greene

  • Orange

  • Sullivan

 

The application deadline is June 12, 2023. On farmers.gov, the Disaster Assistance Discovery ToolDisaster Assistance-at-a-Glance fact sheet, and Farm Loan Discovery Tool can help you determine program or loan options. To file a Notice of Loss or to ask questions about available programs, contact your local  USDA Service Center.