USDA temporarily reopens FSA offices during government shutdown

(Updated Jan. 18, 2019)

Agriculture Secretary Sonny Perdue on Jan. 16 announced that about half of Farm Service Agency (FSA) personnel temporarily will return to work to reopen offices to perform limited services for farmers and ranchers.

FSA offices in certain locations reopened on Thursday, Jan. 17; Friday, Jan. 18; and will re-open Tuesday, Jan. 22. Among other things, during these three days, FSA staff is available to release proceeds from the sale of loan security by signing checks jointly payable to FSA that are brought to the county office by producers.

The re-opening of FSA offices for three days provides a short-term alternative to the guidance provided last week by FSA Administrator Richard Fordyce on issuing checks to farmers with Commodity Credit Corporation liens during the federal government shutdown. Fordyce, in a Jan. 10 email to NGFA, said his agency had issued guidance to its state and county offices prior to the shutdown. The guidance said that for farm-stored grain under loan, FSA will allow the producer to market and/or move the grain “as long as they come into or call the FSA office after we return (from the shutdown) to complete a form CCC-681-1.” After receiving Fordyce’s communication, the NGFA has sought additional “ironclad” assurances from FSA that CCC will not take action against grain buyers if producers do not follow through on completing the CCC-681-1 form or do not repay the portion of the loan owed to CCC. As of yet, NGFA has not received a reply from FSA on that matter.

USDA noted in its Jan. 16 announcement that during the temporary opening, FSA staff will be available to assist agricultural producers with existing farm loans and to ensure the agency provides 1099 tax documents to borrowers by the Internal Revenue Service’s deadline.

“Until Congress sends President Trump an appropriations bill in the form that he will sign, we are doing our best to minimize the impact of the partial federal funding lapse on America’s agricultural producers,” Agriculture Sonny Perdue said in a press release. “We are bringing back part of our FSA team to help producers with existing farm loans.  Meanwhile, we continue to examine our legal authorities to ensure we are providing services to our customers to the greatest extent possible during the shutdown.”

In addition, USDA said farmers who have loan deadlines during the lapse in funding do not need to make payments until the government shutdown ends.

Trade Mitigation Payments: Perdue on Jan. 8 extended the deadline for producers to apply for trade mitigation payments designed to assist farmers suffering economic harm from trade retaliation by foreign nations in response to President Trump’s imposition of tariffs. The original deadline to apply for Market Facilitation Program (MFP) payments had been Jan. 15, 2019, but farmers have been unable to do so since the lapse in federal funding resulted in the closure of FSA offices on Dec. 28. Perdue has extended the MFP application deadline for a period of time equal to the number of business days FSA offices end up being closed, once the government shutdown ends. The three announced days of limited staff availability during the shutdown will not constitute days open in calculating the extension, USDA noted. Producers who already applied for MFP and certified their 2018 production by Dec. 28 should have already received their payments, according to USDA.

Agriculture Secretary Sonny Perdue on Jan. 16 announced that a little more than half of Farm Service Agency (FSA) offices will reopen temporarily to perform limited services for farmers and ranchers.

FSA offices in certain locations will re-open on Thursday, Jan. 17; Friday, Jan. 18; and Tuesday, Jan. 22. Among other things, during these three days, FSA staff will be available to release proceeds from the sale of loan security by signing checks jointly payable to FSA that are brought to the county office by producers.

The re-opening of FSA offices for three days provides a short-term alternative to the guidance provided last week by FSA Administrator Richard Fordyce on issuing checks to farmers with Commodity Credit Corporation liens during the federal government shutdown. Fordyce, in a Jan. 10 email to NGFA, said his agency had issued guidance to its state and county offices prior to the shutdown. The guidance said that for farm-stored grain under loan, FSA will allow the producer to market and/or move the grain “as long as they come into or call the FSA office after we return (from the shutdown) to complete a form CCC-681-1.” Subsequent to receiving Fordyce’s communication, the NGFA has sought additional “ironclad” assurances from FSA that CCC will not take action against grain buyers if producers do not follow through on completing the CCC-681-1 form or do not repay the portion of the loan owed to CCC. As of today, NGFA has not received a reply from FSA on that matter.

USDA noted in its Jan. 16 announcement that during the next three business days, FSA staff will be available to assist agricultural producers with existing farm loans and to ensure the agency provides 1099 tax documents to borrowers by the Internal Revenue Service’s deadline.

“Until Congress sends President Trump an appropriations bill in the form that he will sign, we are doing our best to minimize the impact of the partial federal funding lapse on America’s agricultural producers,” Agriculture Sonny Perdue said in a press release. “We are bringing back part of our FSA team to help producers with existing farm loans.  Meanwhile, we continue to examine our legal authorities to ensure we are providing services to our customers to the greatest extent possible during the shutdown.”

Producers can begin contacting FSA staff on Jan. 17 here.   

Additionally, USDA said farmers who have loan deadlines during the lapse in funding do not need to make payments until the government shutdown ends.

Trade Mitigation Payments: Perdue on Jan. 8 extended the deadline for producers to apply for trade mitigation payments designed to assist farmers suffering economic harm from trade retaliation by foreign nations in response to President Trump’s imposition of tariffs. The original deadline to apply for Market Facilitation Program (MFP) payments had been Jan. 15, 2019, but farmers have been unable to do so since the lapse in federal funding resulted in the closure of FSA offices on Dec. 28. Perdue has extended the MFP application deadline for a period of time equal to the number of business days FSA offices end up being closed, once the government shutdown ends. The three announced days of limited staff availability during the shutdown will not constitute days open in calculating the extension, USDA noted. Producers who already applied for MFP and certified their 2018 production by Dec. 28 should have already received their payments, according to USDA.