Farm Bill and Dairy Margin Coverage (DMC) program Update

Just before Thanksgiving and just in time, Congress passed a stop-gap funding bill that averted a government shutdown. That bill also included language to extend the current Farm Bill, which was established in 2018, until October 2024. With Farm Bill legislation set to renew every five years, House and Senate Agriculture Committee Chairs Glenn Thompson and Debbie Stabenow began negotiations to draft a new Farm Bill nearly a year ago. However, with upheaval in Congress and other issues taking precedence right now, it became clear earlier this fall that time was running out to get the new bill to the finish line before December 31 when the programs authorized under the Farm Bill would expire.



With the Farm Bill extension, Congress also extended the Dairy Margin Coverage safety net for 2024, incorporating the 2019 production history update, which was previously known as the Supplemental Dairy Margin Coverage, into the underlying DMC Program. Dairy farm families can expect DMC enrollment for the 2024 Program Year to open within the coming weeks. While DMC margins haven’t been projected yet for the coming year, the program has netted nearly $58,000 in indemnity payments for each one million pounds of milk covered during the five-year period from 2019 – 2023.

USDA Designates Two More Counties in Western Washington as Primary Natural Disaster Areas for Drought

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 to refinance 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 eight or more consecutive weeks or 2) D3 Drought-Extreme or D4 Drought-Exceptional.

Triggering Disaster: Drought

Impacted Area: Washington

Application Deadline: 7/08/2024

Primary Counties Eligible: Clallam and Jefferson

Contiguous Counties Also Eligible: Grays Harbor, Island, Kitsap, and Mason

USDA Makes Producer-Friendly Change to 2023 Notice of Loss Requirements for Two Livestock Disaster Assistance Programs

The U.S. Department of Agriculture (USDA) has waived certain notice of loss requirements for 2023 for the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish (ELAP) and Livestock Indemnity Program (LIP). In an effort to streamline assistance to support access to critical 2023 natural disaster recovery assistance, USDA’s Farm Service Agency (FSA) is waiving the requirement to submit ELAP or LIP notices of loss within a pre-determined number of days for 2023. Instead, producers have the flexibility to submit 2023 notices of loss as soon as possible, once losses are realized, following a natural disaster event or no later than the established annual program application for payment deadlines for each program. FSA county committees are also being asked to re-evaluate 2023 ELAP and LIP late-filed notices of loss to determine if the waiver applies. 

“Our goal is to get producers into these disaster programs, and they are always encouraged to turn in an application if they believe they are eligible,” said FSA Administrator Zach Ducheneaux. “Program improvements are only effective if we ensure producers have sufficient time and information needed to submit their application. The ELAP and LIP waivers we are announcing today, in response to historic disasters in 2023, improve efficiencies for producers and our staff, are responsive to feedback about confusion regarding program timelines and are intended to give our staff the time needed to deliver the right support to producers when they need it most. These waivers are also reflective of FSA’s efforts to integrate improvements and accessibility into our policy decisions. It’s critical that we increase awareness of these program flexibilities so all producers can participate.”  

Rural Energy For America Program

The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

How may the funds be used?

Funds may be used for the purchase and installation of renewable energy systems, such as:

• Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
• Geothermal for electric generation or direct use.
• Hydropower below 30 megawatts.
• Hydrogen.
• Small and large wind generation.
• Small and large solar generation.
• Ocean (tidal, current, thermal) generation.

Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:

• High efficiency heating, ventilation and air conditioning systems (HVAC).
• Insulation.
• Lighting.
• Cooling or refrigeration units.
• Doors and windows.
• Electric, solar or gravity pumps for sprinkler pivots.
• Switching from a diesel to electric irrigation motor.
• Replacement of energy-inefficient equipment.

Energy Efficiency Improvement applications must contain an Energy Audit, or Energy Assessment (depending on Total Project Costs) that complies with Appendix A to RD Instructions 4280-B

Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.

Funding for the USDA's Rural Energy for America Program (REAP) Grant program has increased tenfold and they are now offering to pay for 50% of the cost to install a solar system. When one adds a 30% to 40% Federal Tax Credit and in many cases an Energy Trust incentive too, the simple payback on solar can be about a year. Perhaps more importantly, each net $1 invested should save $20 plus on future power bills.

Emergency Assistance for Livestock, Honey Bees, and Farm Raised Fish

ELAP provides financial assistance to eligible producers of livestock, honeybees and farm-raised fish for losses due to disease, certain adverse weather events or loss conditions, including blizzards and wildfires, as determined by the Secretary. ELAP assistance is provided for losses not covered by other disaster assistance programs authorized by the 2014 Farm Bill and the Bipartisan Budget Act of 2018, such as losses not covered by the Livestock Forage Disaster Program (LFP) and the Livestock Indemnity Program (LIP).

Assistance for Feed Transportation Costs

In 2021, USDA updated ELAP policy to help cover the cost of transporting feed for livestock that rely on grazing. USDA has expanded the program to help ranchers cover above normal costs of hauling livestock to forage or other grazing acres. This includes places where:

• Drought intensity is D2 for eight consecutive weeks as indicated by the U.S. Drought Monitor;  
• Drought intensity is D3 or greater; or  
• USDA has determined a shortage of local or regional feed availability. 



An online tool is now available to help ranchers document and estimate payments to cover feed transportation costs caused by drought. Download the tool. If you have questions, a demonstration video are available

The deadline to request all ELAP assistance for 2023 calendar year losses will be Jan. 30, 2024.