FSA Advises producers to anticipate payment reductions due to mandated sequester

March 11, 2014

USDA’s Farm Service Agency (FSA) is reminding farmers and ranchers who participate in FSA programs to plan accordingly in FY2014 for automatic spending reductions known as sequestration. The Budget Control Act of 2011 (BCA) mandates that federal agencies implement automatic, annual reductions to discretionary and mandatory spending limits. For mandatory programs, the sequestration rate for FY2014 is 7.2%. Accordingly, FSA is implementing varying sequestration rates for the following programs:

• Dairy Indemnity Payment Program;

• Marketing Assistance Loans;

• Loan Deficiency Payments;

• Noninsured Crop Disaster Assistance Program;

• Tobacco Transition Payment Program;

• 2013 Direct and Counter-Cyclical Payments;

• 2013 Average Crop Revenue Election Program;

• 2011 and 2012 Supplemental Revenue Assistance Program;

Conservation Reserve Program payments are specifically exempt by statute from sequestration, thus these payments will not be reduced.

These sequester percentages reflect current law estimates; however with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction. Today’s announcement intends to help producers plan for the impact of sequestration cuts in FY2014.

At this time, FSA is required to implement the sequester reductions. Due to the expiration of the Farm Bill on September 30, FSA does not have the flexibility to cover these payment reductions in the same manner as in FY13. FSA will provide notification as early as practicable on the specific payment reductions.

For information about FSA programs, visit your county USDA Service Center or go to

Morrow County Farm Service Agency Provides Free Online News Service

Keeping up with the times is now a little easier using the Farm Service Agency’s (FSA’s) GovDelivery system. GovDelivery is a one-stop shop for the most up-to-date USDA program information. Through FSA’s GovDelivery electronic news service, participants can choose to receive federal farm program information by topic, state and/or county.

“Producers can select as many subscriber options as they want, which allows producers who farm in multiple counties or across state lines to receive updates from each county in which they operate or have an interest,” stated Angie Thorpe, FSA Executive Director for Morrow County.

Anyone can sign-up for the GovDelivery system to receive free USDA information. The GovDelivery system allows farmers, bankers, crop insurance agents, practically anyone interested in receiving program updates and reminders within USDA agencies to sign-up to receive information electronically. FSA is utilizing GovDelivery to electronically provide agency news updates and program reminders directly to the customer’s inbox, Smartphone and through text messaging.