USDA Texas Farm Service Agency (FSA) Executive Director Juan M. Garcia reminds producers that, in order to receive USDA program payments, each payment recipient must have an Adjusted Gross Income (AGI) verification consent form on file with the Internal Revenue Service (IRS).
The consent form authorizes IRS to verify for FSA whether a payment recipient’s AGI meets the eligibility requirements for FSA programs. The form became a requirement for payment eligibility beginning with the 2009 crop year; however, many program participants have not complied with this requirement.
"IRS and USDA reports show that, nationwide, FSA is still missing the required consent forms from many producers for 2009 and 2010," said Garcia. “In order to avoid an interruption of program payments, producers need to check their business records and turn these forms in to the IRS immediately if they have not done so already," he said.
IRS requires written consent from all individuals or legal entities before verification of the average AGI can be provided to USDA. Individuals must submit form CCC-927and legal entities must submit form CCC-928. Without these forms on file, producers will not receive USDA program payments.
Garcia further clarifies that these consent forms are required for payments received from the Natural Resources Conservation Service (NRCS) as well as those received through FSA. Completed forms must be returned to the IRS.
Garcia also reminds eligible ranchers and livestock producers of the Jan. 30, 2012,deadline for applying for benefits under the provisions of the Livestock Forage Disaster Program (LFP) for losses incurred during the 2011 crop year. In addition to the counties that became eligible earlier in the year, Callahan, Randall and Wise Counties met the trigger requirements for small grains, native pasture and improved pasture.
LFP provides payments to eligible livestock producers that have suffered livestock grazing losses due to qualifying drought or fire. Fire losses apply only to federally managed rangeland. Eligible livestock under LFP include beef cattle, alpacas, buffalo, beefalo, dairy cattle, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep and swine. For losses due to drought, qualifying drought ratings are determined using the U.S. Drought Monitor located at http://www.drought.unl.edu/dm/monitor.html.
“It is imperative that livestock producers meet this deadline for disaster assistance as there are no late file provisions for LFP,” said Garcia. “To ensure a smooth application process, producers should have all required supporting documentation with them at the time they visit our office to apply for benefits,” he said.
In order for an LFP applicant to qualify for program benefits, the applicant must have purchased insurance coverage through FSA’s Noninsured Crop Disaster Assistance Program (NAP) or the Pasture, Rangeland and Forage Insurance-Rainfall Index for Grazing (PRF-RI) program offered through the Risk Management Agency (RMA).
Producers who meet the requirements of a socially disadvantaged, limited resource, or beginning farmers or ranchers, as defined in the Food, Agriculture, Conservation, and Trade Act of 1990, Section 2501 (e) (7 U.S.C. 2279(e)), do not have to meet this Risk Management Purchase Requirement (RMPR).
LFP program applicants should note that in addition to risk management provisions, certain payment limitation and adjusted gross income eligibility requirements must be met in order to qualify for livestock disaster program benefits.
For more information, county eligibility questions or to apply for LFP and other USDA Farm Service Agency disaster assistance programs, please contact your local FSA office. Information can also be obtained on line at http://www.fsa.usda.gov.