FSA: Penalty-Free Early Termination Available for Expiring CRP Contracts

The Farm Service Agency is building some flexibility into the Conservation Reserve Program for producers with expiring contracts. Zach Ducheneaux, the administrator of the Farm Service Agency, says producers are typically allowed to ask for early contract termination, but there is a penalty. The agency is eliminating that penalty for 2022.

“This year, we’re going to allow them to apply for that voluntary termination of their CRP contract starting after the primary nesting season, do those practices to get that property ready for whatever production is to come, without any reduction in payments.”

He talks about why the agency made the move.

“We want to make sure that we’re putting the producers in the best position to take advantage of any opportunities to help meet global food demand and realize the benefits of the crop prices where they’re at now. So, if they can get in there a little early and get things ready for the coming production season, so much the better.”

The Emergency Relief Program authorized in September 2021 is beginning to send out relief payments.

“We announced that letters are going out to producers: a little over 300,000 producers will be receiving letters in the mail. Make sure you check your mail and look for the national office stamp on it. And in phase one, the producer will receive this prefilled application form; on it will be information that we have secured from our sister agency, RMA, who received the information from the AIPs. The producer can look those figures over, verify them with their insurance agent or their AIP, and check a box agreeing to linkage if a risk management product is available. Sign it and send it back in or take it back to the county office. We will punch it in, and payment will be coming soon.”

%d bloggers like this: