Regional or Local Office: Rural Development, State Office. Telephone numbers should be listed under Government in local telephone books. Visit Web site listed below. Headquarters Office: Deputy Administrator, Cooperative Services, Rural Business-Cooperative Service, U.S. Department of Agriculture, Stop 3250, Washington, DC 20250-3250. Telephone: (202) 720-7558. FAX (202) 720-4641. FTS is not available. Visit Web site listed below. Web Site Address: http://www.rurdev.usda.gov/rbs/coops/csdir.htm. RELATED PROGRAMS: 10.352, Value-Added Producer Grants; 10.771, Rural Cooperative Development Grants. EXAMPLES OF FUNDED PROJECTS: RBS provides technical assistance to help groups organize and establish new cooperatives and conducts advisory assistance to established cooperatives. RBS collects, analyzes and disseminates statistical information on rural cooperatives in the United States and its territories. RBS creates educational materials and conducts workshops about rural cooperatives. RBS conducts specialized applied research about rural and farmer cooperatives. RBS publishes the Rural Cooperatives bimonthly magazine that focuses on rural cooperative events and issues of importance nationally and internationally. CRITERIA FOR SELECTING PROPOSALS: Requests for assistance must come from or on behalf of residents in rural areas of the United States or its territories. 10.352 VALUE-ADDED PRODUCER GRANTS (VAPG) FEDERAL AGENCY: RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Agriculture Risk Protection Act of 2000, Title VII, Public Law 106-224, as amended; The Farm Security and Rural Investment Act of 2002, Title VII, Public Law 107-171. OBJECTIVES: To assist eligible independent agricultural commodity producers, agriculture producer groups, farmer and rancher cooperatives, and majority-controlled producer-based businesses in developing strategies and business plans to further refine or enhance their products, thereby increasing their value to end users and increasing returns to producers. TYPES OF ASSISTANCE: Project Grants. USES AND USE RESTRICTIONS: The VAPG program offers two types of grants. Planning grants provide funding for the activities necessary to determine the viability of a potential value-added venture, including feasibility studies and business plans. Working capital grants provide funds to pay the day-to-day expenses of the venture associated with marketing a value-added product. An application may be for either a Planning Grant or a Working Capital Grant, but not both. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Eligible applicants are independent producers, agriculture producer groups, farmer- and rancher-cooperatives, and majority-controlled producer-based business ventures. Beneficiary Eligibility: Agricultural producers. Credentials/Documentation: Applicants must provide a budget supporting the work plan that details all APPLICATION AND AWARD PROCESS: An environmental impact statement is not required for this program. This program is excluded from coverage under E.O. 12372. Application Procedure: USDA will solicit applications on a competitive basis by publication of a notice in the Federal Register and through the Grants.gov Federal Web site. Unless otherwise specified, applicants must file an original and one copy of the proposal and all required forms or as otherwise instructed in the annual announcement. An applicant must submit Form SF-424, Form SF424A, Form SF-424B, and other information as directed. Each proposal must contain the following elements and any additional elements published in the announcement: (1) Title Page; (2) Table of Contents; (3) Executive Summary, including a clear statement whether the application is for a Planning Grant or a Working Capital Grant and the amount requested; (4) Eligibility; (5) Proposal Narrative including, but not limited to: (i) Project Title; (ii) Information Sheet; (iii) Goals of the Project; (iv) Work Plan; (v) Performance Evaluation Criteria; (vi) Proposal Evaluation Criteria; (6) Verification of Matching Funds; and (7) Certification that matching funds will be available at the same time grant funds are anticipated to be spent and that matching funds will be spent in advance of grant funding. Award Procedure: The Agency conducts an initial screening of all proposals to determine eligibility and completeness to allow for an informed review. Applications will be evaluated by experts selected by the Agency. After evaluation and scoring according to established criteria, the Administrator of Rural Business Cooperative Service reserves the right to award limited additional points: to ensure geographic distribution, for innovative projects, or to projects in underserved areas. Applications are funded in rank order until all available funds have been obligated. Final processing of the awards and monitoring of projects are the responsibility of the appropriate Rural Development State Office. Deadlines: Published in the Federal Register. Range of Approval/Disapproval Time: From 100 to 150 days after the application is filed with the Rural Development-Cooperative Programs National Office. Appeals: Applicants may appeal any adverse decisions to USDA's National Appeals Division. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: 7 CFR 4284.908 Use of grant and matching funds: (b) Grant funds may be used to pay up to 50 percent costs. Applicants will be required to contribute at least 50 percent in cash or in-kind contributions. The maximum grant amount of a planning grant is $100,000 and of a working capital grant is $300,000. Matching funds include cash or confirmed funding commitments from non-Federal sources. In-kind contributions that conform to the provisions of 7 CFR 3015.50 and 7 CFR 3019.23, as applicable, can be used as matching funds. Examples of in-kind contributions include volunteer services furnished by professional and technical personnel, donated supplies and equipment, and donated office space. Matching funds must be provided in advance of grant funding such that for every dollar of grant advanced not less than an equal amount of matching funds shall have been funded prior to submitting the request for reimbursement. Matching funds are subject to the same use restrictions as grant funds. Funds used for an ineligible purpose will not be considered matching funds. Length and Time Phasing of Assistance: Grant funds may be disbursed over a period of a year after obligation. Nocost extensions may be granted on a limited basis at the discretion of the Agency. POST ASSISTANCE REQUIREMENTS: Progress reports must be submitted to the Rural Development State Office as specified in the grant agreement. A final report must be submitted to the Rural Development State Office within 90 days after the project has been completed. Audits: In accordance with the provisions of OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations, non-Federal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular A-133. Those non-Federal entities exempt from Circular A-133 are subject to the audit requirements outlined in the Grant Agreement. Records: The Grantee will maintain adequate records and accounts to assure that grant and matching funds are used for authorized purposes. Records required by Federal law and regulations will also be maintained by the Rural Development State Office and the Rural Development-Cooperative Programs National Office. FINANCIAL INFORMATION: Account Identification: 12-1900-0-1-452. Obligations: VAPG awards by Fiscal Year (FY) FY 05 $14,600,000; FY 06 est $15,500,000; and FY 07 est $19,280,000. Range and Average of Financial Assistance: Grants can be awarded for any amount up to $100,000 for Planning Grants and upt to $300,000 for Working Capital Grants. PROGRAM ACCOMPLISHMENTS: Fiscal year 2005 funds were awarded to 172 recipients. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR Parts 1951; 7 CFR 3015; 7 CFR 3019; 7 CFR 4284, Subpart A-General Requirements for Cooperative Services Grant Programs, 4284.1 through 4284.100; and, Subpart J - Value-Added Producer Grants, 4284.901 through 4284.1000. See the RBS website for additional information. You may also contact Rural Development State and Local Offices and the Rural Business Cooperative Service Web site. INFORMATION CONTACTS: Regional or Local Office: Contact the appropriate Rural Development State Office listed in Appendix IV of the Catalog or check the RBS Web site. Headquarters Office: Deputy Administrator, Cooperative Services, Rural Business-Cooperative Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-7558. Use the same number for FTS. Web Site Address: http://www.rurdev.usda.gov/rbs/. RELATED PROGRAMS: None. EXAMPLES OF FUNDED PROJECTS: Grant funds are used to conduct feasibility studies, develop business and marketing plans, and provide working capital for value-added ventures. CRITERIA FOR SELECTING PROPOSALS: Published in the Federal Register and through grants.gov. 10.404 EMERGENCY LOANS FEDERAL AGENCY: FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farm and Rural Development Act, as amended, Subtitle C, Sections 321-330, Public Law 92-419, 7 U.S.C. 1961-1984; Public Law 96-438; Public Law 97-35; Public Law 98-258; Public Law 99-198; Public Law 100-233; Public Law 100-387; Public Law 101-624. OBJECTIVES: To assist established (owner or tenant) family farmers, ranchers and aquaculture operators with loans to cover losses resulting from major and/or natural disasters, which can be used for annual farm operating expenses, and for other essential needs necessary to return disaster victims' farming operations to a financially sound basis in order that they will be able to return to private sources of credit as soon as possible. TYPES OF ASSISTANCE: Direct Loans. USES AND USE RESTRICTIONS: Loan funds may be used to repair, restore, or replace damaged or destroyed farm property (real and chattel) and supplies which were lost or damaged as a direct result of a natural disaster; under certain conditions, refinance secured and unsecured debts made necessary by the disasters; finance adjustments in the farming, ranching or aquaculture operation(s) determined necessary to restore or maintain applicants' operations on a sound financial basis equivalent to their predisaster potential. The total of all actual loss loans is based on actual dollar value of production and physical losses. Loans are made at 3.75 percent interest, with a maximum limit of 80 percent of the actual production loss and 100 percent of the actual physical loss, or $500,000 total indebtedness. Loans are made in counties: (1) Named by the Federal Emergency Management Agency as being eligible for Federal assistance under a major disaster or emergency declaration by the President; (2) designated as natural disaster areas by the Secretary of Agriculture; and (3) designated by the FSA Administrator for severe physical losses, only, as a result of a natural disaster. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Requires that an applicant: (a) Not have caused a loss to the Agency after April 4, 1996, or received debt forgiveness on no more than 1 occasion prior to April 4, 1996. (b) be an established family farmer, rancher, or aquaculture operator (either tenant-operator or owner-operator), who was conducting a farming operation at the time of occurrence of the disaster either as an individual proprietorship, a partnership, a cooperative, a corporation, or a joint operation; (c) have suffered qualifying crop loss and/or physical property damage caused by a designated natural disaster; (d) be a citizen of the United States or legal resident alien, or be operated by citizens and/or resident aliens owning over a 50 percent interest of the farming entity; (e) be unable to obtain suitable credit from any other source(s) to qualify for subsidized loss loans; (f) have sufficient training or farming experience in managing and operating a farm or ranch (1 year's complete production and marketing cycle within the last 5 years immediately preceding the application); (g) be able to realistically project a feasible and sound plan of operation; (h) be a capable manager of the farming, ranching, or aquaculture operations (in the case of a cooperative, corporation, partnership or joint operation, if members, stockholders, partners or joint operators own a majority interest and are related by blood or marriage, at least one member, stockholder, partner or joint operator must operate the family farm; if not related, the majority interest holder(s) must operate the family farm); (I) have legal capacity to contract for the loan; (j) obtain eligibility certification; (k) provide adequate collateral to secure the loan request; (1) have crop insurance if available for affected crops comply with the highly erodible land and wetland conservation provisions of Public Law 99-198 (16 U.S.C. 3801 et seq.), (Title 12 and 13) the Food Security Act of 1985 and the Food, Agriculture, Conservation, and Trade Act of 1990. Applicants who cannot meet all of these requirements are not eligible. Assistance is available in the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and, to the extent the Secretary determines it to be feasible and appropriate, the Trust Territories of the Pacific Islands, when those areas (by county) are designated. Beneficiary Eligibility: Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. Families, individuals and entities who are farmers, ranchers or aquaculture operators are the beneficiaries. Credentials/Documentation: Applicants must establish that substantial physical property damage and/or severe production losses, caused by the designated natural disaster, has occurred. To qualify for loss loans, the applicant must be unable to get credit elsewhere and demonstrate repayment ability on the loan. This program is excluded from coverage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372. Application Procedure: Application Form FSA 410-1 provided by the Farm Service Agency must be presented, with supporting information, to the FSA county office serving the applicant's county. FSA personnel assist applicants in completing their application forms. This program is excluded from coverage under OMB Circular No. A-110. Award Procedure: FSA Farm Loan Manager, State Executive Directors, and the Administrator or his designee are authorized to approve these loans, subject to certain administrative requirements, after applicants are determined eligible. Deadlines: Deadline for filing applications for actual loss loans is 8 months from the date of declaration/designation for both physical and production losses. Applicants should consult the FSA county office serving their area for application deadlines. Range of Approval/Disapproval Time: Applications must be approved or disapproved within 60 calendar days after the receipt of a completed application by the County Office. Appeals: Applicants for loans may appeal adverse actions taken. The applicant is given an opportunity to appeal the decision to the National Appeals Division. Renewals: Rescheduling, reamortization, consolidation and deferment: Up to 15 years rescheduling for short and intermediate term loans made for productiontype losses. Long term loans may be reamortized. However, the maximum statutory repayment period of 40 years for real-estate purposes cannot be exceeded. Loans made for similar purposes can be consolidated and rescheduled or reamortized. Generally, real estate will be needed as security when a term of more than 7 years is authorized. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: None. Length and Time Phasing of Assistance: This varies in accordance with individual case needs, type of disaster losses, type of security available, and borrower's repayment ability. Applicants should consult the FSA county office serving their area for specific information. POST ASSISTANCE REQUIREMENTS: Reports: Borrowers are required to account for all security property. Audits: This varies in individual cases. Records: Applicants must furnish 5 year history of farm production, if available, when production losses are claimed. Otherwise, FSA records of acres grown and proven yields, county or State production averages, or combinations of the above records when approved, are used. Borrowers must keep adequate records as a condition for receiving FSA financing. Specific financial information is required to be maintained for 3 years for some borrowers as a condition of receiving loan assistance. FINANCIAL INFORMATION: Account Identification: 12-4140-0-3-351; 12-1140-0-3-351. Obligations: (Direct Loans) FY 05 $23,570,000; FY 06 est $100,000,000; and FY 07 est $69,788,000. Range and Average of Financial Assistance: $500 to $500,000. Average: $58,000. PROGRAM ACCOMPLISHMENTS: In fiscal year 2001, there were 2,451 loans obligated. REGULATIONS, GUIDELINES, AND LITERATURE: (1) Farm Service Agency Fact Sheets, Program Aids 1610 'Farm Service Agency Producer's Guide to Loan Programs", and 1632, "Natural Disaster Assistance." Administrative regulations are published in the Federal Register at 7 CFR Chapter XVIII, Part 1945, Subparts A, and D. INFORMATION CONTACTS: Regional or Local Office: Consult the appropriate FSA State office listed in Appendix IV of the Catalog. Headquarters Office: Department of Agriculture, Farm Service Agency, Director, Loan Making Division, Ag Box 0522, Washington, DC 20250. Telephone: (202) 7201632. Web Site Address: http://www.fsa.usda.gov. RELATED PROGRAMS: 10.054, Emergency Conservation Program; 10.450, Crop Insurance; 59.008, Physical Disaster Loans. EXAMPLES OF FUNDED PROJECTS: Not applicable. CRITERIA FOR SELECTING PROPOSALS: Not applicable. 10.405 FARM LABOR HOUSING LOANS AND GRANTS (Labor Housing) FEDERAL AGENCY: RURAL DEVELOPMENT (RD), DEPARTMENT OF AGRICULTURE AUTHORIZATION: Housing Act of 1949, as amended, Sections 514 and 516, Public Laws 89117 and 89-754, 42 U.S.C 1484 and 1486. OBJECTIVES: To provide decent, safe, and sanitary low-rent housing and related facilities for domestic farm laborers. TYPES OF ASSISTANCE: Project Grants; Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: The loans and grants may be used for construction, repair, or purchase of year-round or seasonal housing; acquiring the necessary land and making improvements on land for housing; and developing related support facilities including central cooking and dining facilities, small infirmaries, laundry facilities, day care centers, other essential equipment and facilities or recreation areas. Funds may also be used to pay certain fees and interest incidental to the project. Restrictions on the use of funds are: Developers' fees, resident services, cost of unrelated commercial space, costs associated with other lenders/grantors. Housing financed with labor housing loan or grant funds must be occupied by domestic farm laborers, individuals who derive a substantial portion of their income from farm labor, and their families. The occupants must also be a U.S. citizen or permanent resident. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Loans are available to farmers, family farm partnership, family farm corporations, or an association of farmers. Loans and grants are available to States, Puerto Rico, the U.S. Virgin Islands, political subdivisions of States, broad-based public or private nonprofit organizations, federally recognized Indian Tribes and non-profit corporations of farm workers. Grants are available to eligible applicants only when there is a pressing need and when it is doubtful that such facilities could be provided unless grant assistance is available. Beneficiary Eligibility: A domestic farm laborer is any person who receives a substantial portion of his/her income as a laborer on a farm in the United States and is either (1) a citizen of the United States, or (2) has been legally admitted for permanent residency. Credentials/Documentation: The applicant must furnish factual evidence of the following: (a) The number of domestic farm laborers currently being used in the area; (b) the kind of labor performed; (c) the future need for domestic farm labor in the area; (d) the kind, condition, and adequacy of housing presently used for such labor; (e) ownership of presently occupied housing; (f) ability of workers to pay necessary rent; and (g) with the exception of State and local public agencies, be unable to provide housing from its own resources or credit on terms and conditions that would enable the applicant to provide labor housing. Costs will be determined in accordance with 7 CFR 3015 or 3016 for State and local governments. APPLICATION AND AWARD PROCESS: Preapplication Coordination: Not applicable. This program is excluded from coverage under E.O. 12372. Application Procedure: For FY 06 the Section 514 Program will be awarded through a Notice of Funding Available (NOFA) announced in the Federal Register March 15, 2006. The NOFA application period is 2 months from the date of the announcement. The NOFA deadline is May 14, 2006. Funds available for off-farm new construction and acquisition and rehabilitation are as follows: Section 514 Loan $36,116,887; Section 516 Grant $13,860,000; Rental Assistance (RA) and Operating Assistance (only for migrant workers) will be available for all new construction funds. Other Distribution of Funding: Loans: On-Farm-$2,000,000; Administrator's Reserve-$4,179,805; Grants: Technical Assistant Grants-$0; Administrator's Reserve-$3,369,960. Award Procedure: Applications will be scored on the following factors: (1) The presence and extent of leveraged assistance for the units that will serve RHS incomeeligible tenants at basic rents comparable to those if RHS provided full financing, computed as a percentage of the RHS total development cost. A minimum of ten percent leveraged assistance is required to earn points; however, less than ten percent and the proposal includes donated land, two points will be awarded for the donated land, (0 to 20 points); (2) Seasonal, temporary, migrant housing (5 points for up to and including 50 percent of the units; 10 points for 51 percent or more); For FY 2005, National Office initiative will be based on the presence of and extent to which a tenant services plan exists that clearly outlines services that will be provided to the residents of the proposed project. Two points will be awarded for each resident service included in the tenant services plan up to a maximum of 10 points,(0 to 10 points). Application selection process: (1) States will review and score the applications and submit a list of applications in rank and point score order to the National Office; (2) the National Office will rank applications on a nation-wide basis and will advise States of the results. Deadlines: May 14, 2006. Range of Approval/Disapproval Time: RHS uses a two-stage application process for the Farm Labor Housing Program. First, applicants submit preapplications, which are used to determine preliminary eligibility and feasibility. RHS then invites some applicants to submit formal applications. Section 514/516 funds are divided between off-farm housing and on-farm housing. The off-farm program provides loans and grants to organizations that assist farmworkers at offfarm locations with no restrictions that workers be employed on a particular farm. Under new regulations effective June 1999, preapplications for the off-farm program funds must be submitted in response to a Notice of Funding Availability (NOFA) published in the Federal Register every year. RHS scores the preapplications, using a ranking process to determine which applicants will be invited to submit formal applications. The on-farm program makes loans to eligible farmers (or a group of farmers) to provide Housing, usually for their own laborers. Preapplications for on-farm units, or for repair And rehabilitation of existing off-farm units, may be submitted at any time are processed on a first-come, first-served basis. Appeals: A person or organization who is directly and adversely affected by an administrative decision by Rural Development should follow the procedures found in 7 CFR Part 1900, Subpart B of "Rural Development Administrative Appeal Procedures." Renewals: Not applicable; although, applicants may apply under subsequent funding cycles. ASSISTANCE CONSIDERATIONS: In case of a grant, 10 percent or more of the total development cost must be obtained from other sources. This may include funds made available through the power to levy taxes, assessments or charges, or from other credit sources including an Rural Development Labor Housing loan under Section 514. Length and Time Phasing of Assistance: Loans are usually made for 33 years at 1 percent interest. Grants may cover up to 90 percent of development cost. The balance may be (and) usually is) a Section 514 loan. RHS rental assistance (RA) subsidy can be used to limit tenant payments to 30 percent of their income. RA can be used as an operating subsidy for projects or units with Section 516 funding that serve migrants. It is RHS policy to attempt to use less than a 90 percent grant when RA is utilized. POST ASSISTANCE REQUIREMENTS: Reports: Monthly progress reports are to be made to the Rural Development District/State Offices during the first year of operation or until requirement is waived by Rural Development. Audits: For borrowers not covered under OMB Circular No. A-133, annual audits are required from borrowers with 25 or more units in one or more projects. In accordance with the provisions of 7 CFR Part 3052, which implement OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that receive financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 7 CFR 3052. Records: Adequate operating tenant, and accounting records must be maintained by borrower. FINANCIAL INFORMATION: Account Identification: (Grants) 12-2004-0-1-604; (Loans) 12-4141-0-3-371; 12-2081-0-4-371. Obligations: Loans: FY 05 41,999,000; FY 06 est $38,117,000; and FY 07 est $41,580,000. Grants: FY 05 $30,358,268; FY 06 est $13,860,000, and FY 07 est $13,860,000. Range and Average of Financial Assistance: Initial Grants $48,270 to $5,412,973. Average: $2,365,805. Initial Loans ranged from $196,400 to $300,000,000. Average: $1,297,028. PROGRAM ACCOMPLISHMENTS: During fiscal year 2005, 818 new units were built and 1,222 units were rehabilitated or developed as multiple family-type housing and on-farm individual-type housing units. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR 3560; Subpart L; RD Instruction 1944-D. INFORMATION CONTACTS: Regional or Local Office: Consult your local telephone directory for Rural Development Area Office number. If no listing, contact appropriate Rural Development State Office listed in Appendix IV of the Catalog or on the internet at http://www.rurdev.usda.gov/recd_map.html. Headquarters Office: Multi-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1604. Use the same number for FTS. Web Site Address: http://www.rurdev.usda.gov. RELATED PROGRAMS: 10.410, Very Low to Moderate Income Housing Loans; 10.415, Rural Rental Housing Loans; 10.427, Rural Rental Assistance Payments. EXAMPLES OF FUNDED PROJECTS: Examples of funded projects are the projects sponsored by the Homestead Housing Authority in Homestead, Florida, or The Boulder County Housing Authority, Boulder, Colorado. CRITERIA FOR SELECTING PROPOSALS: A clearly defined need must exist to provide housing for domestic farm workers. 10.406 FARM OPERATING LOANS FEDERAL AGENCY: FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Farm and Rural Development Act, as amended, Subtitle B, Sections 311317, Public Law 92-419, 7 U.S.C. 1942; Agriculture Act of 1961, Title III, Public Law 87-128. OBJECTIVES: To enable operators of not larger than family farms through the extension of credit and supervisory assistance, to make efficient use of their land, labor, and other resources, and to establish and maintain financially viable farming and ranching operations. TYPES OF ASSISTANCE: Direct Loans; Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: Loan funds may be used to: (1) Purchase livestock, poultry, fur bearing and other farm animals, fish, and bees; (2) purchase farm equipment; (3) provide operating expenses for farm enterprise; (4) meet family subsistence needs and purchase essential home equipment; (5) refinance secured and unsecured debts subject to certain restrictions; (6) pay property taxes; (7) pay insurance premiums on real estate and personal property; and (8) finance youth projects. Use restrictions are shown under Applicant Eligibility. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Except for youth loans, individual applicants must: 1) Not have caused a loss to the Agency after April 4, 1996, or received debt forgiveness on more than 3 occasions prior to April 4, 1996 to receive a guaranteed loan; 2) have the necessary education and/or farm experience or training (1 year's complete production and marketing cycle within the last 5 years); 3) do not exceed the limitation on the number of years that assistance may be received; 4) possess the legal capacity to incur the obligations of the loan; 5) be unable to obtain sufficient credit elsewhere at reasonable rates, and terms; 6) project the ability to repay the loan; 7) be a citizen or permanent resident of the United States; 8) after the loan is closed, be an owner/tenant operator of a family farm; and 9) comply with the highly erodible land and wetland conservation provisions of Public Law 99-198 of the Food Security Act of 1985 (FSA); Certain corporations, cooperatives, partnerships and joint operations ("entities") operating family-sized farms are also eligible for farm operating loans. In brief, entity applicants must meet some of the same eligibility requirements as individual applicants. In addition, if members, stockholders or shareholders of the entity are related by blood or marriage, at least one stockholder, shareholder partner or joint operator must operate the family-sized farm. In the case when members are not related by blood or marriage, the majority interest holders in the entity must actually operate the family-sized farm to be eligible. The entity must be authorized to operate a farm in the State in which it is located. Limited resource applicants must meet the above requirements. In addition, they must have a low income and show a need for increased farm income. In the case of limited resource entities, all the partners, joint operators, members, or stockholders must be citizens and the entity must be the owner-operator of the family farm with at least one partner, joint operator, member or stockholder operating the farm. Assistance is authorized for eligible applicants in the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and to the extent the Secretary determines it to be feasible and appropriate, the Trust Territories of the Pacific Islands. To be eligible to obtain a direct loan, a borrower must agree to abide by any "borrower training" requirements. Applicants/borrowers requesting guaranteed loan assistance must meet all lender requirements. Beneficiary Eligibility: Applicants/borrowers are the direct beneficiaries and must meet the applicant eligibility requirements. Families, individuals, and entities who are farmers, ranchers or aquaculture operators are the beneficiaries. Credentials/Documentation: Applicants must prove that credit is not available elsewhere for the requested purposes. This program is excluded from coverage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: None required. However, an informal conference with the local county office staff is recommended. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372. Application Procedure: Applicants file Form FSA 410-1, Application for Direct Loan Assistance, with supporting information, at the local county office of the Farm Service Agency for direct loans or Form FSA 1980-25 with the prospective lender for loan guarantees. This program is excluded from coverage under OMB Circular No. A-110. Award Procedure: Certification as to eligibility is made by the local county committee (unless that responsibility has been delegated to the Agency credit officials) and an approval determination is made by a FSA official as to loan feasibility and soundness, and whether there is adequate collateral to secure any loan. Deadlines: None. Range of Approval/Disapproval Time: The loan approval official approves or disapproves a completed application within 60 days on a direct loan application and 30 days on a guaranteed loan application. Appeals: Applicants for direct and guaranteed loans, may appeal adverse action taken. The applicant is given an opportunity to appeal the decision to the National Appeals Division. The applicant may, in the final step of the appeals process, request a review by the Director, National Appeals Division, Washington, DC. For guaranteed loans, both the lender and the applicant must request the appeal. Renewals: Applicants may reapply at any time. Applicants denied assistance through the appeal process must establish that substantial change has occurred, since the denial decision. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: The selected criteria identify essential elements considered necessary to compare the needs of the various States, and to make the best use of available program funds. This program has no statutory formula or matching requirements. Length and Time Phasing of Assistance: Loans are scheduled for repayment over periods up to 7 years, but when justified, loans may be consolidated or rescheduled for up to 15 additional years. The interest rate for guaranteed loans is negotiated between the lender and borrower. If eligible, FSA may provide interest rate assistance on guaranteed loans at the rate of 4 percent. The interest rate for direct loans. is determined by the Secretary of Agriculture. POST ASSISTANCE REQUIREMENTS: Reports: Various States have USDA certified Agricultural Loan mediation programs, which are designed to assist farm borrowers and their creditors in resolving financial disputes through the process of mediation. Where a State has such a farm credit mediation program, the lender shall participate in accordance with the rules of that system. FSA is not bound by any agreements developed in mediation or findings of the mediation unless FSA agrees to them in writing. Audits: Not applicable. Records: Records on production, income, expenses during the period of the loan. FINANCIAL INFORMATION: Account Identification: 12-4140-0-3-351; 12-1140-0-1-351. Obligations: (Direct Loans) FY 05 $556,008,000; FY 06 est $645,349,000; and FY 07 est $643,500,000. (Unsubsidized Guaranteed Loans) FY 05 $884,523,000; FY 06 est $1,197,015,000; and FY 07 est $1,025,610,000. Range and Average of Financial Assistance: Direct loans up to $200,000; guaranteed loans up to $731,000 (amount adjusted annually for inflation); direct average loan size approximately $47,365 and guaranteed average loan size approximately $157,339 for fiscal year 2001. PROGRAM ACCOMPLISHMENTS: There were 14,023 direct and 11,444 guaranteed loans made in fiscal year 2001. Farm operating loans provide credit to: (1) Establish beginning farmers; (2) assist farmers suffering from the price/cost squeeze, which will enable them to remain on the farm and refinance secured and unsecured debts; and (3) expand farming operations. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR, Part 1941, Subpart A and Part 762. Farm Service Agency Fact Sheets; FSA Handbook 2 FLP; Program Aids 1610 "Farm Service Agency Producer's Guide to Loan Programs"; 1620 "Lender's Guide to FSA Loan Programs"; and 1630 "Rural Youth Loans". INFORMATION CONTACTS: Regional or Local Office: Contact the appropriate FSA State Office listed in Appendix IV of the Catalog. Headquarters Office: Department of Agriculture, Farm Service Agency, Director, Loan Making Division, Ag Box 0522, Washington, DC 20250. Telephone: (202) 7201632. Web Site Address: http://www.fsa.usda.gov. RELATED PROGRAMS: 10.407, Farm Ownership Loans; 15.124, Indian Loans_Economic Development. EXAMPLES OF FUNDED PROJECTS: CRITERIA FOR SELECTING PROPOSALS: 10.407 FARM OWNERS HIP LOANS FEDERAL AGENCY: FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farm and Rural Development Act, as amended, Subtitle A, Sections 302, 310D, Public Laws 100-233, 87-128, 91-620, 95-334, 9798, 7 U.S.C. 1922; Section 303, Public Laws 87-708, 90-488, 95-113, 96 |