Scott County Farmers Urge County to Seek Input and Consider Impact of Agriculture Before Submitting 2030 Comprehensive Plan to Met Council (9/26/08)

New Farmers' Guide to Disaster Assistance Available (6/20/08)

New Guides to Help Farmers Understand and Negotiate Organic Dairy Contracts (5/13/08)

Translated Guide Helps Hmong Producers Evaluate Poultry Contracting (4/18/2008)

New Article to Help Organic Farmers Understand Laws Prohibiting Use of Genetically Modified Organisms (10/22/07)

New Publications to Help Farmers Understand Their Rights to Be Paid for Fruit and Vegetable Crops (10/22/07)

New Article to Help Organic Farmers Improve Disaster Readiness and Recovery (10/16/07)

Emergency Conservation Program availability for Flooded Minnesota Counties (9/14/07)

Minnesota Farmers Affected by Recent Flooding May Be Eligible for Housing and Other Assistance from FEMA (9/10/07)

Documenting Losses Is an Important Part of Disaster Recovery (9/10/07)

An Overview of Disaster Assistance Programs for Farmers (9/10/07)

Minnesota Farmers Affected by August 2007 Flooding May Be Eligible for Disaster Unemployment Assistance (9/10/07)

USDA Drought Assistance (8/22/07)

New Legal Guide to Help Farmers Make the Most of Windy Land (8/7/07)

New Guide to Help Farmers Participate in the Environmental Quality Incentives Program (EQIP) (6/29/07)

New Report on Policy Incentives for Community-Based Wind Energy Developments (5/14/07)

Farmers’ Legal Action Group Testifies Before Senate Agriculture Committee: Congress Should Help Restore Balance in Agricultural Markets and Contracts (4/18/07)

New Booklet to Help Farmers Understand Farmers’ Market Rules (3/8/07)

News and Press Release Archive

News Release

For Release: September 26, 2008
For More Information:
Joe Bowman, Local Harvest Alliance (952) 406-1215;
Jennifer Jambor, Staff Attorney, Farmers’ Legal Action Group, Inc. (651) 223-5400

Scott County Farmers Urge County to Seek Input and Consider Impact of Agriculture Before Submitting 2030 Comprehensive Plan to Met Council

ST. PAUL, MINN. — The Local Harvest Alliance, a local group of farmers and consumers, yesterday filed a request asking Scott County to postpone the completion of its 2030 Comprehensive Plan. The Plan is intended to guide development and land use in Scott County from 2010 to 2030, and is due to be submitted to the Metropolitan Council for approval by the end of 2008.

“The County is rushing the Comprehensive Plan through the approval process without first gathering the information it needs to make long-range decisions about big issues, such as the actual demand for housing given the current housing slump and where our food will come from,” said Jennifer Jensen, a farmer and member of the Local Harvest Alliance. As it stands now, the 2030 Plan reduces the amount of farmland in the County from 24 percent to 7 percent, without the County having performed any analysis of how existing agriculture contributes to the County’s economy or how a reduction in Scott County’s farmland will affect the economy and food security within Scott County and the metropolitan area, according to the Local Harvest Alliance’s request.

The Local Harvest Alliance also urges the County to study and consider how the promotion of a locally based food production system would contribute to the County’s fiscal health before the County submits its plan to the Metropolitan Council. “Increasing numbers of people are showing a desire for fresh, locally grown products rather than foods that are shipped to Minnesota from thousands of miles away. Given Scott County’s location, and the amount of prime farmland and working farms located here, the County is uniquely situated to take advantage of the increasing demand for local foods,” said Dave Minar, a farmer and member of the Local Harvest Alliance. “Sadly, under the County’s 2030 Plan, much of the County’s best farmland is slated for urban and residential development. If the Plan goes through as currently proposed, the County and its residents will lose the opportunity to take advantage of the many benefits offered by the local foods movement,” stated Minar.

The 2030 Plan also fails to take into account where the County’s prime farmland is situated. The County did not even finalize the map of prime farmland until June 17, 2008 —some three months after it gave its approval to the Plan that allots much of that best farmland for residential development. Joe Bowman, also a farmer and member of the Local Harvest Alliance, urges the County to slow down the Plan approval process so that Scott County residents can comment on this drastic step: “Given that much of the County’s best farmland appears to be slated for eventual development under the Plan, County residents should have an opportunity to be heard on this important aspect of the Plan before it is submitted to the Metropolitan Council,” said Bowman.

Susan Stokes, Executive Director of Farmers’ Legal Action Group in St. Paul, warns: “The stakes here are high and the County does not have the information it needs with respect to the future of farming in Scott County. In light of the significant impact the 2030 Plan will have on the future of food and farming in Scott County, we are asking the County to do its due diligence before submitting the 2030 Plan to the Metropolitan Council for approval. State law allows the County to request an extension of time from the Metropolitan Council to complete its plan update, so there’s no reason why the County should not request an extension of time.” Stokes adds: “Historic land use patterns in Scott County and surrounding counties establish that once land is zoned to allow other development, large numbers of acres are taken out of agriculture and developed, resulting in a high rate of permanent farmland losses. Once Scott County’s remaining agricultural land is lost to development, the County will not be able to recoup its prime farmland.”

The Local Harvest Alliance is a group of local food producers and consumers located in Scott County. The group’s goals are to promote land use development that supports local food production and protects farmland; to develop a vibrant local food economy; and to realize ultimate food security through local food production. To help achieve those goals, the Local Harvest Alliance has been actively engaged in working with Scott County to obtain improvements to the County’s proposed 2030 Plan.

FLAG Letter to Scott County re: 2030 Comprehensive Plan (Sept. 25, 2008)

Comments concerning Scott County’s proposed 2030 Comprehensive Plan (“2030 Plan”) submitted by Local Harvest Alliance (Mar. 26, 2008)

Group Revs Up Effort to Preserve Farmland In Scott County by David Peterson, Star Tribune (Sept. 30, 2008)

Future of Farming in the 'Burbs Raises Quite the Ruckus by David Peterson, Star Tribune (Apr. 22, 2008)

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News Release

For Release: June 20, 2008
For More Information : Jill Krueger, or 651-223-5400

New Farmers' Guide to Disaster Assistance Available

ST. PAUL, MINN. - A familiar resource has been thoroughly revised and updated for farmers who are struggling in the face of natural disaster, and for farmers who want to learn more about the disaster assistance programs included in the 2008 Farm Bill. Farmers' Legal Action Group, Inc. (FLAG) announces that the sixth edition of its book, Farmers' Guide to Disaster Assistance, is now available.

"This updated sixth edition of Farmers' Guide to Disaster Assistance provides farmers current information on important legal issues such as program eligibility, obligations of farmers who participate in the programs, and appeal rights," says Jill Krueger, a FLAG staff attorney and one of the book's authors. "We were able to include an overview of provisions from the 2008 Farm Bill in the introduction, and to add key points in the discussion of each affected program. But we won't know all of the details until USDA publishes regulations for the programs."

Farmers' Guide to Disaster Assistance includes an easy-to-use chart that provides an overview of federal disaster assistance for farmers. Individual chapters provide detailed descriptions of programs offered by the Federal Emergency Management Agency (including housing assistance and disaster unemployment), federal crop insurance, the Noninsured Crop Disaster Assistance Program (NAP), the Emergency Conservation Program (ECP), disaster assistance programs for livestock producers, Emergency Loans from the Farm Service Agency, the Disaster Set-Aside program for existing loans from Farm Service Agency, Small Business Administration disaster loans (including both home and business loans), as well as brief discussions of bankruptcy and federal income tax issues as they relate to losses caused by natural disaster. A new appendix addresses considerations unique to organic farmers.

The book uses clear language and detailed citations to applicable laws to help farmers and their advisors understand and obtain federal disaster assistance. Updated information will be posted on the FLAG website.

The book can be downloaded by chapter at no charge from FLAG's website. A bound copy of the book is available without cost to financially distressed Minnesota farmers by calling 1-877-860-4349. For other persons, the charge is $40 per book, and orders can be placed by calling FLAG's office at 651-223-5400 or by visiting the FLAG website at www.flaginc.org. The book is also available on CD for $10.

Go to FLAG's Disaster Page

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News Release

For Release: May 13, 2008

For More Information :
Jill Krueger, or 651-223-5400
Ed Maltby, or 413-772-0444

New Guides to Help Farmers Understand and Negotiate Organic Dairy Contracts

ST. PAUL , MINN. — The organic milk market is competitive, and organic dairy producers need information to understand their options when selling organic milk. Farmers’ Legal Action Group, Inc. (FLAG) announces two new articles to help farmers negotiate organic dairy contracts. The articles contain important legal information for dairy farmers interested in selling organic milk to a processor, as well as for those who are already doing so.

The first article is called When Your Processor Requires More than Organic Certification: Additional Requirements in Organic Milk Contracts. It reviews contracts for the sale of organic milk that were used in 2007. All of these contracts required that farmers have organic certification. But all of the contracts also included farm practice requirements that went beyond those required for organic certification. For example, requirements related to access to pasture are often spelled out in greater detail than is currently included in National Organic Program regulations. Additional requirements are generally lawful. Farmers should be sure that they understand how to comply with the additional requirements, and how they will show that they have complied.

The second article is called Hushed Up: Confidentiality Clauses in Organic Milk Contracts. Some contracts for the sale of organic milk require farmers to agree not to disclose the terms of the contract with any other party. These contract clauses can discourage farmers from seeking legal advice, or from discussing farming or financial concerns with other farmers or financial advisors.

“Farmers should read and understand their contracts before they sign them. That is the best time for them to try to negotiate the terms of the contract. Once they have signed a contract with a processor, they should keep a copy for their records,” notes FLAG attorney Jill Krueger.

Ed Maltby , Executive Director of the National Organic Dairy Producers Alliance (NODPA) stated, “We believe that these articles will help organic dairy producers to make informed decisions for their own farming operations, as they strive to continue to meet consumer expectations for organic milk.”

Farmers may request a copy of one or both articles by calling FLAG’s office. Minnesota callers should dial FLAG’s office at 1-877-860-4349. For out-of-state callers, the number is 651-223-5400. A small fee is charged for printing and mailing costs for non-farmers. The articles can be downloaded at no charge from FLAG’s website at: www.flaginc.org. They can also be downloaded from the NODPA websites at: www.organicmilk.org or www.nodpa.com.

Go to Hushed Up
Go to When Your Processor Requires More than Organic Certification

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News Release

For Release: April 18, 2008
Contact: Hli Xyooj - 651-223-5400

Translated Guide Helps Hmong Producers Evaluate Poultry Contracting

ST. PAUL, MINN. - Farmers' Legal Action Group, Inc. (FLAG) has released a translated edition of Questions to Ask Before Signing a Poultry Contract to help Hmong farmers assess the risks and benefits associated with contract poultry production. The publication contains important legal and practical information for Hmong farmers who are considering entering a poultry production contract and those who have been in the business for several years.

According to Kay Doby, long-time poultry grower and president of the North Carolina Contract Poultry Growers Association, "[A]nyone thinking of getting into the poultry business should read this publication really carefully. After you have borrowed a half a million dollars to build houses, it's too late if you don't like the terms in the contract."

Typically, contract poultry growers invest several hundred thousands to millions of dollars for buildings and equipment for poultry production. The poultry equipment and houses are not easily convertible for other farm uses besides raising birds for a major poultry company. Thus, farmers using their land, house, or savings as loan collateral become completely reliant on their production contract to generate the cash needed to support their family and pay their debts.

The materials outlined in the publication, Questions to Ask Before Signing a Poultry Contract, are based on the problems most frequently reported by poultry growers over the last twenty years. Hmong farmers can use the publication as a checklist to see if their contract provides any pay adjustments related to inflation, offers options if they are not satisfied with the poultry growing arrangements, or outlines a grievance procedure or a fair and affordable dispute resolution process.

To request a copy of the Hmong translated edition of Questions to Ask Before Signing a Poultry Contract, or any other FLAG publication, call FLAG's office at 651-223-5400. In Minnesota, the phone call is toll-free at 1-577-860-4349. The publication can be downloaded for free from FLAG's website at: www.flaginc.org.

The Hmong translated version of Questions to Ask Before You Sign a Poultry Contract was made possible with the generous support of the Ramsey County Bar Association, the Minneapolis Foundation, and the Bush Foundation.

Go to the Hmong translated booklet
Go to the English version booklet

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News Release

For Release: October 2007
Contact: Jill Krueger – 651-223-5400

New Article to Help Organic Farmers Understand Laws Prohibiting Use of Genetically Modified Organisms

ST. PAUL, MINN. —Most organic farmers are aware that they may not plant genetically modified organisms (GMOs), or seeds developed through genetic engineering, if they wish to market their crops as organic. Yet they may have questions about their legal rights and responsibilities with respect to the unintended presence of GMOs. Organic farmers and farmers transitioning to organic production need information about the regulations governing organic certification. To try to meet the need for legal information, Farmers’ Legal Action Group, Inc. (FLAG) has written a new article, If Your Farm Is Organic, Must It Be GMO Free? Organic Farmers, Genetically Modified Organisms, and the Law.

This article examines requirements to avoid the use of genetic engineering that affect crop and livestock farmers who are certified organic, or who wish to become certified organic. It also briefly addresses handling requirements as they apply to organic farmers. The article concludes with a brief discussion of sales contracts and the ways in which they may impose responsibilities upon farmers that differ from the requirements for organic certification.

In 2004, FLAG published a Farmers’ Guide to GMOs. The new article is a companion piece to the book. “Organic farmers have particular concerns, from maintaining their organic certification to meeting the requirements of their buyers,” notes FLAG attorney Jill Krueger. “Unfortunately, the regulations can be confusing, and answers to some legal questions that organic farmers have are still unclear. The article discusses the importance of addressing issues related to GMOs throughout the organic plan as a way to minimize the risk of violating National Organic Program requirements. The article also discusses the importance of carefully considering risks and negotiating the contract before making promises related to genetically modified organisms to buyers.”

Farmers may download a free copy of the 40-page article by visiting FLAG’s Web site, www.flaginc.org. Printed copies can be obtained by calling FLAG’s office at 651-223-5400. In Minnesota, the phone call is toll-free at 1-877-860-4349. Printed copies are available to financially distressed farmers in Minnesota at no charge; for all others, the cost is $11.00, including postage.

Go to the booklet

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News Release

For Release: October 22, 2007
Contacts: Jennifer Jambor – 651-223-5400

New Publications to Help Farmers Understand Their Rights to Be Paid for Fruit and Vegetable Crops

ST. PAUL, MINN. — Farmers’ Legal Action Group, Inc. (FLAG) announces a new booklet, Understanding Farmers’ Rights to Be Paid for Fruit and Vegetable Crops. Also available is a list of answers to frequently asked questions about farmers’ payment rights under the Perishable Agricultural Commodities Act, Federal Law Protects Farmers’ Rights to be Paid for Fruit and Vegetable Crops. These materials contain important legal information for farmers about their rights to be paid for fruit and vegetable crops.

Because fruit and vegetable crops are perishable and are frequently sold by new farmers with little marketing experience, farmers selling these crops face unique challenges in receiving prompt and fair payment. FLAG’s new materials are intended to help farmers better understand their rights to be promptly and fully paid for their fruit and vegetable crops. FLAG wrote these materials to help answer questions raised by new farmers who were experiencing difficulties in securing payment for their fruit and vegetable crops. The materials were recently presented to a group of beginning farmers at a workshop hosted by The Farmworker Association of Florida, Inc.

The materials focus on farmers’ rights to be paid under the Perishable Agricultural Commodities Act, a federal law designed to ensure fairness in the fruit and vegetable industry. In addition to federal law, farmers’ rights and responsibilities with respect to fruit and vegetable sales transactions may also be governed by state and local laws. The booklet is primarily based on federal law, with many examples drawn from Florida state law. A specific focus of the booklet is sales transactions in which packing houses sell produce on behalf of farmers. The booklet also offers practical suggestions about how farmers can obtain written contracts, what details should be included in those contracts, the importance of recordkeeping, and steps farmers can take to protect themselves when buyers refuse to properly pay them for their fruit and vegetable crops.

Go to the booklet

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News Release
For Release: October 2007
Contact: Jill Krueger – 651-223-5400

New Article to Help Organic Farmers Improve Disaster Readiness and Recovery

ST. PAUL, MINN. — Natural disasters pose a significant threat to all farmers, but organic farmers affected by natural disaster have particular concerns. To address these concerns, Farmers’ Legal Action Group, Inc. (FLAG) has written a new article, Disaster Readiness and Recovery: Legal Considerations for Organic Farmers.

The new article focuses on aspects of federal disaster assistance that are of particular relevance for organic farmers. The first part of the article discusses steps that organic farmers may take to reduce the impact of natural disasters that may occur in the future. The second part of the article discusses federal programs that provide assistance to farmers in order to recover from natural disaster. The article concludes with information about how natural disaster and disaster recovery may affect farmers’ organic certification.

For over ten years, FLAG has regularly published a Farmers’ Guide to Disaster Assistance. The book uses clear language and detailed citations to applicable laws, regulations, and policies to help farmers and their advisors understand and obtain federal disaster assistance. It can be downloaded for free from FLAG’s Web site at www.flaginc.org. The new article is a companion piece to the book. “Organic farmers have particular concerns, from maintaining their organic certification to facing higher costs for crop insurance,” notes FLAG attorney Jill Krueger. “This article tries to meet the need for a source of legal information related to disaster readiness and recovery for organic farmers.”

Go to booklet

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Emergency Conservation Program availability for Flooded Minnesota Counties

More information has been made available about Emergency Conservation Program (ECP) availability for the flooded Minnesota counties. According to the FSA state office, only Houston and Winona counties have submitted requests for authorization to offer ECP assistance. Farmers in other declared counties who have needs that could be met through ECP should contact their FSA county office to urge them to submit a request.

Houston county has begun ECP sign-up. The deadline to apply is November 16. The county has not yet been given any funding (which is typical for ECP). In general, farmers can only receive cost-share for activities done after their application is approved and funded, but the county has requested a waiver of this requirement. In any case, farmers in Houston county should get their ECP applications submitted to start the approval process. The priority activities in Houston county are debris removal from farmland; grading, shaping, and leveling of farmland; and repair of water containment or water control structures. Farmers will need an estimate of their costs as part of the application.

Winona county’s request for authorization to offer ECP has been forwarded to the FSA national office, but it hasn’t yet been approved. Farmers in Winona county should check in with the FSA county office over the next week or so to find out when sign-up will start.

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Minnesota Farmers Affected by Recent Flooding May Be Eligible for Housing and Other Assistance from FEMA

Minnesota farmers affected by recent flooding may be eligible for assistance from the Federal Emergency Management Agency (FEMA) through its Federal Assistance to Individuals and Households Program (IHP). This program provides financial assistance for housing repairs, temporary housing, and disaster-related personal expenses.

Contrary to some rumors, farmers can be eligible for FEMA assistance for damage to their homes and/or personal property. However, while a farmer’s house and personal losses may be covered by FEMA, damages to crops, livestock, farm equipment, and barns are not. Farmers should contact the Farm Service Agency to apply for assistance for farming-related losses.

IHP assistance is not intended to fully restore damaged property. It is emergency assistance designed to cover only the most urgent needs and give people a place to start. Although IHP benefits cannot be used to duplicate any costs that are already covered by a private insurance company, farmers covered by insurance should still apply because there may be help available for uncovered expenses or if the insurance settlements are delayed.

Farmers may be eligible for assistance through IHP for four different types of needs:

1. Temporary Housing: For farmers whose homes were destroyed, made uninhabitable, or are inaccessible due to the disaster, temporary housing may be available through rental units, trailers, or mobile homes.
2. Home Replacement: For farmers who need to replace their home, up to $11,200 in direct grants may be available.
3. Home Repair: For farmers who need to make disaster-related home repairs or replace necessary items destroyed by a disaster, up to $5,600 in assistance may be available to restore the house to a safe, sanitary, and functional condition.
4. Personal Expenses: Assistance is also available to cover certain medical, dental, personal property, funeral, moving, storage, transportation, and other costs that are directly related to the disaster.

The maximum total amount of IHP assistance that any individual or household can receive for any given disaster declared on or after October 1, 2006, is $28,200.

To apply for emergency assistance through FEMA, residents of the disaster area should call 800-261-FEMA (800-261-3362) or register at www.fema.gov. Applicants will be asked to provide:

• Social Security number
• a description of the damage
• insurance information
• directions to the damaged property
• a telephone contact number

After the application is submitted, an inspector will call to schedule an appointment to visit the property, and within two weeks of that inspection the applicant should receive a decision.

Anyone who receives a denial or a smaller award than expected should appeal in writing within 60 days of receiving their decision. The original decision notice will include specific instructions regarding where to send the appeal.

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Documenting Losses Is an Important Part of Disaster Recovery**

Farmers’ ability to receive government assistance for disaster losses depends in large part on their ability to demonstrate the extent of those losses.

Documentation of disaster damage needs to show two things: the status of the farm the day before the disaster, and its status the day after the disaster. If a farmer has crop insurance, a crop insurance adjuster will visit the farm to certify the extent of crop damage. But when there is no crop insurance, or for damage to buildings, livestock, or equipment, the process is more complicated. So, as farmers start to clean up, they need to photograph everything, take notes, and get receipts and estimates.

To get started, it is often helpful to have good records on hand. Loans and credit reports will not only show how much money is owed, but will also have appraisals of equipment or structures bought with the loans. If these documents were destroyed in the disaster, additional copies can be ordered.

• Farm Service Agency (FSA): Farmers who are FSA borrowers should request a copy of their FSA file, which will have lists of current real estate and assets as well as a list of other, non-FSA debt. This service is free of charge.
• Private loans and insurance documentation: If a farmer has loans with a private lender, that institution will have a copy of the farmer’s application and financial information on file. Private insurance providers will also have information about the nature and value of insured property.
• Credit Reports: By law, everyone is entitled to one free credit report per year from each of the three major credit bureaus. To request a credit report, go to www.annualcreditreport.com or call 877-322-8228.
• Tax Files: A copy of the farmer’s most recent income tax return will help verify farm income. If a farmer does not have a copy of a return, a copy can be obtained from the IRS by submitting a completed Form 4506. To get a copy of this form, go to www.irs.gov/pub/irs-pdf/f4506.pdf or call 800-829-3676. There is usually a small fee for obtaining a duplicate tax return.

A wide range of documents can be used to show the value of what was on the farm before the disaster. Receipts and credit card bills show the value of purchased inputs or equipment. Acreage of specialty crops can be shown using receipts for inputs such as seed or fertilizer, multiplied by application rates. Sales records can show the prices that were expected for specialty crops. Documentation from auction barns or feedlots will show the number of animals on a farm before the disaster, keeping in mind that some disaster programs may cover losses due to the death of the animal or losses due to premature sales because of a lack of feed.

Most farmers will want to dive in immediately after a disaster and start rebuilding, clearing roads and fields, and repairing equipment. However, in some situations this can prevent them from getting compensated for their efforts to recover from the damage. In general, programs such as the Emergency Conservation Program (ECP) require farmers to apply for help and receive approval before incurring the costs that will be the basis of the cost-share request. However, it appears that no Minnesota counties are currently approved for ECP assistance. It is possible that expenses for “emergency” repairs and conservation measures, such as repairs to fences where cattle could get loose, or removal of debris from fields and access roads, could be eligible for assistance later, if ECP funds become available for affected Minnesota counties. Farmers who feel they must take action now to prevent further damage may want to discuss their plans with FSA. It is possible that taking steps such as getting a written estimate to document costs will help a farmer maintain eligibility for any help that becomes available later.

It is also important for livestock farmers to document the cost of disposal of livestock mortality. Some past disaster programs have provided cost-share money for mortality disposal.

**This information is drawn from materials initially prepared by Scott Marlow of the Rural Advancement Foundation International – USA, in Pittsboro, North Carolina.

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An Overview of Disaster Assistance Programs for Farmers

Minnesota farmers seeking assistance for property damage and other losses caused by recent flooding may find themselves confused by the many different agencies and programs that are offering aid. Disaster assistance programs tend to be very specific, focused on addressing a particular type of loss or need. Those seeking help often have to piece together aid from more than one program to meet their needs. In general, programs aimed at meeting the emergency needs of individual and families—such as food, shelter, and basic necessities—will not cover losses to income-producing property, such as farming structures, equipment, livestock, or crops. And farm disaster programs also tend to be very specific about the types of losses covered.

Here is a brief overview of the different federal disaster assistance programs that generally provide assistance for different types of losses. Disaster unemployment assistance is also generally available for farmers, as discussed in a separate sheet. State and private charitable programs may also be available, however, these tend to be offered only for home and personal needs.

Damage to Home and Personal Property

Farmers whose homes have been damaged or made uninhabitable due to a disaster, or who have suffered losses to the contents of their homes, could be eligible for assistance from the Federal Emergency Management Agency (FEMA), the Small Business Administration (SBA), and the Farm Service Agency (FSA). All of these agencies require persons to maximize their insurance benefits for their losses.

• FEMA offers temporary housing and grants for certain repair and replacement and other disaster-related expenses. FEMA assistance is intended to address only the most critical needs, and is not intended to fully restore damaged property to its pre-disaster condition.
• SBA makes low-interest loans to cover the cost of repairing a home and repairing or replacing household contents damaged due to a disaster. Up to $40,000 can be borrowed for personal property losses and up to $200,000 for the home.
• FSA Emergency loans can also be used to repair a damaged home and repair or replace household contents damaged in a disaster. Up to $20,000 can be borrowed for essential household contents and up to the amount needed can be borrowed for a home, if all other eligibility requirements are met.

Damage to Farm Structures, Equipment, and Fencing

FSA Emergency loans can be used to repair or rebuild damaged farm structures and equipment, and replace fencing damaged in a disaster. Damaged fencing may also be eligible for cost-share assistance through FSA’s Emergency Conservation Program, if funds are made available in the affected county.

Crop Losses

Farmers who have coverage under a federal crop insurance policy or under the Noninsured Crop Disaster Assistance Program (NAP) should contact their insurer or FSA immediately after the storms to report their losses. Farmers should work with adjusters to determine their losses and submit their claims. If a farmer with insurance or NAP coverage has not yet contacted the insurer or FSA, they should do so immediately. If a crop insurance or NAP claim is denied or the award is lower than expected, the farmer may seek review of the determination.

Crop losses can also be the basis for an FSA Emergency “production loss” loan if the farmer suffered at least 30 percent yield loss for at least one crop. If that threshold is met, the eligible loan amount is determined by the farmer’s production losses for all crops.

Farmers who were not covered by an insurance policy or NAP, and those who were covered but do not feel that their losses have been adequately addressed, will need to wait and see if Congress will authorize a crop loss assistance program that would cover their losses. Such programs have been made available in recent years, including one currently covering losses back to the beginning of 2005. There is no guarantee that such assistance will be authorized, nor is it known what coverage level might be offered under any such program. Farmers should nonetheless document their crop losses and retain this documentation to be prepared in case a future crop loss assistance program is offered.

Livestock Losses

There is no standing disaster assistance program for livestock that would be comparable to crop insurance and NAP for crop losses. Therefore, farmers with livestock mortality losses, livestock production losses, and feed losses due to disaster are in a wait-and-see situation. Each of these categories of losses has been covered at one time or another by a disaster program authorized by Congress in the wake of a major disaster. It is possible that some of these losses could be addressed by Congress in the future.

However, disaster-related loss of livestock that was owned by the farmer can be the basis for an FSA Emergency “physical loss” loan. Losses of livestock raised on contract cannot be the basis of an Emergency loan application.

Debris Removal

Floods can leave a great deal of debris on farmland, access roads, and farmstead property throughout the affected areas. Activities like debris removal that are necessary to resume normal farming operations may be eligible for cost-share assistance under FSA’s Emergency Conservation Program (ECP). ECP cost-share may also be available to restore windbreaks and shelterbelts so long as the land is not enrolled in the Conservation Reserve Program (CRP). As noted above, ECP funds are made available by county, so farmers are encouraged to report their losses to their local FSA offices to aid FSA in assessing the damage. ECP cost-share is generally limited to costs incurred after a farmer has been approved for the program, so farmers should communicate with their FSA offices about likely funding availability before beginning any non-critical cleanup.

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Minnesota Farmers Affected by August 2007 Flooding May Be Eligible for Disaster Unemployment Assistance

Deadlines: Fillmore, Houston, Olmstead, Steele, Wabasha, and Winona counties – September 28; Dodge county – October 5

Minnesota farmers who are unable to pursue their livelihoods due to recent flooding may be eligible for Disaster Unemployment Assistance (DUA). This program is funded by the Federal Emergency Management Agency (FEMA) and administered by the Minnesota Department of Employment and Economic Development.

Disaster unemployment provides temporary financial assistance to individuals, including farmers, who are unable to work as a result of a declared disaster and who would not qualify for standard unemployment benefits.

The program is available to:

• self-employed persons whose business was lost or suffered a substantial interruption of activities as a direct result of the disaster.
• persons who are unable to work due to injury directly resulting from the disaster.
• persons who have become the major supporter of their households due to the death of the head of the household directly resulting from the disaster.
• persons who cannot reach their place of employment due to the disaster.
• persons who were scheduled to start work but no longer have a job as a direct result of the disaster.

Benefits are paid on a weekly basis, and are available so long as the person is unable to work due to the disaster, up to a maximum of 26 weeks after the date the disaster was declared. The amount of the payment is based on the individual’s income for the prior tax year, and the benefit must be at least half of the state’s average weekly unemployment benefits.

An application for assistance must be submitted within 30 days after the availability of DUA has been announced in the county. For the disaster declaration of August 23, 2007, covering Fillmore, Houston, Olmstead, Steele, Wabasha, and Winona counties, a deadline of September 28 to apply for DUA has been announced. The availability of individual disaster assistance (including DUA) was only announced for Dodge county on September 5, so residents of that county have until October 5 to apply for DUA. However, it is always in a person’s best interest to apply for DUA as soon as possible to begin the receipt of benefits.

To apply for Disaster Unemployment Assistance, farmers must provide their Social Security number and proof of earnings—generally a tax return for the previous year.

More information about Disaster Unemployment Assistance, including application forms, is available from the Minnesota Department of Employment and Economic Development Web site.

MN Dept. of Employment & Economic Development
UI Customer Service Center
P.O. Box 202
St. Cloud, MN 56302-0202
877-898-9090

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USDA Drought Assistance

Farmers in many Minnesota counties may be eligible for federal disaster assistance stemming from this summer’s drought. Additionally, we are monitoring whether disaster assistance related to the flooding in southeastern Minnesota will be made available to farmers, and will update you concerning any developments in that area.

On Tuesday, August 7, USDA Secretary Mike Johanns announced that 24 drought-impacted Minnesota counties have been declared disaster areas. Those counties, as well as 32 adjacent counties, will be eligible for low-interest loans from USDA. The press release, with USDA’s announcement listing the eligible counties, can be found on USDA’s Web site.

Those eligible for USDA’s low-interest emergency loans (EM loans) may use loan proceeds to restore or replace essential property; pay all or part of production costs associated with the disaster year; pay essential family living expenses; reorganize the farming operation; and refinance certain debts. Qualified farmers and ranchers can borrow up to 100 percent of production or physical losses, to a maximum amount of $500,000.

INTEREST RATE
The current annual interest rate for emergency loans is 3.75 percent.

APPLICATION DEADLINE
Loan applications must be received within 8 months from August 7, 2007.

FOR FURTHER INFORMATION
Consult your copy of the 2004 edition of the Farmers’ Guide to Disaster Assistance.

INSURANCE CONSIDERATIONS
Farmers with crop insurance should report any losses within the time frame specified in their crop insurance contract. Additionally, farmers with coverage under USDA’s Noninsured Crop Disaster Assistance Program (NAP), including for forage crops, also need to timely report their losses.

OTHER FEDERAL PROGRAMS
Through its Emergency Conservation Program (ECP), USDA provides emergency funding and assistance for farmers and ranchers to rehabilitate farmland damaged by natural disasters and for carrying out emergency water conservation measures in periods of severe drought. Farmers may want to report conservation needs resulting from the drought, so that their county office can report the need, and the state office can request that funds be allocated by the federal office. For more information on ECP, refer to Chapter 5 of the Farmers’ Guide to Disaster Assistance.

Through another program, the Environmental Quality Incentives Program (EQIP), USDA provides farmers with technical assistance, cost share payments, and incentive payments to assist crop, livestock, and other agricultural producers with environmental and conservation improvements to their operations. EQIP funding is not triggered by natural disaster, but may be used for some conservation measures that help disaster recovery, prevention, and mitigation. Consult Natural Resources Conservation Service (NRCS) for availability of funds and sign-up dates. Additional information about EQIP is available on FLAG’s Publications Web page .

OTHER RESOURCES FOR DROUGHT-IMPACTED FARMERS
The Minnesota Department of Agriculture has developed a list of possible emergency water supply measures for Minnesota farmers. Keep in mind that, if farmers wish to seek cost share assistance through ECP or other conservation programs, they must generally be pre-approved for the assistance before implementing the conservation measures. Post-approval may be available in emergency situations.

Additionally, farmers needing to purchase feed, or who are feeding drought- stressed feedstuffs, can find purchase and feeding tips on the University of Wisconsin-Extension’s Web site at. Additionally, livestock producers in need of hay may wish to take advantage of the “Hay List,” an Internet-based service matching farmers needing forage with those who have forage to sell or donate.

The state will continue to assess the needs of farmers as the drought continues. You may want to encourage crop, forage/pasture, and livestock producers to report losses caused by the drought to FSA, so that FSA will have an accurate view of the damage caused, and can seek assistance from the national office if needed.

Farmers should keep detailed records of losses, unusual expenses, etc., in order to preserve eligibility for any assistance that may be announced later.

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News Release
For Release: August 7, 2007
Contacts: Jennifer Jambor, FLAG Staff Attorney, 651-223-5400 or

New Legal Guide to Help Farmers Make the Most of Windy Land

ST. PAUL , MINN. — Farmers’ Legal Action Group, Inc. (FLAG) announces publication of the Farmers’ Guide to Wind Energy: Legal Issues in Farming the Wind. The guide contains important legal information for farmers interested in a range of wind energy developments, whether leasing land to a third-party developer, installing a small wind turbine for on-farm energy needs, or developing a large farmer-owned wind project for profit.

This unique book provides a comprehensive overview of the legal landscape in which wind projects are built, with an emphasis on issues that matter for farmers. It contains critical legal information about regulation of the electric industry; project siting and financing, including government incentives; choice of business structure; property agreements; liability risks; turbine purchase and installation; tax benefits and obligations; and contracts with utilities to connect the wind project to the existing electric grid and sell the generated electricity.

“There are important legal issues in any type of wind-related investment, but these issues are often overlooked in other educational materials on the subject,” explains FLAG staff attorney Jessica A. Shoemaker. “Although this book does not eliminate the need to hire a lawyer, it is intended to empower farmers to make informed decisions in the face of increasing interest in wind energy.”

In addition to this new Farmers’ Guide to Wind Energy, FLAG has recently published other legal education materials related to wind energy. These include a discrete article on negotiating wind-related property agreements and a comprehensive report on state and federal incentives for farmer-owned wind projects.

To request a copy of the Farmers’ Guide to Wind Energy, or any other FLAG publication, call FLAG’s office at 651-223-5400. In Minnesota, the phone call is toll-free at 1-877-860-4349. Bound copies are available without charge to financially distressed farmers in Minnesota; for all others, a bound copy costs $35 plus shipping and can be ordered on FLAG's online publisher. The book can be also downloaded free from FLAG’s Web site at: www.flaginc.org. The Farmers’ Guide to Wind Energy was made possible with the generous support of the Bush Foundation.

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News Release
For Release: June, 2007
Contact: Jill Krueger – 651-223-5400

New Guide to Help Farmers Participate in the Environmental Quality Incentives Program (EQIP)

ST. PAUL , MINN. — Farmers’ Legal Action Group, Inc. (FLAG) announces a new guide, Is Your Farm “EQIPed” For Conservation: A Farmers’ Guide to the Environmental Quality Incentives Program. The booklet contains important legal information for farmers interested in EQIP, or who are already participating in EQIP. EQIP assists eligible farmers and ranchers to address conservation concerns affecting soil, water, air, wildlife habitat, and other natural resources. Through EQIP, farmers and ranchers can apply for financial assistance, information, and training to implement eligible conservation practices on their farms.

EQIP assistance has enabled many farmers to make changes in their farming operations—such as using contour strips, or rotationally grazing livestock, or adopting integrated pest management--that they otherwise might not have been able to make. But it is important for farmers to understand that when they enroll in EQIP, they sign a legally binding contract.

“Farmers should read, understand, and keep copies of the EQIP contract, which includes the application, appendix, and conservation plan,” notes FLAG attorney Jill Krueger. These three documents set forth farmers’ rights and responsibilities when they participate in EQIP. Krueger notes, “FLAG wrote the guide to help farmers understand if they were eligible for the program, how it could help them in their farming operation, and also how to prevent or address any problems that might arise. For example, canceling the EQIP contract can have serious financial consequences for the farmer. But if the farmer’s circumstances change, they may be able to change the conservation plan and stay in the program, as long as they get written agreement from NRCS.”

Farmers may request a free copy of the guide by calling FLAG’s office. Minnesota callers should dial FLAG’s office at 1-877-860-4349. For out-of-state callers, the number is 651-223-5400. The guide can be also downloaded from FLAG’s website by clicking here.

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News Release
For Release: May, 2007
Contact: Jessica A. Shoemaker, 651-223-5400

New Report on Policy Incentives for Community-Based Wind Energy Developments

ST. PAUL , MINN. — Farmers’ Legal Action Group, Inc. (FLAG) announces publication of a new report called Community Wind: A Review of Select State and Federal Policy Incentives. This is a user-friendly guide to existing state and federal policy incentives that specifically seek to promote the local benefits of wind energy developments.

The report covers laws from Colorado, Iowa, Minnesota, North Dakota, Oregon, and the federal government that impact where and to whom the benefits of new wind energy developments flow.

Wind and other renewable energy sources are changing the face of American agriculture. FLAG is committed to providing legal information and education to assist farmers and rural landowners as they respond to these changes.

In addition to the enclosed report, FLAG plans to publish other wind-related legal education materials in the near future. These will include a piece on negotiating wind-related property agreements and a comprehensive Farmers’ Guide to Wind Energy.

A free copy of the Community Wind report can be requested by calling FLAG’s office. Minnesota callers should dial FLAG’s office at 1-877-860-4349. For out-of-state callers, the number is 651-223-5400. The fact sheet can be also downloaded from FLAG’s website.

FLAG also has a variety of other publications of interest to farmers. These include the Farmers’ Guide to Disaster Assistance, Farmers’ Guide to Minnesota Lending Law, and Before You Sign on the Dotted Line: Questions for Farmers to Ask before Signing a Direct Marketing Agreement. All of these publications are available from FLAG upon request, and are posted on the FLAG website.

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News Release
For Release: April 18, 2007
Contacts: Susan Stokes, Farmers’ Legal Action Group, St. Paul/651-223-5400

Farmers’ Legal Action Group Testifies Before Senate Agriculture Committee: Congress Should Help Restore Balance in Agricultural Markets and Contracts

WASHINGTON, D.C. — (April 18, 2007) Farmers’ Legal Action Group (FLAG) Program Director Lynn Hayes testified before the United States Senate Committee on Agriculture, Nutrition, and Forestry today, urging Congress to include in the 2007 Farm Bill provisions that restore open and competitive agricultural markets and fair agricultural contracts.

“Over the last few decades, the markets for farmers’ agricultural commodities have experienced a rapid consolidation of market share in the hands of a few large companies and dramatic trend toward more vertical coordination by processing and packing companies,” Hayes testified. “These trends have resulted in huge reductions in the number of buyers available to compete for farmers’ products, a loss of transparency in the markets, manipulation of prices paid to farmers, a sharp increase in the use of production contracts, and a horrendous imbalance in bargaining power between farmers and processors.”

FLAG’s testimony includes suggestions for reform of agricultural contracts to equalize farmers’ bargaining power, including full disclosure of risks and methods of payment and compensation; compensation for growers who make significant investments if t contracts are terminated without good cause; and a prohibition against binding arbitration unless all parties to the dispute agree to it in writing after the dispute arises.

FLAG’s testimony also included a recommendation that Congress pass legislation addressing packers’ use of forward contracts negotiated in secret that create a “captive supply” of livestock; banning packer ownership of livestock longer than seven days in advance of slaughter; and strengthening the 1921 Packers and Stockyards Act, which was intended to prohibit unfair practices between packers and producers.

FLAG Executive Director Susan Stokes added: “Congress has before it a historic opportunity to level the playing field and address the imbalances in market power that have increased dramatically over the past decade. We are grateful to Senator Harkin and the Committee for inviting FLAG to testify on these critical issues that affect family farmers across the country.”

View Lynn A. Hayes written Testimony

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News Release
For Release: March 8, 2007
For More Information: Jill Krueger – 651-223-5400

New Booklet to Help Farmers Understand Farmers’ Market Rules

ST. PAUL, MINN. — Farmers’ Legal Action Group, Inc. (FLAG) announces a new booklet, Understanding Farmers’ Market Rules. The booklet contains important legal information for farmers who sell their vegetables, fruits, flowers, meats, and other foods at farmers’ markets. FLAG wrote the booklet to help answer questions it received from farmers. Farmers’ markets are especially popular among beginning farmers, immigrant farmers, specialty crop farmers, and limited resource farmers. Many farmers who are interested in direct marketing and value-added agriculture begin by selling at farmers’ markets. Because farmers’ markets appeal to new farmers and to farmers with little direct marketing experience, there is a greater need for information for farmers to turn to when they have questions. The booklet is intended to help farmers understand their responsibilities and rights as farmers’ market vendors. FLAG attorney Jill Krueger notes that, “Even though the details of the rules may be different from market to market, there are a few commonly used rules of the market that most often give rise to misunderstandings.” The focus of the booklet is on preventing problems by improving understanding of market rules. But the booklet offers practical suggestions farmers can follow to try to resolve any problems that may arise. It also gives ideas on how to learn about other requirements that may apply to sales at a farmers’ market. In addition to market rules, a market vendor’s rights and responsibilities may also be governed by federal, state, and local laws. A free copy of the article can be requested by calling FLAG’s office at 651-223-5400.  Minnesota callers may dial FLAG’s office at 1-877-860-4349. The article can be also downloaded from FLAG’s website at: www.flaginc.org.

Go to Booklet

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