Report Recommendation
No. / Category

Commission's Recommendations
and USDA's Action Plans

USDA Mission Area/ 
Agency/Contact Person

The policy should include repayment periods for direct acquisition loans reflect the expected useful life of on-farm improvements, equipment, or chattel purchased with loan proceeds.  

USDA Action. FSA re-enforced the long standing policy that the repayment periods on loans reflect the useful life of the livestock, improvements, and equipment purchased with loan proceeds in a teleconference with States on April 7, 1998 and at the August 1998 State Directors' meeting. Agency will continue to re-enforce. 

Status: Fully implemented (code 1).

USDA Action. Since August 5, 1998, County Committees have no role in direct or guaranteed loan making determinations. 

Status: Fully implemented (code 1). 

USDA Action. Resolve accounting issues with OMB. Determine if there are alternatives to implementing the law and developing a process for line-of-credit loans as authorized in Section 614 of the 1996 FAIR Act. Due to provisions of the Credit Reform Act and OMB policy guidance, a direct line of credit will not be implemented. However, FSA has implemented a low-documentation direct loan program in place of a line of credit.

Status: Fully implemented (code 1).

USDA Action. Rule published in February 1999.  

Status: Fully implemented (code 1).  

USDA Action. Submitted legislation to Congress that would repeal provisions in law that prohibit farmers who have had "debt forgiveness" from ever receiving any further USDA loans or credit assistance.  

Status: Unable to be implemented (code 3). USDA submitted proposed legislation to Congress as recommended but no action was taken. 

USDA Action. Drafted and supported legislative proposal that would give USDA the authority it needs to carry out this recommendation. The legislation was included in the Senate version of the emergency supplemental appropriations bill, but was not passed by Congress.  

Status: Unable to be implemented (code 3). Will continue to support passage of legislation.

USDA Action. Provided a decision memorandum to the Secretary discussing the waivers and options to pursue.  

Status: Partially implemented (code 2). Secretary has considered on an annual basis, exempting only certain disaster and emergency programs. Appropriations bill has exempted certain payments from being offset.

USDA Action. Instituted new procedures with DOJ: civil rights review prior to forwarding cases to DOJ and hold quarterly meetings with DOJ.  

Status: Fully implemented (code 1). Will continue to monitor.

USDA Action. Most loans are now approved or disapproved within 30 days. Agency regulations require a checklist of what is needed for a complete application and require that this list be provided to the applicant.  

Appropriated funds are expeditiously allocated and a minimum is held in the National Office reserve. A shorter application process for guaranteed loans under $50,000 has been developed.  Regulations were published in January 2001 for direct operating loans which will reduce paperwork and processing times.

Status: Fully implemented (code 1). 

USDA Action. The recommendation asked for five changes to the appraisal criteria process. FSA has implemented three of them and is implementing one of them (changing regulations to require that a copy of appraisals be issued within 5 days of request); and under the current requirements for appraisals will not be able to appraise land based on agricultural use.  

Status:  Partially implemented (code 2). Cannot base appraisals on agriculture value as restricted by the Uniform Standards of Professional Appraisals (USPAP).

USDA Action. FSA has authorized extended terms on shared appreciation agreements by converting them to nonprogram loans. FSA also now allows expiring shared appreciation agreements a self certified 1 year extension with additional extensions possible for another 2 years. 

Regulatory changes proposed that would: 

1. Reduce shared appreciation agreements from 10 to 5 years. 

2. Permit capital improvements to be deducted from shared appreciation agreements. 

Status: Fully implemented (code 1). A Final Rule was published on August 18, 2000.

USDA Action. Issued a progress report called "Civil Rights at the U.S. Department of Agriculture: One Year of Change." The CRAT report contained 92 recommendations and 88 have been implemented or steps have been taken to implement them.  

Status: Partially implemented (code 2). FSA is actively implementing suggestions and changes as stated in the Administrator's performance goals. 

CR & SBUS has retooled it's strategic plan to implement recommendations made by the CRAT report. CR & SBUS conducted studies on Farm Programs and have developed training syllabuses to inform managers on perceptual discriminatory practices

FSA has made the training a requirement for all employees in field, to include County Committeemen.

                   Or,

Contact: Dr. David J. Adams (Civil Rights)
Tel: 202-401-7166
Fax: 202 401-7100
Rev. date: 01/12/00 
Status Code: 2-Partially implemented.

USDA Action. Supported HR 2185 (Rep. Clayton's bill) that provided for the expansion of county committee membership to under represented groups.  

Status: Partially implemented (code 2). FSA's outreach program has been retooled to act promptly on promoting diversity in FSA programs. FSA has a highly interactive Committee election process through local media outlets, local journals and civic organizations. FSA managers are actively involved in outreach efforts to attract minorities and women. 

                      Or,

Contact: Dr. David J. Adams (Civil Rights)
Tel: 202-401-7166
Fax: 202 401-7100
Rev. date: 01/12/00 
Status Code: 2-Partially implemented.

USDA Action. Continue settlement of outstanding cases. As of May 1998, USDA had settled or closed 328 of the 1,088 program discrimination complaints in the backlog. Proceed with claims settlement.  

Status: Partially implemented (code 2). FSA, jointly with the Department's Office of Civil Rights Office is making efforts to investigate, adjudicate and settle outstanding complaints of discrimination. 

CR & SBUS is currently operating under a memorandum of understanding with the Department for FSA Fact-Finders to investigate over 600 backlog complaints. 

FSA also has plans to conduct inquiries on offices found to have a large volume of activity on the consent decree.

                 Or,

Contact: Dr. David J. Adams (Civil Rights)
Tel: 202-401-7166
Fax: 202 401-7100
Rev. date: 01/12/00 
Status Code: 2-Partially implemented (code 2).

USDA Action. The Administration supported legislation that protected tobacco quota holders, producers, and communities from the impacts of reduced tobacco product consumption and leaf production.  

Status: Partially implemented (code 2). As small farm programs and pilot projects are established, tobacco states will be carefully considered. 

USDA Action. The Administration supported legislation that protected tobacco quota holders, producers, and communities from the impacts of reduced tobacco product consumption and leaf production. As small farm programs and pilot projects are established, tobacco states will be carefully considered. 

Status: Unable to be implemented (code 3). Legislation was pending in Congress in Summer 1998 (the so-called National Tobacco Settlement). Bill died in Congress and there is no similar bill before Congress. 

USDA Action. On June 23, 1998, the Under Secretary for Farm and Foreign Agricultural Services (FFAS) signed a decision memorandum and chose not to enter into a contract with a private firm to audit the FSA direct loan records. It was determined that both the Office of the Inspector General and the General Accounting Office perform this function on an ongoing basis. 

Status: Not implemented (code 4). 

USDA Action. Expanding the number of FSA sites where the software can be available for farmers and community-based groups to use. 

Status: Partially implemented (code 2). See below: 

1. FSA is currently working on converting DALR$ to a PC-based system. FSA is moving to a stand alone PC-based windows environment.   

2. Completion date for the conversion is now scheduled for June 2001. 

3. FSA has converted DALR$ to the IBM Advance 36 in January of 1999 increasing the number of FSA sites where it is available. 

USDA Action. A decision memo was sent to the Secretary for consideration recommending legislation to provide for a new relending program for production agriculture through the Farm Service Agency, but not funded in FY 1999. 

Status: Not implemented (code 4). No Congressional action taken.

USDA Action. The Farm Service Agency has already undertaken an array of activities which implement the recommendation.  

Status: Fully implemented (code 1). FSA will continue to meet with commercial lenders to discuss minority and beginning farmer lending. FSA is currently working with the National Bankers Association to facilitate guaranteed minority lending and with the American Bankers Association (ABA) to expand use of guarantee program for beginner farmers as envisioned in ABA's Task Force on the 21st Century Report. 

The RMA educational initiative must document the number and type of small farmers and ranchers it has reached; the products developed specially for small farmers and ranchers as a result of risk management; and provide producers with more information about risk management, production practices, marketing techniques, and processing options

USDA ACTION: Risk Management Education program provides farmers with information and with educational opportunities to become more aware of risk, know the tools available to manage risk, and learn strategies for making sound risk management decisions.

A provision relating to organic and sustainable agriculture was included in the Agricultural Risk Protection Act of 2000-(2000 Act), signed by President Clinton on June 20, 2000. Under Section 123 of the 2000 Act: "Scientifically sound sustainable and organic farming practices" will now be recognized as "good farming practices."

Please check our web site for further details on new risk management educational activities nationwide -- http://www.rma.usda.gov/.

Status: Partially implemented (code 2). Will continue to monitor.

USDA Action. RMA reviewed several areas of the crop insurance program which can be modified to enhance the coverage available to producers, reduce the impact of extended areas of adverse weather, and assist producers in obtaining coverage for crops which they are growing in response to the 1996 Farm Bill.  

Agricultural Risk Protection Act of 2000 (2000 Act). On June 20, 2000, the President signed the Agricultural Risk Protection Act of 2000 (2000 Act). The 2000 Act takes important steps for the U.S. agriculture industry which are consistent with Administration proposals advocated over the past two years. The 2000 Act:

• Makes crop insurance more affordable and useful to producers through increased subsidies for buy-up coverage and provides increased Federal backing for revenue products.
  
• Establishes an important financial commitment to crop insurance expansion, research and development, and education and outreach, which are key to specialty crop growers and states with traditionally low levels of crop insurance participation.

• Improves the Non-Insured Crop Disaster Assistance program (NAP) by lifting the area trigger and other improvements.
  
• Addresses multi-year losses and their effect on insurance coverage's by permitting producers to adjust certain actual yields to improve insurable yields.
  
• Authorizes a pilot program for livestock options.
  
• Improves program integrity by providing stiff penalties for program abuse and limiting certain practices such as receiving more than one indemnity on the same acreage in areas that are not traditionally double cropped.
  
• Requires the Risk Management Agency and the Farm Service Agency to reconcile data for producers to ensure consistent reporting of production and losses for the purposes of USDA program participation.

Please check our web site for further details on the new programs -- http://www.rma.usda.gov/.

Status. Fully implemented (code 1).

USDA Action. FSA field offices will continue to send reminder notices to borrowers with a shared appreciation agreements. In regulation: three different letters must be sent out. 

Status: Fully implemented (code 1). New regulations were issued on 03/10/98 requiring all servicing offices receive a monthly report on expiring shared appreciation agreements. Borrowers are notified annually as well as 60 days prior to the end of the agreement. 

USDA Action. FSA issues annual notices to all field offices on this issue. 

Status: Fully implemented (code 1). Will continue to issue notices each year. 

USDA Action. FSA loan servicing regulations currently provide for transfer and assumption of its farm loans by the children of borrowers if they meet creditworthiness, security, repayment, and other regulatory requirements. 

Agency loan servicing regulations contain provisions to facilitate such transfers in cases when existing Shared Appreciation and Net Recovery Buyout Recapture Agreements might otherwise present barriers to the assumption of these debts.  

Discussions have been held between the Under Secretary for Farm and Foreign Agricultural Services and FCS to discuss transfers and assumptions. 

Status: Partially implemented (code 2). Will proceed to implement action plan. 

USDA Action. The FSA has proposed legislation to accomplish this. The Secretary has indicated his support for this recommendation in meetings with several State Department of Agriculture Finance Authority representatives.  

Recent discussions have been held with OMB and Treasury on this issue. While OMB has taken a more favorable view than in the past, Treasury does not support the proposed changes.

Status: Unable to be implemented (code 3). Legislative action proposed but not enacted by Congress.

USDA Action. The Farm Service Agency (FSA) issued a final rule revising and streamlining its guaranteed loan regulations to give lenders and FSA more flexibility to serve applicants and borrowers. The regulations were published in February 1999. 

These revised regulations were developed after FSA held a guaranteed loan stakeholders meeting to solicit input on how to make the program work better. Both commercial banks and the Farm Credit System were represented at these meetings.  

With regards to the second part of the recommendation, that legislation be developed requiring the Food Credit System to make 15 percent of its loans to low-equity beginning farmers, Food Credit Agency (FCA) records indicate that approximately 19 percent of Food Credit Service loans are being made to low-equity beginning farmers. 

Status. Fully implemented.  

USDA Action. To achieve this recommendation, Farm Service Agency (FSA), through the FSA Outreach Program Staff, has approved and funded 6 national outreach projects. These projects provide outreach and technical assistance to assist beginning farmers (minority and underserved) to participate in FSA programs. The 6 projects include: 

1. The Intertribal Agriculture Council (IAC): We are currently at the end of the second year of a five year project to outreach agency programs to Indian Country. This project is currently funded by five USDA agencies, FSA, FAS, NRCS, APHIS, and RMA. The FSA amount for the third year for FSA was $100,000.  

2. The Stone Child College (located on the Rockey Boy Reservation in Montana, a 1994 Native American Land Grant Institution): We are currently at the end of the second year of a five year project to outreach FSA Farm Loan programs to American Indians on the seven federally recognized reservations in Montana. The amount for the third year is $207.111. 

3. The Fond du Lac Tribal and Community College (located in Minnesota is a 1994 Native American Land Grant Institution): We are currently at the end of the second year of a three year project to outreach FSA Farm Loan programs to the American Indians within a 200-mile radius of the college. The amount for the third year is $52,750. 

4. National Tribal Development Association (NTDA) (located at Box Elder, Montana): An annual project to outreach our County Committee election to Native Americans. throughout Indian County. The amount for this project is $58,373. 

5. The Puerto Rico Small Farmer Outreach and Technical Assistance Program. We are at the end of the second year of this five year project with the University of Puerto Rice, a 1862 Land Grant Institution. The third year amount for this project is $280,000. 

6. Minnesota Food Association (MFA): We are at the end of the first year of this five year project which is a New Immigrant Agriculture Project for African Refugees, Hmongs, and Hispanics. The second year amount for this project is $160,200. 

Status: Partially implemented (code 2). Ongoing. Will continue to implement. 

USDA Action. Legislation is required to give the Farm Service Agency the authority to make grants. Submitted proposed legislation in FY2000, but it was not passed by Congress.

Status: Unable to be implemented (code 3). Legislation proposed but not enacted by Congress.

1. Research and educational programs on low-capital options for getting started, acquiring capital, business planning, farm management, and marketing skills; 

2. Outreach with educational forums for rural communities focusing on information about share leases, selling land on contract where the interest is tax exempt, trading of labor for use of equipment, and community-based financing; 

3. Collaborative partnerships with community-based organizations to train and assist beginning farmers. 

USDA Action. This initiative could be incorporated under the direction of the Office of Small Farms and a Council on Small Farms. Secretary Glickman appointed members to the Advisory Committee on Beginning Farmers and Ranches in January 1999 for a two-year term. 

The Committee met in September 1999 and April 2000. The Secretary appointed 19 members to a new 2-year term in January 2001.

Status: Fully implemented (code 1).

USDA Action. On September 23, 1998, Secretary Glickman announced an innovative new insurance pilot program called Adjusted Gross Revenue (AGR).

AGR is a whole farm revenue product that provides protection against low farm revenue due to unavoidable natural disasters and market fluctuation that occurs during the insurance year. Covered farm revenue includes income from crops, other agricultural commodities, and incidental amounts of income from livestock and animal products and aquaculture reared in a controlled environment.

Beginning with the 2001 crop year, AGR is now available in 17 states: CT, DE, FL, ID, ME, MD, MA, MI, NH, NJ, NY, OR, PA, RI, VA, VT, and WA (please note: AGR is not available in all counties). The sales closing date for obtaining insurance for AGR is January 31 of each year. Claims are settled when taxes are filed for the insurance year and other Federal crop insurance claims are finalized. For more information on AGR, visit our website at-http://www.rma.usda.gov/

Status. Fully implemented (code 1). Will continue to monitor. 

USDA Action. Nursery Products - On October 23, 1998, Secretary Glickman announced improvements to the crop insurance program that covers growers of nursery crops.  

The improvements beginning with the 1999 crop year to the nursery crop insurance program include providing coverage to both container-grown and field-grown plants. Formerly, only container-grown plants were eligible.  

Under the old plan, growers had to submit monthly inventories; now they only have to declare the amount of insurance needed when they apply for the coverage.  

Also, under the old plan, growers paid a full year's premium based on their highest level of inventory, even when the increase was temporary.  

Now, growers can buy peak coverage only when needed, and their annual premium is not based on a temporary inventory. Producers buying a nursery policy for the first time had until May 31, 1999, to obtain coverage.  

Christmas trees -RMA is not pursuing an insurance program since a company provides insurance. IGF Insurance Company provides coverage for christmas trees in a "Timberplus" Policy in 26 states. 

Status: Fully implemented (code 1). Will continue to monitor. 

1. $85 million per year for the Farm
   Ownership Direct Loans; and
   
2. $500 million per year for the Farm
   Operating Direct Loans. 

USDA Action: For FY 2000, $150 million was requested for Direct Farm Ownership loans and $900 million for Direct Operating loans.

The FY 2001 Budget includes a request for $128 million for Direct Farm Ownership loans and $700 million for Direct Operating loans.

Status: Fully implemented (code 1). For FY 2001, $131.5 million is available for the Direct Farm Ownership loans and $700.4 million for the Direct Farm Operating loans. 

Inr FY 2000, $178 million was available for the Direct Farm Ownership loans and $935 million for the Direct Farm Operating loans.

SUMMARY
STATUS CODE DEFINITIONS
USDA Mission Area: Farm & Foreign Agricultural Service (FFAS)
Total Recommendations: 33

Fully Implemented
Total -- 16 (48.5%) 

Partially Implemented
Total -- 10 (30.3%)

 Unable to be Implemented
Total -- 5 (23.1%)

 Not Implemented
Total -- 2 (15.4%)

1.12     4.13
1.14     4.14
  1.15     5.01  
  1.13     5.04  
 1.19     5.08 
    1.20     6.11    
 1.22     6.16 
  4.09     7.04  

1.18     1.29
1.21     2.10
1.23     4.12
1.26     5.02
1.27     5.05

1.16
1.17
1.30
5.03
5.06

1.31
4.04