GRAZE-OUT Payments Now Available to Eastland County Producers

usda-logo(Eastland, Texas), July 22, 2016 – USDA Farm Service Agency (FSA) Eastland County Executive Director John Bird announced that FSA is now accepting applications for 2016 GRAZE-OUT payments for producers who elect to use their acreage planted to wheat, barley, oats, or triticale for grazing by livestock and agree to forgo any other harvesting of the commodity in 2016.

Producers must request graze-out payments by farm and complete form CCC-633 GRAZING. If multiple producers share in the acreage, all signatures must be obtained before the request is considered complete.

The graze-out payment rate is determined by the amount the applicable commodity loan rate exceeds the CCC-determined value of the commodity for the county where the farm is located. This is referred to as the Loan Deficiency Payment (LDP) rate. The graze-out payment will be based on the LDP rate in effect for the county on the date of request.

Producers may file an application for graze-out any time prior to March 31, 2017.

Bird emphasizes that acres identified on form CCC-633 GRAZING will not be eligible for an indemnity under the Federal Crop Insurance Act or Noninsured Crop Disaster Assistance Program (NAP).

Graze-out payments are subject to the same basic eligibility requirements as commodity loans and LDPs including, but not limited to Adjusted Gross Income (AGI) provisions, beneficial interest, conservation compliance, foreign person, payment limitations for crop years 2014 through 2018, together with market loan gains and ARC/PLC.

Before MAL repayments with a market loan gain (MLG) or LDP disbursements can be made, producers must meet the requirements of actively engaged in farming, cash rent tenant and member contribution. The 2014 Farm Bill also establishes payment limitations per individual or entity not to exceed $125,000 annually on certain commodities for the following program benefits: price loss coverage payments, agriculture risk coverage payments, MLGs and LDPs.

AGI provisions state that a producer whose total applicable three-year average AGI exceeds $900,000 is not eligible to receive an MLG or LDP. Producers must have a valid CCC-941 on file to earn a market gain of LDP.

For more information and additional eligibility requirements, please visit a nearby USDA Service Center or FSA’s website . For an FSA office near you, visit