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FSA changeover blamed for payment problems
Friday, November 20, 2009

Simultaneous changes in federal farm program procedures, rules, and technology have created headaches for some Illinois producers and state and county Farm Service Agency (FSA) officials.

Illinois Farm Bureau risk management specialist Doug Yoder reported harvest-stressed growers are encountering multi-faceted problems including electronic deposit of some program payments in wrong accounts, single lump-sum payments for separate program farms, and thousands of FSA letters informing program recipients nationwide, many erroneously, that they owe USDA money.

"I got five (letters)," IFB board member Chuck Cawley informed other state directors last week. Board colleague Dale Hadden said he fears the notification letters are "confusing elderly landlords."

Yoder is concerned about current glitches in program payments and paperwork emanating from FSAs Kansas City regional offices as USDA prepares to mail 1099 tax forms to program participants. Further confusion could result in producer tax issues that could affect individual farm credit for the season ahead, Yoder said.

FSA Illinois program manager Stan Wilson noted ongoing efforts to correct the problem(s), and urged producers or farm landlords who believe they have erroneously received FSA "collection" letters or have experienced payment errors to immediately contact their county FSA office.

For additional information on this story and other breaking news, go to FarmWeekNow.com.

For More Info Contact:
John Hawkins, News Service Director
Phone 309 557-2237      Fax (800) 640-1995      E-mail jhawkins@ilfb.org

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