On behalf of NASE I recently attended the National 2008 Farm Bill Training in Dallas, Texas.  The meeting
was located in the heart of downtown Dallas’ financial institution district.  Three hundred people attended
the week long training. Key speakers included; Undersecretary-Dr. Mark Keenum, Teresa Lasseter
Administrator Farm Service Agency, John Johnson Deputy Administrator Farm Programs, and Juan Garcia
Agricultural program Manager, Texas STO.  

FY 2009 budget funding will be very tight.  There is no projection to cut county office employees however
all understaffed county office vacancies may not be filled.  Farm operating loans have a 36 million dollar
back log, Farm ownership a 35 million dollar back log going into the FY 2009 year, this is unprecedented.
2009 Farm programs will contain many changes mandated in the 2008 Farm Bill.

Some of the major changes are in the Payment Limits, NAP, Adjusted Gross Income (AGI) provisions,
definitions of Socially Disadvantaged Farmer or Rancher and Beginning Farmer or Rancher, and the
purchase of Insurance requirements to remain eligible for program payments.  

Each program contains its’ own requirements so emphasis on how an individual or entity files a loan
application request remains very important.  For example a 100% livestock operation could be required to
purchase a NAP insurance policy even though they were not required in prior years to remain eligible to
receive potential program payments.  An individual or entity meeting the first time farmer or rancher or
socially disadvantaged farmer or rancher definition may be waived.

Husbands and wives are no longer considered “automatically” combined as one for payment limitation.  
All rules for eligibility must be met to receive separate limitations.  

All of these changes together and separately could result in the way potential borrowers choose to apply
for 2009 loans. It very important that each loan applicant is certain how they have filed their paperwork
and the eligibility determinations made at the Farm Program Agency since all information on the loan
application request must be consistent with Farm Commodity Program records.

The National Office is in the process of preparing/completing several notices, amendments, clarifications,
and immediate provisions along with new forms that should be received in the State/County office in the
very near future. This completion and distributions has top priority.

I hope you will find these notes helpful.  I want to thank each of you for the opportunity to attend the Farm
Program Training.  It was a privilege to represent NASE members.  

Most Sincerely,

Joanie Hutchings, Zone B
P.O. Box 598
Floydada, TX  79235
Phone: 806-983-2050
Fax: 806-983-6426
Email: joaine.hutchings@tx.usda.gov
       Jph2008@gmail.com