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It's not too early to plan for next crop year

By Daniel Root
daniel.root@mn.usda.gov

Date Modified: 09/22/2011 8:43 AM

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It is not too early to start preparing for the next crop year when it comes to programs administered by the FSA office. As you begin planning for next year, there are several important things to keep in mind when you are looking at your farming operation. Over the next few weeks we will be providing landowners and producers with important information to help them make their plans for the upcoming year. The following are a few things to keep in mind when it comes to land changes and signature authority.

Transferred or Sold Land – If you are or have been participating in USDA programs and have recently sold or transferred land, rented new land for the upcoming year, entered into a trust, corporation, partnership, etc., then, it is required that you notify your county FSA office as soon as possible. USDA program benefits and contract obligations will most likely be affected by transfers of land and entity changes. In addition, if there has been a recent death of a family member who was participating in USDA programs, please notify your county FSA office in order that any USDA matters that need to be addressed are done promptly.

Power of Attorney – Power of Attorney designations enable producers to designate another person to conduct their FSA business. A power of attorney can only be used to conduct official business with an FSA office. It cannot be used to request information on behalf of the person who has granted the authority. If interested, please contact your FSA office to complete form FSA-211 Power of Attorney.

Spousal Signatures – Husbands and wives may sign documents on behalf of each other for FSA and CCC programs in which either has an interest in. This option is automatically available unless a written request for exclusion is made to the county office by either spouse. There are exceptions to the rule. For example, spouses may not sign FSA-211's on behalf of each other or sign on behalf of each other as an authorized signatory for a partnership, joint venture, corporation, or other similar entity. Spouses must have a power of attorney on file or sign personally for claim settlements, such as promissory notes.

Signing for Entities or Joint Operations – In today's world of "entities"; trusts, limited liability companies, cooperatives, partnerships and corporations, signing FSA and CCC forms must be done according to Agency procedure.

First, there must be a document on file with the County Office which authorizes an individual to sign for the entity. Documents could be: a copy of the trust agreement, articles of partnership or articles of corporation, or a valid power of attorney. What is acceptable varies depending on the type of entity. Your FSA office will let you know what you need.

Second, it is important to know how to sign for the entity or joint operation. In almost all instances when signing for an entity, your signature has to include "by" or "for" indicating you are signing in a representative capacity.

For example, you as a partner are authorized to sign for, the John R. Smith & Sons Partnership. Acceptable signatures include: "by George C. Smith"; and "John R. Smith & Sons Partnership, by George C. Smith, Partner."

Banking Changes - If you changed banks and did not notify FSA, your payment could be delayed. Payments are electronically transferred into your bank account. If we are not made aware of changes to your account and routing numbers, there could be problems. In order to make timely payments, you need to notify the office if you close your account or if another financial institution purchases your bank. It is important that any changes in a producer's account such as; type of account, bank mergers, routing number or account numbers, be provided to the county office promptly to avoid possible payment delay.