Iowa Rice Farmers Encouraged to Enroll in USDA's Rice Production Program for Financial Assistance

The U.S. Department of Agriculture (USDA) is encouraging rice farmers in Iowa to explore the opportunity for higher payment limits within the Rice Production Program (RPP). Eligible farmers who qualify can visit their local county office and submit the FSA-510 form, known as the "Request for an Exception to the $125,000 Payment Limitation for Certain Programs."

The RPP, designed to provide financial assistance to rice producers, has allocated up to $250 million in funding, with payments based on the reported planted and prevented planting acres from 2022. The USDA's Farm Service Agency (FSA) will be distributing prefilled applications to eligible rice producers in Iowa starting the week of May 8.

By streamlining the application process, the USDA aims to save time for both farmers and agency employees, ensuring a swift delivery of program benefits to support Iowa rice producers. Farmers in Iowa who wish to participate in the RPP must complete the FSA-174, Rice Production Program Application, and submit it to their local FSA county office by July 10, 2023.

Under the program, eligible producers will initially receive a reduced payment rate of one cent per pound, with the possibility of a second payment if funds remain. The calculation of payments will take into account the payment rate, individual average actual production history, and certified rice acres, considering both planted and prevented planting acres.

By exploring the option of higher payment limits through the FSA-510 form, eligible Iowa rice farmers can potentially exceed the standard payment limitation of $125,000. This certification allows farmers with average adjusted gross farm incomes (AGI) exceeding 75% of their average AGI to qualify for a payment limit of $250,000. AGI is based on the three taxable years preceding the most recent complete tax year.

To learn more about the Rice Production Program and obtain a fact sheet , farmers are advised to contact their local USDA Service Center for further assistance. The USDA is committed to supporting rice farmers in Iowa and promoting the development of the state's agricultural sector through the successful implementation of the RPP.

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