Glossary of FSA Terms

The following is a list of terms you may encounter when engaging with FSA and its programs.

Glossary of Terms

Acreage Report — documents the crops grown on your

farm or ranch and their intended uses. You must file timely

acreage reports to be eligible for many USDA programs.

Advance Payment — a payment that may be made

available in advance of the installation of the conservation

practice.

Assignment of Payment — this form known as the CCC-

36 allows the participant to directly assign part or all of a

payment received for Farm Bill program participation to

another individual, group of individuals or entities.

Farm Bill — a package of legislation passed roughly

once every 5 years that impacts farming livelihoods,

how food is grown, what kinds of foods are grown. It

covers commodities, conservation, nutrition, loans, rural

development, research, extension services, forestry,

energy, horticulture, crop insurance, labor safety,

workforce development, and much more.

Conservation Concern — an expected degradation of the

soil, water, air, plant, animal, or energy resource base to

an extent that the sustainability or intended use of the

resource is impaired. This may also be called a Resource

Concern.

Conservation Loan — an FSA Direct or Guaranteed

Loan that can be used to fund the implementation of

approved conservation practices in accordance with

an NRCS Conservation Plan of Forest Service Steward

Management Plan.

Conservation Plan — a free tool designed to help you

better manage the natural resources on your farm or

ranch. An NRCS conservationist will meet with you to

evaluate the soil, water, air, plant, and animal resources

on your property and offer several alternatives to address

the resource conditions. The alternatives you decide

to use are recorded in your conservation plan, which

includes a schedule for installation.

Conservation Planning Activities — activities for

which producers can receive NRCS funding to engage

Technical Service Providers (TSPs) to help identify and

assess the resource concerns against planning criteria

in a conservation plan and determine the practices to

implement.

Conservation Practice Standard — NRCS guidance that

contains information on why and where a practice is

applied and sets forth the minimum quality criteria that

must be met during the application of a practice in order

for it to achieve its intended purpose.

Conservationist — an individual who provides technical

expertise and conservation planning for farmers,

ranchers, and forest landowners wanting to make

conservation improvements to their land.

Cooperative Extension Service — assists the public in

the areas of agriculture, lawn and garden, community

development, 4H and youth development, family, and

consumer education.

Design Implementation Activities — activities for

which producers can receive NRCS funding to engage

Technical Service Providers (TSPs) to help identify how

to implement systems, practices, and activities. These

may include the development of specific practice designs,

management prescriptions, or other instructions to

implement a producer’s selected conservation system.

FSA County Committee — a committee elected by the

agricultural producers in the county or area to help

deliver farm program at the local level and work to ensure

programs serve the needs of local producers.

Direct Loan — Direct Loans offer up to 100 percent

financing and are a valuable resource to help farmers

and ranchers purchase or enlarge family farms, improve

and expand current operations, increase agricultural

productivity, purchase livestock or equipment, recover

from natural disasters and assist with land tenure to save

farmland for future generations. With a maximum loan

amount of $600,000 for Direct Farm Ownership ($300,150 for

Beginning Farmer Down Payment) and $400,000 for Direct Farm

Operating Loans, all FSA Direct Loans are financed and

serviced by the Agency through local Farm Loan staff. The

funding comes from Congressional appropriations as part

of the USDA budget.

Emergency Loan — an FSA Direct Loan that can be used to

help qualified operators recover from a declared natural

disaster. This loan can help with paying costs of repairing

or replacing damaged property, replacing lost crop income

and provide funds for operating costs. Producers can borrow up to 100% of actual production and physical losses to a maximum

amount of $500,000.

Easement — an interest in land defined and delineated in a

deed whereby the landowner conveys rights, title, and/or

interests in a property to the grantee, but the landowner

retains fee-title ownership.

Farm and Tract Number — Farm Number is a unique

identifier assigned by FSA to a farm. Tract Number is a

unique identifier assigned to a land unit that is part of a

farm.

Farm Ownership Loan — an FSA Direct or Guaranteed

Loan that can be used to purchase or expand a farm

or ranch. This loan can help with paying closing costs,

constructing or improving buildings on the farm, or to

help conserve and protect soil and water resources. The

maximum loan amount for a Direct Farm Ownership Loan

is $600,000, and for a Guaranteed Farm Ownership Loan

is $2,236,000 (these amounts are adjusted annually for inflation).

Financial Assistance — funds paid to an eligible program

participant under an agreement entered into with NRCS.

Guaranteed Loan — FSA’s Guaranteed Farm Loan

Programs help family farmers and ranchers to obtain

loans from USDA-approved commercial lenders at

reasonable terms to buy farmland or finance agricultural

production. FSA will guarantee farm loans through

a commercial lender up to $2,236,000. Financial

institutions receive additional loan business as well

as benefit from the safety net the FSA provides by

guaranteeing farm loans up to 95 percent against possible

financial loss of principal and interest.

Heirs Property — a legal term that refers to family

land inherited without a will or legal documentation of

ownership.

Highly Erodible Land (HEL) — cropland, hayland, or

pasture that can erode at excessive rates. It would contain

soils that have an erodibility index of eight or more. If a

producer has a field identified as highly erodible land, that

producer is required to maintain a conservation system

of practices that keeps erosion rates at a substantial

reduction of soil loss.

Microloan — an FSA Direct Loan, either Farm Ownership

or Operating Loan, designed to meet the needs of

small and beginning farmers, or for non-traditional and

specialty operations by easing some of the requirements

and offering less paperwork. The maximum loan amount

for a Microloan is $50,000.

Operating Loans — an FSA Direct or Guaranteed

Loan that can be used to purchase livestock, seed, and

equipment. This loan can also cover farm operating

costs and family living expenses while a farm gets up

and running. The maximum loan amount for a Direct

Operating Loan is $400,000, and for a Guaranteed

Operating Loan is $2,236,000 (these amounts are adjusted annually

for inflation).

Practice Implementation — the action taken by a

producer or contractor to install or carry out a planned

conservation practice to address a natural resource

concern, meet the technical requirements of the design

standard, and achieve an environmental benefit.

Ranking Pools — customized to incorporate locally led

input and are established to allow program applications

with similar land uses/production types, resource

concerns, and in similar geographic areas to compete for

funding with similar operations.

Risk Management — the forecasting and evaluation

of financial risks together with the identification of

procedures to avoid or minimize their impact.

Schedule of Operations — this document identifies the

conservation practices to be implemented, timing of the

implementation, practice location, and payment rates.

Service Center — location where you can connect with

FSA, NRCS, or Rural Development employees for your

business needs. Find your local Service Center and agency

offices using the USDA Service Center Locator at farmers.

gov/service_locator.

Technical Assistance — guidance provided to farmers,

ranchers and forestland owners with the knowledge and

tools they need to conserve, maintain, and restore the

natural resources on their lands and improve the health of

their operations for the future.

Technical Service Provider (TSP) — an individual or

business with technical expertise in conservation planning

and design that serve as consultants to provide services

on behalf of NRCS.

Youth Loan — a type of Operating Loan for young people

between 10–20 years old who need assistance with an

educational agricultural project. Typically, these youth are

participating in 4-H clubs, FFA, or a similar organization.  The

maximum loan amount for Youth Loans is $5,000.

Wetland — Wetlands are defined differently by different

people and different government agencies. But there

are three factors of commonality in these various

definitions; wetlands can be defined by having wetland

vegetation (hydrophytes) or supporting such vegetation

under normal circumstances, having a predominance of

hydric soils, and having wetland hydrology (inundated or

saturated by surface or groundwater at a frequency and

duration sufficient to support a prevalence of vegetation

typically adapted for life in saturated soil conditions).