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Collin County chosen for e-LDP pilot program |
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By LORI COPE | East Texas Edition |
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August 1, 2002 -- Aug. 5 will start Phase II of a pilot program in Collin County that gives the county's crop farmers the opportunity to file for their Loan Deficiency Payment (LDP) via the Internet. Collin County is the only county in Texas involved in the pilot program, chosen mainly because of the variety of crops grown within the county. "We have soft red wheat, corn, sorghum, cotton, soybeans, and oats," noted Paul Newhouse, Farm Service Agency (FSA) county executive director for Collin County. Traditionally, LDPs give the farmer a loan on their harvested, but unsold, crop commodity. The pilot program is a "customer service"-oriented measure that is part of the Legislature's attempt to develop electronic (e)-government, as part of the Freedom to E-File Act. The new pilot program, e-LDP, allows farmers to complete the necessary paperwork online from their home computer. "They can go online 24 hours a day, seven days a week, and lock in the payment rate for that day," Newhouse said. "This is a convenience to the farmer." In the nation, 21 counties are involved in the e-LDP pilot program. It's the U.S. Department of Agriculture's first attempt at an Internet-based payment process. FSA is the USDA agency which handles LDPs, as well as many other subsidy and loan ventures that tie farmers to the government. Phase I of e-LDP ran May 6 through May 31 and it "went well," according to Newhouse. Collin County farmers Kenneth and Tonya Strickland "tested" the system during that period. They farm 2,600 acres in the county, and Kenneth is the FSA committee chairman for Collin County. Using a portion of their 2001 soybean crop, the Stricklands went through the process of filing for their LDP online, and receiving the loan funds via direct deposit to their bank. The direct deposit is another advantage for farmers, according to Newhouse. "The direct deposit is in the bank by the second working day after the request." The Stricklands were assisted throughout the initial phase of the pilot program by Newhouse and Eileen Haley, chief program technician for FSA-Collin County. To begin, the FSA staff completed a farm "profile" for the Stricklands. Then the farm was given a user number, and a password came in the mail about four days later. With the user number and password, the Stricklands could access the necessary FSA's website for filing their LDP; and change the user number and password to one only they would know. There are a few checks and balances within the system, according to Newhouse, many which are based on the information provided within the farm profile. "If the farmer filed that he has 40 bushels to the acre, he can't ask (for loan funds) for 80 bushels," the county director said. "Now we can change that in the profile, here at the office, if it needs to be." Filing the farm profiles may be an important aspect of the program - to the FSA staff. Their amount of workload, which includes credits for each LDP filed, determines the number of staff needed within the office. But after some meetings "on the Hill," according to Newhouse, it was determined the paperwork completed by FSA staff in developing a farm profile would be sufficient workload credit. Also, when the loan funds have been ordered for direct deposit, the county FSA office is sent notice. At least 25 percent of the amount filed upon (amount of harvest) is subject to "spot-check" verification by county FSA staff. On Aug. 5, Phase II of the pilot program begins and Newhouse says he has three or four farmers interested in participating. Having at least one member of the farming household "computer literate" is helpful, and FSA's Newhouse and Haley are "ready, willing and able" to assist farmers in learning the necessary steps to complete the filings from their home computer. Computer software necessary to be involved in e-LDP is (of course, access to the Internet) Explorer 5.5 or better, and Acrobat Reader 5.05 or better. As the Collin County FSA staff is gearing up for Round II of the pilot program, crop prices are not cooperating. As of the end of July, the Posted County Price (PCP) for all the commodities is higher than the county loan rate, which means there will be no need to file for a "loan" or LDP. (The PCP is the daily price for the county obtained by taking the market rates and adjusting downward for distance from the terminal markets, Newhouse explained.) The LDP rate varies from county-to-county, and changes daily. On July 24, the PCP was $2.78 on soft red winter wheat (SRW), and the county's loan rate was $2.42. This means the market for SRW would have to drop more than 36 cents before there would be an LDP. "Given the choice, however, we all would prefer higher market prices," Newhouse said. Newhouse concluded e-LDP is expected to be available to the nation's farmers some time in 2003. |
