j&lfarms
Well-known member
Does anyone know what the penalties are for taking land out of the program before the contract is up?
Taking land out of the CRP program?
- Thread starter j&lfarms
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cross_7
Well-known member
It probably varies from state to state, but I looked into it in Texas one time and you have to pay back all payments that have been made on the existing contract, plus interest and a penalty
The one I checked on was a new contract and hadn't received a check but was soon to be issued.
For a 125 acres it was going to cost a good bit just in penalties
Your fsa should be able to give to an exact figure.
The one I checked on was a new contract and hadn't received a check but was soon to be issued.
For a 125 acres it was going to cost a good bit just in penalties
Your fsa should be able to give to an exact figure.
CRP is a federal program, I don't think it varies much.
What Cross7 described is exactly what happens in Nebraska, we had some family land that had been in for over a decade. It was going to cost more to get it off the gov't payroll than we originally paid for the land.
I hope to never see a gubmint office again...
What Cross7 described is exactly what happens in Nebraska, we had some family land that had been in for over a decade. It was going to cost more to get it off the gov't payroll than we originally paid for the land.
I hope to never see a gubmint office again...
denvermartinfarms
Well-known member
Me either. The hardest people in the world to deal with Is the FSA, in my opinion.H and H":3hcnvgpo said:
Arkansas
Well-known member
I found this on the internet doing some searching maybe it will help ?
You must pay back all of the money that has been paid out during the time of the contract. Those payments include the contract money and any other cost sharing money that was given for land improvements. Next you must pay interest on that money which varies from year to year. In our case the interest was as low as 2% for one year and as high as 5.5% for another. Really, the interest isn't that big of a deal. Finally, you must pay 25% of one years payment for "Liquidated Damages". They are quick to point out that the "Liquidated Damages" fee is not a penalty!
You must pay back all of the money that has been paid out during the time of the contract. Those payments include the contract money and any other cost sharing money that was given for land improvements. Next you must pay interest on that money which varies from year to year. In our case the interest was as low as 2% for one year and as high as 5.5% for another. Really, the interest isn't that big of a deal. Finally, you must pay 25% of one years payment for "Liquidated Damages". They are quick to point out that the "Liquidated Damages" fee is not a penalty!
