USDA Farm Service Agency Strategic Plan FY 2012-2016

2 FSA Strategic Plan 2012-2016 Core Values l Quality Service – Providing fair, equitable, and quality service to our customers. l Continuous Improvement - Improving the delivery of quality, accessible programs. l Inclusiveness – Respecting the individual differences and diversity of our workforce and our customers. l Fiscal Stewardship – Being good stewards of taxpayers’ dollars. l Teamwork - Working together to ensure delivery of effective and efficient programs. l Transparency – Making the Agency’s operations more open so that the public can learn how FSA delivers its programs. FSA Strategic Plan 2012-2016 3 SG1 Strategic Goal 1: Provide a financial safety net for America’s farmers and ranchers to sustain economically viable agricultural production FSA provides programs and services Objective 1.1 Provide Access that support the economic stability to Capital of farmers and ranchers. The Agency works closely with other USDA FSA’s loan programs provide access agencies to accomplish USDA’s strategic to credit for farmers and ranchers goal of assisting rural communities. who are temporarily unable to obtain financing from a commercial source at America needs rural communities reasonable rates and terms. Through where people want to live and raise direct and guaranteed farm ownership families and where the children have and operating loans, FSA assists tens of economic opportunities and bright thousands of family farmers each year futures. FSA works to ensure that in starting and maintaining profitable American farmers and ranchers farm businesses. FSA loan funds may are prosperous and competitive by be used to pay normal operating or providing farmers and ranchers access family living expenses; make capital to capital, helping them manage risks, improvements; refinance certain debts; supporting them in times of economic and purchase farmland, livestock, distress or disaster, and working hard to equipment, feed and other materials expand economic opportunities. essential to farm and ranch operations. FSA services extend beyond the typical Over the next 5 years, FSA will provide loan by offering customers ongoing access to capital (Objective 1.1), consultation, advice, and creative ways support economic viability (Objective to make their farm businesses thrive. 1.2), protect the interest of commodity FSA is the lender of first opportunity owners (Objective 1.3), and develop because it provides agricultural opportunities for non-traditional producers who need assistance an entry income streams (Objective 1.4). into agriculture production. While FSA is committed to all farmers and ranchers, it also focuses on the

4 FSA Strategic Plan 2012-2016 SG1 credit needs of beginning, minority, and from just over 35,000 in FY 2007 to women farmers. Farmers and ranchers more than 48,200 in FY 2010. Loan from these groups typically operate obligations in FY 2010 totaled more smaller farms, have less equity, or lack a than $5.27 billion - the highest level sufficient credit or production history. since 1985. Looking forward, demand Each year, FSA targets a portion of for FSA credit assistance is expected to its lending and focuses its outreach remain quite strong. on these groups. As a result, over the past 10 years, FSA credit assistance Additionally, FSA’s farm storage loan provided to these farmers has increased programs provide low-interest financing dramatically. In FY 2010, more than for producers to build or upgrade farm 50 percent of all loans were issued storage and handling facilities. This on- to beginning, minority, and women farm storage allows producers flexibility farmers. This translates into greater in timing when to sell their crops. than $1.975 billion in loan assistance. By comparison, in FY 2000 total Over the next 5 years, FSA will increase lending to the targeted groups was lending to beginning and socially $995 million. disadvantaged farmers (Pillar 1), increase analytics capability (Pillar 2), As demonstrated by the tremendous improve loan servicing and processing, upsurge in loan activity in recent (Pillar 3) and expand marketing years, FSA’s loan programs are also an opportunities through on-farm storage integral part of USDA’s economic safety (Pillar 4). net. Price weaknesses in the livestock sector, adverse weather conditions, Pillar 1: Increase Lending to and heightened risk sensitivity in the Beginning Farmers and Socially commercial lending sector, resulted Disadvantaged Farmers in greatly increased demand for FSA Credit availability can be particularly loans. The number of direct and challenging for beginning farmers, guaranteed loan applications increased women, and minorities. Therefore, FSA Strategic Plan 2012-2016 5 SG1 both direct and guaranteed loan funds With the emphasis on organic and are targeted, by statute, to ensure non-traditional or specialty enterprises, credit is available for these groups. FSA also utilizes resources available However, funding availability and from land grant universities and needs shift during the crop year due to their networks of trained agricultural the appropriations made by Congress specialists. These specialists are often and the varying growing seasons. In called upon by borrowers and local FSA response, FSA has adopted policies loan officers to assist in both the latest and procedures to ensure that, within production practices and in developing the flexibility available, funds can be accurate farm business plans. transferred and obligated to meet the needs of these farmers and ranchers. Pillar 3: Improve Loan Servicing and Processing Pillar 2: Increase Analytics As timely implementation of Capability agricultural operations is a key to FSA is continuously improving the success, FSA has decreased processing effectiveness and efficiency of Farm times on both direct and guaranteed Loan Programs (FLP) through loans. While FSA continues its efforts information technology initiatives. to reduce processing times further, the FLP applications are now entirely Web extensive analysis required on many based to ensure consistency, centralize operations that are unable to get credit system upgrade and maintenance, elsewhere, coupled with the continued and reduce hardware costs. Both the high volume of loan activity could limit Guaranteed Loan System (GLS) and the reduction possible. the Direct Loan System (DLS) are being continuously updated to expand FSA will continue to emphasize timely on existing capabilities. In addition, a and accurate delinquency loan servicing, centralized FLP Data Mart currently as it facilitates essential loan making under development will further improve activities for operations in financial reporting and analytical capabilities. distress. However, to provide

6 FSA Strategic Plan 2012-2016 SG1 stewardship of limited taxpayer funds, Objective 1.1 Strategies FSA must also continue to complete regular loan servicing activities, • Improve the effectiveness of including chattel inspections, security outreach efforts to minority, instrument servicing, and ensuring women, and beginning farmers proper disposition of collateral. by expanding efforts to partner with other Federal, State, and Pillar 4: Expand Marketing local agencies, tribal governments, Opportunities through On-farm and non-governmental Storage organizations that serve these FSA encourages the construction of targeted populations. on-farm storage to allow producers to • Enhance existing partnerships expand their marketing opportunities. with land grant universities and The Farm Storage Facility Loan other educational organizations. (FSFL) program helps to ensure producers have adequate capacity for • Expand the capabilities of the commodities produced by providing farm business plan management low-interest financing for producers to information system, including build or upgrade permanently affixed implementation of a risk farm storage and handling facilities. management tool that will allow for Eligible commodities include the major comprehensive portfolio risk feed grains, oilseeds, peanuts, pulse analysis of the direct loan program. crops, hay, biomass commodities, and • Improve the GLS user interface to cold storage facilities for fruits and increase productivity. vegetables. FSA Strategic Plan 2012-2016 7 SG1 • Develop the FLP Data Mart that interim financing at harvest time to will house data for all of the FLP meet cash flow needs without having systems. to sell their commodities when market prices are typically at harvest-time lows; • Partner with educational facilitating more orderly marketing institutions to evaluate business of commodities throughout the year. plans for non-traditional operations Alternatively, benefits can also be taken and develop a knowledge bank for directly as a loan deficiency payment, specialty enterprises. which are cash payments equal to the difference between the loan rate and Objective 1.2 Support loan repayment. Economic Viability When natural disasters strike, FSA The economic vitality and quality reacts quickly to help affected producers of life in rural America, and the recover from losses and restore their U.S. economy at large, depends on a lands. Disaster assistance programs, financially healthy agricultural system. which are available for crops and To help maintain economic stability in livestock, provide financial assistance the agricultural sector, FSA provides to farm operations affected by drought, prompt and equitable assistance flood, hurricanes, and other natural through income support payments, disasters. These programs represent a disaster assistance, and marketing significant part of USDA’s farm safety assistance loans to eligible farmers, net. ranchers and landowners. Various income support options provide producers the flexibility of selecting the program that best fits their needs. For example, marketing assistance loans provide producers

8 FSA Strategic Plan 2012-2016 SG1 To accomplish this objective, FSA will Cyclical Payment Program and the increase awareness of risk management Average Crop Revenue Election programs (Pillar 1) and maximize program are two of the primary participation in commodity and price programs for helping farmers mitigate support programs (Pillar 2). market losses. As discussed in Goal 4, FSA is undertaking a major effort Pillar 1 - Increase Awareness of to streamline program delivery, which Risk Management Programs will have a significant impact on the FSA will partner with the Risk Agency’s ability to accomplish this goal Management Agency, Cooperative and improve customer service. Extension System, and others to educate farmers and ranchers about Objective 1.2 Strategies the benefits of insuring crops against disaster or market-related income losses. • Expand program outreach efforts to The 2008 Farm Bill provided FSA a increase awareness and promote more robust set of risk management usage of risk management tools. tools and standing disaster assistance • Improve communication of programs that allow producers to be eligibility requirements for proactive in protecting their farm supplemental agricultural disaster enterprises. These programs help ensure assistance programs. that America maintains a viable and productive agricultural sector. • Improve Web site and utilization of social media tools to increase Pillar 2 - Maximize Participation understanding and participation in in Commodity and Price Support program benefits. Programs • Promote and encourage increased Participation in commodity and price customer use of e-filing. support programs provides economic stability and reduces short-term income volatility. The Direct and Counter- FSA Strategic Plan 2012-2016 9 SG1 • Increase customer satisfaction by that transport, store, process, and streamlining the acreage reporting deliver food products to the public. process across USDA. FSA establishes guidelines to protect the interests of commodity owners, • Provide personalized customer monitors USDA approved and licensed service to ensure that producers warehouse programs to maintain understand and effectively use adequate storage facilities, and conducts program benefits. warehouse examinations to reduce product losses. Objective 1.3 Protect the Interests of To accomplish this objective, FSA Commodity Owners will ensure the integrity of approved and licensed agricultural warehouses FSA protects the interests of (Pillar 1), improve the efficiencies and commodity owners through effectiveness of warehouse examinations administration of the U.S. Warehouse (Pillar 2), and establish a food security Act (USWA) and by enforcing plan requirement (Pillar 3). licensing requirements for commodity storage facilities. The USWA provides Pillar 1- Ensure the Integrity depositors of agricultural commodities of Approved and Licensed in Federally-licensed warehouses with Agricultural Warehouses reliable protection from loss, establishes FSA conducts warehouse examinations a uniform regulatory system for storage to ensure the safekeeping and integrity of agricultural products, and establishesof commodities in storage. FSA the warehouse receipt as a negotiable also reviews and analyzes warehouse document of title. operators’ financial statements in an effort to maintain stability of warehouse The protection and safety of the operations. These actions help ensure Nation’s food production is a constant adequate, financially stable, storage concern for producers and the industries facilities for commodity owners’ crops,

10 FSA Strategic Plan 2012-2016 SG1 and assist in earlier detection and measures to protect commodities mitigation of potential warehouse handled and stored at their facilities. violations. The purpose of the food security plan is to assist the agricultural warehouse Pillar 2- Improve the Efficiency industry in deterring potential agro and Effectiveness of Warehouse terrorism, being prepared for disasters Examinations or other emergencies, and ensuring the FSA inspects over 2,300 warehouses safety of our Nation’s food supply. annually. Ideally, the Agency would increase the frequency of warehouse Objective 1.3 Strategies inspections. However, fiscal resources limit the Agency’s ability to increase the • Partner with States to ensure number of warehouse inspectors. To State examiners are appropriately address this challenge, FSA will develop trained to examine Commodity methodologies for assigning risk Credit Corporation (CCC) categories based on inspection findings agricultural storage facilities. to improve warehouse examinations • Develop a methodology for as well as implement alternative assigning risk categories based on examination processes. FSA will also inspection findings. partner with States to ensure the States’ warehouse examiners are appropriately • Incorporate the security plan review trained to examine agricultural storage within the annual warehouse facilities. examinations. • Coordinate outreach efforts with Pillar 3- Establish a Food Security appropriate State personnel. Plan Requirement FSA will require approved and licensed • Provide oversight to protect the agricultural warehouses to conduct a producer when commodities are in facility vulnerability assessment and storage or under loan. implement a security plan that includes FSA Strategic Plan 2012-2016 11 SG1 Objective 1.4: Develop Pillar 1 - Enhance Development Opportunities for of an Economically and Environmentally Viable Biomass Non-traditional Income Production Sector Streams FSA promotes rural America’s role FSA is creating opportunities by in renewable energy production by leveraging partnerships, existing making it economically feasible for programs, and information resources to farmers, ranchers, and other rural support the development of new and small businesses to invest in alternative innovative markets for environmental energy production. The 2008 Farm services. Agro-tourism, recreation, Bill authorized the Biomass Crop and other environmental services are Assistance Program (BCAP), which has creating additional income streams for the potential to provide new economic producers. To achieve this objective, opportunities for farmers and help FSA will enhance development of an the Nation in its search for a more economically and environmentally sustainable and secure energy future. viable biomass production sector BCAP helps farmers, ranchers, and (Pillar 1), increase development of landowners establish, raise, harvest, and infrastructure to support renewable deliver biomass feedstock to facilities to energy (Pillar 2), and increase biomass produce heat, power, advanced biofuels, supply by supporting production and and biobased products. utilization of sustainable biomass (Pillar 3).

12 FSA Strategic Plan 2012-2016 SG1 Pillar 2 - Increase Development Pillar 3 - Increase Biomass Supply of Infrastructure to Support by Supporting Production and Renewable Energy Utilization of Sustainable Biomass FSA will partner with the biomass FSA will facilitate increased biomass industry and agricultural producers supply by supporting production and to develop economically and utilization of sustainable biomass. FSA environmentally sustainable production will provide financial assistance to of biomass crops that will help support owners and operators of agricultural a viable renewable energy industry. The and non-industrial private forest land development of significant quantities who wish to establish, produce, and of biomass crops and subsidies for deliver biomass feedstock. the collection, harvest, storage, and transportation of renewable biomass will assist the fledgling biomass industry during the start up phase. This infusion of BCAP resources will assist in improving the development of infrastructure that will improve the cost effectiveness of renewable fuels as compared to fossil fuels. BCAP will reduce risks and increase financial incentives for greater investment in the biomass industry. FSA Strategic Plan 2012-2016 13 SG1 Objective 1.4 Strategies External Risk Factors Many external factors influence • Develop innovative outreach accomplishment of this strategic goal, to new customers (biomass including natural and economic forces, conversion facilities, eligible widespread or prolonged natural material owners, forest landowners). disasters, animal and plant pest and • Expand outreach to educate disease outbreaks, and international customers on potential biomass food contamination. Additionally, as opportunities, including conversions the U.S. agricultural sector continues from traditional usages and to change, with farms becoming utilization of less productive soil for larger and increasingly dependent on biomass production. technology, entry into farming is more capital intensive than ever before. • Coordinate with external agencies These factors result in significant and organizations to maximize barriers and challenges for the groups program efficiencies. that the FSA farm loan programs are • Partner with external stakeholders intended to assist. to develop certification for biomass production in an environmentally sustainable manner. • Provide additional education and training to staff on agricultural energy programs.

14 FSA Strategic Plan 2012-2016 SG1 Strategic Goal 1 - Performance Measures SDA - Socially Disadvantaged Farmer DCP - Direct and Counter-Cyclical Program ACRE - Average Crop Revenue Election DIRECT Lending to SDA Farmers FY-10 FY-16 Description Baseline Target Percentage of SDA farmers receiving financial assistance through the FSA Direct 10.70% 10.70% Loan program. The denominator is the total number of all farm operators identified as a minority or female farmer in the 2007 Census of Agriculture having $10,000 or more in gross sales. The numerator is the total number of racial and ethnic minorities, and women currently in the FSA direct loan portfolio as of 9/30/2010. GUARANTEED Lending to SDA Farmers Percentage of SDA farmers receiving agricultural credit through FSA's guaranteed 2.20% 2.70% loan program. The denominator is the total number of all farm operators identified as a minority or female farmer in the 2007 Census of Agriculture having $10,000 or more in gross sales. The numerator is the total number of racial and ethnic minorities, and women currently in the FSA guaranteed loan portfolio as of 9/30/2010. DIRECT Average Loan Processing Time Average number of days to process direct loans, from date of application receipt until 31 days 31 days first disposition (approved/withdrawn/rejected) GUARANTEED Average Loan Processing Time Average number of days to process guaranteed loans, from date of application receipt 10 days 10 days until first disposition (approved/withdrawn/rejected). Average Days Between Warehouse Examinations FY-11 FY-16 Description Baseline Target The average number of days between subsequent warehouse examinations at USWA 355 days 355 days licensed warehouses and warehouses with CCC storage agreement storing CCC-interest commodities. Percentage of Base Acres Enrolled in DCP/ACRE Combined Percentage of base acres annually enrolled in DCP or ACRE. The denominator is the 95.65 % 94 % total number of base acres in the 49 states that have farms with base acres. The numerator is the total number of base acres enrolled annually in DCP or ACRE. FSA Strategic Plan 2012-2016 15 SG2 Strategic Goal 2: Increase Stewardship of America’s Natural Resources while Enhancing the Environment Through its conservation and private lands (Objective 2.1); target environmental programs, FSA plays natural resource needs to maximize an important role in helping protect benefits (Objective 2.2); and lead efforts and restore America’s farms, ranches, to mitigate and adapt to climate change and grasslands while making them (Objective 2.3). more resilient to threats and enhancing natural resources. This process carries Objective 2.1 - Increase enormous potential impacts on drinking Resource Stewardship water, greenhouse gas emissions, Opportunities on Private climate, wildlife, recreation, community health and prosperity. Lands The Conservation Reserve Program Restoring and protecting ecosystems (CRP) is America’s premier voluntary will ensure the Nation’s lands are conservation effort to protect and resilient to threats and impacts from restore fragile natural resources. a changing climate. It also provides Producers enrolled in CRP plant long- sustainable benefits to ecosystems, term, resource-conserving covers to food, fiber, and timber and non-timber improve the quality of water, control products. FSA will work with private erosion, and enhance wildlife habitat. landowners and managers to restore In return, FSA provides participants vegetative cover, rehabilitate streams with rental payments and cost-share and other water bodies, transition assistance for 10 to 15 years. The marginal or highly erosive lands to long-term time frame ensures that sustainable production levels, and apply investments in environmental benefits conservation measures to enhance and accrue over a longer period. At the end maintain the quality of soil, water, and of FY 2010, there were 31.3 million related natural resources. acres under CRP contract. Over the next 5 years, FSA will increase FSA partners with States, national non- resource stewardship opportunities on profit groups, other Federal

16 FSA Strategic Plan 2012-2016 SG2 agencies, and agricultural producers to Pillar 1 - Increase the Amount of increase national resource stewardship Acreage of Wetlands Restored, opportunities, protect drinking water, Constructed, Protected, and preserve grasslands, and enhance Created wildlife habitat. Conservation plans Wetlands serve many critical functions, developed with technical assistance they serve as filters to improve water from partners at State forestry agencies, quality, provide water storage to reduce the Natural Resources Conservation flooding, recharge groundwater supplies, Service (NRCS), and the private sector and provide habitat and food sources help reduce soil erosion and subsequent for wildlife. Constructed wetlands sedimentation. In FY 2010, FSA have the potential to significantly enrolled 185,000 acres for wetland reduce nitrogen loadings from drained restoration and more than 74,000 acres agricultural land in a cost-effective of conservation buffers. manner. The U.S. Fish and Wildlife Service (USFWS) estimates that FSA FSA is also committed to longer- wetland restoration efforts in the Prairie term environmental restoration and Pothole region have increased annual protection efforts. In FY 2010, FSA water fowl migration by over 2 million completed the cleanup of contaminated birds. groundwater at a former grain storage facility in Waverly, Nebraska, and FSA works with EPA, Army Corp it was officially removed from the of Engineers, USFWS, and State Environmental Protection Agency regulatory agencies to develop processes (EPA) Superfund list. Progress toward that will reduce regulatory barriers the cleanup of four more sites is to enrollment in CRP. FSA will ongoing. utilize, where appropriate, constructed wetland to address water quality issues associated with excessive nutrients. FSA Strategic Plan 2012-2016 17 SG2 Pillar 2 - Prevent and Reduce Soil Pillar 3 - Combat Invasive Species Erosion Invasive (non-native) species have Soil erosion continues to be a serious significant economic and environmental problem as approximately 1.7 billion impacts. An analysis completed in 2004 tons of soil erodes each year from estimated that invasive plant species cropland. Close to 100 million acres cause an estimated $40 billion per year of cropland is eroding above the level in economic damage. In many parts (generally 5 tons/acre/year) that will of the Western United States, invasive maintain the long term productive species have significantly altered the capacity of the land. EPA has ecosystem. determined that erosion (sediment) is the leading cause of water impairment FSA will work with private landowners of our Nation’s rivers and streams. and program participants to ensure This sediment alone is harmful to that producers combat noxious and aquatic ecosystems, but the chemicals invasive species and fully comply bound to those particles may also with the President’s executive order cause impairment when released to the on invasive species. FSA will use environment. improved technology (remote sensing) and other means to improve producers’ CRP reduces soil erosion by an compliance. Early detection and estimated 400 million tons per year. systematic control of noxious weeds CRP’s general signup targets highly is a cost-effective means to reduce the erodible land and provides greater overall costs for invasive species control. weights for selection on offers with This approach will reduce producers and inherent erodibility. The most cost- land managers costs and enhance the effective means to address impacts long-term productive capacity of the associated with erosion for many highly land. erodible acres is through conversion of the land to permanent vegetation.

18 FSA Strategic Plan 2012-2016 SG2 Pillar 4 - Increase Acreage of protect environmentally sensitive land, Riparian Buffers and Filterstrips decrease erosion, restore wildlife habitat, One of the most effective means to and safeguard ground and surface water. protect rivers and streams is through The program is a partnership among the use of vegetative barriers of grass producers, Federal agencies, tribal and (filterstrips) and trees (riparian buffers) State governments, and in some cases that are adjacent to streams. Buffers private groups. There are currently capture and trap sediment, nutrients, 44 CREP agreements, representing a and pathogens, preventing them $4.1 billion Federal, State, and private from entering streams; lower water commitment of resources. temperatures; improve aquatic species’ Pillar 6 - Increase the amount of habitat; and help reduce the impact of floods. acres of grassland protected The Grassland Reserve Program FSA works with producers, government (GRP) is a voluntary program for agencies, and private partners to landowners to protect, restore and, expand the use of buffers to address enhance grasslands. FSA, NRCS, and water quality and wildlife concerns. the Forest Service implement GRP to FSA also partners with cities and conserve vulnerable grasslands from rural communities to promote the use conversion to cropland or other uses, of buffers to protect drinking water in part, by helping maintain viable supplies and reduce treatment costs. ranching operations. GRP emphasizes support for working grazing operations, Pillar 5 - Partner with State enhancement of plant and animal and Tribal Governments to biodiversity, and protection of grassland Promote Conservation Reserve and land containing shrubs and forbs Enhancement Program (CREP) under threat of conversion to cropping, and other Resource Stewardship urban development, and other activities Opportunities that threaten grassland resources. GRP CREP helps agricultural producers has enrollments in all 50 states and FSA Strategic Plan 2012-2016 19 SG2 Puerto Rico. GRP received 2,330 new • Encourage the use of new applications and reached its statutory technologies, such as bioreactors, spending cap of $40.5 million in FY constructed wetlands and other 2009. Enrollment currently stands at means to reduce nutrient loadings over 750,000 acres. associated with tile and surface drainage. Objective 2.1 Strategies Objective 2.2 - Target • Partner with external agencies to support program compliance. Natural Resource Needs to Maximize Benefits • Educate customers on program participation requirements. FSA conservation programs have had a significant impact on protecting • Expand outreach to identify what our Nation’s natural resources. Land landscapes are best for wetland retirement and protection programs restoration and construction. provide the long term means to • Increase partnership protect soil, water, wildlife, and air opportunities to leverage private quality resources, while providing or funding for technical assistance enhancing economic opportunities in and outreach. rural America. For example, in South Dakota, CRP has greatly contributed • Partner with States and other to the increase in pheasant populations organizations to assist in resource over the past 20 years. This population stewardship. rebound has significantly increased the amount of pheasant hunting within the • Eliminate barriers to timely state, which is estimated to annually implementation of conservation generate over $150 million in economic practices. activity in rural towns across South Dakota. At the same time, soil erosion has been reduced by over

20 FSA Strategic Plan 2012-2016 SG2 95 percent and the amount of sediment conservation of water resources. FSA and nutrients has also been significantly will encourage full CRP enrollment reduced. A recent study showed that to maximize the impacts of improved CRP has reduced phosphorus, nitrogen, hydrology through land use changes. and sediment loading by 123,000,000 Expansion of CREPs and other pounds, 612,000,000 pounds per initiatives to conserve water in water year, and 220,000,000 million tons, short regions will be developed. respectively. Pillar 2 - Develop and Implement Pillar 1 - Develop and Implement Measures to Enhance Water Measures to Conserve Surface Quality and Ground Water Supplies FSA programs have improved The Nation’s demands for surface water quality by targeting the most and groundwater continue to grow. environmentally sensitive land (flood Expanding populations, greater plains, wetlands, highly erodible variability in climate, and other factors lands, and others) for land retirement are placing increased demand on and other enhancements. Through water resources. Land conservation partnerships with States, non- programs help improve the amount governmental organizations, and and availability of water and conserve producers, FSA will continue its efforts water resources. Land use changes from to improve water quality. cropland to vegetative cover or wetlands increases the recharge of groundwater Pillar 3 - Implement Measures to resources, reduces peak runoff, and Develop and Enhance Wildlife improves the total availability of water Habitat for public use. FSA conservation programs provide for the creation of native ecosystems that FSA will work with State and private provide habitat for a number of wildlife partners to encourage the development species. In addition, in some CREPs, of voluntary programs to encourage the States have acquired long FSA Strategic Plan 2012-2016 21 SG2 term conservation easements to protect estimated 60,000 birds annually and important habitats. will restore 100,000 wetland acres. FSA works with USFWS, State fish Pillar 4 - Support Timely and wildlife agencies, environmental Restoration of Habitats Impacted groups, and producer groups to address by Natural Disasters the protection of critical habitats. To Natural disasters, such as hurricanes, date, over 2 million acres of wetlands tornados, floods, and wildfires, can have been protected, many of which are have significant adverse impacts on located in the Prairie Pothole region the environment and the long term that is a vital breeding area for much productivity of American agriculture of the central flyway water fowl. FSA production and ecosystems. Through will work with conservation partners emergency assistance programs, FSA to further expand the use of State areas helps producers restore agricultural for wildlife enhancement and to explore and non-industrial private forestland other CRP conservation initiatives that damaged by natural disasters. will protect and restore critical habitats. Pillar 5 - Support Opportunities The Upland Bird Habitat initiative for Outdoor Recreation helps producers to plant ground FSA develops important wildlife covers, shrubs, and grasses that provide habitat and provides opportunities appropriate habitat conditions for for expanded public use of outdoor common upland birds, such as sage recreation. FSA also provides grants grouse and northern bobwhite quail. to states for providing expanded access Studies show that these conservation for outdoor recreation. Supporting practices have increased the population outdoor recreation access on private of upland bird species. Similarly, the lands will perpetuate billions of dollars Duck Habitat initiative has helped in rural economic development, protect increase duck populations by an American jobs, and enrich the quality of life for millions of Americans.

22 FSA Strategic Plan 2012-2016 Strategic Plan Framework USDA Mission FSA Mission We provide leadership on food, agriculture, natural resources, Our mission is to deliver timely, effective programs and services rural development, nutrition and related issues based on sound public policy, the best available science, and efficient management. to America's farmers and ranchers to support them in sustaining our Nation's vibrant agricultural economy, as well as to provide Core Values first-rate support for domestic and international food aid efforts. USDA Vision Quality Service To expand economic opportunity through innovation, helping FSA Vision Continuous Improvement rural America to thrive; to promote agriculture production We shall transform into a more diverse and innovative Agency. sustainability that better nourishes Americans while also helping Inclusiveness feed others throughout the world; and to preserve and conserve Fiscal Stewardship our Nation’s natural resources through restored forests, improved Teamwork watersheds, and healthy private working lands. Transparency USDA Goal 1 FSA Goal 1 FSA Goal 1 Objectives Objective 1.1 Provide Access to Capital Assist rural communities to create prosperity Provide a financial safety net for America’s so they are self-sustaining, repopulating and farmers and ranchers to sustain economically Objective 1.2 Support Economic Viability economically thriving viable agriculture production Objective 1.3 Protect the Interest of Commodity Owners Objective 1.4 Develop Opportunities for Non-traditional Income Streams USDA Goal 2 FSA Goal 2 FSA Goal 2 Objectives Objective 2.1 Increase Resource Stewardship Opportunities on Ensure our national forests and private Increase stewardship of America’s natural Private Lands working lands are conserved, restored, and resources while enhancing the environment Objective 2.2 Target Natural Resource Needs to made more resilient to climate change, while Maximize Benefits enhancing our water resources Objective 2.3 Lead Efforts to Mitigate and Adapt to Climate Change USDA Goal 3 FSA Goal 3 FSA Goal 3 Objectives Help America promote agricultural production Ensure commodities are procured and Objective 3.1 Modernize Procurement Practices for Commodity Purchases and Deliveries and biotechnology exports as America works distributed effectively and efficiently to to increase food security increase food security Objective 3.2 Improve the Quality and Security of Commodities Purchased for Food Assistance Programs USDA Goal 4 FSA Goal 4 FSA Goal 4 Objectives Ensure that all of America’s children have Transform and modernize the Objective 4.1 Advance a Culture of Accountability Objective 4.2 Promote Diversity access to safe nutritious, and balanced meals Farm Service Agency Objective 4.3 Moderize FSA Program and Service Delivery Objective 4.4 Improve Customer Service Objective 4.5 Invest in the Workforce Objective 4.6 Improve Mission Enabling and Support Functions USDA Management Initiatives This chart is also available as a separate file, FSA Strategic Framework-web.pdf. SG2 Objective 2.2 Strategies • Partner with States on CREP projects to develop public access • Implement a continuous signup easements. initiative for water conservation. • Partner with EPA to protect public Objective 2.3 - Lead Efforts drinking water supplies. to Mitigate and Adapt to • Develop innovative and cost Climate Change effective treatment systems to With close to 32 million acres enrolled address contamination issues in the CRP, it is one of the largest with CCC grain bin and FLP sites. voluntary programs to sequester greenhouse gases on private land. Close • Ensure enrollment of critical to 50 million metric tons of carbon wildlife habitats through full dioxide are sequestered in the soil enrollment of continuous signup carbon and above ground vegetation CREP, State Acres for Wildlife that occur when cropland is converted Enhancement (SAFE), Farmable to long term vegetation. Over the Wetlands Program (FWP) and next 5 years, FSA will implement CRP general signup. measures to increase the sequestration • Partner with external agencies and of greenhouse gases (pillar 1) and adjust organizations to identify critical planting specifications to respond to habitat. climate change (pillar 2). • Promote incentives for tree planting practices under CRP. • Educate CRP participants on appropriate land usage that supports outdoor recreational opportunities. FSA Strategic Plan 2012-2016 23 SG2 Pillar 1 - Implement Measures Objective 2.3 Strategies to Increase the Sequestration of Greenhouse Gases • Promote planting of trees, shrubs, The Agency will work with producers grasses and forbs. to educate them about the amount of • Collaborate with conservation greenhouse gases that are sequestered partners to develop planting and by land use changes. FSA will partner management specifications that are with other Federal and State agencies to adaptive to climate change. develop processes to assist producers in determining greenhouse gas impacts of • Provide financial incentives to proposed land use changes. mitigate the upfront cost of Pillar 2 - Adjust Planting establishing the practice. Specifications to Respond to • Educate producers on the impact of Climate Change climate change. The long term impacts of climate change will impact the viability of • Partner with external agencies to various plant species. Changes in expedite technical assistance. precipitation, growing season, and other factors will impact which species will be External Risk Factors best suited for certain sites. Many new Factors affecting FSA’s ability to achieve plantings (especially tree plantings) will its Goal 2 include: extreme weather; likely have a projected lifespan of 50+ climate fluctuation or enviromental years. Ensuring the long term viability change beyond the natural range of the stand in light of expected impacts of variability that affects ecological from climate change will be vital. FSA productivity and resilience; renewal will work with NRCS, FS, and others of expiring CRP contracts; and non– to ensure that planting requirements are compliance with program provisions best suited for the long term. that may reduce program effectiveness.

24 FSA Strategic Plan 2012-2016 SG2 Strategic Goal 2 - Performance Measures Number of Acres Enrolled in Conservation Programs FY-10 FY-16 Description Baseline Target This measure reflects the number of acres enrolled each fiscal year in the Conservation 31.1 32 Reserve Program (CRP). million million acres acres Metric Tons of CO2 Sequestered The annual net reduction in greenhouse gas (GHG) emissions (CO2 equivalent). 52 52 These reductions are obtained from carbon sequestration, reduced fuel use, and reduce million million nitrous oxide emissions avoided from not applying fertilizer. metric metric tons tons (MMT) (MMT) FSA Strategic Plan 2012-2016 25 SG3 Strategic Goal 3: Ensure Commodities Are Procured and Distributed Effectively and Efficiently to Increase Food Security More than 800 million people FSA is committed to increasing worldwide suffer from hunger and the transparency of its procurement malnutrition. The U.S. provides more practices and efficiencies in the than 50 percent of the total worldwide distribution of food assistance. food assistance to combat hunger. FSA will achieve these goals by USDA’s domestic and international strengthening the integrity of food assistance programs play a critical commodity procurement contract role in this effort. FSA supports the vehicles, such as Request for Proposals USDA strategic objective to ensure (RFPs) and Request for Quotes U.S. agricultural resources contribute to (RFQs). In addition, FSA will continue enhanced global food security (USDA to identify and implement industry best Objective 3.1). FSA procures and practices to ensure food aid quality and distributes commodities for programs security. like the McGovern-Dole International Food for Education and the Child Over the next 5 years, FSA will Nutrition Program. In FY 2009, FSA modernize procurement practices for procured and distributed over $1.6 commodity purchases and deliveries billion of commodities for domestic and (Objective 3.1) and improve the quality international food assistance programs. and security of commodities purchased for food assistance programs FSA is committed to streamlining (Objective 3.2). its internal processes so that food continues to reach recipients on time Objective 3.1 - Modernize and according to contract specifications. Procurement Practices for FSA is also committed to improving Commodity Purchases and packaging requirements to reduce commodity losses associated with Deliveries multiple handlings through rigorous The number of individuals fed is distribution systems in lesser developed impacted by the cost of commodities countries. and transportation. As budget

26 FSA Strategic Plan 2012-2016 SG3 constraints play a major role in the Specifically, FSA is striving to better amount of commodities purchased, FSA meet the needs of recipients and can help reduce hunger by becoming program agencies through the use of more efficient in procurement practices. “Best Value” contracting, obtaining FSA seeks to maximize the use of what is needed, where it’s needed, and program dollars to provide commodities when it’s needed. RFPs and RFQs will to as many needy recipients as be utilized as the contract vehicle. allowed. The Agency works within the parameters of the Federal Acquisition Pillar 2- Promote Competition for Regulation, the standards of the Food Domestic and International Food and Drug Administration, and all other Aid Contracts regulations as necessary. The standards FSA will reduce the cost to feed of food security must be of the highest recipients by promoting competition quality. for domestic and international food aid contracts. FSA will improve its Over the next 5 years, FSA will outreach efforts to encourage non- improve procurement processes (pillar traditional vendors to submit proposals, 1), promote competition for domestic casting a wider net for competition. and international food aid contracts Increasing the vendor base will also (pillar 2), and maintain the capability reduce program risks by providing to complete independent government greater commodity production capacity estimates accurately (pillar 3). during times of high demand and emergencies. Pillar 1 – Improve Procurement Processes To promote transparency and accountability in its procurement practices, FSA will improve all phases of procurement processes by improving its acquisition planning, contract formation and contract administration. FSA Strategic Plan 2012-2016 27 SG3 Pillar 3 – Maintain Capability Objective 3.2 - Improve to Complete Independent the Quality and Security of Government Estimates (IGEs) Commodities Purchased for Conducting accurate IGEs is an essential component of ensuring FSA Food Assistance Programs is efficiently utilizing taxpayer resources FSA ensures the safety and security of by confirming that the Government commodities purchased for domestic receives exactly what was specified, at and international food aid programs. a reasonable cost. Employing talented It is FSA’s responsibility to maintain personnel and systems to effectively the quality and security of food perform this task will contribute to purchased for shipment and delivery to lowering the average cost to feed distribution. Contracting specifications recipients. are in place to ensure that commodities are not adversely altered. The Agency Objective 3.1 Strategies monitors the nutritional value, shelf life, and stability of commodities accepted • Utilize RFPs as the primary and delivered for distribution. To solicitation method. make certain the quality and security • Award contracts based on enhanced of commodities purchased meets evaluation criteria. applicable standards, the Agency will continue to focus on shipment and • Employ resources more efficiently delivery of domestic and international through increased usage of long food assistance (pillar 1) and improve term contracts. food quality and security procedures • Ensure adequate levels of personnel (pillar 2). to perform IGEs within specified time limits. • Emphasize set aside programs to increase participation.

28 FSA Strategic Plan 2012-2016 SG3 Pillar 1 - Focus on Shipment Pillar 2 – Improve Food Quality and Delivery of Domestic and and Security Procedures International Food Assistance FSA employs industry best practices There are numerous challenges in to minimize the risks related to food delivering international food aid, safety and food insecurity. For example, including natural disasters, civil unrest, industry best practices for sampling and cultural differences, and production testing commodities at manufacturing limitations. Typically, food aid is facilities will be incorporated into delivered to countries with immature all FSA procurement contracts. infrastructures and traditional Transportation conveyances must commercial packaging methods now be secured with tamper resistant, are often not sufficient to prevent tamper evident seals to ensure the damage or spoilage. Therefore, unique contents have not been compromised. packaging requirements are necessary In addition, a port licensing agreement to meet these challenges. Commodities is being developed so FSA can require procured for domestic feeding programs stevedores to provide a heightened level utilize commercial packaging. However, of quality and safety for commodities at FSA continues to identify and specify U.S. ports. FSA also works closely with industry best practices for commodity the Food and Nutrition Service and manufacturing and packaging to ensure the Food and Drug Administration to food aid quality and security for both strengthen “hold and recall” procedures domestic and international food aid for suspect commodities in domestic programs. feeding programs. FSA Strategic Plan 2012-2016 29 SG3 Objective 3.2 Strategies • Implement procedures for non- commercial international • Establish port licensing agreements commodities that do not meet for U.S. Load Port Authorities. contract specifications. • Establish a research and development budget to design and External Risk Factors implement more innovative Many external factors influence the packaging requirements for accomplishment of this strategic goal, non-commercial international including: availability and security of and price support commodities. international transport services and a lack of collaboration between the public • Partner with academic institutions, and private sectors that play a large role private entities and other in food safety, security, and emergency government agencies to improve the preparedness. Other factors might packaging requirements and the include natural disasters, political/civil delivery of commodities. unrest, scientific acceptance of new • Re-establish a Sampling & Testing production technologies, and country Protocol Policy to determine infrastructure. compliance with contract requirements associated with non- commercial commodities for international food aid assistance. • Implement the Quality Assurance Surveillance Plan (QASP) effectively. • Facilitate domestic commodity “hold and recall” procedures as necessary.

30 FSA Strategic Plan 2012-2016 SG3 Strategic Goal 3 - Performance Measures International Shipping Loss Rates

2008 FY-16 Description Baseline Target The losses are represented as a percentage of the total quantity shipped 0.4 % 0.25 % International Food Aid Donations by Country (2009-2010) Norway 1% Australia 2% Switzerland 1% Canada 8% Japan 10% United States European Union 54% 24% Half of the world’s food aid comes from the United States All U.S. food aid commodities are procured by FSA Source: Food Aid Convention FSA Strategic Plan 2012-2016 31 SG4 Strategic Goal 4: Transform and modernize the Farm Service Agency FSA faces extraordinary challenges workforce (Objective 4.5); and improve over the next 5 years. To meet these mission enabling and support functions challenges, the Agency will transform (Objective 4.6). and modernize the way it does business, resulting in more efficient, effective Objective 4.1 – Advance a operations and improved service Culture of Accountability delivery. FSA is committed to achieving FSA is transforming its systems and its mission, goals, and objectives applications into a set of enterprise and will systematically review and services and eliminating legacy evaluate programs and activities and systems, servers, and duplicative data measure results. This objective will environments. Additionally, with a be accomplished through a robust significant number of retirements accountability system that includes looming, the Agency must recruit and continuous feedback to ensure that retain new employees to continue its managers and employees understand, service capabilities. Achieving the support, and contribute to strategic goal of transforming and modernizing accountability, planning, and key systems, business processes, and implementation. support activities will facilitate mission success and enhance the accountability, Objective 4.1 Strategies efficiency, and effectiveness of service delivery. • Educate employees and promote employee ownership of the Agency’s Specifically, FSA will advance a culture strategic and operational goals. of accountability (Objective 4.1); • Develop performance measures promote diversity (Objective 4.2); and targets for each State tied to modernize program and service delivery FSA’s Strategic and Operational (Objective 4.3); improve customer Plans. service (Objective 4.4); invest in the

32 FSA Strategic Plan 2012-2016 SG4 • Link employee performance plans capable of growing and expanding. to the Agency’s strategic and operational goals. To be successful, all employees must be committed to making the Agency • Provide managers the support a model in the Federal Government necessary to achieve strategic goals. for respecting the civil rights of its employees and customers. FSA will Objective 4.2 - Promote ensure equal opportunity and civil rights Diversity through a comprehensive approach. FSA leadership has established diversity as one of its top priorities. The Agency is firmly committed to the elimination of any and all forms of disparate or discriminatory treatment affecting our customers, clients, and employees based on consideration of race, color, national origin, religion, sex, age, disability, marital status and sexual orientation. Overall, the Agency’s strategy is to seek, encourage, and facilitate full participation of all farmers and ranchers in its available programs through outreach efforts. FSA seeks to become an employer of choice that recruits, retains, rewards and promotes a diverse workforce based on merit and fairness. FSA will become a strong promoter of entrepreneurship for minority, women- owned, and small businesses that are FSA Strategic Plan 2012-2016 33 SG4 Objective 4.2 Strategies modernization. Over the next 5 years, FSA will modernize IT systems • Promote diversity in the workplace. (Pillar 1), enhance information integrity • Improve our knowledge of cultural (Pillar 2), and optimize business and rural differences. efficiencies (Pillar 3). • Improve outreach efforts to socially Pillar 1 - Modernize Information disadvantaged farmers and ranchers. Technology Systems The modernization effort is comprised • Promote awareness of emotional of many initiatives, including data intelligence. warehousing, commodity inventory • Provide more effective conflict system improvements, enhanced resolution training to the workforce. program application delivery, and financial management systems. • Promote the use of alternative MIDAS, in coordination with other dispute resolution to address IT modernization initiatives, will complaints. provide highly reliable and available capabilities to users and decrease the Objective 4.3 - Modernize time to deliver new capabilities. These Program and Service enterprise services will be used across Delivery FSA to provide seamless connectivity to mission critical information and Modernizing service delivery systems improve access-control security. will allow FSA to respond more promptly to customer demands Pillar 2 - Enhance and meet future challenges. The Information Integrity “Modernize and Innovate the Delivery Improved systems will enable decision of Agriculture Systems” (MIDAS) makers to quickly access program and initiative is an essential element of financial management data to ensure FSA’s broader enterprise-wide IT strategic decisions are based on valid

34 FSA Strategic Plan 2012-2016 SG4 data. Providing a one-stop shop for • Increase security for customers’ data delivery will increase business personal and financial information. analytics, improve management • Ensure the integrity of posted reporting and query capability, and county price data. provisioning of external reports required by oversight agencies. Increased online • Modernize reporting capabilities access will enhance customer self- to increase the usefulness and sufficiency and usability, thus reducing availability of data. field office trips, transaction processing, data entry, and paperwork. • Increase use of technology to support enterprise wide knowledge Pillar 3 - Optimize Business management. Efficiencies • Streamline customer reporting To accomplish the transformation and program application requires a new way of looking at processes. program delivery. By following a disciplined business process • Expand the customer’s ability to development methodology, FSA will apply for assistance, track programs, deliver business results that address and update farming operation many of the key program delivery information online. challenges. This will lead to measurable • Standardize program development improvements in business performance processes. and will enable our talented workforce to deliver programs more efficiently. • Provide fully integrated geospatial solutions. Objective 4.3 Strategies • Streamline the disaster designation • Migrate to and leverage integrated process and utilize GIS to identify Web based solutions. disaster areas quicker and more accurately. FSA Strategic Plan 2012-2016 35 SG4 Objective 4.4 – Improve Pillar 2 – Increase Awareness of Customer Service FSA Programs and Services To promote fair and equitable treatment Customer service is the core of what of all customers, it is important that the Agency does. The modernization FSA increase awareness of its programs initiatives discussed in Objective 4.3 and services to all potential customers. will improve the Agency’s customer This will be accomplished by providing service capabilities and allow the more customer outreach and education. Agency to use analytics to evaluate the Since many customers use the Agency’s consistency of customer service. The Web site to gain knowledge about Agency’s goal is to provide consistently programs and services, the Web site outstanding customer service. To will be improved to ensure it meets ensure equal access to all our programs, customer needs. the Agency will work to expand its footprint in traditionally underserved Pillar 3 – Improve Customer areas. FSA will expand service delivery Service capabilities (Pillar 1) increase awareness FSA values its customers and wants to of FSA programs and services (Pillar 2) ensure that the best customer service and improve customer service (Pillar 3). experience is being provided to farmers and ranchers. Soliciting customer input Pillar 1 - Expand Service Delivery is essential to improving service delivery Capabilities systems. FSA will review and improve FSA will continue to offer services business processes to ensure we are at its local county offices; however, effectively delivering our programs and program and service delivery systems services. must expand beyond the traditional walk-in local offices. FSA will ensure that customers are aware of e-services available and that these services are easy to use.

36 FSA Strategic Plan 2012-2016 SG4 Objective 4.4 Strategies Objective 4.5 – Invest in the • Promote e-initiatives through Workforce outreach. FSA employs over 15,000 Federal and • Expand service delivery channels county employees. As the Agency beyond the walk-in local offices. anticipates the retirement of more than 25 percent of its workforce over the • Investigate new technologies for next 5 years, it is important that the improving service delivery. FSA strategically manage its workforce. • Improve outreach and program The Office of Personnel Management education. periodically surveys employees. FSA • Improve the Agency’s Web site. has historically ranked below the average of other Federal agencies for • Provide tools to producers for employee satisfaction. The Agency decision making. wants its current and future employees to know that it is committed to • Provide customer service training to improving its performance. We employees who interact with will encourage retention through customers. professional development, supporting • Work with other USDA Agencies training for leadership, and career to improve customer service. development opportunities. FSA will also enhance the workforce through • Cross train employees on FSA recruitment and retention of talented programs and other USDA individuals, with attention to increasing programs to better serve our diversity. customers and potential customers. To improve workforce management, FSA will improve succession planning (Pillar 1), improve employee FSA Strategic Plan 2012-2016 37 SG4 development programs (Pillar 2), and stakeholder needs. The Agency improve recruiting and retention (Pillar recognizes that in order to continue 3), and improve employee recognition to provide our customers first-rate programs (Pillar 4). service we must invest in employee development. To increase the return Pillar 1 - Improve Succession on employee investment, FSA will Planning develop strategies, processes, and plans To have a good succession plan, FSA that provide for the continued growth must identify existing competencies and and development of employees. This determine what competencies and skills increases the current value of FSA’s will be needed in the future to carry out employees and can have a positive the Agency’s mission and accomplish impact on retention. goals. A key element in succession planning is transferring knowledge Pillar 3 - Improve Recruiting and from individuals who will be leaving Retention to those that will remain or follow. FSA’s ability to recruit, develop, and One aspect of this is to document job retain a well qualified and diverse information for those who will perform workforce to execute its mission that function in the future. FSA will depends on a fully integrated workforce identify and prioritize those processes management program. FSA will engage that are most critical and/or the managers in developing appropriate highest risk from a business standpoint, strategies to ensure the Agency hires and ensure that these processes are and retains people with the right skills documented. to excel in meeting current and future challenges. Pillar 2 - Improve Employee Development Programs To become a high performing Agency requires investment in the workforce and an understanding of customer

38 FSA Strategic Plan 2012-2016 SG4 Pillar 4 - Improve Employee Objective 4.5 Strategies Recognition Over the last few years, budget • Conduct a workforce skills limitations have reduced the resources assessment. available for FSA’s employee recognition • Develop initiatives to promote programs. This has no doubt career progression. contributed to the employee satisfaction levels on the recent employee viewpoint • Provide opportunities for knowledge survey. As money is not the only factor transfer prior to the departure of in employee morale, increasing non- key personnel. monetary employee recognition can • Increase employees’ understanding have a dramatic impact. An effective of FSA’s mission and operations. employee recognition program enhances retention and contributes to employee • Improve the on-boarding processes satisfaction and is critical to FSA’s for new hires. transformation and modernization. • Promote knowledge sharing through e-initiatives. • Create innovative solutions for the development and delivery of training. • Evaluate existing and develop new strategies for the recruitment and retention of a diverse workforce. • Develop new and expand current non-financial employee recognition programs. FSA Strategic Plan 2012-2016 39 SG4 Objective 4.6 - Improve Objective 4.6 Strategies Mission Enabling and • Improve internal controls. Support Functions • Evaluate opportunities to increase With increasingly tight budgets efficiencies in Agency wide financial and expanding responsibilities, FSA processes and solutions. must ensure resources are used more effectively and efficiently. The Agency • Ensure transparency and must maintain effective financial accountability of administrative controls so that program dollars costs. achieve the outcome for which they • Increase the use of financial were intended. FSA will strengthen information in day-to-day decision its financial management by improving making. internal controls. • Improve real property management. • Improve acquisition process. External Risk Factors Many external factors influence the outcome of this strategic goal including resource availability to pursue many of these initiatives, the availability of qualified candidates and their desire to relocate, and customers desire to use social media and other electronic forms of communication.

40 FSA Strategic Plan 2012-2016 SG4 Strategic Goal 4 - Performance Measures Agency Index Score on the Partnership for Public Service, Best Place to Work Survey FY-10 FY-16 Description Baseline Target The Best Places to Work rankings are the 60.1 % 67 % most comprehensive and authoritative rating and analysis of employee satisfaction and commitment in the Federal Government Farm Programs Applications Accessible from the Web This measure reflects the number of Farm 5% 100 % Programs eligible customers may apply for via the internet FY 2010 FSA Federal Employees Civilian Labor Force 37.09% 39% 2.19% 44.98% 33.7% 5.7% 6.2% 3.36% 4.8% 4.5% 2.5% 0.87% 1.7% 0.51% 7.29% 1.9% 1.98% 1.73% White Males White Females Hispanic Males Hispanic Females African American Males African American Females Asian Males Asian Females People with Targeted Disabilities FSA Strategic Plan 2012-2016 41 A-1 Appendix A: Program Evaluations FSA used several tools in developing the strategic plan, including: • Program evaluations • Advisory committees • Office of the Inspector General (OIG), Government Accountability Office (GAO) Program Evaluations Used to Develop the Strategic Plan Goal Evaluation/Analyses Brief Description What was the Effect Date All USDA Diversity, USDA directed an The Final Report identifies 10 key areas for 2011 Goals Inclusion, assessment team to Department-wide change that are needed to Accessibility Civil conduct an Independent assist in transforming the Department. These Rights Assessment Assessment of the USDA changes enhance the key elements of structure, Report Delivery of Technical and accountability, incentives and penalties, cultural Financial Assistance to all transformation, performance management, and Americans. The team other essential tools and measures of success. examined USDA’s The report also provided a number of program delivery at State recommendations on how to make FSA and local levels. programs more accessible to socially disadvantaged groups. Bearing Point Third Bearing Point was Modernization will bring significant benefits 2009 Party report to retained to develop the such as improvements in cost efficiency, producer Congress: Delivery of third party report required access, fraud mitigation, staff efficiency, and Legislated Mandated by Congress. The report morale. Farm Benefit examined stabilization Programs and modernization initiatives.

42 FSA Strategic Plan 2012-2016 A-2 Program Evaluations Used to Develop the Strategic Plan Goal Evaluation/Analyses Brief Description What was the Effect Date Goal 1 USDA Office of Audit of the Farm Service Port facilities are not consistently examined. 2008 Inspector General’s Agency’s administration Corrective Action On Examination Failures Not Report on Temporary of its port examination Ensured. Domestic Storage Site process for Foreign Food Assistance GAO Beginning Report focused on Congress provided mandatory funding for the 2007 Farmers and Ranchers coordination of USDA Beginning Farmers and Ranchers Development report activities affecting Program. beginning farmers and ranchers USDA OIG Report The objective of the audit The review disclosed that the Department‘s 2009 on Socially was to determine whether foreclosure and restructure processes were Disadvantaged the Department‘s generally consistent and in conformity with Borrowers decisions to implement applicable laws and regulations, and that socially Foreclosures foreclosure proceedings disadvantaged and non-socially disadvantaged with respect to socially borrowers were treated consistently when their disadvantaged borrowers loans were restructured or foreclosed. were consistent and in conformity with the applicable laws and regulations governing loan foreclosures USDA OIG Report The audit objective was to The OIG recommended that FSA remind field 2009 on FSA Farm Loan assess FSA’s control and offices to document shortages of loan collateral Security oversight of loan collateral found during farm visits and properly follow to ensure that its post-approval procedures. Additionally it was operating loans were recommended that FSA (1) ensure appropriate adequately secured. enforcement actions are implemented upon discovery of unauthorized loan collateral dispositions; (2) design and implement a system to record all unauthorized dispositions found and, in the interim, instruct county offices to maintain manual logs; (3) strengthen the oversight review processes to ensure post-approvals of unauthorized dispositions are identified and evaluated; and (4) establish controls to ensure the performance of required loan collateral inspections, borrower assessments, and yearend analyses. FSA Strategic Plan 2012-2016 43 A-3 Program Evaluations Used to Develop the Strategic Plan Goal Evaluation/Analyses Brief Description What was the Effect Date Goal 2 USDA OIG Report The audit objective was to FSA needs to strengthen its onsite inspection 2009 on Emergency assess the effectiveness of procedures and preparing estimates of the repair Disaster assistance for FSA’s management of the and restoration work to be performed. The 2008 floods: ECP and the adequacy of its Agency also needs to strengthen its controls over Emergency program integrity. application and disbursement. Conservation Programs Goal 3 GAO Changes to GAO was asked to USDA did not always ensure that states and 2009 Federal Agencies’ determine how Federal schools received timely and complete notification Procedures Could agencies (1) notified states about suspect food products provided to schools Reduce Risk of School and schools about food through the federal commodity program. Children Consuming recalls, (2) advised states and Recalled Food schools about disposal and reimbursement of recalled food, and (3) ensured that recalls were being carried out effectively. To do this, GAO reviewed and analyzed relevant documents and interviewed Federal and State officials, as well as officials from 23 school districts that had experience with at least one of 4 recent cases involving the safety of food in the school lunch program. Goal 4 Agriculture Needs to The U.S. Department of Develop specific plans for consistently tracking 2008 Strengthen Agriculture (USDA) users’ reported problems and clearly defining Management Practices recently experienced roles and responsibilities for Information for Stabilizing and significant problems with its Technology Services and the Farm Service Modernizing Its Farm information technology Agency’s chief information officer to fully assess Program Delivery (IT) systems that support USDA’s investment in MIDAS, including: Systems the delivery of benefits establishing effective and reliable cost estimates programs to farmers (farm using industry best practices, including using key program delivery systems). information such as business requirements to develop the estimates; and establishing a realistic and reliable implementation schedule for MIDAS that is based on complete business requirements.

44 FSA Strategic Plan 2012-2016 B-1 Appendix B: Strategic Consultations FSA regularly consults with external stakeholders, including FSA’s customers, partners landowners, policy experts, and industry and community based organiza- tions regarding our programs’ effectiveness. While many of the consultations were not conducted expressly for the development of FSA’s Strategic Plan, they did im- pact strategic goals, objectives, strategies, and targets. Additionally, the Strategic Plan was developed in accordance with guidance from the Office of Management and budget (OMB) and the Government Performance and Results Act (GPRA). With the full support of its senior leadership, FSA regularly consults with stake- holders and seeks validation of all goals, objectives and performance measures from employees and the public. Strategic Consultations Goal Date Who Purpose Goal 1 Annually Farm Loan Chiefs Discuss Farm Loan Programs issues and concerns. Conference Participants Annually Warehouse Examiners Discuss U.S. Warehouse Act issues. Conference Participants Monthly Emergency Preparedness Identify and discuss homeland security concerns to Board include food security concerns. Goal 1 & 2 August Tribal Consultations Obtain stakeholder input on how to most effectively 2010-Jan implement the Highly Fractionated Land Loan

2011 Program, the Voluntary Public Access and Habitat Incentive Program. FSA Strategic Plan 2012-2016 45 B-2 Strategic Consultations Goal Date Who Purpose Goal 3 Annually International Food Aid Annual conference jointly hosted by FSA and U.S. (most Conference Participants Agency for International Development (USAID)brings recently together individuals involved in food-assistance April activities, across United States and throughout the 2011) world. On-going Food Aid Policy Council FSA along with USDA ,FAS, OMB, USAID, State Department officials discuss food aid concerns. Semi- Food Aid Consultative Industry experts discuss current food aid issues and annually Group concerns. Goal 4 Labor Management Union leadership and management identify and address On-going Forums workforce concerns. All Goals On-going Various Employee Address programmatic and workforce concerns. Associations Conferences On-going National Food and Facilitate effective and efficient coordination of Agriculture Council agricultural programs.

46 FSA Strategic Plan 2012-2016 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunity provider and employer.