Apply now for transporation reimbursement

MAT-SU — Farming and ranching aren’t easy professions. But in Alaska, in addition to a short growing season and cold climate, producers also face transportation costs much higher than those in the contiguous United States.

To help alleviate this pressure, Alaska farmers and ranchers can receive payments through the Reimbursement Transportation Cost Payment Program for Geographically Disadvantaged Farmers and Ranchers, part of the 2008 Farm Bill.

“Alaska is a pioneer state,” said Danny Consenstein, executive director of Alaska Farm Service Agency. “We’re still getting farmers and ranchers started. The money from this program will help them make a profit and stay in business and help to grow this industry.”

The program is now in its third year and is growing steadily. In 2010, Alaska received $200,000, which was divided among 130 farmers and ranchers.

The 2011 payment was $294,348 divided among 161 producers. Consenstein said numbers are still low and he hopes to give payments to more than 400 farmers and ranchers in the future.

In the Matanuska-Susitna Valley, 40 farmers and ranchers received payments in 2011. Janet Dinwiddie of Pyrah’s Pioneer Peak Farm said the program has helped to offset transportation costs dramatically.

“Everything we need to get started in the spring has to be shipped in,” Dinwiddie said. “We have a large-scale business, and with fuel prices going up, the payments make a big difference.”

Funds from RTCP can reimburse up to 25 percent of freight costs for Alaska farmers and ranchers — high shipping costs incurred during the transport or fertilizer, seeds, greenhouse supplies and even tractors. Products bought in state can also qualify for partial reimbursement, since the freight cost is included in the price.

The program reimburses for the production of agricultural goods of all kinds, from hay to milk and peonies to oysters.

Applications for 2012 fiscal year are due Sept. 1.

Consenstein encouraged farmers and ranchers not to be discouraged by a seemingly complicated application process, as the application is made easier every year and the form is available online. Dinwiddie agreed. “We’re really grateful that FSA does a lot of the organizing work for us,” she said.

For more information, visit fsa.usda.gov/ak, or contact Doug Carter at (907) 761-7772.