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Message Newsletter January 2025

Dear Oklahoma Veteran Business Owners,

As we step into a brand-new year, I want to take a moment to celebrate you—the resilient, driven, and inspiring backbone of our veteran business community. Your hard work, determination, and unwavering commitment to excellence are a testament to the values we carry from our time in service into the entrepreneurial battlefield.

The past year has brought its share of challenges, but it has also showcased the strength and ingenuity of veteran business owners across Oklahoma. From building innovative solutions to creating jobs, you have demonstrated that our community is a powerful force for positive change.

As we turn the page to 2025, this is the perfect time to reflect on the lessons of the past year and set ambitious goals for the months ahead. This year offers new opportunities to grow, connect, and thrive together. Whether you’re just starting out or scaling your operations, remember that you are not alone. The veteran business community stands strong as a network of support, collaboration, and shared success.

Here are a few priorities for the year ahead:

Connection: Let’s strengthen our bonds and expand our networks. Together, we can overcome any obstacle and achieve greater success. Attend events like the Making the Connection Veteran Owned Business Conference in September to learn, share, and grow alongside fellow entrepreneurs.

Innovation: The world is changing rapidly, and so are the needs of our customers and clients. Embrace innovation, explore new markets, and don’t be afraid to adapt.

Support: Reach out to one another. Whether it’s sharing resources, mentorship, or collaboration, we are stronger together. Let’s uplift and empower each other at every opportunity.

I encourage you to dream big this year, set bold goals, and push past limits. The Oklahoma Department of Veterans Affairs and programs like OKVetWorks are here to assist you every step of the way. Remember, your success is a reflection of your courage and dedication—not just to your business, but to the legacy of service you carry.

Thank you for your leadership, your tenacity, and your dedication to building a better future for our communities. Here’s to a prosperous, impactful, and rewarding 2025 for you and your business!

With gratitude and best wishes,

Daron Hoggatt, CPO, CBC, MMCP, CBA, SSGB

96Focus Area: FundingVersion 1.8.5Manage Your Lender–How to get the credit you want As an entrepreneur, one may well feel that you need to “get down on our knees and beg” when it comes to working with a lender. But lenders live by lending money and they are constantly in competition with other lenders to win new customers. So how can we prepare ourselves to go to the lender and to get both the necessary line of credit and the best terms? As an entrepreneur, it is not uncommon to have a strained relationship with lenders. Maybe there are bad feelings to-wards your lender or all lenders generally. Perhaps thoughts like “the lender doesn’t want me as a customer” or that “the lender will try to control and restrict my freedom of action.” The reality is that all lenders are interested in having business customers and lending money. Lenders are in the business of facilitating the lending of money and it is how they make a living. The right lender can be your ally, giv-ing you competent and free advice on future investment options.Harboring feelings such as “my lender does not understand me” begs the question, “do you really understand your lender?” With the right awareness and skills there are good options to achieve a credit agreement with the lender that you want. What do lenders think?There is no doubt that lenders can certainly improve the way they communicate with entrepreneurs. But while we wait for their communication to improve, we can ourselves become even better at communicating with the lenders from our side. A good starting point for this is to sit in the lender’s o ce and try to understand how the lender manager thinks, feels and acts. Inspiration for how to do this, is found in the framework above that shows examples of the questions a lender asks themselves regarding potential customers i.e. you and I, the entrepreneur. These questions include questions like “does this investment make sense?”, “How much capital does the entrepreneur really need?” and “Do I trust the entrepreneur?”Investment SummaryOne of the things a lender would be interested in is under-standing what the loan or line of credit would be used for. It is therefore important preparation for a meeting with a lender to make a complete list of all the investments nec-essary to move the company forward. It is also important to demonstrate the return each investment is expected to give: the expected Return on Investment or ROI. Whether you in-vest in product development, manufacturing equipment, new employees or a marketing campaign, it is important that the “The better one is at negotiating with the lender, the better one will demonstrate that as an entrepreneur, one is responsible for driving and carrying out business, which ultimately provides a double bene t for the company.”Licensed to Daron Hoggatt, Oklahoma Department of Veterans Affairs. Downloaded January 6, 2025.

97FUNDINGtimes also be increases in costs, currency adjustments or changes in legislation that a ect our livelihoods. Finally, most businesses run with organizational risk that include resignation of key employees – or worse, that something happens with the entrepreneur even at a time when the com-pany is still dependent on its founder. By being prepared and presenting a risk analysis to the lender, describing ways to handle the risk areas, we can demonstrate to the lender that we have a realistic under-standing of our company. This risk analysis in itself can cre-ate the con dence that helps the lender agree to the deal. A Lender Binder with everythingAn investment overview, a risk analysis, and a cash budget are some of the most important materials you need to have ready when you meet a lender. But there is much more in-formation we can provide for our lender, which can both provide the lender with a better basis for decision making, greater security and a better impression of the company. A professional way to deliver this is to produce a single binder – a lender binder – with all of the information col-lected and organized that would be of interest to a lender. The  gure below shows an example of what the lender fold-er should contain. Here we  nd everything from basic legal discussion is always about investment and not expenditure. The idea is that activities should yield a return. Therefore, it is also a good idea to create an investment statement show-ing what it would take for an investment to be “paid back” to the company through income. This is what  nanciers call in-vestment “break-even.” Potential future investments should also be included in your investment statement. It serves to highlight future investments, so they will not come as a sur-prise to the lender. It is also a good way to demonstrate the entrepreneurial vision of the business. Do a risk analysis for yourselfAnother point which is ‘top-of-mind” for a lender is the risk the lender has when lend-ing. Here you can anticipate the lenders con-cern yourself by making your own risk analy-sis, which both identi es the risks that exist in the company, how likely they are to occur and countermeasures in the event that they occur. The types of risks we face depend on what businesses we run, but all businesses have some com-mon risk factors. We can  nd general risks associated with typical catego-ries. Looking speci cally at the risks associated with custom-ers, there is risk of inadequate customer acquisition; loss of customers to new competitors; bad debts; or even declining prices in our market. On the production side, it may be the risk of quality problems or production errors, including problems with deliveries from your suppliers. It can some-“As a startup company we can have the situation where we in fact have too little debt.” WHAT IS THE LENDER THINKING? Is it a good investment? Is the entrepreneur competent? How much capital is actually needed? What is the risk and how much security do I have?HOW DOES THE LENDER FEEL? I need to have confidence in the entrepreneur I need to protect the entrepreneur against poor investments I must be able to justify the loan to my boss or interested partiesWHAT IS THE LENDER’S SITUATION? Investments that exceed a certain amount must be approved by interested parties Perhaps invests in over 50 business’ and knows all there is to know Does not have specific knowledge of your market Is not personally interested in becoming an entrepreneurHOW DOES THE LENDER ACT? Try to find good investments Try to grow interest for his/her own business or company Try to create increased earning on the customer Try to establish a long term relationship with the customer Lender Relations: Preparing for the negotiations with the lender advisor© GrowthWheel International Inc. and David MadiéLicensed to Daron Hoggatt, Oklahoma Department of Veterans Affairs. Downloaded January 6, 2025.

98FUNDINGinformation about the company, to product and customer information, and examples of company marketing material. The lender binder also contains the various budgets we have made for sales, expenses and cash  ow. In addition to this, a personal statement about one’s own private budget and  nancial resources can give a lender the added ability to assess a persons overall economic outlook. One can imagine the di erence in a meeting where you have such a binder, and a meeting without one. Already from the beginning of the meeting the approach is one of con dence and strategy, where we are one step ahead in relation to all the bank issues. The folder puts forward the agenda for what needs to be reviewed at the meeting. What needs to be negotiatedWith a lender binder in their possession, an entrepreneur is equipped to start negotiating terms. It should be kept in mind that not only is the loan or credit amount to be negoti-ated, but also a number of other terms. First and foremost the cost of credit is negotiated in the same way that we would negotiate the purchase of a printer or other large purchase. For negotiating a line of credit, it is the interest rate which is the most critical to determine. The interest rate is the rate at which you can borrow money, or how much you have to pay back in excess of the amount you originally borrow. However there are a number of processes for building the line of credit which include startup and other administrative fees, provisions for establishing the maximum credit limit and wherever possible, these added fees should be avoided. During the negotiation process it can also be good to discuss the interest rate on savings i.e. the rate on any money kept in the company’s bank account. Finally, one of the main issues to be negotiated, which the lender will most likely request, is a collateral or security for the loan. If you have a limited company, it is best of course that you are not personally liable for the loan, but often the lender will say that it will not take the risk, if you personally do not accept some risk. This is actually very reasonable and as a result, one can often only get the line of credit by adding additional capital to the company’s accounts where the line of credit is being established. So it is important that you per-sonally hold a part of the corporate risk. Good negotiating skills make a di erenceThe extent of good  nancial conditions that can be achieved in your lender relationship depend on several factors, not only on the current economic situation. The most crucial factor is how good you are at creating con dence in the company and in its management, from the lenders perspective. We need to “sell” the company to the Lender Information - Information package for the lender© GrowthWheel International Inc. and David MadiéCompany DocumentsRegistration certificates :: bylaws :: Shareholders agreement1Company ProfileProfile from website :: CVs :: Press Clips :: Board Members2Company ProductsProduct Sheets :: Price Lists :: Competing products :: Future product ideas3Company CustomersCustomer list :: Orders and contracts :: Outstanding offers :: Customer References4Company MarketingPrint from website :: Pamphlets and Brochures5Company OrganizationOwnership structure :: Employee List :: Organization chart :: Job descriptions6Risk Analysis Risk Assessment :: SWOT Analysis 7FinancingInvestment Plan :: Long-term financing requirements :: Cash flow budget8Private EconomyPersonal Budget :: Annual tax return :: Personal financial statement9BudgetOperating budget :: Liquidity budget :: Status budget10AccountsQuarterly financial statement :: Latest annual accounts11“It is easier to use most software than it is to use a video machine, even without reading the user guidelines!”Licensed to Daron Hoggatt, Oklahoma Department of Veterans Affairs. Downloaded January 6, 2025.

99FUNDINGlender, as though the lender were a prospective customer. This is best done with the aid of the lender folder and a pro-fessional business presentation. Yet, even with all of this, it will still be one’s ability to negotiate with the lender which makes the biggest dierence. Here one should remember to use the same methods as when negotiating with the compa-ny’s other suppliers. As a good merchant, it is important to always make con-tact with at least two lenders / or suppliers generally. And it is only fair to inform the lender that you will obtain several oers, thereby guaranteeing that your agreement represents “conditions at the market level.” Just asking the lender for “an oer” proposal shows that you are price aware, and will be also cost-focused in the company’s other aairs. On the whole, the fact is, that the better one is at negoti-ating with the lender, the better one will demonstrate that as an entrepreneur one is responsible for driving and carrying out the business, which ultimately provides a double benet for the company.Caring for the lender relationshipThe relationship you establish with the lender does not stop after we have our rst credit line established at the right terms. It is precisely here, where it starts. The Lender needs caring, just like other important relationships. If our business is to evolve there may soon come a day when we will need an even larger commitment from the lender. This is not because something could go bad, but because future growth often re-quires capital. Consequently, one must constantly work to increase the lender’s trust in the business. This is what some term; adding funds to the “emotional bank account.” This can be done in practice by continuously sending the company’s periodic accounts to the nancial adviser, and by providing detailed overviews of the company’s liquidity. For example, the details of how an overdraft will be used to maintain the business operations. It is important to keep the lender aware of the credit and how the company is meeting its agreement with the lender. Debt can be a good thingWhen as an entrepreneurs, we don’t always feel good about going discussing debt with a lender. This may be because we basically perceive debt as something negative. Perhaps this is because when you see debt on your books it feels like it is a sign that the business is in a bad situation. However, debt can also be a good thing for a company, if it is created by good investments which will eventually yield a positive return. Therefore, as a startup company we can have the situa-tion where we in fact have too little debt. Maintaining little or no debt means that no investments are being made. In comparison, making investments will potentially return or generate prots which exceed the interest rate being charged by the lender for the loan. Lenders and entrepreneurs benet from making loans, because both parties make money on the establishment of loans and credits to protable investments the company should make. It is in this setting we as entrepreneurs go to the lender to get the credit line that is right for the company’s development.Suggestions for the next step• Get an overview of the next protable investments you would like to make.• Make a liquidity budget and assess your nancing needs in the short and in the long run.• Create a lender binder that contains the information that the lender needs.© GrowthWheel International Inc. and David MadiéLicensed to Daron Hoggatt, Oklahoma Department of Veterans Affairs. Downloaded January 6, 2025.

Building a Strong Relationship with Your Bank: A Key to Business Success

Entrepreneurship is a journey filled with challenges, opportunities, and pivotal decisions. Among these decisions, choosing the right financial partner—and fostering a strong relationship with them—is one of the most critical. For many, banks are often seen as transactional institutions, useful only for depositing money, applying for loans, or managing payments. However, a deeper, more strategic relationship with your bank can transform it into a powerful ally, helping your business not only survive but thrive.

A bank is much more than a vault for your earnings or a lender during tight cash flow periods. It can be a wellspring of financial expertise, a gateway to vital resources, and a trusted partner in your entrepreneurial journey. Managing this relationship effectively and cultivating a personal connection with your banker can unlock opportunities that far exceed your initial expectations.

The Foundation: Knowing Your Needs

Before you approach any bank, it’s essential to understand your business’s unique financial needs. This self-awareness forms the foundation of a productive banking relationship. Think about what your business requires today and what it might need in the future. Are you a startup seeking a basic business checking account, or are you an established company looking for complex financial products like lines of credit, equipment loans, or investment services?

Additionally, consider the operational side of your business. Do you need merchant services to handle customer transactions or payroll services to streamline employee compensation? Are you planning for long-term goals like retirement savings or business succession? Taking stock of these needs ensures that you’ll not only choose the right bank but also articulate your requirements clearly when meeting with a banker.

Finding the Perfect Fit

Not all banks are created equal, and finding one that aligns with your business goals is crucial. Local banks and credit unions often have a deep understanding of the community and industries within it, making them ideal partners for small businesses. They may offer personalized service, flexible terms, and an approachable team that truly understands your challenges.

On the other hand, national and international banks provide vast networks, cutting-edge technology, and access to a wide range of financial products. These institutions can be particularly advantageous for businesses operating across multiple locations or those looking for more sophisticated financial tools.

When choosing a bank, take your time. Research their reputation and look for reviews from other businesses. Schedule meetings with potential banks to ask about their specific offerings for small businesses. Don’t hesitate to compare options, as the right banking partner can significantly impact your business’s financial health and growth trajectory.

The Power of Personal Connections

Once you’ve chosen a bank, the next step is building a strong, personal relationship with your banker. Many entrepreneurs treat this relationship as purely transactional, but those who go a step further and cultivate a partnership often see exceptional results.

Your banker should be more than someone you meet when applying for a loan. They should be a trusted advisor who understands your business, your industry, and your goals. Begin by scheduling regular check-ins to discuss your financial position, upcoming projects, and potential challenges. Transparency is key—share your successes as well as your struggles. This open communication allows your banker to provide tailored advice and advocate for you when necessary.

Building rapport is equally important. Get to know your banker’s expertise and interests. A genuine connection creates mutual investment, making them more likely to go above and beyond for you when opportunities or challenges arise.

By: Daron Hoggatt

Tapping into Expertise

One of the most overlooked benefits of working closely with a bank is access to your banker’s expertise. Banks are hubs of financial knowledge, and their staff often have deep experience in helping businesses navigate everything from cash flow issues to growth opportunities.

For example, a skilled banker can guide you through loan applications, ensuring that you secure funding with favorable terms. They can help you identify grants or special programs designed for small businesses or veterans. Additionally, they can offer insights into market trends, helping you anticipate changes and adapt your strategies.

Some banks also host workshops, networking events, and seminars tailored to business owners. These resources can connect you with other entrepreneurs, potential partners, and even new customers.

Trust Through Financial Discipline

As with any relationship, trust is the cornerstone of a successful partnership with your bank. Building this trust starts with demonstrating financial discipline. Maintain a good credit score, keep your financial records accurate and up to date, and meet your financial obligations on time. Whether it’s repaying a loan or managing your accounts responsibly, showing reliability builds confidence in your ability to manage your business effectively.

Challenges are inevitable in business. If you face financial difficulties—such as an unexpected drop in revenue or a cash flow crunch—don’t hide them. Instead, communicate with your banker proactively. Banks appreciate honesty and are often willing to work with businesses that have established themselves as trustworthy partners. Whether it’s restructuring a loan or offering temporary relief, a bank that understands your situation is more likely to provide support.

Planning for Growth

As your business grows, your banking needs will evolve. A strong relationship with your bank ensures that they’ll be ready to support your expansion. This might involve securing financing for new equipment, purchasing real estate for a larger location, or investing in technology to streamline operations.

Discuss your long-term plans with your banker early and often. They can help you prepare for future needs, whether it’s setting up a line of credit for seasonal fluctuations or structuring loans to maximize tax benefits. With their guidance, you can make informed decisions that align with your growth goals.

Embracing the Digital Revolution

In today’s world, banking extends far beyond traditional face-to-face interactions. Most banks offer advanced digital tools designed to make managing your finances easier and more efficient. From mobile apps that allow you to monitor your accounts in real-time to financial forecasting tools that help you plan for the future, these technologies can be game-changers for busy entrepreneurs.

Take the time to learn about the digital resources your bank offers. Whether it’s automating payroll, tracking expenses, or streamlining customer payments, these tools can save you time and reduce administrative burdens, allowing you to focus on growing your business.

The Rewards of a Strong Banking Relationship

The benefits of cultivating a strong relationship with your bank are numerous. Business owners who invest in these relationships often enjoy faster loan approvals, better financial terms, and access to exclusive products and services. More importantly, they gain a trusted partner—someone who knows their business inside and out and is genuinely invested in their success.

A banker who understands your goals and challenges can be a powerful advocate, whether it’s during times of growth or periods of difficulty. They can connect you with resources, offer timely advice, and even open doors to opportunities you might not have discovered on your own.

The Bottom Line

Managing your bank and fostering a personal relationship with your banker is about more than managing money—it’s about building a partnership that supports your business at every stage. By choosing the right bank, investing in open communication, and leveraging the resources they offer, you create a foundation for financial stability and long-term success.

Your banker is more than a service provider—they’re a potential ally in your entrepreneurial journey. Invest in this relationship, and you’ll unlock opportunities, overcome challenges, and position your business for a brighter future. Remember, in business, the relationships you build can be just as important as the products or services you offer. And when it comes to your bank, that relationship can truly be transformative.

Marketing Assistance for Specialty Crops (MASC) ProgramOverviewThe MASC program, administered by the Farm Service Agency (FSA) using Commodity Credit Corporaon (CCC) funds, provides eligible specialty crop producers with markeng assistance payments to help them engage in acvies that aid in expanding domesc specialty crop markets or in developing new markets for their specialty crops in 2025.Who is Eligible To be eligible for payments, persons or legal enes must:  Be in the business of producing a specialty crop at the me of applicaon and be entled to an ownership share and share in the risk of producing a specialty crop that will be sold in calendar year 2025;  Be a U.S. cizen, resident alien, partnership, corporaon, limited liability company, or other organizaonal structure organized under State law, Indian Tribe or Tribal Organizaon, or a foreign person or foreign enty who meets certain eligibility requirements;  Comply with the provisions of the “Highly Erodible Land and Wetland Conservaon” regulaons, oen called the conservaon compliance provisions;  Not have a controlled substance violaon;  Submit a complete MASC applicaon form (FSA-1140) and provide all required documentaon as specied in the documents secon below.To be eligible for payments, a person or legal enty must have an average adjusted gross income (AGI) of less than $900,000 for tax years 2021, 2022, and 2023, unless the person or legal enty’s average adjusted gross farm income is at least 75 percent of their average AGI.Eligible Crops MASC covers the following commercially marketed specialty crops:SPECIALTY CROPSFruits (fresh, dried) Nursery crops, Christmas trees, and oricultureVegetables (including dry edible beans and peas, mushrooms, and vegetable seed)Culinary and medicinal herbs and spicesTree nuts Honey, hops, maple sap, tea, turfgrass, and grass seed.Common examples of specialty crops can be found online. DECEMBER 2024Ineligible CropsThe following are examples of ineligible crops: FIELD AND GRAIN CROPSOILSEED CROPSFORAGE, HAY, AND COVER CROPS OTHER SPECIFIC CROPS  Coon  Coonseed  Forage crops  Grain crops  Hemp  Kochia (prostrata)  Lespedeza  Milkweed  Oilseeds  Peanuts  Primrose  Seed of ineligible crops (other than grass seed)  Sugar beets  Sugarcane  Tobacco  Crops with an intended use of fallow, forage, grazing, green manure, or le standingOTHER PRODUCTS  Aquac animal species (such as sh and shellsh)  Dairy products  Eggs  Livestock products  TofuHow to ApplyEligible producers can apply by compleng the FSA-1140, Markeng Assistance for Specialty Crops (MASC) Applicaon, and subming it to any FSA county oce by January 8, 2025. A complete applicaon includes all of the following:FSA-1140, Markeng Assistance for Specialty Crops (MASC) Applicaon  Producers must complete and sign the MASC applicaon and submit it to any Farm Service Agency county oce naonwide. The producer must cerfy to their specialty crop sales for calendar year 2023 or 2024, or for New Producers only, 2025 expected sales (See New Producer denion and requirements below) on the FSA-1141.FSA-1141, Markeng Assistance For Specialty Crops (MASC) New Producer Expected Sales Worksheet (New producers only)  New producers must complete and sign the new producer expected sales worksheet and provide along with their FSA-1140 to any Farm Service Agency county oce naonwide.fsa.usda.gov

WOMEN VETERANPROGRAMASSISTANCE WITH STATE AND FEDERALBENEFITS BY ACCREDITED WOMENVETERAN SERVICE REPRESENTATIVES WVP CONTACT: (405)523-4020OKWOMENVETS@ODVA.OK.GOVCONTACT USSERVICESCAMARADERIE THROUGH WOMENCOMMUNITY GROUPSPROFESSIONAL MENTORSHIPVETERANS REGISTRYHONORARY CELEBRATIONS”SHE SERVED TOO” NEWSLETTERNOMINATE YOUR VETERANWOMENS VETERAN COMMITEE EMPOW-HER HOURVETERANS REGISTRYSPEAKING ENGAGEMENT & OUTREACH

2MARKETING ASSISTANCE FOR SPECIALTY CROPS (MASC) PROGRAMAD-2047, Customer Data Worksheet This form will be lled out for all individuals and legalenes (including enty members) who have notpreviously provided their personal informaon toUSDA that posively idenes the customer.CCC-902, Farm Operang Plan Individual and legal enes will ll out the CCC-902 tofacilitate the administraon of the payment limitaonand eligibility requirements, including providingmembers’ names and taxpayer idencaon numbers.CCC-941, Average Adjusted Gross Income (AGI)Cercaon and Consent to Disclosure of Tax Informaon This form is required for the 2025 program year forthe person or legal enty, including the legal enty’s members, partners, shareholders, heirs or beneciaries, if not already on le.FSA-942, Cercaon of Income from Farming, Ranching and Forestry Operaons, if applicable, for the producer and members of enes This form may be used by persons or legal enes thatexceed the average AGI $900,000 threshold. Personsor legal enes may otherwise meet AGI requirementsif the person or legal enty’s average adjusted grossfarm income is at least 75 percent of their average AGI.AD-1026, Highly Erodible Land Conservaon (HELC) and Wetland Conservaon (WC) Cercaon All applicants, and their aliates, must complete theAD-1026. The form must be completed in its enrety.Specialty Crop SalesEligible specialty crop sales only include sales of commercially marketed raw specialty crops grown in the United States by the producer. The poron of sales derived from adding value to a specialty crop (such as sorting, processing, or packaging) is not included in eligible sales. To be considered a specialty crop sale, the producer must have received payment for the specialty crop during the applicable calendar year. Federal crop insurance indemnies and NAP payments for the 2023 or 2024 crop year will be included as eligible specialty crop sales for the applicable crop year, regardless of when they were received by the producer.Other Documentation If requested by FSA, producers must provide documentaon to support their reported specialty crop sales. Examples of documentaon to support reported sales includes, but is not limited to: sales receipts; sales records; ledgers of income; contract or sales agreements; income statements of deposit slips; register tapes with supporng documentaonacceptable to FSA; purchase orders; third party processor or distributor statements; contemporaneous diaries that are determinedacceptable by USDA; other sales documents indicang the crop was sold; and IRS Schedule F accompanied by documentaon tosupport that the reported amounts are from sales ofspecialty crops.Note: New producers reporng expected 2025 sales must provide FSA-1141 and supporng documentaon by the applicaon deadline. New ProducersYou may be considered a new producer if you: Began producing specialty crops in 2023 or 2024 butdid not have sales due to the immaturity of the crop; Began producing specialty crops in 2024 but did nothave a complete year of sales; or Are beginning to grow specialty crops in 2025.Payments for new producers will be based on their expected 2025 calendar year specialty crop sales. New producers must submit FSA-1141 and documentaon to substanate expected specialty crop sales and their ability to grow, harvest, and market the expected yield or inventory in 2025 by the MASC applicaon deadline of January 8, 2025.Examples of expected producon inventory, yield, and unit price includes, but is not limited to: sales contracts; purchase agreements; market agreements;DECEMBER 2024fsa.usda.gov selement sheets; local market prices; FCIC yields and prices;

MARKETING ASSISTANCE FOR SPECIALTY CROPS (MASC) PROGRAM 3Table 1—Sales RangesSales RangePercent Payment Factor (to be determined aer applicaon period ends)Up to $49,999 a $50,000 - $99,999 b$100,000 - $499,999 c$500,000 - $999,999 dAll sales over $1 million eTo calculate a MASC payment, the following steps will be taken:1. Mulply the amount of sales in each range in Table 1 by the determined percent payment factor for that range; and2. Calculate the sum of the results for each sales range. For example, if a producer reported $450,000 of total specialty crop sales, the calculated payment would equal to the sum of the following: y $49,999 (the amount of sales in the rst range) mulplied by the determined percent payment factor a; y $50,000 (the amount of sales in the second range) mulplied by percent payment factor b; and y $350,001 (the amount of sales in the third range) mulplied by percent payment factor c. y Final payments are subject to demand and available funding.Applicaon Deadline: January 8, 2025Where to ApplyThe MASC applicaon and associated forms are available online at fsa.usda.gov/markeng-assistance-specialty-crops. FSA sta at your local USDA Service Center will work with you to le your applicaons. Applicaons may be submied by mail, fax, hand delivery, or via electronic means. For More InformationThis fact sheet is for informaonal purposes only; other restricons may apply. For more informaon on MASC or assistance with applicaons, contact your local FSA oce or visit the FSA website at fsa.usda.gov. To nd your local oce, go to farmers.gov/service-center-locator.USDA may prorate nal payments, reduce the payment limitaon, or both if total calculated payments exceed the total funding allocated for MASC.Click here for more informaon on Noce of Funds Availability (NOFA); Markeng Assistance for Specialty Crops.  FSA Naonal Crop Table data;  Appraisals;  Cooperave Extension Service and university data;  nancial instuon documentaon;  Naonal Agriculture Stascs Services data;  Federal crop insurance documents;  historical yield data;  sales receipts;  invoices;  copies of signed wrien lease;  copies of legal documents showing land ownership or control of rented land;  rental agreements with landowner or landlord;  input records; and  nancial documents, such as a business plans or cash ow statement, that demonstrate an expected level of sales.Payment Limitation and Attribution  Payments are subject to a payment limitaon of $125,000. FSA will issue MASC payments aer the end of the applicaon period.  Direct aribuon provisions apply to MASC. Under direct aribuon, any payment to a legal enty will also be considered for payment limitaon purposes to be a payment to persons or legal enes with an interest in the legal enty or in a sub-enty.Payment CalculationMASC payments will be calculated based on the producer’s total specialty crop sales for the calendar year elected by the producer. The total specialty crop sales reported by the producer will be separated into sale ranges (ers) sown in Table 1. Aer the end of the applicaon period, a payment factor will be determined and applied to each er. If demand for MASC payments exceeds available funding, either MASC payments may be prorated, the payment limitaon may be lowered, or both. If proraon or a reducon of the payment limitaon is necessary, the reducon or lowered payment limitaon will apply equally to all MASC parcipants.fsa.usda.govUSDA is an equal opportunity provider, employer, and lender.Examples of expected producon inventory, yield, and unit price includes, but is not limited to (connued):