California Ag Network

Category: Ag Economics

  • February USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for February 2022, which are effective Feb. 1. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

    Operating, Ownership and Emergency Loans

    FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for historically underserved producers, including veterans, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers

    Interest rates for Operating and Ownership loans for February 2022 are as follows:

    FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. 
    You can find out which of these loans may be right for you by using our Farm Loan Discovery Tool.

    Commodity and Storage Facility Loans

    Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.

    Pandemic and Disaster Support

    FSA broadened the use of the Disaster Set Aside (DSA), normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 as well as a second DSA for a natural disaster for producers with an initial DSA for COVID-19. Producers must apply for the second DSA by May 1, 2022. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. This will improve the borrower’s cashflow in the current production cycle.

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

    More Information

    In January 2021, USDA announced a temporary suspension of past-due debt collection and foreclosures for distressed direct loan borrowers due to the economic hardship imposed by the COVID-19 pandemic. FSA will not be accelerating or foreclosing on any direct loans, regardless of payment status, while the suspension is in effect. Direct loan borrowers should expect to receive a letter from FSA explaining this further. Although some direct loan borrowers may have previously received a standardized form known as the “Notice of Intent to Accelerate”, direct loan borrowers should rest assured that we are not pursuing any acceleration or foreclosure.  We do encourage producers to learn more about their loan servicing options. Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting your local USDA Service Center.

  • Smoke Taint with Anita Oberholster, Prepare Your Vineyard for Future Threats

    Smoke taint is unfortunately an annual concern now for wine grape growers, and this was a topic of interest at the recent Sonoma Grape Expo. Watch this brief video with UCCE Specialist Anita Oberholster as she shares what’s been learned so far about the issue and how growers can prepare their operations as they head into another dry wildfire threatening season. Read more about it in American Vineyard Magazine.
     
    Please thank this video’s sponsor Suterra for their industry support.

  • Walnut Growers Vote To Continue CA Walnut Board Marketing Order

    Since the 1940’s, the California Walnut Board (CWB) has helped drive industry growth and development with marketing and research programs.  California walnut growers recently voted to continue their marketing order, which means the Board will continue its efforts to advance the industry and drive demand for walnuts. The continuance referendum vote was held from December 6-31, 2021 for eligible growers and is required by its Federal Marketing Order every six years.

    “The vote represents the California walnut industry’s confidence in the Board and the many programs it implements,” said Bill Toss, CWB Executive Committee Chairman. “As a Board, our mission is to cultivate industry prosperity through walnut promotion, education, and research. While the industry has faced headwinds, we benefit from Board-funded marketing and research programs that deliver results to our growers and handlers, as well as the centralized structure it provides.”

    Programs funded by the CWB in recent years have included in-store supermarket promotions to drive sales, innovative production/post-harvest research to help growers and handlers stay competitive, and collecting and reporting data to enable a cohesive place for all industry members to get statistics.

    “We are honored that this vote will allow the Board to continue working to benefit industry,” said Michelle Connelly, Executive Director of the California Walnut Board. “The efforts by growers and handlers, in partnership with staff, to drive consumption and improve production practices are proof positive that we are stronger together to address both current and future business opportunities and challenges. We can often do more together than one operation can do on its own.”

    Tos added “on behalf of the Board, we are very grateful that growers acknowledged the important work that has been done and are committed to continuing these efforts moving forward.”

    Looking ahead, the CWB will continue to update the Federal Marketing Order rules governing inspections to increase efficiencies and address market disruptions. In September, the CWB voted to suspend the mandatory outbound inspections of walnuts to mitigate market disruptions like labor shortages or shipping constraints, while reducing redundancies. While this referendum vote confirms grower wishes to continue the CWB’s walnut promotional efforts, assessments will not be collected until the completion of the order revision process.

    Growers who want to learn more about how the CWB is doing more for the walnut industry are encouraged to sign up for newsletters to hear directly from the Board, follow its social channels on LinkedIn and GrowCAWalnuts on Facebook, and learn more at walnuts.org/walnut-industry.

    About the California Walnut Board

    The California Walnut Board (CWB) was established in 1948 to represent the walnut growers and handlers of California. The CWB is funded by mandatory assessments of the handlers. The CWB is governed by a Federal Walnut Marketing Order. The CWB promotes usage of walnuts in the United States through publicity and educational programs. The CWB also provides funding for walnut production, food safety and post-harvest research.

  • State of the American Pecan Industry

    While we hear more about almonds, walnuts and pistachios in California, pecans are still a significant crop for the Golden State, and are grown across the nation. Watch this brief interview Jeff Smutny from the American Pecan Council as he shares his production and market outlook for the pecan industry. Read the full proceedings of the annual Grape, Nut & Tree Fruit Expo where he spoke in the coming issue of Pacific Nut Producer Magazine.
    Please thank this video’s sponsor Trece for their industry support.

  • Spray Timing for Almond Bloom Diseases with Brent Holtz

    Beekeepers have begun delivering hives to almond orchards and the buds of all varieties are swelling and prepping for bloom. Watch this brief interview with UCCE Farm Advisor Brent Holtz as he shares some important advice with growers regarding bloom fungicide spray timing, and read his monthly Almond Tasks column in Pacific Nut Producer Magazine.
    Please thank this video’s sponsor Trece for their industry support.

  • National Mastitis Council to Gather Milk Quality Experts in CA for Annual Meeting

    Come and explore “Future Frontiers” at the 61st National Mastitis Council (NMC) Annual Meeting, Feb. 1-3, 2022, at the Town and Country Resort, San Diego. This event will help the global dairy industry capitalize on available strategies to prevent, treat and control mastitis, enhance udder health and foster animal welfare.

    Given the persistence of the COVID-19 pandemic and related travel restrictions, NMC is providing a “hybrid meeting” – with in-person and virtual attendance options. The 2022 NMC Annual Meeting theme revolves around “Future Frontiers.” To view the meeting agenda and/or to register, go to: http://meeting.nmconline.org.

    “Producing quality milk remains a top priority for dairy producers like myself,” said NMC President Patrick Christian of Christian Hill Dairy, Lomira, Wisconsin, USA. “NMC members are committed to helping dairy producers around the world achieve their milk quality goals.”

    “The NMC Annual Meeting provides a forum to share advancements in reducing mastitis and enhancing milk quality,” said NMC First Vice President Linda Tikofsky, senior associate director, cattle professional services, dairy at Boehringer Ingelheim Animal Health. “Additionally, NMC promotes research that explores ‘future frontiers’ and provides information to the dairy industry on udder health, milking management, milk quality and milk safety.”

    This year’s General Sessions feature:

    • Frontiers in Consumer Demands
    • Frontiers in Managing for Milk Quality
    • Frontiers in Mastitis Science
    • Frontiers in Tracking, Treating and Diagnosing
    • Frontiers in Mastitis Management/Fronteras en el manejo de mastitis (presented in Spanish)

    Short course topics include:

    • Team Troubleshooting Real World Milk Quality Problems
    • Uncovering the Mysteries of Somatic Cell Count and Mastitis Data
    • The Bugs that Bug Us
    • How to Successfully Evaluate Milking Center Data to Stimulate Improvement on Dairies
    • Sensor-based Mastitis Management
    • Why, When and How to Perform an NMC Milking System Air Flow Analysis
    • Testing and Interpretation for Milking Machines with Dynamic Control of Vacuum and/or Pulsation
    • An Organized Approach to Developing a Long-term Action Plan for Herds with Poor Teat Ends
    • Dairy’s Commitment to On-farm Social Responsibility: The National Dairy FARM Program
    • Genetics for Mastitis Resistance
    • Training and Retaining Milk Harvest Technicians with the SOP, Roadmap and TWI Approach
    • Strategies to Improve Transition Cow Mammary Gland Health
    • Managing Compost-bedded Pack Barns for Optimal Milk Quality
    • The Human Side of Milk Quality: Taking Your Parlor Team to the Next Level
    • Robotic Milking and Mastitis Management. How does the NMC 10 Point Plan Work for Producers?

    Other highlights of the upcoming meeting include a silent auction, which supports professional development efforts, 5K Fun Run/Walk and recognition of the National Dairy Quality Award winners, NMC Award of Excellence for Mastitis Prevention and Control recipient, and NMC Scholars.

    National Mastitis Council is a professional organization devoted to reducing mastitis and enhancing milk quality. NMC promotes research and provides information to the dairy industry on udder health, milking management, milk quality and milk safety. Founded in 1961, NMC has about 1,000 members in more than 40 countries throughout the world.

  • USDA Outlines New Program with Port of Oakland for Ag Exports

    Agriculture Secretary Tom Vilsack today announced a new program to help address the export side of the supply chain crisis. The initiative was addressed at a webinar of agriculture industry and policy leaders hosted by the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC).

    The USDA program discussed during the webinar was launched in partnership with the Port of Oakland and will set up a new “pop-up” site at the port dedicated to easing the loading of empty containers with agricultural exports. The new site will also have a dedicated gate with the ability to pre-cool refrigerated shipping containers in order to reduce bottlenecks at the main entrance to the port. The new arrangement should be available beginning in March and will include support of $125 per container for movement logistics costs. See the USDA press release here.

    “Congestion in and around U.S. ports is one of a series of export supply chain challenges undercutting U.S. dairy exporters’ ability to reliably meet the needs of overseas customers for high-quality U.S. dairy products,” said Krysta Harden, president and CEO of USDEC. “By creating a process specific to handling U.S. agricultural exports, we expect USDA’s new partnership with the Port of Oakland will help alleviate some of those challenges. We look forward to working with USDA and our members on this new initiative while continuing to pursue additional legislative and administrative solutions to the dairy export supply chain crisis.”

    “The delays and disruptions in export shipping have cost the U.S. dairy industry well over $1.3 billion through just the first three quarters of 2021 – to say nothing of the rest of America’s agricultural sector. Solving this problem simply cannot wait any longer and today’s announcement of the close collaboration between our associations, the Port of Oakland and USDA is one key step in the right direction,” said Jim Mulhern, president and CEO of NMPF. “Today’s webinar brought together leaders in Congress and the Administration whose efforts have been central to the multi-faceted work of addressing agricultural export supply chain challenges. We thank them for their continuing work and their participation today and look forward to pursuing additional steps to deliver relief for dairy exporters.”

    Agri-Pulse, which served as the media partner for the event, reported over 1,200 registrations for the webinar, one of the highest pre-registration figures in the publication’s webinar history.

    Speakers included USDA Secretary Tom Vilsack; John Porcari, the Biden Administration’s Supply Chain Ports Envoy; Rep. John Garamendi (D-CA); Rep. Dusty Johnson (R-SD); Mike Durkin, president and CEO of Leprino Foods; Andrew Hwang, manager of business development and international marketing for the Port of Oakland; and Jon Eisen, director of the Intermodal Motor Carriers Conference for the American Trucking Association, as well as moderators Krysta Harden of USDEC and Jaime Castaneda of NMPF and USDEC.

    The USDA announcement came just days after Secretary Vilsack hosted a virtual roundtable with leading agricultural industry CEOs on Jan. 27 in which NMPF and USDEC members, among others, raised their concerns tied to exports.

    USDEC and NMPF, in collaboration with other agriculture interests across the U.S., have leveraged a multi-prong approach with Congress and the administration since early 2021 to address the supply chain disruptions plaguing the dairy industry, including unprecedented fees, container availability, and lack of transparency.

    For example, in addition to last week’s meeting at USDA, NMPF and USDEC supported a bipartisan letter led by U.S. Reps. Jim Costa (D-CA) and Dusty Johnson (R-SD) and signed by 71 members of Congress to the White House urging the administration to use its emergency powers to immediately address problems caused by the crisis and mitigate risks to U.S. agricultural exporters. The letter made three specific requests:

    • Utilize available emergency authorities to incentivize carriers to load full outbound containers instead of empties.
    • Utilize emergency actions that allow gross vehicle weight limits to exceed 80,000 lbs., even if only on a temporary basis.
    • Utilize existing tools and authorities to provide immediate access to critical shipping and logistics equipment.

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

  • National Dairy Board Scholarship Applications Being Accepted

    Applications are being accepted for college scholarships that are awarded by America’s dairy farmers and importers through the National Dairy Promotion and Research Board (NDB).

    Eleven scholarships worth $2,500 each will be awarded, in addition to a $3,500 James H. Loper Jr. Memorial Scholarship to one outstanding recipient. NDB funds, in part, Dairy Management Inc. (DMI), which manages the national dairy checkoff program.

    Undergraduate students in their sophomore through senior year for the 2022-23 academic school year and majoring in one of the following fields are eligible: communications/public relations, journalism, marketing, business, economics, nutrition, food science and agriculture education.

    Scholarships are awarded based on academic achievement, an interest in a career in a dairy-related discipline, and demonstrated leadership, initiative and integrity. Candidates must complete an application form, submit an official transcript of all college courses, and write a short statement describing their career aspirations, dairy-related activities and work experiences.

    Applications can be found at https://www.usdairy.com/about-us/dmi/scholarship

    Completed applications must be received no later than May 6, 2022, at 11:59 p.m. CST. Questions about the program can be submitted to ndbscholarships@dairy.org

  • Scientific Literature Review Confirms Watermelon’s Health Potential

    Watermelon is a unique fruit with compounds that may have health effects throughout the body, supporting normal cardiovascular and metabolic health. According to a new comprehensive review of the scientific literature on watermelon, eating watermelon regularly may help promote health. This research paper, authored by Britt Burton-Freeman, Ph.D., and colleagues from Illinois Institute of Technology was recently published in the journal Current Atherosclerosis Reports.

    “Research is unveiling the health-promoting potential of watermelon. The current literature review provides evidence that watermelon intake and citrulline supplementation lower blood pressure in human trials. Although more research is needed, favorable effects on lipids/lipoprotein metabolism are emerging based on the data we reviewed and reported in preclinical models,” said lead author Burton-Freeman.

    According to the research, watermelon contains essential vitamins, minerals, antioxidants and amino acids. It also contains the amino acids citrulline and arginine, which both act as a precursor to nitric oxide, a molecule that plays a role in blood pressure regulation, lipid reduction and glucose control. Polyphenols and carotenoids, particularly lycopene, are also abundant in watermelon. The nitric oxide benefits of citrulline and arginine coupled with the bioactivity of polyphenols and carotenoids found in watermelon suggests that this fruit may support normal cardio-metabolic health.

    Burton-Freeman and colleagues reviewed the preclinical and clinical trial evidence published from 2000 to 2020 to assess watermelon intake and citrulline (a signature compound found in watermelon) on cardiovascular and metabolic outcomes, and to identify future directions important for establishing dietary guidance and recommendations. They explored studies related to the whole fruit as well as citrulline supplementation, focusing on key cardio-metabolic risk factors. More research is needed to confirm findings of the studies identified in this literature review.

    The investigators concluded that watermelon provides a combination of nutrients and phytochemicals working across multiple mechanisms to induce biological effects. Citrulline and arginine are central to these cardio-metabolic effects, and polyphenols, lycopene, potassium and magnesium contribute as well.

    Continued research is needed to determine the level of sufficient intake for clinical outcomes and will also need to be studied in a variety of populations. Research on the whole fruit and its products (i.e., juice) is also needed to help determine the level of sufficient intake. The research identified additional potential benefits from watermelon consumption that warrant further research, such as body weight control (possibly through satiety mechanisms), glucose control, and brain and gut health.

    Low fruit intake is one of three dietary factors associated with death from cardiovascular disease (CVD) and type 2 diabetes (T2DM), as are high salt intake and low whole-grain intake. These dietary factors affect people regardless of age, sex and other socio-demographic variables.1 Recent research also

    shows that eating a variety of fruit helps reduce the risk of T2DM2, while the amount of fruit and the type of fruit selected provide cardiovascular benefits.

    About National Watermelon Promotion Board

    The National Watermelon Promotion Board (NWPB), based in Winter Springs, Florida, was established in 1989 as an agricultural promotion group to promote watermelon in the United States and in various markets abroad. Funded through a self-mandated industry assessment paid by more than 800 watermelon producers, handlers and importers, NWPB mission is to increase consumer demand for watermelon through promotion, research and education programs.

    Watermelon packs a nutritious punch, with each serving providing an excellent source of Vitamin C (25% DV), a source of Vitamin B6 (8% DV), and a delicious way to stay hydrated (92% water), with only 80 calories per 2-cup serving. Watermelon consumption per capita in the United States was an estimated 16 pounds in 2020. Watermelon consumption in the United States was approximately 5.3 billion pounds in 2020. The United States exported an additional 359 million pounds of watermelon. For additional information, visit www.watermelon.org.

    References

    1. Afshin A, Sur PJ, Fay KA, Cornaby L, Ferrara G, Salama JS, et al. Health effects of dietary risks in 195 countries, 1990–2017: a systematic analysis for the Global Burden of Disease Study 2017. Lancet. 2019. https://doi.org/10.1016/S0140-6736(19)30041-8.

    2. Cooper AJ, Sharp SJ, Lentjes MAH, Luben RN, Khaw K-T, Wareham NJ, et al. A prospective study of the association between quantity and variety of fruit and vegetable intake and incident type 2 diabetes. Diabetes Care. 2012. https://doi.org/10.1016/S0140-6736(19)30041-8.

    3. Bhupathiraju SN, Wedick NM, Pan A, Manson JE, Rexrode KM, Willett WC, et al. Quantity and variety in fruit and vegetable intake and risk of coronary heart disease. Am J Clin Nutr. 2013. https://doi.org/10.3945/ajcn.113.066381

    4. Burton-Freeman B, Freeman M, Zhang X, Sandhu A, Edirisinghe I. Watermelon and L-Citrulline in Cardiometabolic Health: A Review of the Evidence 2000-2020 

  • California Farmland Trust Protects 253 Acres of Almonds in East Merced County

    California Farmland Trust (CFT) is proud to announce the recent permanent protection of 253 acres of almonds in Merced County, owned by The Myers Irrevocable Flying M Ranch Trust.

    Established in the 1950s, Flying M Ranch began farming and ranching in the area of Merced, plentiful with rich agricultural soils and riparian areas. As generations of the Myers family have taken over the operation, they have remained focused on their farming roots and ways to be leaders in facing agriculture’s most persistent challenges, including the preservation of vital natural resources.

    This 253-acre property placed in an agricultural conservation easement (ACE) with CFT is one of the many conservation easements protecting the working landscapes of Flying M Ranch. Approximately 5,900 acres of grazing land on their farm has been preserved through other conservation organizations, and the Myers are actively pursuing another ACE with CFT.

    “The idea of putting a conservation easement on the property was to keep the ranch in a perpetual state, and we like the idea of keeping it continuous,” said Wes Myers, Flying M Ranch Trust co-trustee. “CFT understands farming and ranching, which is why we chose to work with them on this project.”

    Funding for this conservation project was provided through the Agricultural Land Mitigation Program (ALMP), which is administered by Department of Conservation (DOC) on behalf of the California High-Speed Rail Authority.

    “The growth pressure from the City of Merced and even surrounding communities like Planada, in combination with the Myers desire to be stewards of the land, are all contributing factors that make this farm a quality project for permanent protection,” said Chelsea Slaton, conservation director at CFT. “Given the resources and geographical features of this farm, protecting this property will help sustain long-term production of agricultural commodities for years to come, and we commend the Myers for their stewardship.”

    CFT’s portfolio of protected farmland is most prevalent in Merced County and Flying M Ranch adds to these efforts. CFT has now protected 11,669 acres of farmland on 36 farms in Merced County.