California Ag Network

Category: Ag Economics

  • Almond Alliance of CA Names Aubrey Bettencourt President/CEO

    The Almond Alliance of California (AAC) has named Aubrey Bettencourt as its new President and CEO.  She currently serves as Director for Sustainability for the California Cattle Council and Western United Dairies and has extensive experience dealing with a wide range of California agricultural and natural resource issues. Bettencourt succeeds Elaine Trevino, who has been nominated by President Biden to be the Chief Agricultural Negotiator for the U.S. Trade Representative. Trevino is awaiting a confirmation hearing before the U.S. Senate Finance Committee.

    Almond Alliance Chairman Mike Curry said Bettencourt’s selection came after an extensive and thorough executive search. Curry commented, “We are extremely excited to have Aubrey Bettencourt as the Almond Alliance’s new President and CEO. Aubrey comes to us with a wealth of diverse knowledge and innovative advocacy work on behalf of farmers and ranchers. As the California State Director of the USDA Farm Service Agency, she fought to keep ‘farmers farming’ through the delivery of effective and efficient agricultural programs. Serving as Deputy Assistant Secretary in the Water and Science Division of the U.S. Department of the Interior, Bettencourt developed and coordinated national water and science policy, expanding her extensive knowledge of state and national water issues and available resources, making her a unique asset to our membership and community.”

    Curry added, “Aubrey’s work as the director of the statewide non-profit, California Water Alliance, has given her the tools necessary to advocate for our members as the water crisis in California becomes even more complicated. As the Director of Sustainability for the California Cattle Council and Western United Dairies, Bettencourt has focused on water supply and water quality, forest health and fire prevention, carbon sequestration, climate resiliency and ground water sustainability. Raised in a farming family, Aubrey has firsthand knowledge of what it takes for a family farm to survive in California and beyond.”

    “I am excited to join the Almond Alliance, a dynamic leader in American agriculture,” Bettencourt said. “As a fourth generation California farmer, it is a personal honor to serve. I look forward to working with this team to keep farmers and processors providing economic opportunity to our rural communities, bringing worldwide the highest quality product from our farms to your table.”

    Bettencourt noted, “The California almond farmer is the most sophisticated in the world; leading in technique, technology, sustainability, safety, and quality. We take pride in this role and great responsibility in this legacy. The challenges we face as an industry including water, labor, energy, supply chain, and climate change, are opportunities for our continued leadership and advocacy. Rather than reacting, we will lead with our own achievable, common-sense solutions to these challenges for the continued success of our farmers, our communities, our businesses, our environment, and our consumers.”

    Curry noted that in her three years at the helm, Trevino led the almond industry through some very challenging times and wished her the best in her new position. “I am so incredibly excited for Elaine and her nomination by the President to be the next Chief Agricultural Negotiator at USTR,” Curry commented. “As the President and CEO of the Almond Alliance, Elaine has led our industry through very difficult times. From trade wars, labor issues, struggles during the pandemic, to port issues, Elaine has been a fierce leader fighting the good fight. In every step of the way she has done the good work for California. Yet Elaine has always kept the communities of our members at top of mind, knowing the economic impact the almond industry has on so many California communities. Elaine has been a true advocate for the good of all. Elaine is the type of leader with the focus to leave things better then she found them.”

    Looking ahead to her new role, Curry said, “There is no doubt in my mind that as the Chief Agricultural Negotiator, Elaine will continue to be the person who adopts real solutions to real problems. The United States agricultural community has gained a true problem solver in Elaine Trevino.

    Elaine thanked Almond Alliance members and partners for their support over the past three years. “It has been an honor to work for the Almond Alliance,” she said. “Together we took the Alliance to new heights and strengthened the voice of almonds in Sacramento and Washington DC. Thank you for the opportunity you have given me to lead one of the best agricultural associations in the country. I look forward to staying in touch and learning about the Almond Alliance’s future successes.”

    Bettencourt will assume her new role on December 1, 2021 and will work out of the Alliance’s Modesto office.

    About the Almond Alliance

    The Almond Alliance of California (AAC) is a trusted non-profit organization dedicated to representing and advocating on behalf of the California almond community. California almonds generate more than $21 billion in economic revenue and directly contribute more than $11 billion to the state’s total economy. California’s top agricultural export, almonds create approximately 104,000 jobs statewide, over 97,000 in the Central Valley, which suffers from chronic unemployment. The AAC is dedicated to educating state legislators, policy makers and regulatory officials about the California almond community. As a membership-based organization, our members include almond processors, hullers/shellers, growers and allied businesses. Through workshops, newsletters, conferences, social media and personal meetings, AAC works to raise awareness, knowledge and provide a better understanding about the scope, size, value and sustainability of the California almond community.

    For more information on the Almond Alliance, visit https://almondalliance.org/ or check out the Almond Alliance on Facebook, Twitter and Instagram.

  • WG Edge Partners with Sonoma County Grape Growers Foundation to Create Opportunities for Women in Ag

    With its stated goal to preserve the legacy of agriculture in Sonoma County, the Women Gaining an Edge (WG Edge), a local leadership development program aimed at strengthening the region’s agricultural workforce, announced today that it will make a grant to the Sonoma County Grape Growers Foundation to administer the program.
     
    WG Edge was created by Judy Jordan, formerly of J Vineyards and Winery and founder of Geodesy Wine, with the goal of advancing the next generation of women leaders in agriculture and wine. Core tenets of the program include scholarships for women studying ag at SRJC, internship opportunities through business leaders, and connectivity to a network of women leaders in the local wine and ag community who advise and open doors for the recipients on their career paths. 
     
    “We are excited because WG Edge and the Grape Growers Foundation are aligned in our missions to be a champion for and strengthen our agricultural workforce, who are critical to sustaining farming in Sonoma County,” said Jordan. She added, “Working together to build future leaders we believe will amplify the positive impact on our ag community.”
     
    Supporting the next generation in Sonoma County is critical to the health of Sonoma County’s workforce.  As with many areas in the country, in recent years, Sonoma County has experienced a notable loss of younger members of the workforce who have moved to bigger cities and other states in search of better opportunities.  If Sonoma County can provide a pool of skilled talent, there will be qualified people who can assume leadership positions and help preserve locally owned companies and ranches. 
     
    To address this challenge, WG Edge was established with a big vision and goal to lift up young women in ag and surround them with support. The program has been very successful with 85% of the participants gaining internships during their first year in the program and program “graduates” going on to four-year universities.
     
    “We are thrilled and honored to work with Judy, her team, and WG Edge on this important program to support younger women aspiring to work in agriculture and to participate in their development as local leaders,” said Karissa Kruse, president of Sonoma County Winegrowers and the executive director of the Sonoma County Grape Grower Foundation. She added, “I have personally been part of the WG Edge mentor network over the past two years and have seen firsthand the value of supporting the next generation of women to reach their full potential. We recently surveyed nearly 1,000 vineyard workers in Sonoma County and learned that 90% of them would recommend agriculture to their family and friends.  Now with the WG Edge program grant, we are able to create more opportunities for families to thrive and preserve our agricultural legacy in Sonoma County.”

  • California Receives $1.8 Million Dairy Business Innovation Initiative Award

    The California State University, Fresno Foundation, in partnership with the California Dairy Innovation Center (CDIC), announced the receipt of a $1.8 million award from the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service to create a “Pacific Coast Coalition” to support dairy businesses in California, Oregon and Washington in the development, production, marketing and distribution of dairy products. Dairy Business Innovation Initiatives provide direct technical assistance, educational support, and grants to dairy businesses.

    The Pacific Coast Coalition will be led by host California State University, Fresno and will implement programs in partnership with CDIC and collaboration with Cal Poly, San Luis Obispo, the University of California, Davis, Humboldt State University and Oregon State University. The CDIC, and its steering committee, will serve as an advisory board to the Coalition, bringing a comprehensive business perspective, and assisting with a sub-awards program which will make $300,000 in grant funding available to regional dairy businesses for innovation-related investments annually for three years.

    Through this program, Fresno State and collaborating institutions will deliver hands-on technical assistance to dairy businesses, providing access to laboratory space and equipment to facilitate development and innovation. The Coalition has a strong focus on education as well and will offer learning opportunities on technical topics and related areas of interest such as supply chain innovation, distribution, packaging, marketing, and branding strategies.

    Developing the regional workforce by offering online and bilingual programs will be key to offering opportunities for growth to the region’s diverse population while meeting the dairy industry’s needs. Recognizing the necessity of collaboratively addressing the significant issues facing the Pacific Coast region’s dairy industry, Fresno State will leverage its technical expertise and research capabilities in value-added dairy innovation with a remarkable set of academic and business partners.

    John Talbot, CEO of the California Milk Advisory Board (CMAB) said, “This collaboration is why the CDIC was created, to support collaboration and attract investment in California’s dairy industry. We’re pleased to join the group of existing coalitions in Wisconsin, Vermont and Tennessee, in to advance our industry nationwide.”

    California leads the nation in milk production and milk is the number one agricultural commodity in the state. California also is a leading exporter of dairy products. The Pacific Coast region is home to hundreds of dairy businesses that are well-positioned to serve the needs of growing markets in Asia and Latin America.

    “The Pacific Coast Coalition will contribute to our competitive advantage in global markets and directly benefit our regional businesses. It will be instrumental to stimulating innovation and entrepreneurship, strengthening the development of our workforce pipeline, and ultimately leading to the increased use of our milk in value-added products,” added Talbot.

    The USDA Dairy Business Innovation (DBI) Initiative supports dairy businesses in the development, production, marketing, and distribution of dairy products. DBI Initiatives provide direct technical assistance and grants to dairy businesses, including niche dairy products, such as specialty cheese, or dairy products derived from the milk of a dairy animal, including cow, sheep, and goat milk.

    About the California Dairy Innovation Center
    The California Dairy Innovation Center (CDIC) coordinates pre-competitive research and educational training in collaboration with industry, check-off programs, and research/academic institutions in support of a common set of innovation and productivity goals. The CDIC is guided by a Steering Committee that includes California Dairies Inc., California Dairy Research Foundation, California Milk Advisory Board, Cal Poly San Luis Obispo, Dairy Management Inc., Fresno State University, Hilmar Cheese, Leprino Foods, and UC Davis.

  • Preparing Your Orchards for 2022 in the Face of Drought

    Plan for the worst, hope for the best. That’s a tough, solid, strategy as the 2021 season winds down and almond growers and PCAs look to 2022. The following are some considerations when following this strategy. Every operation is different, and growers must decide what works best for their business. Final decisions may not need to be made until early 2022, but planning ahead, given the stakes, is recommended.

    The core issue is water, with both availability and quality of concern depending on local conditions.

    The region and state start the water year (Oct-Sept) way behind on water. As of the middle of September, major reservoirs (Shasta and Oroville) serving the region and state are at 22-25% capacity, less than half of the normal storage for this time of year. The current forecast for the rest of 2021 is for equal chances for normal precipitation in the Sacramento Valley with a 70-80% chance of La Niña winter. 2020-21 was a La Niña winter. These are all predictions, not certainties, but the current precipitation outlook for the winter ‘21-‘22 is not great.

    If the drought continues, more groundwater will be pumped to keep trees alive and, if enough water is available, productive. Using moderate to low quality water (see table) can risk decreasing yield from increasing rootzone salinity and/or toxic levels of the elements chloride, boron or sodium. For most of the Sacramento Valley, groundwater quality is good to very good. However, for parts of the Colusa and Sutter groundwater basins, water quality is not so good. Irrigation water quality levels are important to planning for next year, especially if similar quality groundwater was used in 2021.

    Thresholds for 3 important irrigation water quality components based on risk to almond growth or yield reduction.

    *For a more extensive information on water quality for almond irrigation see:

    https://www.sacvalleyorchards.com/almonds/irrigation/lower-quality-water/ 

    With a worst case scenario of low/no surface water deliveries and falling well water levels, here are some thoughts to consider in planning for 2022.

    Rank orchards by potential value (net return to grower) in 2022 and future years. Possible considerations and rankings for use in farming decisions are suggested in the following table. These groupings are just examples based on UC research and the author’s experience. Orchard rankings and farming decisions should be based on local conditions and grower experience with input from PCA/CCA and nut handler.

    Orchard conditions possibly influencing net grower returns (NGR) in a drought year.

    Fall to prebloom practices can influence production potential for 2022 and could be adjusted on a per orchard basis. For example, higher cost items such as winter irrigation/salt management, potassium fertilization, preemergent herbicide and dormant sprays could be prioritized to the orchards with higher net return potential. [Orchard sanitation is also a big cost, but lack of sanitation in one orchard can mean that increased NOW, there, can spread harm and reduced net return in adjacent orchards.] Lower yielding orchards could receive less inputs this fall and/or spring, further limiting potential net income next year, depending on what is cut out or limited. Limiting inputs to orchards considered for removal could be further savings to growers.

    Hopefully, adequate rain and snow will mean that these hard choices to remove or limit orchard yield will not need to be made. In the meantime, planning ahead will make springtime decision making simpler if the weather stays dry. — By Franz Niederholzer, UCCE Farm Advisor, Colusa and Sutter/Yuba Counties

  • Ag Microbe Product Startup Wins AgSharks Competition for $250,000

    3Bar Biologics walked away from Western Growers/S2G Ventures’ AgSharks® Competition with a $250,000 equity investment offer to take its microbe technology from development to market. The seed funding was awarded by S2G Ventures after 3Bar Biologics competed against four other companies inventing new technology solutions to solve agriculture’s most pressing issues.

    In addition to investment capital, 3Bar Biologics will receive international recognition, mentoring from WG and S2G, potential access to farm acreage to pilot their technologies and exposure to WG’s expansive network of leading fresh produce companies.

    3Bar Biologics is the global leader in customized technologies and bio-manufacturing solutions for living agricultural microbe products.

    “In an industry forced to shoulder the crushing weight of poorly designed regulations, perpetual labor shortages and water supply insecurity, innovation is essential,” said Western Growers President and CEO Dave Puglia. “3Bar Biologics embodies the entrepreneurial spirit that will help our farmers overcome these challenges and continue to feed the world.”

    “The AgSharks Competition continues to bring together leading growers and entrepreneurs in the space,” said Aaron Rudberg, Managing Director and COO, S2G Ventures. “We’re thrilled to have selected 3Bar Biologics at this year’s competition. The biologics market is rapidly growing, but struggles with issues of efficacy and stability and 3Bar’s innovative solution is poised to solve many of these challenges. We are excited about investing in Bruce and his team and being their partner in their growth.”

    “We are so excited to win this year’s AgSharks among such an outstanding group of agtech startups,” said 3Bar Biologics CEO Bruce Caldwell. “The access at this conference to industry leaders, venture capitalists, and western produce growers has been exceptional. Our business is all about partnerships, and this event is helping us to expand our network and increase our impact on agriculture and the world. I would like to thank Western Growers and S2G Ventures for putting on such a high impact event.”

    During the competition, the agtech startups pitched to six expert judges and a live audience where they were evaluated on the strength of their solution and potential to scale, among other assessment categories. The panel of judges, which was comprised of venture capitalists and leaders in the agricultural industry, provided feedback to each startup and advanced 3Bar Biologics to earn the investment offer.

    The judges’ panel was:

    • Alexandra Allen, Compliance Counsel, Main Street Produce, Inc.
    • Audre Kapacinskas, Vice President, S2G Ventures
    • Frank Maconachy, President and CEO, Ramsay Highlander, Inc.
    • Dominic Muzzi Jr., CEO/COO, Muzzi Family Farms, LLC
    • Cristina Rohr, Principal, S2G Ventures
    • Aaron Rudberg, Managing Director and COO, S2G Ventures

    The AgSharks competition was hosted by Stuart Woolf, President and CEO of Woolf Farming & Processing, and held during the Western Growers 2021 Annual Meeting at the Fairmont Grand Del Mar in San Diego. The audience members were encouraged to try to sway the judges’ decision by asking questions and voting via mobile app Slido to “buy, try or deny” each of the finalists’ technologies after their presentation; Naïo Technologies was the audience winner.

    AgSharks premiered in 2017 with the goal of supporting game-changing startups and technologies, and since its inception, three agtech starts ups – Hazel Technologies, AgVoice and Burro – have received a total of $2.5 million in investment offers from S2G Ventures. More than 100 applicants applied for the AgSharks event in 2021.

    The pitch competition is the latest WG effort to identify key innovations in the fresh produce industry and support agtech startups in bringing their technology to market. Previous efforts include opening an agtech incubator — the WG Center for Innovation & Technology — in December 2015, and earlier this year launching the AgTechX Ed initiative, which provides middle school to post-graduate educational opportunities in agtech.

    About Western Growers:
    Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico. Our members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including nearly half of America’s fresh organic produce. Some members also farm throughout the U.S. and in other countries so people have year-round access to nutritious food. For generations, we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook.

    About S2G Ventures:
    S2G Ventures is a multi-stage venture fund investing across the food, agriculture, oceans and seafood markets. The fund’s mission is to catalyze innovation to meet consumer demands for healthy and sustainable food systems. S2G has identified sectors across the food system that are ripe for change, and is building a multi-stage portfolio including seed, venture and growth stage investments. Core areas of interest for S2G are agriculture, oceans, ingredients, infrastructure and logistics, IT and hardware, food safety and technology, retail and restaurants, and consumer brands. S2G Ventures is a part of Builders Private Capital, the direct investment arm of Builders Vision, an impact platform dedicated to building a humane and healthy planet. For more information about S2G, visit s2gventures.com, tune-in to our podcast, or connect with us on LinkedIn.

  • Meat Institute: Grassley-Fischer Bill Ignores Economic Fundamentals

    The North American Meat Institute said a new Senate bill ignores the analysis of beef and cattle markets by the country’s leading agricultural economists and the bill’s mandated government intervention will have unintended consequences that will hurt livestock producers and consumers.

    “Beef and cattle markets are dynamic. This fall prices cattle producers received for their livestock have risen without any government interference,” said Julie Anna Potts, President and CEO of the North American Meat Institute. “In a rush to do ‘something,’ this bill would replace the free market with government mandates and harm those it is intended to protect: livestock producers.”

    The Senate bill, which was announced but apparently not finalized because no language has been released, would require packers within a region of the country to purchase a government-mandated minimum number of cattle through negotiated or cash transactions. It would also establish a cattle contract library and loosen confidentiality requirements for USDA’s publication of data.

    No economic analysis of the bill’s effects has been offered to support the legislation.

    “If this bill becomes law,” said Potts, “there will be cattle producers who want alternative marketing arrangements, but will instead be forced to sell on the cash market, and the industry will turn back time to the days of commodity cattle.”

    The Bill Ignores Economic Analysis of the Beef and Cattle Market’s Behavior

    According to one independent analysis using USDA data, since August, prices for producers have been well above the five-year average and above prices in 2020.

    Last month, Texas A&M University published a book called “ The U.S. Beef Supply Chain: Issues and Challenges, ” a collaboration with Texas A&M’s Agricultural and Food Policy Center, national experts, and the U.S. Department of Agriculture.

    In the book the nation’s leading agricultural economists warned members of Congress against mandated minimums on negotiated or cash transactions because it will cost producers in in the form of lower prices: “While some argue that imposing mandatory minimums on negotiated (or cash) transactions would improve price discovery in the fed cattle markets – accruing benefits to the cow/calf producer in the process – authors in this book argue it could have the opposite effect, potentially imposing huge costs that are passed down to cattle producers in the form of lower prices.” (Page xi)

    The Bill Ignores Expert Testimony before House and Senate Agriculture Committees

    In testimony before the United States Senate Committee on Agriculture, Nutrition, & Forestry Hearing, “Examining Markets, Transparency, and Prices from Cattle Producer to Consumer,” Mark Gardiner, President Gardiner Angus Ranch said this, “Finally, it is my desire to indicate to this group as strongly as I possibly can, please do not create regulations and legislation that have the unintended consequence of harming value-based marketing. Doing so would undo many years of progress for producers such as my family and those of our customers. Onerous legislation has the potential to result in a reversal of quality that is simply unacceptable to consumers. Legislation limiting progress (and ultimately is a detriment to quality beef production) punishes America’s beef producers.”

    “Even if 100 percent of cattle were being sold on the cash market, it doesn’t mean prices would have been any higher than what we recently observed.” Dr. Jayson Lusk, Distinguished Professor and Head of the Department of Agricultural Economics, Purdue University, West Lafayette testifying before the House Agriculture Committee Subcommittee on Livestock and Foreign Agriculture.

    “Stated directly – without contemporary use of Alternative Marketing Agreements (AMA’s) I believe cattle prices would be lower as production efforts would not align as well with consumer demands.” Glynn T. Tonsor Professor, Dept. of Agricultural Economics Kansas State University testimony before the United States Senate Committee on Agriculture, Nutrition, & Forestry Hearing, “Examining Markets, Transparency, and Prices from Cattle Producer to Consumer.”

     “After three Congressional hearings featuring the testimony of industry experts and a major economic analysis of the beef supply chain out of Texas A&M, Senators continue to ignore market fundamentals and are attempting to guarantee higher prices for livestock producers,” said Potts. “The industry has resisted allowing the government to pick winners and losers in the past and all sectors of the beef supply chain: cow-calf producers, feeders and packers have benefitted.”

    For more information from the Meat Institute on beef and cattle markets see:

    New Texas A&M Report: Government Interference in Beef & Cattle Markets has Unintended Consequences; Will Cost Producers Billions

    They Said It: Economists, Academics, Industry Agree: Supply, Demand, Labor, Economies of Scale Drive Beef and Cattle Markets

    On Inflation: North American Meat Institute to Secretary Vilsack: Scapegoating Industry Does Not Help Consumer

    On Market Structure and Capacity: Meat Institute’s Public Comments in Response to Secretary Vilsack’s Request for Information on Investments and Opportunities for Meat and Poultry Processing Infrastructure

    NAMI Testimony House Livestock Subcommittee Hearing

  • USDA Provides Farmers $1.8 Billion to Offset Market Fluctuations

    The U.S. Department of Agriculture (USDA) is in the process of issuing $1.8 billion in payments to agricultural producers who enrolled in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2020 crop year.  These payments provide critical support to help mitigate fluctuations in either revenue or prices for certain crops. These two USDA safety-net programs help producers of certain crops build back better after facing the impacts of COVID-19 and other challenges.  

    In addition, USDA’s Farm Service Agency (FSA) is encouraging producers to contact their local USDA Service Centers to make or change elections and to enroll for 2022 ARC or PLC, providing future protections against market fluctuations. The election and enrollment period opened on Oct. 18, 2021 and runs through March 15, 2022. 

    “We will continue to support our farmers, ranchers and producers as they overcome the challenges associated with COVID-19, climate change and other issues,” said FSA Administrator Zach Ducheneaux. “We also know producers prefer to get good prices for their crops in the marketplace, but these programs provide stability when markets are volatile, making a big difference in the lives of farm families across the country.” 

    2020 Payments and Contracts 

    ARC and PLC payments for a given crop year are paid out the following fall to allow actual county yields and the Market Year Average prices to be finalized. This month, FSA processed payments to producers enrolled in 2020 ARC-County (ARC-CO), ARC-Individual (ARC-IC) and PLC for covered commodities that triggered for the crop year.  

    For ARC-CO, view the 2020 ARC-CO Benchmark Yields and Revenues online database for payment rates applicable to their county and each covered commodity.   

    For PLC, payments have triggered for barley, canola, chickpeas (large and small), dry peas, flaxseed, lentils, peanuts, seed cotton and wheat. More information on rice payments will be announced later this fall and in early 2022.  

    For ARC-IC, producers should contact their local FSA office for additional information pertaining to 2020 payment information, which relies on producer-specific yields for the crop and farm to determine benchmark yields and actual year yields when calculating revenues. 

    By the Numbers 

    More than 1.7 million contracts were signed in 2019.  In 2020, producers signed nearly 1.8 million ARC or PLC contracts, and 251 million out of 273 million base acres were enrolled in the programs.  In 2021, signed contracts surpassed 1.8 million. 

    Since the ARC and PLC were authorized by the 2014 Farm Bill and reauthorized by in the 2018 Farm Bill, these safety-net programs have paid out more than $32.5 billion to producers of covered commodities. 

    “I am incredibly proud of our FSA staff who work with producers to make elections and to enroll in these important programs,” Ducheneaux said. “We are excited for the 2022 signup and hope producers take advantage of these valuable programs.” 

    2022 Elections and Enrollment  

    Producers can elect coverage and enroll in ARC-CO or PLC, which are both crop-by-crop, or ARC-IC, which is for the entire farm. Although election changes for 2022 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm and makes an election change for 2022, it will be necessary to sign a new contract.   

    If an election is not submitted by the deadline of March 15, 2022, the election remains the same as the 2021 election for crops on the farm.  Farm owners cannot enroll in either program unless they have a share interest in the farm.    

    Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed, and wheat.   

    Web-Based Decision Tools  

    In partnership with USDA, the University of Illinois and Texas A&M University offer web-based decision tools to assist producers in making informed, educated decisions using crop data specific to their respective farming operations. Tools include:  

    • Gardner-farmdoc Payment Calculator, a tool available through the University of Illinois allows producers to estimate payments for farms and counties for ARC-CO and PLC.
    • ARC and PLC Decision Tool, a tool available through TexasA&M tallows producers to estimate payments and yield updates and expected payments for 2022.  

    Crop Insurance Considerations  

    ARC and PLC are part of a broader safety net provided by USDA, which also includes crop insurance and marketing assistance loans.  

    Producers are reminded that ARC and PLC elections and enrollments can impact eligibility for some crop insurance products.  

    Producers on farms with a PLC election have the option of purchasing Supplemental Coverage Option (SCO) through their Approved Insurance Provider; however, producers on farms where ARC is the election are ineligible for SCO on their planted acres for that crop on that farm.  

    Unlike SCO, the Enhanced Coverage Option (ECO) is unaffected by an ARC election.  Producers may add ECO regardless of the farm program election. 

    Upland cotton farmers who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan (STAX) on their planted cotton acres for that farm. 

  • November USDA Lending Rates for Farmers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for November 2021, which are effective Nov. 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 November 2021 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

    Due to recent outbreaks of the COVID-19 Delta variant, USDA has extended the deadline for producers to apply for the COVID-19 Disaster Set-Aside (DSA) loan provision to Jan. 31, 2022. FSA will permit a second DSA for COVID-19 and a second DSA for natural disaster for those who had an initial COVID-19 DSA. Requests for a second DSA must be received no later than May 1, 2022.  
      
    Last year, FSA broadened the use of the 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. 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

    Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting your local USDA Service Center.

  • CDFA Seeking New Grower Representative and Public Member for the Citrus Pest & Disease Prevention Committee

    The California Department of Food and Agriculture (CDFA) is announcing two vacancies on the Citrus Pest and Disease Prevention Committee. The committee advises the CDFA Secretary on activities associated with the statewide citrus specific pest and disease work plan that includes, but is not limited to, outreach and education programs and programs for surveying, detecting, analyzing, and treating pests and diseases specific to citrus.

    Committee member vacancies exists for one grower representative from Fresno County, the member term expires on September 30, 2022, and one public member, the member term expires on September 30, 2025. Individuals interested in being considered for a committee appointment should send a resume by November 15, 2021.

    The members receive no compensation but are entitled to payment of necessary travel expenses in accordance with the rules of the Department of Personnel Administration.

    Applicants should have an interest in agriculture and citrus pest and disease prevention. Individuals interested in being considered for a committee appointment should send a brief resume by November 15, 2021 to the California Department of Food and Agriculture, Citrus Pest and Disease Prevention Division, 1220 N Street, Sacramento, California 95814, Attention: David Gutierrez.

    For additional information, contact: David Gutierrez, Branch Chief, Citrus Pest and Disease Prevention Division at (916) 274-6300, or e-mail David.Gutierrez@cdfa.ca.gov. — Citrus Pest & Disease Prevention Program

  • Evie Smith, New UCCE Staff Research Associate in Orchard Crop Systems

    Have you had a chance to meet Evie Smith, one of our new Staff Research Associates with the UC Cooperative Extension? Watch her brief introduction here to learn about her and the almond, walnut and prune projects she is working on with Sacramento Valley farm advisors.
    Please thank this video’s sponsor Suterra for their industry support.