California Ag Network

Category: Ag Economics

  • July 2021 USDA Lending Rates for Ag Producers

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

    Disaster Support

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

    Pandemic Support

    Through September 1, 2021, FSA’s Disaster Set-Aside provision is available to direct loan borrowers who have been impacted by the pandemic. This enables an upcoming annual installment to be set aside for the year and added to the final installment. For annual operating loans, the loan maturity date may be extended up to twelve months in order to set aside the installment.  This provision is normally used in the wake of natural disasters, and a second Disaster Set-Aside may be available for direct loan borrowers who already have a DSA in place on a loan due to another designated natural disaster.

    More Information

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

  • ARS Scientists Develop Prediction Technologies to Reduce Soil Loss

    ARS scientists are the designers of seven of the top ten most used computer simulation models that are helping reduce soil erosion around the world.

    Agricultural Research Service scientists designed seven of the top ten—13 of the top 25—most used predictive technologies/simulation models that are reducing the loss of soil to erosion around the world, according to a recently published study.

    Although originally developed for cutting down soil losses due to erosion from agricultural practices, today these models also are reducing soil loss from erosion on construction sites, mined land, road corridors, logging and clear-cut areas, landfills, even military training grounds and more in at least 126 countries.

    Soil erosion by water has been estimated to annually cost about $8 billion to the global gross domestic product and reduce global agri-food production by 33.7 million tons with accompanying rises in world agri-food prices of up to 3.5 percent, according to a 2019 study. Further, some agronomists hold that soil erosion can unlock and increase carbon dioxide emissions.

    Prediction technologies allow researchers, regulators and land managers to model how changes in various practices will affect the amount of soil that will be lost to erosion, at scales ranging from a single hillslope to whole watersheds. They can compare the likely benefits of applying different soil conservation practices.

    Number two on the list of most used erosion prediction models is the progenitor of them all: the Universal Soil Loss Equation (USLE), which ARS first published as a complete technology in 1965. USLE began as a fairly simple equation that gave an answer in tons of soil lost per acre per year by multiplying a few direct factors representing rainfall, soil type, cropping system, conservation practices and hillslope steepness and length.

    Experts have hailed the USLE as the most significant development in soil and water conservation in the 20th century.

    Number one on the list—the single most applied soil erosion model in the world—is an outgrowth of USLE, published by ARS as the Revised Universal Soil Loss Equation (RUSLE) in 1997. RUSLE was adapted for sophisticated computer interfaces including graphics, as well as given new weighting of some factors that made the model independent of land-use. This broadened RUSLE’s applicability.

    RUSLE has been revised several times since that first publication, each time adding new capabilities. For example, RUSLE2 treats land use as a continuum taking into account that previous use affects erosion under a new use. Other factors like the type of vegetative cover—crop, pasture, woodland, bare ground—also were added making the simulation more accurate.

    In the wake of these two big picture models—USLE and RUSLE—ARS researchers have developed specialized models, each meant to provide greater detail in a particular area of controlling erosion. The ARS Water Erosion Prediction Project (WEPP) model was designed to provide more reliable modelling of waterflow and sedimentation movement in small water channels all the way up to giant watersheds.

    Other models/predictive technologies on the list focus on predicting the impact of land management practices on water, sediment and agricultural chemicals in large complex watersheds such as the Soil Water Assessment Tool (SWAT), predicting the relationship between soil erosion and soil productivity such as the Erosion Productivity and Impact Calculator (EPIC) and predicting runoff and erosion rates on rangelands using Range Land Hydrology Models (RHEM).

    The goal of all the models that ARS scientists develop and continue to refine is to help preserve one of the most valuable resources there is: productive soil, for which there is no replacement.

    The study, published in Science of the Total Environment, was conducted by 67 soil erosion scientists from 25 countries.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in agricultural research results in $17 of economic impact.

  • Students Awarded Westlands Water District’s 2021 Westside Scholarship

    Westlands Water District is proud to announce the eight recipients of its 2021 Westside Scholarship, which recognizes and rewards exceptional academic achievement and leadership shown by graduating seniors at area high schools.

    “Westlands is proud to recognize these outstanding students, whose accomplishments and achievements are points of great pride for the communities on the westside of the San Joaquin Valley,” commented Tom Birmingham, general manager of Westlands. “We hope these students will continue contributing to their communities during their college years and beyond and help build an even better future for generations to come.”

    The recipients of the 2021 scholarships are:

    Aidan Apgar – Aidan, a senior at Hanford West High School, plans to attend California Polytechnic State University in the fall of 2021 to study business administration. Aidan held a four-year commitment to the Future Farmers of America (FFA) program, water polo team, and swimming team. Aidan’s scholastic and extracurricular involvements were honored with a California Scholarship Federation: Lifetime Member achievement, placement on the honor roll for seven semesters, awards from both the water polo and swim teams, and FFA State and Chapter degrees. Aidan aspires to be in financial management.

    Bryan Welch – Bryan, a senior at Coalinga High School, plans to attend California State University, Fresno, in the fall of 2021 to study mass communications and journalism. Bryan has been involved with the Pleasant Valley 4-H club for 10 years, tennis team for four years, Coalinga High School Band for three years, Coalinga FFA Chapter for two years, and as the announcer for the boys and girls basketball teams for three years. Bryan has served in a number of leadership roles with these groups, such as the president of the Pleasant Valley 4-H club, the vice president of the California Scholastic Federation Coalinga High School chapter, and team captain of the boys tennis team. Bryan aspires to become a sports broadcaster.

    Chloe Scialo – Chloe, a senior at Hanford High School, plans to attend California State University, Fullerton in the fall of 2021 to study business. Chole has been involved with the Associated Student Body and is a member for the Hanford FFA chapter, earning both Chapter and Greenhand degrees. Chole is also involved with the Sons of Italy, Cabrillo, participated in the Girl Scouts of America, and has earned a 10-year award from the Dancers Edge studio. Chloe aspires to become a real estate agent or work in interior design after completing her education.

    Carlos Emilio Meza – Carlos, a senior at Lemoore High School, plans to attend the University of California, Santa Barbara in the fall of 2021, studying psychology and brain sciences. Carlos has been involved with the Guitar Club and has completed community service for the local Catholic church by volunteering time at various fundraisers. Carlos’s scholastic achievements have been recognized with an American Legion Award; Carlos also holds two jobs, one at Domino’s and another at a landscaping business. Carlos aspires to attend medical school and become a doctor or surgeon.

    Jacquelin Garcia – Jacquelin, a senior at Tranquillity High School, plans to attend the University of California, Santa Barbara in the fall of 2021, studying psychology. Jacquelin has been involved with the Youth Leadership Institute, FFA, Anime club and Drama club, and has taken on leadership roles as the President of Yearbook and Secretary of the Art Club. Jacquelin’s scholastic and extracurricular involvements have earned a Student of the Month award and an award for outstanding academics. Jacquelin aspires to become a psychiatrist.

    Marcos Rivera Hernandez – Marcos, a senior at Mendota High School, plans to attend the University of California, Santa Cruz in the fall of 2021 to study computer science. Marcos has been a member of the Mendota FFA where he has earned an FFA Chapter and Greenhand degrees and conducted his own Supervised Agricultural Experience project. Marcos is also a member of the Mendota Junior State of America club, the Mendota National Alliance on Mental Illness Club, Link Crew, and the Mendota Youth Coalition. Marcos aspires to become a software engineer after completing his education.

    Omar Almaraz – Omar, a senior at Firebaugh High School, plans to attend the University of California, Los Angeles in the fall of 2021, studying political science. Omar has been the captain of the football and tennis teams, been named a WSL Football Champion, and played for the soccer team. Omar was also involved with FFA, participating in Ag Awareness Day as the Sheep Showman Captain and winning Outstanding Showman and sheep production awards, obtaining a Firebaugh FFA Chapter Degree, and attending the California FFA Made for Excellence and Advanced Leadership Academy conferences. Omar will graduate high school with an associate’s degree from West Hills Community College. Omar aspires to become a government agent and farm owner.

    Yasin Dominguez – Yasin, a senior at Riverdale High School, plans to attend West Hills Community College Disitrict in the fall of 2021, studying political science. Yasin has been involved with the Riverdale High School SMART (Students Mobilize Awareness and Reducing Trauma) Club and served as Club President in 2020 and 2021. Yasmin has also participated in the Associated Student Body as Secretary, Mental Health Awareness and Suicide Prevention Club as President, After Hours Club as Vice President and Secretary, Big Brother Big Sisters program as a mentor, Environmental Club, Academic Decathlon, AVID, Fresno State Education Talent Search, and Building our Leaders and Dreamers Cohort. Yasin aspires to become a writer and lawyer.

    Each scholarship recipient will receive $1,000 for community college or university expenses. Applicants were judged on their academic performance, school activities and community leadership.

    Westlands Water District congratulates each of these talented students and wishes them the best of luck in their future academic and professional careers.

    About Westlands Water District

    Westlands Water District is recognized as a world leader in agricultural water conservation and has served the farmers and rural communities on the westside of Fresno and Kings counties for more than five decades. As stewards of one of California’s most precious natural resources, Westlands continually invests in conservation, and champions farmers deploying innovative irrigation methods based on the best available technology.

  • ICBA Supports Senate Bill Offering Tax Relief for Rural Lending

    The Independent Community Bankers of America (ICBA) today expressed its strong support for the Senate introduction of the Enhancing Credit Opportunities in Rural America (ECORA) Act to support farmers, ranchers and rural homeowners.

    The ECORA Act (S. 2202/H.R. 1977) would exempt from taxation interest income on farm real estate and rural mortgage loans, allowing community banks to lower loan rates and more efficiently serve these borrowers. Sen. Jerry Moran (R-Kan.) introduced the bill in the Senate following House introduction earlier this year by Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa).

    “With community banks making 80 percent of banking industry agricultural loans, ICBA strongly supports the Enhancing Credit Opportunities in Rural America Act to help them offer lower rates in rural communities,” ICBA President and CEO Rebeca Romero Rainey said. “This important legislation will help sustain and revive rural economies affected by the COVID-19 pandemic while providing community bank lenders with benefits they can pass on to customers, similar to other rural credit providers.”

    With rural America and the agricultural sector facing continued challenges, ECORA will:

    • Exempt from taxation loans secured by agricultural real estate.
    • Provide similar relief to interest on loans secured by rural single-family homes that are the borrower’s principal residence in towns with populations under 2,500.
    • Assist those seeking to remain on the farm or acquire a home loan in rural communities by providing borrowers with better rates and loan terms.
    • Offer community banks greater flexibility to work with farmers who may have trouble servicing their debt.
    • Give lenders a strong incentive to remain in the rural farming and housing markets, thereby boosting local economic activity.

    ICBA looks forward to working with Congress to advance this critical legislation.

    About ICBA

    The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services. With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.

  • California Dairies, INC. Announces Launch Of Farm-To-Consumer Sustainability Effort

    California Dairies, Inc. (CDI), the largest dairy farmer-owned cooperative in California and second largest in the United States, today announced the formal launch of an initiative aimed at measuring, validating, and further improving sustainable business practices.

    CDI has assembled a team of experts in the field of sustainability across numerous priority areas: from environmental stewardship to employee welfare to animal husbandry and beyond. Our team has substantial knowledge of the dairy industry and expertise in sustainability from farm to consumer. Over the coming months, this team will work to quantify the current baseline status of CDI’s supply chain in key areas of sustainability, as well as lay out a roadmap of goals and targets going forward.

    “Given our exclusive production in California, CDI’s member farms understand the responsibility that comes with producing milk and have been on the leading edge of the sustainability movement,” said Brad Anderson, President and Chief Executive Officer. “Together with the industry experts we have teamed up with, we look forward to formally quantifying those efforts in the coming months in order to better communicate the work being done to our customers, consumers, and government regulators, as we chart an achievable roadmap for the future.”

    Today’s announcement builds on a long history of focus on sustainability by CDI and our family dairy farms. Twenty years ago, before sustainability became a household term, CDI co-founded Dairy Cares, a leading non-profit pursuing research and innovation in the area of sustainable dairy practices in California. According to a 2020 study in the Journal of Dairy Science, California dairies have already reduced the amount of land (89%), water (88%), and greenhouse gases (45%) per gallon of milk produced over a 50-year period.

    More recently in 2020, CDI joined farmer cooperatives and other dairy companies around the U.S., led by the Innovation Center for U.S. Dairy, in co-signing the 2050 Environmental Stewardship Goals, which include a goal to be carbon neutral or better by the year 2050. Today’s announcement and the work being done is key to delivering on this commitment.

    “CDI’s membership has been leading the way in sustainable dairy farming investments, from water conservation to renewable solar energy to anaerobic digesters and more, and we continue to move as fast as technology and on-farm economics allow,” said Simon Vander Woude, Chairman of CDI’s Board of Directors. “This is an opportunity to showcase that hard work, while doubling down to drive innovation and further improve our environmental footprint, ensuring that our farms produce some of the most sustainable milk in the world, across all the various pillars of sustainability.”

    About California Dairies, Inc.
    California Dairies, Inc. is the largest member-owned milk marketing and processing cooperative in California, producing approximately 40 percent of California’s milk. Co-owned by over 300 dairy producers who ship nearly 17 billion pounds of Real California Milk annually, California Dairies, Inc. is a manufacturer of quality butter, fluid milk products, and milk powders. In addition, California Dairies, Inc. is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery. California Dairies, Inc.’s quality dairy products are available in all 50 United States and in more than 50 foreign countries. For additional information on California Dairies, Inc., visit www.CaliforniaDairies.com.

  • House Appropriations Committee Advance FY 2022 Agriculture Spending Bill

    National Sustainable Agriculture Coalition — The House Appropriations Committee advanced their agriculture appropriations funding bill for Fiscal Year (FY) 2022 today, which was marked up and approved by the Agriculture Subcommittee last week. The agriculture appropriations bill plays a major role in shaping our food and farm systems as it funds many of the major programs and functions of the U.S. Department of Agriculture (USDA). For FY 2022, the bill proposes a total of $26.55 billion, a more than 10 percent increase from FY 2021.

    “The House bill includes historic wins for sustainable agriculture priorities,” said Eric Deeble, National Sustainable Agriculture Coalition (NSAC) Policy Director. “NSAC applauds House appropriators for advancing comprehensive investments in rural communities, sustainable agriculture research, and local and regional food systems,” Deeble added.

    Notably, the legislation includes a substantial increase in investments for the Sustainable Agriculture Research and Education (SARE) program at $50 million, a $10 million increase from FY21. This funding level will allow SARE’s farmer driven research to keep pace with the growing challenges farmers face in remaining profitable and viable in the context of climate change. Moreover, NSAC is pleased to see an overall commitment of $347.4 million to address climate change across the USDA.

    NSAC supports the considerable allocation to build resiliency by investing in local and regional food systems. This includes $21.4 million in discretionary funding for the Local Agriculture Market Program, building on the $100 million in emergency funding allocated in the December COVID aid package, along with the $50 million in yearly mandatory farm bill funding.

    NSAC also commends the $2 million allocated to the Agricultural Marketing Service for a new Small Meat Packing Plants Apprenticeship program. Given the increasing demand for local or regional sustainable meat and poultry, and the challenges faced by small- and medium-sized meatpacking operations during the pandemic, this funding aims to bolster workforce development for smaller meatpackers and foster partnerships with existing institutions and organizations with expertise in meatpacking operations.  NSAC applauds Representatives Chellie Pingree (D-ME) and Agriculture Appropriations subcommittee ranking member Jeff Fortenberry (R-NE) for introducing this provision through the Strengthening Local Processing Act and providing funding for it through the FY22 bill.

    While it is not clear what the timeline will be, NSAC is pleased to see the House agriculture appropriations bill moving forward and we recognize that major hurdles remain to securing final FY 2022 funding levels. We encourage the Senate, as they move forward with their own appropriations process, to replicate these robust investments.

    “We hope Congress will expeditiously move forward with the appropriations process and avoid passing a Continuing Resolution, so that these significant increases in the House bill can be enacted as soon as possible to provide much-needed support to farmers, researchers, and organizations. Making these crucial investments now is key to recovering from the pandemic’s impacts and building a resilient rural economy, bolstering sustainable food systems, and addressing the climate crisis,” said Deeble.

    For more detailed information about the FY2022 Appropriations visit NSAC’s Agriculture Appropriations Chart.

  • Almond Board Briefs Congressional Caucus About Pollinator Coalition

    Almond Board of California Chief Scientific Officer Josette Lewis traveled virtually to Washington D.C. to brief key congressional leaders about the unique California Pollinator Coalition and its value to the health of bees and other pollinators.

    Lewis was one of four speakers, and the only representative from agriculture, at the virtual congressional briefing on the status of pollinators convened by Reps. Rodney Davis (R-IL) and Jimmy Panetta (D-CA) during National Pollinator Week. They are co-chairs of the Congressional Pollinator Protection Caucus.

    “This hearing, and this week, were extremely valuable because they helped raise awareness about the need to protect all pollinators and their habitats,” Lewis said. “For the California almond industry, every week is pollinator week. This is something we work hard at every day.”

    During the briefing, Lewis detailed the steps being taken by the California Pollinator Coalition and why its brand of collaborative conservation is a strong model to both bolster the health of pollinators and to set an example for a range of effective environmental alliances among independent groups.

    The pollinator coalition includes more than 20 California organizations and was spearheaded by the Almond Board of California (ABC) along with the Pollinator Partnership and the state Department of Food and Agriculture. It represents the large majority of agricultural acreage in the state and its goal is to expand pollinator health and habitats on working ag lands.

    “The representatives heard how the coalition represents agriculture putting its best foot forward,” Lewis said. “Given the crucial importance of pollinators to food production and to ecosystems, it’s essential that agriculture be part of the solution. That’s one reason ABC partnered with the Pollinator Partnership to help build this coalition. We know the almond industry and the ag community can continue to help.”

    A key subject the congressional leaders wanted Lewis to address was the value of collaborations like the Pollinator Coalition, how they can be built and how they can help in areas ranging from research to shared incentive programs.

    One incentive example is ABC’s Bee+ Scholarship program, which pays up to $2,000 of the cost of seeds for pollinator-friendly cover crops and has added 15,000 acres of pollinator habitat in almond orchards in its first year. It will also cover the fees to register as a Bee Friendly Farm.

    “The goal is to reduce the risks to growers to try new practices that can benefit pollinators and growers alike. One size does not fit all growers, so this offers a chance to try something new,” Lewis said. “Collaborations are effective because everyone has a stake in healthy ecosystems and healthy food, and together we can help each other take actions and make a difference.” — By the Almond Board of California

  • NIFA Invests Over $1.1M for Commercial Innovations in Food Science & Nutrition

    The U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) announced today an investment of over $1.1 million in grants to 11 U.S. small businesses to address emerging food safety, food processing and nutrition issues.

    “NIFA’s Small Business Innovation Research program stimulates technological innovations in the private sector and strengthens the role of federal research and development in support of small businesses,” said NIFA director Dr. Carrie Castille.  “These investments will help our nation’s small businesses improve food science and nutrition through a variety of early stage research and development projects.”

    Examples of the 11 projects awarded through the Small Business Innovation Research (SBIR) Program’s Food Science and Nutrition priority area include:

    • Jun Innovations, Inc., Honolulu, Hawaii, will develop a proprietary, supercooling technology to preserve perishable probiotic products without cell damage and with extended shelf life ($100,000).
    • Stixfresh USA, Inc., of Tumwater, Washington, will test essential-oil based formulas to determine their effectiveness as a safe and natural way to suppress microbial spoilage of fresh fruit ($97,697).
    • Paragon Flavors, Inc., Belle Mead, New Jersey, will assess the viability of sprouting whole-grain rice to create nutritionally dense, sustainably enhanced, consumer-friendly food ingredients for packaged food products ($99,414).

    SBIR fosters and encourages participation by women-owned and socially or economically disadvantaged small businesses. The next Phase 1 request for SBIR applications is scheduled to open in July 2021, with a deadline in October 2021. Learn more about USDA’s Small Business Innovation Research program.

    NIFA invests in and advances agricultural research, education, and Extension across the nation to make transformative discoveries that solve societal challenges. NIFA supports initiatives that ensure the long-term viability of agriculture and applies an integrated approach to ensure that groundbreaking discoveries in agriculture-related sciences and technologies reach the people who can put them into practice. In FY2020, NIFA’s total investment was $1.95 billion.

    Visit our website: www.nifa.usda.gov; Twitter: @USDA_NIFA; LinkedIn: USDA-NIFA. To learn more about NIFA’s impact on agricultural science (searchable by state or keyword), visit www.nifa.usda.gov/impacts.

  • Early Months Suggest Bright 2021 for US Ag Exports

    U.S. agricultural exports in the first four months (January – April) of 2021 were a record $59 billion, exceeding the previous record set in 2014 by nearly $5 billion. Robust global demand, high commodity prices, and increased U.S. competitiveness have led to record exports of corn, sorghum, beef, food preparations, and other products. Others including soybeans, soybean meal, wheat, and dairy have also seen large increases during recent years and have contributed significantly to early-year export levels. At the current pace, there is a strong possibility of a record-breaking year for U.S. agricultural exports surpassing the 2014 mark of $154.5 billion.

    The agriculture, food, and related industries are vital parts of the U.S. economy, contributing an estimated $1.109 trillion to the U.S. gross domestic product and providing employment for 22.2 million people in the United States in 2019, according to the USDA’s Economic Research Service. Agricultural exports have grown significantly within the past decades, becoming an increasingly important component of the agriculture industry. From 2000 to 2020, U.S. agricultural exports grew from $56 billion to $150 billion. It is estimated that U.S. agricultural exports supported nearly 1.1 million full-time jobs in 2019. In 2020, exports increased by nearly $9 billion during 2019. A record in 2021 would drive this total even higher, likely supporting more U.S. jobs and making a larger positive impact on the U.S. economy.

    Coming out of a strong year in 2020, the United States appears to be well-positioned for an even stronger 2021. An August 2020 World Trade Organization report examining the impact of COVID-19 on agricultural trade described the resilience of the sector as a whole, and highlighted the essential nature of food as a main factor. U.S. agricultural exports during the pandemic reinforce this idea. While the export value of a few products like tree nuts, beef, and cotton declined in 2020, total exports were up significantly. Record harvests causing low prices were the main drivers for the decline in tree nut export value (despite volume increases), but declines for beef and cotton could be partially attributed to COVID-19 due to reduced hotel, restaurant, and institutional sector demand and a slowdown of global apparel consumption. All other top export products performed as well as or better than 2019. In the first four months of 2021, exports of top products have met, exceeded, or in some cases greatly exceeded exports from the same period in 2020, contributing to an overall increase of more than $12 billion.

    Many upward trends from 2020 have continued into the new year. Global demand is rising, driven in part due to record purchases by China as it rebuilds its swine herd from African Swine Fever and demand for animal feed surges. The early 2020 signing of the Phase One agreement between the United States and China created a pathway for U.S. producers to step in and fill both the demand for pork, beef, and poultry products as well as the rising demand for animal feed. Production shortfalls reduced competition from feed exporters in South America, which also had an important effect on trade in the early months of 2021. The combination of increased global demand and reduced supply has led to price increases in the past year that look to benefit U.S. exporters. For more information on driving factors for U.S. bulk product and livestock product exports in early 2021, see additional commodity trade reports.

    Two additional major trade agreements were also implemented in 2020. The U.S.-Japan Trade Agreement entered into force at the beginning of the year, providing tariff reductions for a wide range of agricultural products including beef, pork, and dairy, as well as preferential market access provisions for others including wheat and wheat products. While tariffs on many products were eliminated immediately, others will be gradually reduced in the coming years. The U.S.- Mexico-Canada Agreement (USMCA) entered into force in mid-2020, containing provisions to expand market access for U.S. exporters of dairy, poultry, eggs, and others while strengthening science-based trade rules and other processes. These agreements and the Phase One agreement with China serve to facilitate trade with four of the United States’ top trading partners and will have lasting positive benefits for agricultural producers in 2021 and beyond.

    Excellent agricultural export performance to date is not limited to bulk and meat products. For the period from January to April, 16 product groups reached record export levels in 2021:

    U.S. processed product exports are strongly represented on the list of high performers in early 2021. Food preparations, the largest processed product group which contains various ingredients for food manufacturing as well as some consumer-ready packaged and canned foods, had a notable increase of $125 million above the previous January – April record set in 2019. Other processed product groups like condiments & sauces, dog & cat food, and beer have also been high performers. The strongest markets for U.S. processed products are USMCA partners Canada and Mexico, but other markets have been growing in recent years. Countries with rapidly increasing numbers of middle-class households tend to show the most consumption growth for these products. For more information on consumption trends and opportunities for U.S. processed products, see recently published International Agricultural Trade Reports focused on snack foods, confectionery, baked goods, and pet food in various markets.

    Another notable achievement is that not only are year-to-date exports up across product groups, they are also up across nearly all major U.S. partners. For each of the top 10 markets for U.S. products in 2020 (China, Canada, Mexico, Japan, the European Union, South Korea, Vietnam, Taiwan, the Philippines, Colombia), total exports are higher in January – April 2021 compared to the same period in 2020. For 9 of these 10 markets (excluding the European Union), this sets a 4- month export record. This diversity of potential markets is a source of strength and stability and is an indicator of high overall competitiveness of U.S. products in 2021. This performance is reinforced by trade agreements with many of these top partners, including the recent agreements with Canada, Mexico, Japan, and China, as well as with South Korea and Colombia.

    Based on current performance, U.S. producers should look forward to a bright 2021 for agricultural exports. Global demand is high, and consumption habits for products that were affected by COVID-19 will continue to normalize. If U.S. exports continue to be as competitive as they have been in the early months of the year, 2021 has a great chance at becoming a record year, paving the way for more records to come. As income worldwide increases and more customers emerge, U.S. farmers, ranchers, and those employed in the industries driving agricultural trade should expect a large part of global demand to be met by the United States, fulfilling its role as one of the world’s largest suppliers of food and agricultural products. — USDA Foreign Agricultural Service

  • Center For Land-Based Learning Awarded $25,000 Bank Of America Grant

    Bank of America has awarded $25,000 to the Center for Land-Based Learning, to support General Operating Funds for the growing non-profit.

    Bank of America has long been a supporter of the Center’s work, with previous grants funding its Green Corps program and a multi-year Neighborhood Builder project. The current funding undergirds the Center’s mission to inspire, educate, and cultivate future generations of farmers, agricultural leaders, and natural resource stewards, through educational programming, job creation, and workforce development efforts.

    Lori A. Rianda, Senior Vice President and Local Market Executive for Bank of America Greater Sacramento, remarked of the partnership, “The work that Center for Land-Based Learning does in our community around workforce development within the ag industry and environmental stewardship is truly impactful. We are pleased to partner with CLBL, a true model for what an effective, sustainable community-based organization should be.”

    This grant, in providing General Operating Support to the Center, would directly support Workforce Development, specifically through the FARMS Program and California Farm Academy. The Center directly engages in job creation through the internship portion of the FARMS Program, aimed at helping youth ages 16 through 24 to enter the fields of agriculture and natural resource stewardship. The Center also partners with local partners to create and manage paid internships for youth interested in entering these fields professionally.

    Mary Kimball, CEO of the Center for Land-Based Learning, expressed her appreciation for the support: “We are thrilled to be funded by the Bank of America Foundation again through this grant. We value our long-term partnership and the investment that the foundation makes in the economic and social well-being of our region through its philanthropic giving.”

    About the Center for Land-Based Learning

    The Center for Land-Based Learning’s mission is to inspire, educate, and cultivate future generations of farmers, agricultural leaders and natural resource stewards. To do this, we motivate people of all ages to promote a healthy interplay between agriculture, nature, and society through their actions and as leaders in their communities. It began in 1993 as the FARMS Leadership Program, out of concern for the growing disconnect between people, their food supply, and the land. In 2001, programs expanded, and CLBL was created as a 501(c)(3). Today, CLBL operates five distinct programs that advance our mission. One is the California Farm Academy, including a beginning farmer training program and a farm business incubator program. The West Sacramento Urban Farm Program is the urban branch of the farm business incubator program. http://landbasedlearning.org