California Ag Network

Category: Ag Legislation

  • California Avocado Commission Anticipates 286 Million Pound Crop

    The California Avocado Commission (CAC) recently reported the results of their mid-season crop update surveys with their growers and handlers, forecasting a smaller crop than was initially expected. Through use of grower and handler surveys, CAC is able to collect the most up-to-date volume information and anticipated harvest timing. The results are used to inform the industry of the total crop that is expected to come to market and as a guide that helps shape the timing of CAC’s marketing efforts.

    The results forecast a 2022 California crop estimate a 286 million pounds – which consists of 272 million pounds Hass, 8 million pounds Lamb-Hass, 5 million pounds GEM and 1 million pounds of other varieties. This updated volume is a 20-million-pound reduction from the December 2021 handler pre-season estimate of 306 million pounds. The decrease in volume mostly comes from Hass (19 million pounds), however a slight reduction to the Lamb-Hass volume also has been made (1 million pounds).

    Detailed results from the grower and handler survey can be found on CAC’s grower website, as well as revised monthly and weekly harvest projections based on the 286-million-pound crop volume. Please note that projected volume for the beginning of the season, which has already been harvested, does not match weekly actuals, but instead how the four-year average and handler forecasting models projecting a 286-million-pound crop would have come to market (based on the actual monthly volume that was harvested). As we move through the season, Commission staff will continue to track crop harvest and remaining volume closely, ensuring that CAC’s marketing efforts are aligned with when California fruit is in season.

  • May is National Salad Month, Celebrate with More US Grown Salad on the Table

    What is arguably the foundational ingredient in salad? Lettuce! USDA’s National Institute of Food & Agriculture (NIFA) supports research that is leading to stronger, healthier, more disease-resistant lettuce cultivars. See what NIFA is doing to keep healthy, safe salads on the menu for consumers everywhere.

    Current funded projects in California and Illinois include the following:

    The USDA Agricultural Research Service, Pacific West Area, in Albany, California, is working to improve the safety and survival of lettuce during fresh-cut processing and cold storage. Mechanical damage of processed leaf tissue offers new opportunities for the proliferation of E. coli, the main bacterial agent that causes lettuce-linked foodborne outbreaks. Researchers are working to identify lettuce cultivars that effectively reduce population sizes of E. coli upon shredding and cold storage and characterize defense responses on cut tissue.

    The USDA Agricultural Research Service in Berkeley, California, is studying the prevention of pathogen contamination in agriculture water in lettuce production. Researchers are developing and implementing a screening tool to test the effectiveness of sanitizer, antimicrobial resistance and tolerance to oxidizing compounds, and provide recommendations on keeping resistant strains from developing.

    The University of California – Davis is enhancing the use of resources to increase sustainable lettuce production in changing climates. This research project seeks to improve water, nitrogen and phosphate use in lettuce, and determine heat/cold/saline tolerance, to improve lettuce’s resilience. The research findings will be shared with breeders and students.

    The University of Chicago is modifying lettuce by altering its genetic makeup without introducing genetically modified genes. Researchers are using tiny fibers to inject substances that will enable changing the gene content of lettuce.

  • US Department of Labor Penalizes CA Ag Employers $225K for Failure to Meet H-2A Obligations

    Migrant workers in the H-2A temporary agricultural worker program provide critical seasonal labor on farms across California, spending weeks away from home doing the grueling work needed to support the state’s $49 billion agricultural industry.

    The H-2A program allows employers who anticipate a shortage of U.S.-based workers to bring workers here from other countries to perform agricultural labor or services of a temporary or seasonal nature. An ongoing U.S. Department of Labor effort has revealed some California vegetable farms have not been providing H-2A workers with the pay and benefits, and personal protections the law requires.

    In a series of investigations from April 2020 to February 2022 by the department’s Wage and Hour Division, several farms were found to be failing to meet their responsibilities under the H-2A program. The investigations found five farmers failed to provide meals or kitchen facilities, did not pay required inbound and outbound transportation and meal costs, and allowed workers to be transported unsafely. The division also determined some farms shortchanged workers’ wages and failed to provide a contract to workers as required or did not abide by the terms of workers’ contracts.

    The five investigations led to the recovery of $225,114 in back wages for 588 workers, and assessments of $54,617 in penalties. They also yielded findings and administrative settlements with the following employers:

    • Adam Bros Farming in Santa Maria: Failed to provide meals or kitchen facilities, transportation and meal costs. Did not provide contract at time of hire, failed to pay all required wages and unlawfully deducting meal costs, including when meals were not provided. Failed to comply with other state and federal law. The employer paid $94,146 in back wages to 30 employees, and $7,862 in penalties.
    • Boavista Farms in Santa Maria: Failed to pay required inbound and outbound transportation and meal costs. Did not provide contract at time of hire and failed to pay all required wages and comply with other state and federal law. Boavista Farms was ordered to pay $43,297 in back wages to 28 employees, and $5,361 in penalties.
    • Profresco Inc. in Santa Maria: Failed to pay all required inbound and outbound transportation and meal costs, and transportation failed to meet safety requirements. Failed to satisfy requirements of the job order by not stating actual terms and conditions and failed to comply with other state and federal law as applicable. Profresco Farms paid $50,789 in back wages to 471 employees, and $7,505 in penalties.
    • SARC in Nipomo: Failed to pay inbound transportation and meal costs and made improper deductions for meals and unpaid hours worked. Did not ensure health and safety standards, and prepared meals failed to meet local health standards causing some workers to become ill after consuming spoiled lunch. SARC also failed to provide personal protective equipment and supplies to workers. The employer paid $34,996 in back wages to 42 employees, and $13,160 in penalties.
    • Togliatti Farms LLC in San Martin: Failed to pay for required inbound transportation and did not pay the required rate of pay. Failed to maintain required records and did not comply with pay statement requirements. Failed to contact former U.S. employees to solicit their return to the job as required and did not post H-2A information visibly for workers to see. Provided housing that failed to meet safety and health requirements. Togliatti Farms was ordered to pay $1,885 in back wages to 17 workers, and $20,729 in penalties. The employer also agreed to future compliance and paid all monetary liabilities.

    “Employers that benefit from the H-2A guest worker program must be aware of all their responsibilities,” said Wage and Hour Regional Administrator Ruben Rosalez in San Francisco. “Agricultural workers employed under the H-2A program must be paid as their contracts require and be provided with what they need to live and work safely while contributing critical labor to California’s agriculture industry.”

    Nationally, the Wage and Hour Division investigated 735 cases with H-2A violations in the last two fiscal years.These investigations recovered $9,092,624 in back wages for 13,408 workers and assessed $9,520,624 in civil penalties from employers for violations of federal labor laws.

    For more information about farmworkers’ rights and laws enforced by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). The division enforces the law regardless of a worker’s immigration status and can speak confidentially with callers in more than 200 languages. Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.

  • Sustainable Food Systems and Farm Security Among Topics Covered at 2022 Animal Ag Alliance Summit

    The Animal Agriculture Alliance held its 2022 Stakeholders Summit recently, themed “Come Together for Animal Ag: Be Informed, Be Ready, Be Here.” The dynamic event, which returned to an in-person format for the first time since the onset of the COVID-19 pandemic, brought together a diverse audience of over 260 attendees to Kansas City, Mo. and included an additional 125 registered virtual attendees. Speakers covered topics including environmental stewardship, food equity, influencer engagement and animal rights extremism.

    Jack Bobo, CEO of Futurity, kicked off the Summit in a keynote session opening attendees’ minds to consider if animal agriculture can save the planet. Bobo discussed beliefs that the food system is broken, which he said stem from issues with food security and equity. He countered that if things are broken, that usually means they were better in the past. In the case of our food system, he stated, “Things are not bad and getting worse; things are good and getting better – just not fast enough.” Bobo finished with, “If we get it right, agriculture can, in fact, save the planet.” Registered dietitian and author Diana Rodgers touched on the food system as well in her session on sustainable nutrition. Diana highlighted the importance of meat, milk, poultry and eggs in a nutritious diet as they are high-quality protein sources and provide essential nutrients that would be hard to replace if these foods were removed from our plates. Rodgers added that we cannot take meat away from people who depend on it for their nutrition or food security.

    Influencer engagement, which has been a growing trend used to reach more people through partnerships and collaborations with those who have already developed a strong following and community, was discussed by several speakers as a way to more effectively communicate messages about sustainability, animal welfare and other hot topics. Former Google executive Steve Lerch of Story Arc Consulting said if you’re not front and center on the platforms consumers care about, they will find somewhere else to get their information. Some of the tips he shared to achieving more influence were to “pay attention to the things your targets are paying attention to” and take advantage of trends in pop culture. In a panel of farmer influencers, speakers stressed the importance of all types of advocacy efforts in bridging the communication gap. “There is no one right way to do advocacy,” said Brandi Buzzard, Kansas cattle rancher and social media influencer. Speakers encouraged attendees to not be afraid to try something new as long as they don’t put down their fellow advocates while doing it. Speakers shared sentiments that doing so creates division between fellow advocates and turns customers off to animal agriculture as a whole.

    Tying into the Alliance’s mission of safeguarding the future of animal agriculture, Thursday morning’s sessions highlighted how we can do just that. On a panel about trends in activism and security resources, Rebecca Morgan of the National Counterintelligence and Security Center told attendees, “An ounce of prevention is worth a pound of cure…the most effective measures are often the simplest and least expensive.” Cybersecurity advisor Andrew Rose added that it’s important to remember even the most well-thought-out plans will have holes in them but running through them in advance can help you identify those weak points. In a legal and legislative update session, experts discussed some of the primary issues on the docket and what attendees can do to help. California Proposition 12 and Massachusetts Question 3 were among the issues mentioned. Attorney Brianna Schroeder of Janzen Schroeder Agricultural Law said, “What’s happening on the west coast moves east…stay active and stay in communication with your local legislators.”

    Tricia Sheehan of Dairy Management Inc. and Iowa Soybean Association’s Aaron Putze rounded out the Summit. Sheehan led a crisis communications interactive workshop, which included a realistic and unexpected protest scenario. Sheehan’s team mimicked common tactics used by animal rights extremist organizations to get attendees considering what they would do in a similar scenario. Sheehan walked through the important components of a crisis communications plan and allowed attendees to put it into practice with an interactive example. In his closing keynote, Putze encouraged the audience to take what they’ve learned in the Summit sessions and apply it moving forward with “mindset relationship.” “What we do matters, but more importantly, it’s how we do it that matters,” he said. Putze recommended prioritizing what’s important over what’s urgent with a focus on being courteous, treating others with dignity, and treating others with respect.

    A highlights report with key takeaways and quotes from each session will be available soon at www.animalagalliance.org. Save the date for the 2023 Summit, slated for May 4-5 in Arlington, Virginia! Stay tuned to #AAA23 for updates.

    About the Alliance:

    The Animal Agriculture Alliance safeguards the future of animal agriculture and its value to society by bridging the communication gap between the farm and food communities. We connect key food industry stakeholders to arm them with responses to emerging issues. We engage food chain influencers and promote consumer choice by helping them better understand modern animal agriculture. We protect by exposing those who threaten our nation’s food security with damaging misinformation.

    Find the Alliance on Facebook, Twitter, Instagram, and TikTok.

  • California Well-Represented at 2022 LMA Annual Convention & World Livestock Auctioneer Championship

    Shipshewana Auction, Inc., Shipshewana, Ind., will host the 2022 World Livestock Auctioneer Championship (WLAC) on Saturday, June 11. The 58th annual WLAC will take place in conjunction with the Livestock Marketing Association’s (LMA) Annual Convention.

    A total of 31 semi-finalist auctioneers will compete in the contest comprised of an auctioneering and interview portion. The auctioneering contest will take place during a live sale, where contestants will sell cattle to actual bidders in the seats. Additionally, because of the important, high-profile role, each WLAC semi-finalist must clearly establish and demonstrate their knowledge of the livestock marketing industry in an interview competition.

    Contestants who qualified to compete are Zach Ballard, Presho, S.D.; Andy Baumeister, Goldthwaite, Texas; Neil Bouray, Webber, Kan.; Justin Dodson, Welch, Okla.; Eric Drees, Caldwell, Idaho; Dean Edge, Rimbey, Alberta; Will Epperly, Dunlap, Iowa; Brandon Frey, Diagonal, Iowa; Joshua Garcia, Goliad, Texas; Philip Gilstrap, Pendleton, S.C.; Steve Goedert, Dillon, Mont.; Brandon Hamel, Natoma, Kan.; Michael Imbrogno, Turlock, Calif.; Marcus Kent, Dunnellon, Fla.; Lynn Langvardt, Chapman, Kan.; Kyle Layman, North Platte, Neb.; Wade Leist, Boyne City, Mich.; Jacob Massey, Petersburg, Tenn.; Justin Mebane, Bakersfield, Calif.; Daniel Mitchell, Cumberland, Ohio; Sixto Paiz, Portales, N.M.; Ross Parks, New Concord, Ohio; Jake Parnell, Sacramento, Calif.; Chris Pinard, Swainsboro, Ga.; Jack Riggs, Glenns Ferry, Idaho; Jeff Showalter, Broadway, Va.; Barrett Simon, Rosalia, Kan.; Dustin Smith, Jay, Okla.; Andrew Sylvester, Wamego, Kan.; Curtis Wetovick, Fullerton, Neb.; Tim Yoder, Montezuma, Ga.

    Reigning World Livestock Auctioneer Champion, Chuck Bradley will be in attendance, along with many other past World Livestock Auctioneer Champions. Each will sell cattle during the Parade of Champions, a portion of the WLAC sale between the semi-finalist and finalist rounds.

    Members of the 2021 Leadership in Livestock Marketing Seminar class will also be present at the event.

    If you are interested in viewing WLAC, tune into the live, online broadcasts. The interviews will be on Friday, June 10, and can be viewed live on www.LMAauctions.com or LMA Facebook Live starting at 3:00 p.m. (ET). The auctioneering competition will be at Shipshewana Auction, Inc. beginning at 8:00 a.m. (ET) and will also be streamed live on www.LMAAuctions.com and the LMA Facebook page. Following the event, WLAC will be broadcast as a special, one-hour show on RFD-TV.

    About the Livestock Marketing Association

    The Livestock Marketing Association (LMA), headquartered in Overland Park, Kan., is North America’s leading, national trade association dedicated to serving its members in the open and competitive auction method of marketing livestock. Founded in 1947, LMA has more than 800 member businesses across the U.S. and Canada and remains invested in both the livestock and livestock marketing industries through support, representation and communication efforts. For more information, visit www.LMAWeb.com.

  • U.S. Retaliatory Tariffs Required as Canada Refuses USMCA Obligations

    The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today called on the U.S. government to levy retaliatory tariffs on Canada after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement (USMCA) concerning dairy market access.

    In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas (TRQs) system violates the terms of USMCA. Canada issued a new TRQ proposal in March which included only inconsequential changes. Today’s announcement shows no indication that Canada intends to comply with its USMCA commitments on dairy TRQs.

    “Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations. It has completely disregarded the USMCA agreement signed just a few short years ago,” said Jim Mulhern, president and CEO of NMPF. “Ottawa’s decision today is clearly designed to test our resolve by doubling down on its longstanding dairy trade violations, ignoring both the spirit and the letter of its trade agreements. That decision demands retaliatory action by the U.S. government. Otherwise, our trade agreements will be seen as toothless before the ink is dry.”

    “USTR, USDA and scores of members of Congress from both side of the aisle have worked diligently to ensure American dairy farmers and manufacturers benefit from USMCA. They deserve our deepest thanks for bringing us this far,” said Krysta Harden, president and CEO of USDEC. “Unfortunately, Canada simply refuses to institute real reform, and such actions must have consequences. Retaliatory tariffs are both fair and necessary in this circumstance, as clearly provided for by USMCA.”

    As an April 5 bipartisan letter on the matter sent to Ambassador Tai and Secretary Vilsack from several leading members of the U.S. House of Representatives stated, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain.”

    On April 19, USDEC and NMPF filed public comments on the matter with Global Affairs Canada. The filing noted, “Canada’s proposed allocation and administration policy changes in response to the CUSMA report continue to fall woefully short of full compliance with Canada’s CUSMA obligations. This has consequences not only for the agreed-upon CUSMA benefits denied U.S. and Canadian stakeholders, but also for the credibility of CUSMA enforcement procedures undergoing their first test in this dispute and for the success of CUSMA itself. We urge Canada to consider its larger interest in the success of the CUSMA and modify its dairy TRQ allocation and administration policies to give effect, in good faith, to Canada’s CUSMA commitments.”

    The International Dairy Foods Association (IDFA) also shared their distaste with Canada’s actions. “This outcome is completely unacceptable,” said Michael Dykes, D.V.M., president and CEO of IDFA. “Canada’s publication today clearly shows they are ignoring their trade commitments agreed to in the USMCA and refusing to administer their dairy TRQs in a manner compliant with the agreement. The U.S. dairy industry has made clear from the start that U.S. dairy exporters demand real TRQ reform that will permit the market access Canada agreed to. The U.S. met with Canada a week ago on this very matter and expected a good faith effort. Instead, Canada continues to deny U.S. dairy products from reaching their full capacity under the terms of the deal and continues to deny the existence of any obligations. IDFA thoroughly rejects the Canadian policy published today and demands a swift response from USTR.”

    He continued, “Canada cannot be permitted to blatantly disregard their trade obligations after having been found non-compliant by a neutral and expert panel, only to then ignore their obligations without consequence. We are pleased to see USDA responding forcefully and hope that USTR does the same. Our government must hold Canada accountable.”

  • U.S. Fresh Potatoes Begin Export To Mexico

    The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) and Mexico’s national plant protection organization (SENASICA) announce that the United States has begun exporting potatoes beyond the 26-kilometer border zone that previously marked the limit of their export.  The two countries reached an agreement late last year to expand that market access for U.S. potatoes, something that the United States has sought for more than 25 years.

    “Through this accomplishment, we are delivering better markets for U.S. farmers, supporting economic growth, and providing access to our southern neighbors to the high-quality and safe products our farmers work hard every day to grow and sustain.  USDA will continue to fight for new and expanded markets for American products as we help the nation build back better,” said U.S. Department of Agriculture Secretary Tom Vilsack.

    The U.S. potato industry estimates that this access for U.S. fresh potatoes to all of Mexico will provide a market potential of $250 million per year, in five years. This is an increase of $190 million from the current export value of $60 million.

  • New Dairy, Livestock Insurance Options for Better Protection, Flexibility

    The U.S. Department of Agriculture has updated three key crop insurance options for livestock producers: the Dairy Revenue Protection (DRP), Livestock Gross Margin (LGM), and Livestock Risk Protection (LRP). USDA’s Risk Management Agency (RMA) revised the insurance options to reach more producers, offer greater flexibility for protecting their operations, and ultimately, better meet the needs of the country’s swine, dairy, and cattle producers. The updates were published last week for the 2023 crop year, which begins July 1, 2022.

    “Great and sound customer service is the most important thing we can provide our nation’s producers, making sure the programs and products we offer give them the most useful tools for covering their risks,” said RMA Administrator Marcia Bunger. “Agriculture is not a static industry, and these updates reflect the importance we place on always knowing the evolving needs of producers and offering the most people the best risk management tools we can.”

    DRP is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level; LGM protects against the loss of gross margin (or livestock’s market value minus feed costs); and LRP provides protection against price declines.

    Producers will now have more flexibility for DRP, LGM, and LRP, when indemnities are used to pay premiums, which can help producers manage their operation’s cash flow. With these updates, producers can now have both LGM and LRP policies, although they cannot insure the same class of livestock for the same time period or have the same livestock insured under multiple policies.

    Additional updates by insurance option include:

    Dairy Revenue Protection

    • Dairy producers are now able to continue coverage even if they experience a disaster, such as a barn fire, at their operation.

    Livestock Gross Margin

    • Cattle, Dairy, and Swine coverage has been expanded, making it available in all counties in all 50 states.   

    Livestock Risk Protection

    • Insurance companies are now required to pay indemnities within 30 days, rather than the previous 60 days, following the receipt of the claim form.  
    • Head limits have been increased:     
    o Fed Cattle: 12,000 head per endorsement and 25,000 head per crop year
    o Feeder Cattle: 12,000 head per endorsement and 25,000 head per crop year
    o Swine: 70,000 head per endorsement and 750,000 head per crop year
    • The termination date under LRP has been extended from June 30 to August 31  
    • Location reporting requirements have been relaxed to list only state and county, instead of the precise legal location.  

    Learn more on RMA’s Livestock Insurance Plans webpage. Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator.

    More Information

    These improvements to livestock insurance options build on other efforts by USDA to improve programs for livestock producers. Recently, USDA expanded the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish to cover transportation costs of livestock to feed as well as feed to livestock. And USDA expanded Dairy Margin Coverage to enable dairy producers to enroll supplemental coverage.

  • USDA Accepting Applications to Help Cover Costs of Organic, Transitioning Producers

    Agricultural producers and handlers who are certified organic, along with producers and handlers who are transitioning to organic production, can now apply for the U.S. Department of Agriculture’s (USDA) Organic and Transitional Education and Certification Program (OTECP) and Organic Certification Cost Share Program(OCCSP), which help producers and handlers cover the cost of organic certification, along with other related expenses. Applications for OTECP and OCCSP are both due October 31, 2022.

    “By helping with organic certification costs – long identified as a barrier to certification – USDA has helped producers participate in new markets while investing in the long-term health of their operations,” said Farm Service Agency Administrator Zach Ducheneaux. “We launched the Organic and Transitional Education and Certification Program to build on the support offered through the Organic Certification Cost Share Program and provide additional assistance to organic and transitioning producers weathering the continued market impacts of the COVID-19 pandemic. This year, in response to stakeholder feedback, we have aligned the signup dates for these two organic programs and encourage producers to work with the local USDA Service Centers and State agencies to complete the applications. The FSA, and the USDA broadly, are committed to making sure our Nation’s organic producers and handlers have the tools they need to continue positively shaping our local and regional food systems.”

    Cost Share for 2022 

    OTECP covers:

    • Certification costs for organic producers and handlers (25% up to $250 per category).
    • Eligible expenses for transitional producers, including fees for pre-certification inspections and development of an organic system plan (75% up to $750).
    • Registration fees for educational events (75% up to $200).
    • Soil testing (75% up to $100).

    Meanwhile, OCCSP covers 50% or up to $500 per category of certification costs in 2022.

    This cost share for certification is available for each of these categories: crops, wild crops, livestock, processing/handling and State organic program fees.

    Producers can receive cost share through both OTECP and OCCSP. Both OTECP and OCCSP cover costs incurred from October 1, 2021, to September 30, 2022.  Producers have until October 31, 2022 to file applications, and FSA will make payments as applications are received.

    How to Apply 

    To apply, producers and handlers should contact the Farm Service Agency (FSA) at their local USDA Service Center. As part of completing the OCCSP applications, producers and handlers will need to provide documentation of their organic certification and eligible expenses. Organic producers and handlers may also apply for OCCSP through participating State agencies.

    Additional details can be found on the OTECP and OCCSP webpages.

    Opportunity for State Agencies   

    FSA is accepting applications for State agencies to administer OCCSP through July 18, 2022. If a State department of agriculture chooses to participate in OCCSP, both the State department of agriculture and FSA County Offices in that State will accept OCCSP applications and make payments to eligible certified operations. However, the producer or handler may only receive OCCSP assistance by either FSA or the participating State department of agriculture.

    More Information   

    OTECP builds upon OCCSP, providing additional relief to help producers during the pandemic. OTECP uses funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act; OCCSP is funded through the Farm Bill.

    USDA has made other strides to assist organic producers. In 2022, USDA’s Risk Management Agency (RMA) increased expansion limits for organic producers with coverage through Whole-Farm Revenue Protection (WFRP). RMA also updated the insurance option to allow producers to report acreage as certified organic or transitioning, as long as organic certification was requested by the acreage reporting date. Also, this year, RMA introduced a new option – Micro Farm – through WFRP designed for producers with small-scale operations that sell locally, which includes organic producers.

  • $6 Billion on its Way to Commodity & Specialty Crop Producers Impacted by 2020, 2021 Natural Disasters

    The U. S Department of Agriculture (USDA) today announced that commodity and specialty crop producers impacted by natural disaster events in 2020 and 2021 will soon begin receiving emergency relief payments totaling approximately $6 billion through the Farm Service Agency’s (FSA) new Emergency Relief Program (ERP) to offset crop yield and value losses.

    “For over two years, farmers and ranchers across the country have been hard hit by an ongoing pandemic coupled with more frequent and catastrophic natural disasters,” said Agriculture Secretary Tom Vilsack.  “As the agriculture industry deals with new challenges and stressors, we at USDA look for opportunities to inject financial support back into the rural economy through direct payments to producers who bear the brunt of circumstances beyond their control. These emergency relief payments will help offset the significant crop losses due to major weather events in 2020 and 2021 and help ensure farming operations are viable this crop year, into the next growing season and beyond.”

    Background

    On September 30, 2021, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43), which includes $10 billion in assistance to agricultural producers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters experienced during calendar years 2020 and 2021. FSA recently made payments to ranchers impacted by drought and wildfire through the first phase of the Emergency Livestock Relief Program (ELRP). ERP is another relief component of the Act.

    For impacted producers, existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program (NAP) data is the basis for calculating initial payments. USDA estimates that phase one ERP benefits will reach more than 220,000 producers who received indemnities for losses covered by federal crop insurance and more than 4,000 producers who obtained NAP coverage for 2020 and 2021 crop losses.

    ERP Eligibility – Phase One

    ERP covers losses to crops, trees, bushes, and vines due to a qualifying natural disaster event in calendar years 2020 and 2021.  Eligible crops include all crops for which crop insurance or NAP coverage was available, except for crops intended for grazing. Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions.

    For drought, ERP assistance is available if any area within the county in which the loss occurred was rated by the U.S. Drought Monitor as having a:

    •  D2 (severe drought) for eight consecutive weeks; or 
    •  D3 (extreme drought) or higher level of drought intensity. 

      

    Lists of 2020 and 2021 drought counties eligible for ERP is available on the emergency relief website.

    To streamline and simplify the delivery of ERP phase one benefits, FSA will send pre-filled application forms to producers where crop insurance and NAP data are already on file. This form includes eligibility requirements, outlines the application process and provides ERP payment calculations. Producers will receive a separate application form for each program year in which an eligible loss occurred. Receipt of a pre-filled application is not confirmation that a producer is eligible to receive an ERP phase one payment.

    Additionally, producers must have the following forms on file with FSA within 60 days of the ERP phase one deadline, which will later be announced by FSA’s Deputy Administrator for Farm Programs:

    • Form AD-2047, Customer Data Worksheet.  
    • Form CCC-902, Farm Operating Plan for an individual or legal entity.   
    • Form CCC-901, Member Information for Legal Entities (if applicable).   
    • Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs (if applicable).   
    • Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, if applicable, for the 2021 program year.   
    • A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and applicable affiliates.  

    Most producers, especially those who have previously participated in FSA programs, will likely have these required forms on file. However, those who are uncertain or want to confirm the status of their forms can contact their local FSA county office.

    ERP Payment Calculations – Phase One 

    For crops covered by crop insurance, the ERP phase one payment calculation for a crop and unit will depend on the type and level of coverage obtained by the producer. Each calculation will use an ERP factor based on the producer’s level of crop insurance or NAP coverage.

      

    • Crop Insurance – the ERP factor is 75% to 95% depending on the level of coverage ranging from catastrophic to at least 80% coverage. 
    • NAP – the ERP factor is 75% to 95% depending on the level of coverage ranging from catastrophic to 65% coverage.      

     

    Full ERP payment calculation factor tables are available on the emergency relief website and in the program fact sheet.

    Applying ERP factors ensures that payments to producers do not exceed available funding and that cumulative payments do not exceed 90% of losses for all producers as required by the Act.

    Also, there will be certain payment calculation considerations for area plans under crop insurance policies.

    The ERP payment percentage for historically underserved producers, including beginning, limited resource, socially disadvantaged, and veteran farmers and ranchers will be increased by 15% of the calculated payment for crops having insurance coverage or NAP.

    To qualify for the higher payment percentage, eligible producers must have a CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, form on file with FSA for the 2021 program year.

    Because the amount of loss due to a qualifying disaster event in calendar years 202 and 2021 cannot be separated from the amount of loss caused by other eligible causes of loss as defined by the applicable crop insurance or NAP policy, the ERP phase one payment will be calculated based on the producer’s loss due to all eligible causes of loss.

    Future Insurance Coverage Requirements

    All producers who receive ERP phase one payments, including those receiving a payment based on crop, tree, bush, or vine insurance policies, are statutorily required to purchase crop insurance, or NAP coverage where crop insurance is not available, for the next two available crop years, as determined by the Secretary.  Participants must obtain crop insurance or NAP, as may be applicable:

    • At a coverage level equal to or greater than 60% for insurable crops; or 
    • At the catastrophic level or higher for NAP crops. 

     

    Coverage requirements will be determined from the date a producer receives an ERP payment and may vary depending on the timing and availability of crop insurance or NAP for a producer’s particular crops.  The final crop year to purchase crop insurance or NAP coverage to meet the second year of coverage for this requirement is the 2026 crop year.

    Emergency Relief – Phase Two (Crop and Livestock Producers)

    Today’s announcement is only phase one of relief for commodity and specialty crop producers.  Making the initial payments using existing safety net and risk management data will both speed implementation and further encourage participation in these permanent programs, such as Federal crop insurance, as Congress intended.

    The second phase of both ERP and ELRP programs will fill gaps and cover producers who did not participate in or receive payments through the existing programs that are being leveraged for phase one implementation.  When phase one payment processing is complete, the remaining funds will be used to cover gaps identified under phase two.

    Through proactive communication and outreach, USDA will keep producers and stakeholders informed as program details are made available.   More information on ERP can be found in the Notice of Funding Availability.

    Additional Commodity Loss Assistance

    The Milk Loss Program and On-Farm Stored Commodity Loss Program are also funded through the Extending Government Funding and Delivering Emergency Assistance Act and will be announced in a future rule in the Federal Register.

    More Information

    Additional USDA disaster assistance information can be found on farmers.gov, including the Disaster Assistance Discovery Tool, Disaster-at-a-Glance fact sheet, and Farm Loan Discovery Tool. For FSA and Natural Resources Conservation Service programs, producers should contact their local USDA Service Center. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent.