California Ag Network

Category: Ag Legislation

  • Bipartisan Group Introduces Legislation to Strengthen Common Name Protection in Upcoming Farm Bill

    The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC), Consortium for Common Food Names (CCFN) and allied organizations commend today’s introduction of the Safeguarding American Value-Added Exports (SAVE) Act to promote the protection of common names in the 2023 Farm Bill. Led in the Senate by Sen. John Thune (R-SD), Tammy Baldwin (D-WI), Roger Marshall (R-KS) and Tina Smith (D-MN) and led in the House by Representatives Dusty Johnson (R-SD), Jim Costa (D-CA), Michelle Fischbach (R-MN) and Jimmy Panetta (D-CA), the language would explicitly direct USDA Foreign Agricultural Services (FAS) to work with the U.S. Trade Representative to include the protection of commonly used terms like “parmesan”, “chateau” and “bologna” as a priority in international negotiations. This is the first farm bill effort on common names.

    “The lack of strong action by previous administrations has allowed the European Union to misuse and abuse its geographical indications, hurting U.S. exporters in several markets,” said Jaime Castaneda, Executive Director of CCFN. “This new emphasis on protecting common names is a much-needed step in the right direction to ensure that our producers can sell their products in markets around the world.”

    The proposed language would amend the Agricultural Trade Act of 1978 to define “common names” and direct the Secretary of Agriculture to coordinate with the U.S. Trade Representative to proactively defend the right to use common names for agricultural commodities or food products in international markets.

    “For years, the European Union has been using illegitimate GIs to boost its own producers at the expense of others, putting a tremendous political priority on giving European companies a leg up over producers in the U.S. and other countries,” noted Castaneda. “It is time that our government takes a more proactive approach to tackling this challenge so that we can turn the tide to stand up for food and beverage producers relying on common names.”

    • Many agricultural producers in the United States and around the world depend on common food and beverage terms – such as parmesan, chateau, or bologna – to market and sell their products.
    • Since 2009, the EU has used trade negotiations and intellectual property rules to confiscate common names for their own producers – essentially monopolizing certain products in specific markets.
    • For American farmers and producers, this leads to lost opportunities overseas and expensive fights domestically, in addition to fewer choices for consumers.
    • Recently, there has been significant efforts from the private sector to defend common names, including a favorable U.S. Court of Appeals ruling and actions by congressional champions on Capitol Hill.

  • Ag Council Recognizes Asm. Rubio with Influential Legislator Award

    The Ag Council of California presented Assemblymember Blanca Rubio (D-Baldwin Hills) with the Influential Legislator of the Year Award during its Legislative Conference in Sacramento this week.

    “Assemblymember Rubio is a fierce advocate for pragmatic thinking and her actions in the Legislature to implement practical policies are critical to our members and all of agriculture. She and her staff work tirelessly to forge strong relationships with colleagues to make a difference on some of the toughest legislation,” Ag Council President Emily Rooney said.

    “As chair of the New Democrats in the Assembly, Assemblymember Rubio’s tenacious leadership cannot be underestimated. Her influence to work strategically toward improved results for Californians is incredibly valuable, and we appreciate her endless dedication,” Rooney said.

    This annual award recognizes a legislator who embodies an active and collaborative approach to finding positive outcomes for agriculture and all of California. Assemblymember Rubio represents those qualities and more.

    Assemblymember Rubio represents Assembly District 48 comprising West Covina, Baldwin Park, Glendora, Covina, Azusa, and Monrovia, among other cities.

    She is a member of the Budget, Elections, Governmental Organization and Water, Parks and Wildlife Committees, in addition to others.

    Assemblymember Rubio previously spent 16 years as a teacher and 20 years in elected office, serving on the Valley County Water Board and Baldwin Park Unified School District.

    Congratulations to Assemblymember Rubio upon receiving the 2023 Influential Legislator Award.

  • DPR Awards $3.15M in Research Grants Investing in Safer, Sustainable Grape, Nut & Tree Fruit IPM

    The California Department of Pesticide Regulation today announced it has awarded $3.15 million in research grants to seven projects to support a statewide, systemwide transition to safer and more sustainable pest management.

    DPR’s Research Grants Program funds projects that advance integrated pest management (IPM) knowledge, tools and practices in agricultural, urban and wildland settings. IPM is a pest management approach that uses the least-toxic, effective method to solve pest problems.

    Over the past decade, DPR has awarded more than $13.45 million in research grants.

    “These grants are a cornerstone of DPR’s mission to advance sustainable pest management and continuously improve the state’s protection of people and the environment,” said DPR Director Julie Henderson. “These projects play a central role in developing alternative approaches to pest management that support agriculture, enable the production of an abundant, healthy food supply, and support the well-being of all California communities.”

    In January 2023, DPR released the Sustainable Pest Management Roadmap, which outlines critical goals and actions to accelerate the transition to sustainable pest management.

    Among the projects funded this year, two seek to reduce fumigant use while three others could help decrease farmers’ reliance on neonicotinoids and other pesticides. Fumigants – gaseous pesticides used in agriculture to kill soilborne pests – are a concern because they are often highly toxic and can impact surrounding air. Neonicotinoids are also a concern since they have been linked to pollinator deaths.

    Other grant-funded projects seek to reduce human health effects of spray applications, and to provide effective alternatives to traditional pesticides.

    Award recipients:

    Research projects supporting alternatives to fumigant use:

    • Dr. Cassandra Swett will advance understanding of the emerging fungal pathogen Fusarium falciforme, which affects a range of California crops and drives high-risk fumigant usage. Dr. Swett’s project will seek to evaluate a variety of potential reduced-risk control strategies for this pathogen in lieu of fumigation.
    • Dr. Andreas Westphal will research soils that suppress root lesion nematode in almonds. These efforts will ideally offer alternatives to the current usage of soil fumigants to control these microscopic worms and other soilborne pests and pathogens.
    Research projects supporting reductions in neonicotinoid and other insecticide use:
    • Dr. Paul Rugman-Jones will lead a project developing non-genetically engineered sterile-insect techniques for combating Asian citrus psyllid (ACP). ACP is an insect that spreads a bacterial plant disease called huanglongbing (HLB). HLB is a major threat to California citrus production and one that drives the use of neonicotinoids in citrus.
    • Dr. Hailing Jin will lead research into antimicrobial peptides to combat Pierce’s Disease in grape and HLB in citrus, two highly damaging diseases of perennial crops in California. The project will also focus on their vectors – ACP in citrus and glassy-winged sharpshooter in grape. Alternatives to current vector control practices for these diseases offer the potential to reduce the usage of neonicotinoids and other broad-spectrum insecticides.
    • Dr. Stephanie Bolton will expand the use of canines to rapidly scout grapevine leafroll-associated virus 3 (GLRaV-3) and vine mealybug in grape nurseries and commercial vineyards, which greatly impact California grape production. Early detection is a key IPM practice that will help reduce the use of neonicotinoids and other insecticides to control vine mealybug.

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    Research project supporting reductions in fungicide use:
    • Dr. Mary Wildermuth will research a suite of RNA interference approaches to combat powdery mildew in grapevine, potentially resulting in a tailored, highly specific alternative to repeated usage of fungicides.

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    Research project supporting reductions in spray drift and worker exposure:
    • Dr. Peter Larbi will develop and refine a remote nozzle selector device to allow for rapid, safe changeouts of spray nozzles when operating airblast sprayers. This technology will help minimize spray drift and potential exposure to workers and bystanders. Furthermore, these technological advances will be adaptable to traditional chemistries as well as emerging safer alternatives.

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    For more information on past recipients of DPR’s Grants Program funding, or to learn more about DPR’s Grants Program and grant-related IPM research, innovation, implementation and knowledge-sharing, please visit DPR’s Grants Program webpage.

    ABOUT THE DEPARTMENT OF PESTICIDE REGULATION

    The California Department of Pesticide Regulation’s mission is to protect human health and the environment by fostering safer and sustainable pest management practices and operating a robust regulatory system to monitor and manage the sale and use of pesticides across the state. DPR’s work includes registering all pesticides sold or used in California, conducting scientific evaluation of pesticides to assess and mitigate potential harm to human health or the environment, monitoring for pesticides in the air and water, and enforcing pesticide regulations in coordination with 55 County Agriculture Commissioners and their 500 field inspectors. DPR also conducts outreach to ensure pesticide workers, farmworkers and local communities have access to safety information. DPR invests in innovative research to encourage the development and adoption of integrated pest management tools and practices. More information about DPR can be found at www.cdpr.ca.gov.

  • Supreme Court Upholding California’s Proposition 12 Sets Dangerous Precedent

    Today, the Animal Agriculture Alliance and the North American Meat Institute expressed disappointment and serious concern for the U.S. Supreme Court’s ruling on California’s Proposition 12.

    “Prop 12 remains a costly burden to producers and provides no benefit to animals or consumers,” said Julie Anna Potts, President and CEO of the North American Meat Institute. “We are disappointed in the Court’s decision and will carefully study the ruling to determine next steps.”

    The Animal Agriculture Alliance shared the following:

    “Animal rights extremist organizations have been pushing for state-level legislation banning frequently-used animal care practices, such as gestation stalls for pregnant sows or cages for laying hens, for years. The true motive of these changes is to make it less efficient and more expensive for farmers to raise animals for food, driving up the cost of meat, dairy, poultry, and eggs for consumers, forcing them to make tough choices about what they can afford to feed their families and forcing farmers to make costly changes that may make it impossible to keep their business afloat.

    “Today’s Supreme Court decision on California’s Proposition 12 sets a dangerous precedent for animal rights extremist groups to target other states with similar ballot initiatives. The Humane Society of the United States is a prime example of a group that focuses efforts on states that will be minimally impacted by the legislation, knowing they will receive less resistance within the state while setting a precedent. In California, specifically, farmers in the state raise less than 1% of pigs in the U.S. yet consume 13% of the pork.  This means that a significant majority of California’s pork is produced in other states, who will now be expected to comply with regulations passed by voters outside of their own state.

    “Other states should prepare for similar initiatives, particularly those that allow for legislation to be passed via ballot measures. Ballot initiatives allow these extremist groups to bypass the traditional legislative process to go straight to voters on issues that the general public typically has little knowledge of and that tend to be oversimplified in ballot measure wording. This is particularly effective when it comes to emotional issues such as animal welfare. It’s extremely costly for the animal agriculture community to push back against ballot initiative campaigns, as the target audience is the state’s entire population rather than a limited number of state legislators. We need to be proactive in communicating and building trust with the public to reduce the effectiveness of these animal rights extremist-led campaigns that attempt to capitalize on misinformation.

    “Animal care is too important of a topic to be dictated by oversimplified legislation based on emotion. Rather, it needs to be based in science and research.

    About the Animal Agriculture 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.

    About North American Meat Institute

    The Meat Institute is the United States’ oldest and largest trade association representing packers and processors of beef, pork, lamb, veal, turkey, and processed meat products. NAMI members include more than 350 meat packing and processing companies, the majority of which have fewer than 100 employees, and account for more than 95 percent of the United States’ output of meat and 70 percent of turkey production.

  • Governor Newsom Announces New Flood Investment Proposals

    WHAT YOU NEED TO KNOW: Governor Newsom’s revised budget proposes another $290 million to support flood response and projects to protect communities from future floods, on top of the Governor’s $202 million proposed in January – a total of $492 million. Governor Newsom also announced that the state is providing funding to raise a levee in Corcoran that’s critical to maintaining public safety in the Tulare Basin region.

    Governor Gavin Newsom today announced his revised budget proposal will include $492 million in funding to help protect Californians from ongoing flooding impacts in the Central Valley and throughout the state. The one-time funding will support at-risk communities, including those in the Tulare Basin, respond to the impacts of this year’s winter storms and better withstand future flooding.

    What Governor Newsom said: “California is facing unprecedented weather whiplash – we just experienced the driest three years on record, and now we’re dealing with historic flooding. Our investments must match this reality of climate-driven extremes. We’re committing even more resources to support communities up and down the state as they continue responding to the impacts of this year’s storms.”

    The Governor’s May revision of the budget, which will be announced Friday, invests $290 million in new flood proposals:

    • $125 million to support preparedness, response and recovery related to the 2023 storms – funding shifted from drought contingency to flood contingency to address the weather whiplash California is facing;
    • $75 million to support local flood control projects;
    • $25 million to expand the current California Small Agricultural Business Drought Relief Grant Program to provide direct assistance to eligible agriculture-related businesses that have been affected by the recent storms;
    • $25 million for potential additional disaster relief and response costs in this fiscal year to address immediate impacts;
    • $40 million for the San Joaquin Floodplain restoration

    The $290 million is on top of the Governor’s January proposal of $202 million in flood investments to protect urban areas, improve levees in the Delta region and support projects in the Central Valley – bringing total flood investments to nearly $500 million.

    The Governor’s budget also includes proposed legislation that codifies provisions from recent executive orders that allow for the safe diversion of flood flows for groundwater recharge purposes. These provisions would make it easier to capture floodwater to recharge groundwater by setting clear conditions for diverting floodwaters without permits or affecting water rights.

    Also today, the Governor announced that the state will fund raising the Corcoran Levee in the Tulare Basin, which is key to protecting critical infrastructure, including large correctional and medical facilities, and public safety for the immediate surrounding communities. This marks the third time the state or federal government has intervened to raise the levee. Due to over-pumping groundwater, the ground beneath the levee has subsided. The U.S. Army Corps of Engineers (USACE) made repairs to the levee in 1969 and again in 1983. The state’s funding will allow the local flood control district to raise the levee to 192 feet.

    The state’s funding will be contingent upon on locals’ ability to meet a set of criteria to ensure the work is done efficiently and at the lowest possible cost to taxpayers.

    BACKGROUND:

    State officials have been on the ground since storms first started hitting, supporting and coordinating emergency response. California has since shifted to focus on flood prevention and recovery efforts, while continuing to respond to lingering drought impacts, and will support local response in the coming weeks, months and years.

    The state response to flooding, both in the Tulare Basin and across California, includes:

    • Over 1.7 million sandbags and roughly 21,700 supersacks distributed to help prevent flooding;
    • 12,000 feet of muscle walls constructed;
    • Over 54 million pounds of rock and sand used to shore up rivers and levees;
    • Over 60 shelters opened for folks who got displaced by flooding and snowfall;
    • Over 600 comfort kits distributed to impacted families;
    • Over 3.5 million miles of California roads plowed or maintained.

    Governor Newsom joined state and local officials and community leaders in the Tulare Basin at the end of April to survey recent flooding. Also last month, the Governor’s Office of Emergency Services (Cal OES), the Department of Water Resources (DWR) and USACE met with county officials and emergency response personnel in the Tulare Lake Basin to help organize local flood response plans to prepare for snowmelt in the coming months.

    The state, in partnership with USACE and local entities, is prioritizing snowmelt forecasting, reservoir operations, flooding assessments and flood response support. California is also working closely with county and other local government partners to share the latest advance planning tools DWR has used to support other flood prone areas of the state and to help local agencies in the basin prepare for flooding. DWR has also launched a $5 million program to provide temporary pumps to local water districts to increase flood diversions.

    In late March, Governor Newsom signed an executive order to support the ongoing response to flooding by expediting levee repairs, floodwater diversion and other emergency response activities. California also secured a Presidential Major Disaster Declaration to support storm response and recovery in Tulare County and other impacted counties. Following the Disaster Declaration, Disaster Recovery Centers across the state are now open, serving as central hubs to connect community members and businesses with support.

  • California to Deliver 100% Water Supply Allocation

    Office of the Governor — With reservoirs nearing capacity and snowmelt runoff beginning, the state today announced that it will boost water deliveries for state water contractors to 100% of requested supplies for 29 public water agencies that serve 27 million Californians.

    This is the highest allocation since 2006, with the state actively managing water supplies to distribute it throughout the state, mitigate flooding, expand storage, benefit the environment, and help replenish groundwater and aquifers that have been depleted from years of extreme drought.

    “California is taking action to maximize the capture and storage of water from recent storms and snowpack, increasing water deliveries to 100% for the first time in nearly two decades,” said Governor Newsom. “California is moving and storing as much water as possible to meet the state’s needs, reduce the risk of flooding, and protect our communities, agriculture, and the environment.”

    On top of the 100% allocation, the state is also sending additional water to regions for groundwater recharge and added reservoir supplies. Since March 22, the state has delivered 228,000 acre-feet of water to local water agencies for groundwater recharge and boosting reservoir supplies, with 37,000 acre-feet planned for next week.

    Statewide, reservoir storage is at 105 percent of average for this date.

    Here’s what the Newsom Administration, in partnership with the Legislature, has also done:

    • TULARE LAKE BASIN FLOOD RESPONSE: Governor Newsom signed an executive order to expedite levee repairs, floodwater diversion, and other emergency response activities in the Tulare Lake Basin. California has also secured a Presidential Major Disaster Declaration to support storm response and recovery. State agencies and departments are on the ground to support impacted communities, assist local agencies managing the flood response and provide runoff modeling and forecasts to assist flood planning efforts.
    • EXPANDING SUPPLY & STORAGE BY 1.1 MILLION ACRE-FEET: California has bolstered supply and storage through groundwater recharge and other projects, including a combined 1.1 million acre-feet of water – enough for 2.2 million households’ yearly usage.
    • EXECUTIVE ORDERS TO CAPTURE & STORE MORE WATER: During recent storms, Governor Newsom signed executive orders to accelerate stormwater capture to boost groundwater recharge and other conservation measures.
    • FAST-TRACKING GROUNDWATER RECHARGE: The state is expanding groundwater recharge by at least 500,000 acre-feet in potential capacity – streamlining permits and $1 billion for groundwater recharge projects for 88,000 more acre-feet per year.
    • MAXIMIZING STORMWATER CAPTURE: $176 million for 67 stormwater projects and streamlining permitting to take advantage of major storm events.
    • EXPANDING STORAGE ABOVE & BELOW GROUND: California is supporting seven locally-driven water storage projects that would expand the state’s capacity by 2.77 million acre-feet – about three times as much water as Folsom Lake can hold.
    • ADVANCING CLEAR, AMBITIOUS TARGETS: 142 actions to improve water resilience and bolster water supplies, and a roadmap for expanding urban stormwater capture capacity by 250,000 acre-feet and adding 4 million acre-feet of water storage capacity.
    • MODERNIZING WATER INFRASTRUCTURE: California is working to modernize aging water conveyance systems across the state to safeguard long-term water reliability and help carry winter storm runoff into storage.

  • FDA Issues Guidance for Qualified Exempt Farms that Utilized Temporary Flexibilities During COVID-19

    The U.S. Food and Drug Administration will be transitioning away from its policy regarding flexibilities available to qualified exempt farms under the Produce Safety Rule during the COVID-19 Public Health Emergency (PHE).

    Under the FDA Food Safety Modernization Act (FSMA) Produce Safety Rule, farms are eligible for a qualified exemption and associated modified requirements if they meet the below criteria:

    1. The average annual value of the farm’s direct sales of food to qualified end-users exceeded the average annual value of the farm’s food sales to all others during the previous three years. A qualified end-user is either (a) the consumer of the food (where the term consumer does not include a business) or (b) a restaurant or retail food establishment that is located in the same State or the same Indian reservation as the farm or not more than 275 miles away; and
    2. The farm’s food sales averaged less than $500,000 (adjusted for inflation) per year during the previous three years.

      During the COVID-19 PHE, state and local governments across the United States instituted public health orders, and some businesses took other mitigating efforts, that resulted in many restaurants, retail food establishments and schools significantly limiting their operations, leaving many farmers without their usual qualified end-user customers. In May 2020, the FDA issued temporary guidance regarding available flexibilities under which affected farmers could shift their sales away from qualified end-users while still being considered eligible for the qualified exemption, as long as they continued to meet the requirement that their average annual food sales during the previous three years totaled less than $500,000 (adjusted for inflation).Recently, the Department of Health and Human Services announced that it is planning for the COVID-19 PHE declaration to expire at the end of the day on May 11, 2023. Soon after HHS’ announcement, FDA announced that the temporary Qualified Exemption guidance (among others) would remain in effect until November 7, 2023. Today the FDA issued guidance to help explain how farms may transition from the temporary policy back to the qualified exempt criteria in the Produce Safety Rule.

      In the guidance, the FDA notes that the preamble to the Produce Safety Rule acknowledges that, under some circumstances, farms may have less than three years of records to support their eligibility for the qualified exemption, during which time the FDA would consider it reasonable for the farm to base their calculations on the records they have (such as records for the preceding one or two calendar years). For farms that have no records regarding direct sales to qualified end-users for any of the preceding three calendar years, but that meet the other criterion for the qualified exemption (average annual food sales for the previous three years less than $500,000), the FDA will restart the clock beginning January 1, 2024.

      This means that in 2024, farms should begin collecting data regarding their direct sales to qualified end-users as described in the first criterion above. In 2025, farms will be able to use their records from 2024, without averaging in other years, to demonstrate that they meet the criteria for the exemption. In 2026 and 2027, farms should be able to average their sales from the previous 2-3 years to demonstrate eligibility for the qualified exemption. Farms that fail to demonstrate eligibility will no longer have qualified exempt status and will need to come into compliance with the full requirements of the Produce Safety Rule unless another exemption applies.

      Farms that have questions about this transition process can contact their local Produce Safety Network representative or the FDA through the FSMA Technical Assistance Network.

  • Local Organizations Address Critical Gaps For Those Impacted by Flooding in Monterey County

    Spring marks the return of fruit and vegetable harvest in the Salinas Valley region. With heavy rains, cold winter weather and our area recovering from flooding, that harvest has been delayed but consumers can be assured that they will enjoy leafy greens, vegetables and strawberries with the harvest continuing into November.

    While we understand the importance of providing healthy produce to consumers, recovery remains the priority with major efforts undertaken to help communities recover from flooding. One small town in particular in Monterey County, Pajaro, has suffered from widespread damage due to a major breach of the Pajaro River levee on March 10. This breach left homes, businesses and farms flooded and crucial jobs lost.

    This will be a long road to recovery for this largely farm worker community as federal disaster assistance was not immediately available and not approved until weeks after the flooding occurred. This delayed help with rent assistance, clean-up and repairs to homes and businesses. To offset and augment delayed federal assistance, many businesses and individuals contributed to local charities to help with immediate needs for residents including short-term housing, food, furniture, clothing and other essentials.

    To fill a crucial gap in health care needs, the Grower Shipper Association of Central California (GSA) and Clinica de Salud del Valle de Salinas (Clinica) immediately stepped in to provide medical care, medication replacement and hygiene supplies in the aftermath of the flooding.

    GSA and Clinica set up a mobile clinic at the main shelter for displaced Pajaro residents so services were readily accessible and then moved it to Pajaro once evacuation orders were lifted. The medical care was funded by a grant awarded to GSA therefore these services were provided free-of-charge to the community.

    To date, 43% (1,500) of Pajaro residents have accessed the medical services and essential supplies provided by the GSA/Clinica partnership.

    “While we were pleased that federal assistance was approved on April 4 to help residents, businesses and farms recover, the flooding occurred on March 10 so it was imperative to provide immediate assistance to this severely impacted community and address gaps,” says Christopher Valadez, GSA President. “As we did during the pandemic, GSA and Clinica worked quickly to provide crucial services for impacted residents to offset delays in government services.”

    Long-term, the attention is on job recovery since individual farms in Pajaro employed hundreds and suffered severe losses and it could take local businesses weeks to reopen. But temporary housing is the most crucial need and unemployment compounds the problem.

    GSA is committed to continue to help communities impacted by flooding. As we enter spring and we see the harvest begin, there is a seemingly reassuring component to a return to the business of providing food to consumers. But, we must keep our attention on those in long-term need of critical support. — Grower-Shipper Association of Central California

  • April USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for April 2023, which are effective April 3, 2023. 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 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 April 2023 are as follows:

    FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.

    To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.

    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.

    Simplified Direct Loan Application

    FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center.

    Pandemic and Disaster Support

    FSA broadened the use of the Disaster Set-Aside (DSA), normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set-aside. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 or a second DSA for a natural disaster for producers with an initial DSA for COVID-19. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to 12 months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. Use of the expanded DSA program can help to improve a 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.

    Inflation Reduction Act Assistance for Distressed Producers

    On Aug. 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. It is a historic, once-in-a-generation investment and opportunity for the agricultural communities that USDA serves. Section 22006 of the IRA provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk.  In October 2022, USDA provided approximately $800 million in initial IRA assistance to more than 11,000 delinquent direct and guaranteed borrowers and approximately 2,100 borrowers who had their farms liquidated and still had remaining debt. In April 2023, USDA intends to provide a new round of relief starting that will include approximately $123 million in automatic financial assistance for qualified direct and guaranteed borrowers. Qualifying borrowers will receive an individual letter detailing the assistance as payments are made. Eligibility for these new categories of automatic payments include:

    • Assistance to direct loan borrowers who were past due on a qualifying direct loan as of September 30, 2022, but by fewer than 60 days, and remained delinquent on that loan as of March 27, 2023.
    • Assistance to borrowers who restructured a qualifying direct loan after February 28, 2020, through primary loan servicing available through FSA.
    • Assistance to borrowers whose interest owed on their qualifying direct loan debt exceeds the principal owed (on a loan-by-loan basis)

    For more information producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.

    More Information

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

  • $1 Billion to Help Farmers Invest in Renewable Energy Systems and Energy-Efficiency Improvements

    U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is accepting applications starting on April 1 for $1 billion in grants to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the $1 billion in grants available under the Rural Energy for America Program (REAP), with funding from President Biden’s landmark Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis.

    “Supporting renewable energy and energy-saving systems helps the people of rural America create thriving, livable communities,” Vilsack said. “When we invest in rural communities, we are supporting hard work that sends a ripple effect across our country. Clean energy is critical to the future of our economy, and the Inflation Reduction Act provides the Biden-Harris Administration with the resources to build a more prosperous rural America while tackling the climate crisis and lowering energy costs.”

    Recipients may use REAP funds to install renewable energy systems or to make energy-efficiency improvements. Eligible applicants include rural small businesses and agricultural producers. USDA will hold competitions quarterly through Sept. 30, 2024. The funding will also include the creation of the first underutilized technology fund in the REAP program, with $144.5 million available in dedicated funding.

    USDA is particularly interested in REAP projects that will help rural communities recover economically through more and better market opportunities and improved infrastructure, reduce climate pollution and increase resilience to the impacts of climate change, conserve and protect farmland, and invest in underserved communities. The program is part of the Biden-Harris Administration’s Justice40 Initiative, which aims to ensure that 40% of the overall benefits of certain Federal investments flow to disadvantaged communities that are marginalized, underserved and overburdened by pollution.

    To ensure that small projects have a fair opportunity to compete for the funding, USDA will set aside at least 20% of the available funds until June 30 of each year for grant requests of $20,000 or less, including the grant portion of a combined grant and guaranteed loan request.

    The maximum federal share which may be requested is up to 50% of the total project cost for all energy-efficiency projects and zero-emissions renewable energy systems. An award of up to 50% of the total project cost is also available for any project in a designated energy community and/or submitted by an eligible tribal entity. All other projects are eligible to apply for grants of up to 25% of the total project cost. The maximum grant is $1 million for renewable energy systems and $500,000 for energy-efficiency projects.

    For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.

    Inflation Reduction Act: Background

    The Inflation Reduction Act will boost the long-term resiliency, reliability and affordability of rural electric systems. It will help families save money on utility bills, and it will expand rural opportunities in the clean-energy economy.