California Ag Network

Tag: Commodity Credit Corporation

  • USDA Announces No Actions Under Feedstock Flexibility Program

    The USDA Commodity Credit Corporation (CCC) announced that it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2026, which runs from Oct. 1 to Sept. 30, 2027.

    The CCC is required by law to quarterly announce estimates of sugar to be purchased and sold under the Feedstock Flexibility Program based on crop and consumption forecasts.

    Federal law allows sugar processors to obtain loans from USDA with maturities of up to nine months when the sugarcane or sugar beet harvests begin. On loan maturity, the sugar processor may repay the loan in full or forfeit the collateral (sugar) to USDA to satisfy the loan.

    The Feedstock Flexibility Program, initially authorized in the 2008 Farm Bill, was reauthorized by Congress in the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2025, as an option to avoid sugar forfeitures. Under the Feedstock Flexibility Program, if USDA is faced with the likelihood of loan forfeitures, it is required to purchase surplus sugar and sell it to bioenergy producers to reduce the surplus in the food use market and support sugar prices. USDA’s Aug. 12, 2026, World Agricultural Supply and Demand Estimates report (www.usda.gov/oce/commodity/wasde) projects that crop year 2026 (fiscal year 2027) U.S. ending sugar stocks are unlikely to lead to forfeitures. Therefore, USDA does not currently expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2026.

    USDA will closely monitor domestic sugar stocks, consumption, imports and other sugar market variables on an ongoing basis and will continue to administer the sugar program as transparently as possible using the latest available data. The next quarterly estimate regarding the Feedstock Flexibility Program will occur on or before Jan. 1.

  • February USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for February 2025, which are effective Feb. 3, 2025. USDA 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, operating and emergency loans with favorable interest rates and terms to help eligible agricultural producers obtain financing needed to start, expand or maintain a family agricultural operation.

    Interest rates for Operating and Ownership loans for February 2025 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.

    More Information

    To learn more about FSA programs, producers can contact their local USDA Service Center. Additionally, producers can use online tools, such as the Loan Assistance Tool and Debt Consolidation Tool to explore loan options.

    FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.

  • October USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for October 2022, which are effective Oct. 3, 2022. 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 October 2022 are as follows:

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

    You can find out which of these loans may be right for you by using our Farm Loan Discovery Tool (also available in Spanish).

    Commodity and Storage Facility Loans

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

    Pandemic and Disaster Support

    FSA broadened the use of the Disaster Set Aside (DSA), normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 or a second DSA for a natural disaster for producers with an initial DSA for COVID-19. The COVID-DSA is available for borrowers with installments due before Dec. 31, 2022, and whose installment is not more than 90 days past due when the DSA request is made. 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.

    More Information

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

  • November USDA Lending Rates for Farmers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for November 2021, which are effective Nov. 1. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures, or meet cash flow needs.

    Operating, Ownership and Emergency Loans

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

    Interest rates for Operating and Ownership loans for November 2021 are as follows:

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

    Commodity and Storage Facility Loans

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

    Pandemic and Disaster Support

    Due to recent outbreaks of the COVID-19 Delta variant, USDA has extended the deadline for producers to apply for the COVID-19 Disaster Set-Aside (DSA) loan provision to Jan. 31, 2022. FSA will permit a second DSA for COVID-19 and a second DSA for natural disaster for those who had an initial COVID-19 DSA. Requests for a second DSA must be received no later than May 1, 2022.  
      
    Last year, FSA broadened the use of the DSA, normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. This will improve the borrower’s cashflow in the current production cycle.

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

    More Information

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

  • US Trade Mitigation Package Direct Payments for Almonds

    The Almond Alliance of California appreciates the efforts by the U.S. Department of Agriculture to establish the procedures required to provide direct payments to almond growers to help offset some of the damage being incurred due to the retaliatory tariffs imposed by China and Turkey. As announced today by Secretary of Agriculture Sonny Perdue, growers of California almonds are now eligible to apply for direct payments of $.03 per pound as part of the $12 billion mitigation package announced earlier this month. The damage assessment figure assigned to almonds is $63.3 million.
    The announcement is a result of the industry coming together and advocating through the Almond Alliance of California (AAC). Elaine Trevino, President/CEO of AAC said “Industry members should be proud that through a unified effort they were able to have their voices heard and be acknowledged for their contribution to the national economy, along with the significant role they play in the international market place.”
    The almond industry has been significantly impacted by retaliatory tariffs and the inclusion of the commodity in the USDA trade mitigation package is a result of a vocal industry and the support and hard work of California’s congressional delegation. Trevino noted, “The direct payment program reflects the hard work of Majority Leader Kevin McCarthy and Chairman Jeff Denham who led the congressional effort including Congressmen Costa, Valadao, Nunes, LaMalfa, Pannetta and Senators Harris and Feinstein. Their combined efforts and leadership helped ensure that the California almond industry received direct payments within the specific program guidelines. We are thankful that our congressional delegation worked hard for our industry and acknowledged the importance of almonds to the California and U.S. economy.”
    Producers of almonds can sign up for the Market Facilitation Program (MFP), which is a direct payment program for eligible almond growers who have been directly impacted by retaliatory tariffs, resulting in significant export losses. The MFP is established under the statutory authority of the Commodity Credit Corporation (CCC) Charter Act and is under the administration of the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA). There are specific eligibility requirements that must be met by an applicant and the maximum payment per applicant is $125,000. Eligible almond growers may apply for MFP September 24, 2018 through January 15, 2019.
    Almonds are one of California’s top three valued commodities and the leading agricultural export.  The California almond industry exports 67% of what it produces.  With exports of nearly $4.5 billion in 2017, the California almond industry contributes significantly to the longstanding trade surplus generated by American agriculture. While the mitigation initiatives are helpful, they will not begin to approach the anticipated economic losses and long-term impact these retaliatory tariffs will have on the industry’s trade relationships and the considerable investments made over the years to create market demand in China and Turkey. Trevino pointed out, “We remain hopeful for a quick resolution to the broader trade disputes with these trading partners to ensure open and fair trade so consumers around the globe can continue to enjoy California almonds.”
    For more Information:
    For more information about the MFP program, visit www.farmers.gov/MFP or contact your local FSA office. To find your local FSA office, visit www.farmers.gov.
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    About the Almond Alliance of California
    The Almond Alliance of California (AAC) is a trusted non-profit organization with a mission of advocating on behalf of the Almond industry in California. AAC actively advocates for the positions of almond growers, hullers, shellers, handers and processors, while educating the industry about upcoming and existing regulatory changes.  Through workshops, newsletters, conferences and meetings, AAC serves as a clearing house of information that informs the almond industry and continues to position the industry as an agricultural leader in the state.