California Ag Network

Tag: FSA

  • Payments to Livestock Producers Impacted by Drought or Wildfire

    The U.S Department of Agriculture (USDA) recently announced that ranchers who have approved applications through the 2021 Livestock Forage Disaster Program (LFP) for forage losses due to severe drought or wildfire in 2021 will soon begin receiving emergency relief payments for increases in supplemental feed costs in 2021 through the Farm Service Agency’s (FSA) new Emergency Livestock Relief Program (ELRP).

    “Producers of grazing livestock experienced catastrophic losses of available forage as well as higher costs for supplemental feed in 2021. Unfortunately, the conditions driving these losses have not improved for many and have even worsened for some, as drought spreads across the U.S.,” said Agriculture Secretary Tom Vilsack.  “In order to deliver much-needed assistance as efficiently as possible, phase one of the ELRP will use certain data from the Livestock Forage Disaster Program (LFP), allowing USDA to distribute payments within days to livestock producers.”

    Background 
    On September 30, 2021, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43). This Act 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. Additionally, the Act specifically targets $750 million to provide assistance to livestock producers for losses incurred due to drought or wildfires in calendar year 2021. ELRP is part of FSA’s implementation of the Act.

    For impacted ranchers, USDA will leverage LFP data to deliver immediate relief for increases in supplemental feed costs in 2021. LFP is an important tool that provides up to 60% of the estimated replacement feed cost when an eligible drought adversely impacts grazing lands or 50% of the monthly feed cost for the number of days the producer is prohibited from grazing the managed rangeland because of a qualifying wildfire.

    FSA received more than 100,000 applications totaling nearly $670 million in payments to livestock producers under LFP for the 2021 program year.

    Congress recognized requests for assistance beyond this existing program and provided specific funding for disaster-impacted livestock producers in 2021.

    ELRP Eligibility – Phase One 

    To be eligible for an ELRP payment under phase one of program delivery, livestock producers must have suffered grazing losses in a county rated by the U.S. Drought Monitor as having a D2 (severe drought) for eight consecutive weeks or a D3 (extreme drought) or higher level of drought intensity during the 2021 calendar year, and have applied and been approved for 2021 LFP. Additionally, producers whose permitted grazing on federally managed lands was disallowed due to wildfire are also eligible for ELRP payments, if they applied and were approved for 2021 LFP.

    As part of FSA’s efforts to streamline and simplify the delivery of ELRP phase one benefits, producers are not required to submit an application for payment; however, they must have the following forms on file with FSA within a subsequently announced deadline as determined by the Deputy Administrator for Farm Programs:

    • CCC-853, Livestock Forage Disaster Program Application
    • 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 ELRP producer and applicable affiliates.

    ELRP Payment Calculation – Phase One 

    To further expedite payments to eligible livestock producers, determine eligibility, and calculate an ELRP phase one payment, FSA will utilize livestock inventories and drought-affected forage acreage or restricted animal units and grazing days due to wildfire already reported by the producer when they submitted a 2021 CCC-853, Livestock Forage Disaster Program Application form.

    Phase one ELRP payments will be equal to the eligible livestock producer’s gross 2021 LFP calculated payment multiplied by a payment percentage, to reach a reasonable approximation of increased supplemental feed costs for eligible livestock producers in 2021.

    The ELRP payment percentage will be 90% for historically underserved producers, including beginning, limited resource, and veteran farmers and ranchers, and 75% for all other producers.  These payments will be subject to a payment limitation.

    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.

    Payments to eligible producers through phase one of ELRP are estimated to total more than $577 million.

    ELRP – Phase Two   

    Today’s announcement is only Phase One of relief for livestock producers.  FSA continues to evaluate and identify impacts of 2021 drought and wildfire on livestock producers to ensure equitable and inclusive distribution of much-needed emergency relief program benefits.

    Emergency Relief Program (ERP) Assistance for Crop Producers 

    FSA is developing a two-phased process to provide assistance to diversified, row crop and specialty crop operations that were impacted by an eligible natural disaster event in calendar years 2020 or 2021.

    This program will provide assistance to crop producers and will follow a two-phased process similar to that of the livestock assistance with implementation of the first phase in the coming weeks. Phase one of the crop assistance program delivery will leverage existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program data as the basis for calculating initial payments.

    Making the initial payments using existing safety net and risk management data will both speed implementation and further encourage participation in these permanent programs, including the Pasture, Rangeland, Forage Rainfall Index Crop Insurance Program, as Congress intended.

    The second phase of the crop program will be intended to fill additional assistance gaps and cover eligible producers who did not participate in existing risk management programs.

    Through proactive communication and outreach, USDA will keep producers and stakeholders informed as ERP implementation details are made available.

    Additional Livestock Drought Assistance 

    Due to the persistent drought conditions in the Great Plains and West, FSA will be offering additional relief through the Emergency Assistance for Livestock, Honeybees and Farm-raised Fish Program (ELAP) to help ranchers cover above normal costs of hauling livestock to forage.  This policy enhancement complements previously announced ELAP compensation for hauling feed to livestock.  Soon after FSA announced the assistance for hauling feed to livestock, stakeholders were quick to point out that producers also were hauling the livestock to the feed source as well and encouraged this additional flexibility.

    It is important to note that, unlike ELRP emergency relief benefits which are only applicable for eligible losses incurred in the 2021 calendar year, this ELAP livestock and feed hauling compensation will not only be retroactive for 2021 but will also be available for losses in 2022 and subsequent years.

    To calculate ELAP program benefits, an online tool is currently available to help producers document and estimate payments to cover feed transportation cost increases caused by drought and will soon be updated to assist producers with calculations associated with drought related costs incurred for hauling livestock to forage

    More Information  
    Additional USDA disaster assistance information can be found on farmers.gov, including USDA resources specifically for producer impacted by drought and wildfire and 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.

  • April USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for April 2022, which are effective April 1, 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 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 April 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.

  • New Federal Advisory Committee for Urban Agriculture to Meet March 23-24 

    The U.S. Department of Agriculture (USDA) will host the first public meeting of the inaugural Federal Advisory Committee for Urban Agriculture and Innovative Production on March 23-24, 2022.  The public – including urban producers– is encouraged to attend.

    “I look forward to working with this new urban agriculture federal advisory committee,” said Agriculture Secretary Tom Vilsack. “The committee’s valuable insights and expertise will provide critical guidance to help us better serve urban agricultural producers, strengthen local food systems, and increase equity and access to healthy, local food.”

    The new federal advisory committee is part of USDA’s efforts to support urban agriculture, creating a network for feedback. Members were announced last month, and include agricultural producers, and representatives from the areas of higher education or extension programs, non-profits, business and economic development, supply chains and financing.

    About the Meeting   

    USDA’s Office of Urban Agriculture and Innovative Production is coordinating the meeting, which runs from 11 a.m. to 3:30 p.m. ET on March 23 and 24, 2022. To attend, register by March 18, 2022.

    At the meeting, committee members will discuss administrative matters and consult on the National Institute of Food and Agriculture’s Notice of Funding Opportunity for the Urban, Indoor and Emerging Agriculture grants.

    Members of the public who wish to submit comments or questions related to urban agriculture may submit them via www.regulations.gov.

    Comments must be submitted by March 18, 2022.

    For special accommodations, please contact Leslie Glover at (602) 395-9536 or UrbanAgricultureFederalAdvisoryCommittee@usda.gov.

    Additional details are available in the March 8, 2022 Federal Register notice and online at farmers.gov/urban or on the committee’s webpage.

    USDA and Urban Agriculture 

    The Federal Advisory Committee for Urban Agriculture and Innovative Production is part of a broad USDA investment in urban agriculture. Other efforts include:

    • Grants that target areas of food access, education, business and start-up costs for new farmers, and policy development related to zoning and other urban production needs.
    • Cooperative agreements that develop and test strategies for planning and implementing municipal compost plans and food waste reduction plans.
    • Investing $260,000 for risk management training and crop insurance education for historically underserved and urban producers through partnerships between USDA’s Risk Management Agency (RMA) and the University of Maryland, University of Connecticut, and Michigan State University Center for Regional Food Systems.
    • Providing technical and financial assistance through conservation programs offered by USDA’s Natural Resources Conservation Service (NRCS).
    • Organizing 11 Farm Service Agency (FSA) urban and suburban county committees. FSA will organize additional committees.

    The Office of Urban Agriculture and Innovative Production was established through the 2018 Farm Bill. It is led by NRCS and works in partnership with numerous USDA agencies that support urban agriculture. Its mission is to encourage and promote urban, indoor, and other emerging agricultural practices, including community composting and food waste reduction.

    More information is available at farmers.gov/urban and the new Federal Advisory Committee for Urban Agriculture and Innovative Production website at www.usda.gov/partnerships/advisory-committee-urban-ag-innovative-production.

    Additional resources that may be of interest to urban agriculture entities include grants from USDA’s Agricultural Marketing Service and National Institute of Food and Agriculture as well as FSA loans.

  • March USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for March 2022, which are effective March 1, 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 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 March 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 as well as a second DSA for a natural disaster for producers with an initial DSA for COVID-19. Producers must apply for the second DSA by May 1, 2022. 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.

  • Deadline Extended to Enroll in 2022 Dairy Margin and Supplemental Coverage

    USDA has extended the deadline to enroll in Dairy Margin Coverage (DMC) and Supplemental Dairy Margin Coverage (SDMC) for program year 2022. The deadline to apply for 2022 coverage is now March 25, 2022. As part of the Biden-Harris Administration’s ongoing efforts to support dairy farmers and rural communities, USDA’s Farm Service Agency (FSA) opened DMC and SDMC signup in December 2021 to help producers manage economic risk brought on by milk price and feed cost disparities.

    “Over the past two years, American dairy farmers have faced unprecedented uncertainty, from the ongoing pandemic to protracted natural disasters. As producers continue to manage these interconnected challenges, FSA has tools at the ready to provide critical support,” said FSA Administrator Zach Ducheneaux. “We are encouraging dairy operations to take advantage of the extended deadline and join the 8,969 operations that have already enrolled for 2022 coverage. At 15 cents per hundredweight at the $9.50 level of coverage, DMC is a very cost-effective risk management tool for dairy producers.”

    Enrollment for 2022 DMC is currently at 55% of the 2021 program year enrollment. Producers who enrolled in DMC for 2021 received margin payments each month, January through November for a total of $1.2 billion, with an average payment of $60,275 per operation.

    The DMC program, created by the 2018 Farm Bill, offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. Now, they will be able to retroactively receive payments for that supplemental production. Additionally, FSA updated how feed costs are calculated, which will make the program more reflective of dairy producers’ actual expenses.

    Supplemental DMC Enrollment

    Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketings, which will result in additional payments. Producers will be required to provide FSA with their 2019 Milk Marketing Statement.

    Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Participating dairy operations with supplemental production may receive retroactive supplemental payments for 2021 in addition to payments based on their established production history.

    Supplemental DMC will require a revision to a producer’s 2021 DMC contract and must occur before enrollment in DMC for the 2022 program year. Producers will be able to revise 2021 DMC contracts, apply for 2022 DMC, and enroll in other FSA programs by contacting their local USDA Service Center.

    DMC 2022 Enrollment

    After making any revisions to 2021 DMC contracts for Supplemental DMC, producers can sign up for 2022 coverage. DMC provides eligible dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed falls below a certain level. In 2021, based on data to date, DMC payments have triggered for January through November for more than $1 billion.

    For DMC enrollment, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms and pay the $100 administrative fee. The fee is waived for farmers who are considered limited resource, beginning, socially disadvantaged, or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.

    Updates to Feed Costs

    USDA has also changed the DMC feed cost formula via final rule published on December 13, 2021, to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay.  FSA now calculates payments using 100% premium alfalfa hay rather than 50%. In December 2021, following publication of the new feed cost policy, $102 million was paid to producers as a result of the revised high quality alfalfa feed cost formula.

    The amended feed cost formula will make DMC payments more reflective of actual dairy producer expenses.

    More Information

    For more information, producers can visit the FSA dairy programs webpage, or contact their local USDA Service Center. To locate their local FSA office, producers can visit farmers.gov/service-center-locator. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Due to the pandemic, some USDA Service Centers are open to limited visitors.  Additionally, more information related to USDA’s response and relief for producers can be found at  farmers.gov/coronavirus

  • USDA Announces Inaugural Federal Advisory Committee on Urban Ag

    Agriculture Secretary Tom Vilsack selected 12 members to serve on the U.S. Department of Agriculture’s (USDA) inaugural Secretary’s Advisory Committee for Urban Agriculture to provide input on policy development and to help identify barriers to urban agriculture as USDA works to promote urban farming and the economic opportunities it provides in cities across the country.

    The new Secretary’s Advisory Committee is part of USDA’s efforts to support urban agriculture, creating a network for feedback. Urban agriculture plays an important role in producing fresh, healthy food in areas where grocery stores are scarce, and also provides jobs and beautifies neighborhoods.  

    “Urban agriculture has been growing in impact and importance, and we are taking bold actions to build a support structure,” said Vilsack.

    “I look forward to learning how we can better serve urban agricultural producers, which will complement our efforts focusing on equity, local food systems, access to safe and nutritional food and new ways to address climate change,” said Blong Xiong California State Executive Director.   

    Secretary’s Advisory Committee for Urban Agriculture

    The Committee is made up of agricultural producers, and representatives from the areas of higher education or extension programs, non-profits, business and economic development, supply chains and financing.  
     
    Members include:

    • Jerry Ann Hebron, Mich., Urban Producer
    • Bobby Wilson, Ga., Urban Producer
    • Viraj Puri, N.Y., Innovative Producer
    • Kaben Smallwood, Okla., Innovative Producer
    • Sally Brown, Wash., Higher Education
    • John Erwin, Md., Higher Education
    • Carl Wallace, Ohio, Non-Profit Representative
    • John Lebeaux, Mass., Business and Economic Development Representative
    • Zachari Curtis, D.C., Supply Chain Experience
    • Allison Paap, Calif., Financing Entity Representative
    • Tara Chadwick, Fla., Related Experience
    • Angela Mason, Ill., Related Experience

    USDA and the Office of Urban Agriculture and Innovative Production peer reviewed more than 300 nominees, and Vilsack made the final selections. Selections ensured geographic, racial and gender diversity and a broad range of agricultural experience. The new members will serve terms of one to three years.

    The first meeting of this inaugural committee, which will be open to the public, will take place in late February. More details will be available in the Federal Register and at farmers.gov/urban and the new Federal Advisory Committee for Urban Agriculture website.

    USDA and Urban Agriculture

    The advisory committee and county committees are part of a broad USDA investment in urban agriculture. Other efforts include:

    • Grants that target areas of food access, education, business and start-up costs for new farmers, and development of policies related to zoning and other needs of urban production.
    • Cooperative agreements that develop and test strategies for planning and implementing municipal compost plans and food waste reduction plans.
    • Investing $260,000 for risk management training and crop insurance education for historically underserved and urban producers through partnerships between USDA’s Risk Management Agency(RMA) and the University of Maryland, University of Connecticut, and Michigan State University Center for Regional Food Systems.
    • Providing technical and financial assistance through conservation programs offered by USDA’s Natural Resources Conservation Service(NRCS).
    • Organizing 11 Farm Service Agency (FSA) urban and suburban county committees. FSA will organize additional committees.

    The Office of Urban Agriculture and Innovative Production was established through the 2018 Farm Bill. It is led by NRCS and works in partnership with numerous USDA agencies that support urban agriculture. Its mission is to encourage and promote urban, indoor, and other emerging agricultural practices, including community composting and food waste reduction. More information is available at farmers.gov/urban and the new Federal Advisory Committee for Urban Agriculture website.

    Additional resources that may be of interest to urban agriculture entities include grants from USDA’s Agricultural Marketing Service and National Institute of Food and Agriculture  as well as FSA loans.

  • February USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for February 2022, which are effective Feb. 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 February 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.

    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 as well as a second DSA for a natural disaster for producers with an initial DSA for COVID-19. Producers must apply for the second DSA by May 1, 2022. 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

    In January 2021, USDA announced a temporary suspension of past-due debt collection and foreclosures for distressed direct loan borrowers due to the economic hardship imposed by the COVID-19 pandemic. FSA will not be accelerating or foreclosing on any direct loans, regardless of payment status, while the suspension is in effect. Direct loan borrowers should expect to receive a letter from FSA explaining this further. Although some direct loan borrowers may have previously received a standardized form known as the “Notice of Intent to Accelerate”, direct loan borrowers should rest assured that we are not pursuing any acceleration or foreclosure.  We do encourage producers to learn more about their loan servicing options. Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting your local USDA Service Center.

  • Fish Friendly Farming Certification Program Achieves Silver Level Benchmark Against SAI Platform Assessment

    The Fish Friendly Farming Certification Program has enrolled over 200,000 acres of farmland in California including the majority of vineyards in Napa, Sonoma and Mendocino counties. The Fish Friendly Farming program has now been benchmarked against SAI Platform’s Farm Sustainability Assessment version 3, at Silver Level. SAI Platform is a global non-profit organization working with its 150 members across the global food and drink industry to develop sustainable agriculture solutions through pre-competitive collaboration. SAI Platform aims to catalyze change and establish sustainable agriculture as a pre-requisite for doing business throughout the food and drink industry supply chain. Underpinning all of SAI Platform’s work are the Sustainable Agriculture Principles and Practices. These eleven sustainable agriculture principles provide a holistic framework and are interdependent, with best practices often benefiting several principles. These principles address: climate, land and soil, nature, water communities, legal compliance, livelihoods, working and living conditions, health and safety, markets and resources and animal welfare. They help SAI Platform prioritize activities and resources and form the foundation for the development of industry solutions and regional initiatives.

    One of the industry solutions developed by SAI Platform is the Farm Sustainability Assessment (FSA). It was developed in 2014 by the members, their suppliers, farmers, and external stakeholders as a tool for measuring and verifying on farm sustainability. It has been created and reviewed in keeping with the Sustainable Agriculture Principles and Practices. The Fish Friendly Farming Certification Program joins over 150 other systems, standards and certifications which have been benchmarked against the FSA. FSA 3.0 was released in April 2021.

    National Marine Fisheries Service certifier discussing farm plan with grower

    The benchmarking process involves scoring against the 109 questions of the FSA, as well as a consistency check by a SAI Platform-approved independent expert. This benchmark is an endorsement of the value that the Fish Friendly Farming Certification Program holds for addressing sustainability concerns on farm. It means that for any farmer using the Fish Friendly Farming Certification Program, the crops that they grow can be recognized at FSA Silver Level. Moreover, by-products derived from a supply chain that were successfully Fish Friendly Farming certified can now also be sold as FSA equivalent.

    Joe Iveson, FSA Manager at SAI Platform said: “Congratulations to Fish Friendly Farming on reaching FSA Silver Equivalence. This is a great achievement that reflects the certification’s commitment to promoting sustainable agricultural production.”

    A project of the Napa-based nonprofit, the California Land Stewardship Institute, Fish Friendly Farming (FFF) certifies growers on management practices that protect the health of their local watershed and the community. First developed in 1997, the initiative has since grown to more than 1,900 participating sites in 15 counties. This expansion reflects the growing interest, both among consumers and winegrowers themselves, in sustainable management practices.

    Laurel Marcus, Executive Director for FFF, admits that farmers have to comply with a complicated series of rules to achieve certification. “It is a very detail-oriented program, but that’s the way the environment and community are. It is a complex system, so you have to look at all the places a farm touches the environment that could cause an impact and how it affects the community and workers.”

    FFF visits the farms and works with farmers to collect information on assessing erosion and native vegetation. They note how drainage systems work, how vineyards are winterized and perform a complete road assessment. There is a labor and work force element, a business practices element and a green initiatives element. They look at wells, which chemicals are used and make sure farmers have legal water rights.

    All information collected by FFF during their assessment is put onto maps and templates which are read and accompanied by more on-site inspections by official governmental certifiers like the National Marine Fisheries Service and County Agricultural Commissioner. They inspect the site and can add requirements to the original farm plan. The farmer gets a list detailing what they need to do to implement their farm plan along with a time frame to get the work done. “Fish Friendly Farming has more rigorous standards and compliance is more difficult to achieve than other programs,” said Marcus. “It’s not just that a majority of vineyards in Napa, Sonoma and Mendocino counites are certified, it’s that they are certified to a very high standard.”

    “Through our role as an independent, third-party certifier for Fish Friendly Farming, we are able to work directly with hundreds of growers to assure stream conditions are improved for steelhead and salmon through water quality and habitat improvements,” said Joe Dillon, Water Quality Specialist with NOAA’s National Marine Service.

    The FFF program clearly resonates with Napa Valley grape growers. Julie Nord is the owner of Nord Vineyard Services and currently farms nearly 1,000 prime Napa Valley acres, selling grapes to over 60 ultra-premium wineries. “Our winery clients are focused on sustainability and our impact on the environment,” said Nord. “Fish Friendly Farming gives us ongoing help about farming in ways that best protect the environment. Once they even helped us obtain a grant to work on an erosion project. Their certification guarantees our clients that we are up to date on the latest regulations and that our vineyard practices protect fish, waterways, workers and the environment.”

    Constellation Brands, Wine & Spirits have had a long-standing association with Fish Friendly Farming dating back to early 2003. With over 1,800 acres currently certified against the program requirements, Fish Friendly continues to be an important contributor to ongoing sustainable practices across their Napa and Sonoma vineyard Operations.  “Fish Friendly Farming has provided our Napa and Sonoma vineyard teams with a practical framework focused on environmentally-beneficial land practices that are supportive of local ecosystems and the unique environment in which we conduct our business” said Matt McGinness, General Manager, Global Environmental Sustainability, Constellation Brands Wine & Spirits.

    Matt Crafton has worked at Chateau Montelena since 2008 and was named winemaker in 2014. He worked with Fish Friendly Farming to obtain certification for the winery’s vineyards. “Fish Friendly Farming is based on vetted science. It is a verified approach with clear cut goals,” he explained. “The team is very professional. They understand the farming, the viticulture, and they understand that the two goals of protecting our waterways and farming can be one and the same, especially with a high-quality, valuable crop like wine grapes. They do a fantastic job of making sure the practices that are beneficial to the fish are also beneficial to the vines, so you really have farmers and scientists and environmentalists all working together to the same goals.”

    “We are proud to have our vineyards certified Fish Friendly Farming, especially as the stewards of 360 acres in the Napa Valley as well as miles of the Napa River.  I appreciate the rigor of Fish Friendly Farming’s scientific approach.  From the environmental scientists on staff to the regulatory agencies they engage us with, every project and practice the California Land Stewardship Institute recommends is specific, results based, and enduring,” said Russ Weis, president Silverado Vineyards. He added, “Sustainability is all about making sure we celebrate more milestones like this.  We will continue to rely on Fish Friendly Farming’s practical and visionary guidance as we work to preserve our land for future generations.”

    The Fish Friendly Farming certification program not only benefits the local environment but is also a cost-effective, efficient management strategy for farmers.  Because of that, local growers have been practicing revegetation efforts along local creeks and streams that provide for cool shade that helps benefit fish.  In addition, the certification program calls for controlling erosion from roadways which improves water quality and stream flow.  And it requires fish screens on all water diversions, legally approved water rights and conserving water in the vineyard.  The program has implemented environmental improvements on more than 1120 miles of roads, 465 miles of creeks and 83 miles of rivers.  The grower must also demonstrate they follow all labor regulations and wage requirements and work to improve their employees lives through training and advancement.

    Fish Friendly Farming was previously associated with the Napa Green program of the Napa Vintners. However, the programs are now separate to better differentiate the environmental and social improvement certification of Fish Friendly Farming from the Napa Green marketing program.

    A listing of wineries who have all of their lands certified by Fish Friendly Farming reads like a Who’s Who of the California Wine Industry: Treasury, Sterling, Beaulieu Vineyards, Beckstoffer Vyds, Boeger Winery, Provenance, Beringer, Robert Mondavi Winery, Trinchero Family/ Sutter Home, Joseph Phelps Vineyards, Silverado Vineyards, Clif Family Winery, Cliff Lede Vineyards, Chateau Montelena Winery, Domaine Chandon, Domaine Carneros, Long Meadow Ranch, Hall Wines, Charles Krug Winery, Boisset Family Estates, Frog’s Leap Winery, Hess Collection, Saintsbury Winery, Schramsberg Vineyard, Silver Oak Cellars, Trefethen, Clos Du Bois, Simi Winery, Fetzer Vineyards, Bonterra Vineyards, Golden Vineyards, Roederer Estate, Duckhorn Wines, Francis Ford Copolla Wines, Foley Wine Group, Parducci Wines, Ridge Vineyards, V. Sattui and many others.  

  • $270 Million in Pandemic Assistance to Poultry, Livestock Contract Producers

    The U.S. Department of Agriculture (USDA) has begun issuing approximately $270 million in payments to contract producers of eligible livestock and poultry who applied for Pandemic Assistance. Earlier this year, USDA’s Farm Service Agency (FSA) identified gaps in assistance including in the initial proposal to assist contract growers. In August, USDA released the improved program for contract producers to fill these gaps, providing support as part of USDA’s broader Pandemic Assistance for Producers initiative.

    “We listened to feedback from producers and stakeholders about impacts across livestock and poultry operations and made updates to be more equitable in the assistance we delivered,” said FSA Administrator Zach Ducheneaux. “For contract producers this meant expanding eligibility and providing flexibility such as considering 2018 or 2019 revenue when calculating payments and accounting for contract producers who increased the size of their operation in 2020 or were new to farming when the pandemic hit. Filling these gaps and not letting underserved producers slip through the cracks is a common theme throughout our approach under our Pandemic Assistance for Producers initiative.”

    The Consolidated Appropriations Act, 2021, provided funding for payments to contract producers of eligible livestock and poultry for revenue losses from Jan. 1, 2020, through Dec. 27, 2020. Contract producers of broilers, pullets, chicken eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail were eligible for assistance, along with eligible breeding stock and eggs of all eligible poultry types produced under contract. Signup ran from Aug. 24, 2021, through Oct. 12, 2021.

    In total, the Coronavirus Food Assistance Program 2 (CFAP 2), of which assistance for contract producers is part, provided more than $18.8 billion to producers whose operations were impacted by the coronavirus pandemic. CFAP 2 had a fourfold increase in participation by historically underserved producers since the program reopened in April 2021. This highlights USDA’s commitment to increase outreach, education and technical assistance to historically underserved farmers and ranchers, including by investing $4.7 million to assist in targeted outreach for FSA programs.

    As USDA looks for long-term solutions to build back a better food system, the Department is committed to delivery of financial assistance to farmers, ranchers and agricultural producers and businesses who have been impacted by COVID-19 market disruptions. In addition to the funding USDA is issuing today, the Department has provided a broad range of support to America’s farmers and ranchers as part of its Pandemic Assistance for Producers initiative, including:

    A full list of Pandemic Assistance is available at www.farmers.gov/pandemic-assistance. USDA expects further Pandemic Assistance to continue to fill remaining gaps later this year.

  • 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.