California Ag Network

Tag: rural development

  • Secretary Rollins Blocks Taxpayer Dollars for Solar Panels on Prime Farmland

    U.S. Secretary of Agriculture Brooke L. Rollins alongside Tennessee Governor Bill Lee, Senator Marsha Blackburn, Senator Bill Hagerty, Representative John Rose, and U.S. Department of Agriculture (USDA) Deputy Secretary Stephen Vaden, recently announced USDA will no longer fund taxpayer dollars for solar panels on productive farmland or allow solar panels manufactured by foreign adversaries to be used in USDA projects. Subsidized solar farms have made it more difficult for farmers to access farmland by making it more expensive and less available. Within the last 30 years, Tennessee alone has lost over 1.2 million acres of farmland and is expected to lose 2 million acres by 2027. This problem is not just in Tennessee, since 2012, solar panels on farmland nationwide have increased by nearly 50%. That is why the Department is taking action.

    “Our prime farmland should not be wasted and replaced with green new deal subsidized solar panels. It has been disheartening to see our beautiful farmland displaced by solar projects, especially in rural areas that have strong agricultural heritage. One of the largest barriers of entry for new and young farmers is access to land. Subsidized solar farms have made it more difficult for farmers to access farmland by making it more expensive and less available,” said Secretary Brooke Rollins. “We are no longer allowing businesses to use your taxpayer dollars to fund solar projects on prime American farmland, and we will no longer allow solar panels manufactured by foreign adversaries to be used in our USDA-funded projects.”

    “Tennesseans know that our farmland is our national security, our economic future, and our children’s heritage. We were honored to welcome Secretary Rollins to Tennessee this week, and I’m grateful for her leadership to defend America’s farmland from foreign adversaries and protect our food supply,” said Tennessee Governor Bill Lee.

    “Tennessee farmland should be used to grow the crops that feed our state and country, not to house solar panels made by foreign countries like Communist China,” said Senator Blackburn. “Secretary Rollins and President Trump are right to put an end to these Green New Deal subsidies that waste taxpayer dollars while threatening America’s food security. I applaud this administration for investing in rural communities across Tennessee and empowering them to prosper for years to come.”

    “Competition is the American way. As a business owner, I know well the importance of fighting for your spot in the free market. It sparks innovation and often drives down costs for consumers. By leveling the playing field, USDA Secretary Brooke Rollins is ensuring an abundant energy future for Tennessee and beyond,” said Representative John Rose (TN-06).

    “Secretary Rollins understands that food security is national security, and preserving prime farmland for agricultural production is a key component of protecting our food supply. I look forward to working with her and this Administration to ensure any incentives for renewable energy projects have commonsense safeguards in place that provide options for producers while protecting our most productive farmland,” said House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15).

    “I strongly support Secretary Rollins’ action today implementing President Trump’s executive order de-prioritizing undependable energy sources, and protecting our prime farmland for much/needed food production. Ending wasteful taxpayer Green New Scam subsidies that have driven up energy costs and taken farmland out of production are long overdue. This action protects farmland so important to our Eastern Shore economy, strengthens American agriculture, and puts our energy independence first,” said Representative Andy Harris (MD-01).

    “The land that feeds America should never be sacrificed for unreliable green energy experiments subsidized by taxpayer dollars. With this action, the USDA is making it clear that agriculture, not foreign-made solar panels, belongs on America’s farmland. This step ensures our land, food supply, and rural traditions are protected for generations to come,” said Representative Tom Tiffany (WI-7).

    “We shouldn’t be subsidizing solar projects on prime farmland, that land is too valuable for producing the food and fuel our nation depends on. Secretary Rollins is right to step in and make sure taxpayer dollars aren’t used to take our best farmland out of production, and I strongly support stopping the use of solar panels made by foreign adversaries like China. I’m proud to see that the Trump Administration continues to be committed to protecting American agriculture and standing up to China,” said Representative Mike Bost (IL-12).

    “There is no such thing as a solar farm. It is a waste of one of our most precious resources, our land. The extortion of the American taxpayers through solar subsidies, and the destruction of our farm and forest resources, has gone on for far too long. I commend Secretary Rollins for taking action to keep taxpayer dollars from being wasted on solar panels, purchased from our adversaries like China, and to no longer allow these unaffordable “green” projects to waste space on our American farmland and destroy our forest and wildlife habitat,” said Representative Austin Scott (GA-08).

    “For too long, Washington bureaucrats and foreign adversaries have tried to dictate how we use our land and our resources. Taxpayers should never be forced to bankroll green new deal scams that destroy our farmland and undermine our food security. I applaud President Trump and Secretary Rollins for standing up for America’s farmers and ranchers by ensuring our prime farmland is protected from foreign adversaries and our taxpayer dollars are spent wisely. Our agricultural heritage is the backbone of this nation, and these commonsense reforms put food security, national security, and American sovereignty first,” said Representative Harriet Hageman (WY-AL).

    “The Trump Administration is continuing to listen to those at home who were struggling under the previous administration’s Green New Scam. It’s been proven time and time again that subsidies negatively impact market pricing, passing the cost directly to consumers. I applaud the work of the USDA protecting national security, prioritizing American products first, and amplifying an all-of-the-above energy approach,” said Congressman Ralph Norman (SC-05).

    “Green New Deal subsidies have distorted the energy market and supplanted American farmland. USDA is taking decisive action which complements policies I supported in the One Big Beautiful Bill Act, ending the misuse of taxpayer dollars and upholding our national security interests in energy infrastructure. I appreciate Secretary Rollins’ leadership in restoring common sense to these USDA programs,” said Representative Adrian Smith (NE-03).

    Protecting American Farmland:

    This action will rapidly eliminate the market distortions and costs imposed on taxpayers by reducing energy subsidies and builds upon the repeal of and modifications to wind, solar, and other “green” energy tax credits in the One Big Beautiful Bill Act. It will further USDA’s determination to end taxpayer support for unaffordable and unreliable “green” energy sources and ensure the supply chain consists of American products and manufacturing.

    Effective immediately, USDA will implement the following programmatic actions:

    • For the USDA Rural Development Business and Industry (B&I) Guaranteed Loan Program wind and solar projects are not eligible.
    • For the USDA Rural Development Rural Energy for America Program Guaranteed Loan Program (REAP Guaranteed Loan Program), USDA will ensure that American farmers, ranchers and producers utilizing wind and solar energy sources will install units that are right-sized for their facilities. If project applications include ground mount solar photovoltaic systems larger than 50kW or ground mount solar photovoltaic systems that cannot document historical energy usage, they will no longer be eligible for the REAP Guaranteed Loan Program, and priority points will no longer be given for REAP grants.

    USDA Rural Development invests in rural America with loan, grant, and loan guarantee programs to promote rural prosperity. The commitment and resources we bring to rural communities help drive economic security and prosperity. Our programs expand access to high-speed internet, electric, and transportation infrastructure, and support business growth, healthcare, education, housing, and other community essentials. Learn more online at www.rd.usda.gov.

  • Golden State Farm Credit Awards Over $15,000 in Scholarships

    Golden State Farm Credit (GSFC) is proud to announce that it has awarded more than $15,000 in academic scholarships to outstanding high school seniors and college students pursuing degrees in agriculture. These scholarships reflect GSFC’s ongoing commitment to investing in the future of rural communities and supporting the next generation of agricultural leaders.

    Each year, GSFC recognizes and supports students who reside within its service area, including Butte, Glenn, Tehama, Shasta, Trinity, Fresno, Kings, and Tulare counties, or are children of GSFC customers. Recipients must demonstrate academic excellence, leadership potential, and a strong commitment to agriculture and can receive awards ranging from $500 to $1,500 to support their education at two-year and four-year colleges.

    “Our scholarship recipients are the future of agriculture,” said Rob Faris, President and CEO of Golden State Farm Credit. “By supporting their education, we’re not only investing in individual students but also in the long-term sustainability of agriculture in California.”

    The scholarship program is one of many ways GSFC works to strengthen rural economies and encourage youth to pursue careers in the agricultural industry. In addition to academic scholarships, GSFC supports youth in agriculture by purchasing livestock at county fairs, offering a summer internship program, and providing interest-free youth loan opportunities for junior livestock exhibitors. These initiatives underscore the cooperative’s mission to develop future ag leaders and strengthen rural communities.

    Applications for the scholarship program open annually in January. Interested applicants are encouraged to visit GSFC’s website to apply for the 2026 cycle.v

    For a full list of 2025 scholarship recipients, see the following:

    About GSFC:

    Golden State Farm Credit (GSFC) is a lending institution of the Farm Credit System with offices in Northern and Central California that service the counties of Butte, Glenn, Tehama, Shasta, Trinity, Fresno, Kings and Tulare. The GSFC administrative office is located at 3013 Ceres Avenue, Chico, CA 95973. The Farm Credit System (System) is a nationwide network of borrower-owned lending institutions that provides loans, leases, and related services to farmers, ranchers, rural homeowners, agribusiness, agricultural and rural utility cooperatives, and Young, Beginning and Small Farmers nationwide. Congress established the System in 1916 to provide a reliable source of credit for the nation’s farmers and ranchers. Today, the System provides more than one-third of the credit needed by those who live and work in rural America.

    For more information about Golden State Farm Credit, call (530) 895-8698 or visit us online at www.goldenstatefarmcredit.com.

  • Shrinking Labor Force Threatens US Economic Growth

    Declining labor force participation, lower birth rates and a collapse in net migration are combining to squeeze the U.S. labor supply. The looming labor shortage could begin to weigh on businesses and strain economic growth as soon as later this year, according to a new quarterly report from CoBank’s Knowledge Exchange. With the labor supply about to get tighter, businesses and industries operating in rural America should be increasing their focus on technology to overcome labor availability challenges.

    “Barring an unforeseen change in labor force participation rates or immigration policies, the pool of available workers is set to shrink precipitously in the next few years,” said Rob Fox, director of CoBank’s Knowledge Exchange. “The problem will be even more acute in states with lower population growth in the Upper Midwest, Corn Belt and the Central Plains. Increased adoption of technology, namely AI and robotics, will likely be at the core of any strategy to address the oncoming labor squeeze.”

    The labor force participation rate has trended downward since 2000, and the trend may be accelerating. Nearly 2.5 million working-aged people dropped out of the labor force in the past eight months alone. The U.S. fertility rate has plummeted since the Great Financial Crisis in 2008, reducing the number of native-born citizens entering the workforce. The loss of those new workers coincides with baby boom generation retirements, amplifying the impact on the overall labor supply. Those two factors, combined with more restrictive immigration policies and aggressive deportation efforts, will put significant stress on the U.S. labor supply with the potential to impede economic growth.

    U.S. Economy

    While the economy appears to be running well as evidenced by low unemployment and easing inflation concerns, consumer sentiment remains historically low. A major reason for the sour mood among consumers is the escalating cost of housing. The monthly cost of homeownership in the U.S. rose 60% between 2021 and 2024 and there is little hope of improvement anytime soon. Rising unaffordability of homes has driven the homeownership rate lower for the first time since the aftermath of the 2008 subprime mortgage crisis. For homebuilders, the economic situation and outlook are equally painful. New single-family housing starts have dropped by 16% over the last three months and the index of publicly traded homebuilders is down about 30% since late 2024.

    U.S. Government Affairs

    President Trump scored a major legislative victory with the passage of the One Big Beautiful Bill Act. As with all budget reconciliation efforts, politics took center stage – and this one may have caused the deepest political rift in a decade. Fights over the farm program policy and funding addressed in the OBBBA left the traditional farm bill coalition in Congress fractured, and longstanding industry alliances in doubt. Farmers and ranchers still walked away with significant wins. But rural economic development programs were cut or left out entirely, and domestic food assistance received its largest funding cut in history. In all, total farm bill program funding took a nearly $200 billion hit.

    Grains, Farm Supply & Biofuels

    Favorable growing conditions in the U.S. and South America are pressuring corn prices, which fell 7% last quarter on the prospects for a record U.S. harvest this fall. Export demand for old-crop U.S. corn and soybeans remains strong, but new-crop export sales are sluggish amid ongoing trade uncertainty. Sales of new-crop soybeans are historically low due to the lack of Chinese demand. The U.S. winter wheat harvest on the Plains has been hampered by heavy rains, but crop yields are set to be the best in years. U.S. wheat stocks available for blending were up 22.1% year-over-year as of June 1.

    Agriculture retailers and farm supply cooperatives enjoyed strong spring agronomy sales due to good weather conditions and increased corn acres. However, pre-sales for the 2026 growing season are projected to soften due to tariff uncertainty, higher interest rates and farmer profitability constraints. As farmers look to minimize losses, many may choose to limit chemical applications. Agriculture retailers are delaying buying decisions and inventory builds due to higher input prices. USDA’s latest cost of production estimates show no relief in sight and a slight increase from 2025 into 2026.

    Lingering uncertainty surrounding U.S. biofuels policy continues to cast a shadow on the outlook for production and demand. Renewable volume obligations, small refinery exemptions and the 45Z Clean Fuel Production Tax Credit are the three legs the biofuels industry will be balancing on as the year progresses. Soybean oil may be the winner in EPA’s proposed RVO change, as it likely shifts more domestic soybean oil to be used for biofuels. EPA indicated it would make its determination of small refinery exemptions by release of the final RVO rule at the end of October which will also impact overall biofuels demand.

    Animal Protein & Dairy

    Record high beef cattle prices continue to support strong margins for cow-calf producers and feedlot operators, while squeezing packers. Calf prices hit a record $405 per cwt. in May, up 25% year-over-year. Tight supplies have pushed feeder and fed cattle futures up at a similar pace. Feeder cattle futures for the nearby August contract were trading at $302 per cwt., up 18% from a year ago. The supply of Prime and Choice graded beef is at its highest level since 1988, as U.S. beef producers have focused on improving meat quality to effectively boost demand.

    Domestic and international demand for pork is gaining momentum with the start of grilling season and lower cold storage inventories. Hog prices have jumped significantly through June. Lean hog futures on the CME surpassed $112 per cwt. in June, the highest since July 2022. The pork carcass cutout value rose to average $103 per cwt. in the second quarter. Inventories of pork in cold storage were down 7% year-over-year, signaling strong international demand for U.S. pork. Domestically, new marketing campaigns are promoting pork’s taste and flavor, encouraging an upward move in prices for producers.

    The U.S. broiler sector entered 2025 well positioned to serve the restaurant industry’s desire to show consumers an inflation-busting animal protein offering. Promotional activity and new chicken menu items throughout the quick service restaurant sector are meeting consumer demand for a value-added meal. Production of eggs and broiler meat are improving and setting new records to help meet the growing demand. Broiler prices have seen an extraordinary boost from value-added product interest. Seasonal market pressure is likely as the year progresses, but demand should remain relatively stable.

    The U.S. dairy herd is continuing to grow with 90,000 cows added since January. Most of that growth has occurred in Texas, Idaho, Kansas and South Dakota, all states with new dairy processing assets coming online. Producer margins have been favorable enough for dairy farmers to retain cows for milk production rather than sending them to slaughter to capture record beef prices. U.S. milk production increased by 1.6% year-over-year in May, the highest monthly growth in over two years. Strong production has pushed butter exports to reach 87% of last year’s total through May.

    Cotton, Rice & Sugar

    Expectations for the second smallest U.S. cotton crop in 10 years have lifted cotton prices, but not enough to cover farmers’ cost of production. Following two years of drought and disappointing yields, U.S. cotton farmers on the Plains are expected to enjoy bigger yields this year but on a much smaller planted acreage. U.S. Department of Agriculture expects planted acreage for the 2025/26 crop to fall 9.5% to 10.1 million acres. Persistent pressure from a record Brazilian cotton harvest and uncertainty over trade policy with China, continue to limit prices from climbing to profitable levels for U.S. farmers.

    Inclement weather during planting season in southern parts of the U.S. curbed long-grain rice acres while medium-grain acreage in California rebounded as rejuvenated reservoirs allowed farmers to irrigate more acreage. The shortfall in long-grain rice will impair the U.S. exports program and domestic millers will compete for scarcer bushels. Global rice prices continue to struggle under the weight of a flood of rice released from record Indian stockpiles. Strong U.S. exports of medium-grain rice, particularly to Japan, are a bright spot for U.S. rice farmers.

    Sugar demand faces a multitude of headwinds, including widespread usage of GLP-1 dietary medications reducing consumer demand for snack foods. World and U.S. sugar prices fell last quarter as a result of softening demand. Sugar manufacturers note consumer packaged goods companies have reduced forward bookings, resulting in higher-than-normal inventories. Globally, lower fuel and ethanol prices have caused raw sugar mills to send sugar to the export market rather than to ethanol producers, increasing global sugar supplies.

    Food & Beverage

    Food and beverage brands are reporting less-than-stellar earnings in the most recent quarter, with companies from PepsiCo to Kraft Heinz lowering their fiscal year guidance. Others are taking a wait-and-see approach to the impact of tariffs and higher prices on their overall performance. KPMG’s April 2025 consumer survey found 69% of consumers are eating more at home, with 85% of those citing budget constraints. Restaurants are feeling the shift in consumer spending. Virtually all major chains in the country have experienced notable declines in recent quarters. Restaurants laser-focused on delivering value have had the best success in recent months.

    Power & Digital Infrastructure

    Given geopolitical unrest following the U.S. strikes on Iranian nuclear facilities, U.S. energy security and the strategic petroleum reserve have received surprisingly little attention. The U.S. is now a net oil exporter, leading some to question whether the U.S. should have a strategic reserve at all. However, calls for the dismantling of the SPR are likely misplaced. While the shale revolution offers an important buffer, the nation’s petroleum reserve remains a critical national security asset, providing additional speed and agility when oil supply is scarce. Keeping the SPR at historic low levels limits response options to future events and risks greater consumer price exposure.

    Recent changes to the Broadband Equity, Access and Deployment program mark a shift away from the Biden administration’s “fiber-first” strategy. Under the new rules, fixed wireless and satellite technologies will now have greater access to BEAD funding provided they meet minimum performance benchmarks. This new direction introduces both strategic opportunities and competitive threats for rural broadband providers. Operators that choose not to participate in BEAD may find themselves vulnerable to government-funded fixed wireless competitors. Alternatively, rural internet service providers can go on the offense and pursue BEAD funding to expand their own footprints, especially in areas where fixed wireless is eligible.

    Read The Quarterly. Each CoBank Quarterly provides updates and an outlook for the Macro Economy and U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Cotton and Rice; Specialty Crops; Food & Beverage industries and Rural Infrastructure.

    About CoBank

    CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 78,000 farmers, ranchers and other rural borrowers in 23 states around the country. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.