California Ag Network

Tag: The U.S. Department of Agriculture

  • October USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for October 2023, effective Oct. 2, 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, 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 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.

    Disaster Support

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past 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

    The Inflation Reduction Act (IRA), a historic, once-in-a-generation investment and opportunity for the agricultural communities, 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. Since October 2022, USDA has provided approximately $1.5 billion in immediate assistance to more than 24,000 financially distressed direct and guaranteed FSA loan borrowers.

    FSA recently announced additional automatic assistance to guaranteed borrowers in August 2023.

    FSA is also accepting and reviewing individual requests for assistance from borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans or those who missed a recent installment or who are unable to make their next scheduled installment.

    For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.

    More Information

    To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other fam records data and customer information by logging in their farmers.gov account. If you don’t have an account, sign up today.

  • USDA Extends Deadline for Input on Crop Insurance Coverage for Prevented Planting

    The U.S. Department of Agriculture (USDA) is extending the deadline for its Request for Information to Oct. 12, 2023, to solicit public comments on possible changes to prevented planting crop insurance coverage. USDA’s Risk Management Agency (RMA) believes extending the deadline will enable additional time for comments and feedback from commenters and key stakeholders.

    “We received great feedback from our listening sessions throughout the country, and we want to ensure everyone has an opportunity to have their voice heard” said RMA Administrator Marcia Bunger. “We recognize that folks, particularly farmers, had a busy summer, and we will provide some extra time to submit comments.”

    The request for information seeks stakeholder input on prevented planting topics, specifically:

    • Harvest Price Option – Feedback on whether to allow the prevented planting payment calculations to be based on the higher of projected price or harvest price under the revenue protection plan of insurance.
    • “1 in 4” Rule – Input on the challenges or experiences since the rule was implemented nationwide (to be eligible for a prevented planting coverage acreage, a producer must have planted, insured, and harvested a crop in at least 1 out of the previous 4 crop years)
    • 10 percent additional coverage option – Input on if RMA should reinstate the option to buy-up prevented planting coverage by 10 percent.
    • Contract price – Whether prevented planting costs are higher for contracted crops and how prevented planting payments should be calculated for contract crops.
    • General topics – Willingness to pay additional premium for expanded prevented planting benefits, recommendations on other prevented planting limitations, etc.

    The request for information, which includes details for submitting feedback, is available in this Federal Register notice.

    In addition to the Request for Information, RMA held in-person and virtual listening sessions June through August to hear directly from producers. The in-person listening sessions were held in Arkansas, Arizona, California, Colorado, Indiana, Iowa, Michigan, New Mexico, North Dakota, Pennsylvania, South Carolina and Texas. RMA will accept written comments through its extended request for information until Oct. 12, 2023.

    Prevented planting insurance provisions provide valuable coverage when extreme weather conditions prevent expected plantings. Prevented planting is when a producer is unable to plant an insured crop due to an insurable cause of loss in time to grow a viable crop. Final planting dates and late planting periods are detailed in a producer’s crop insurance policy, and they vary by crop and location. Prevented planting coverage is intended to assist with normal costs associated with preparing the land up to the point of seed going into the ground (pre-plant costs).

    More Information

    Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator.Learn more about crop insurance and the modern farm safety net at rma.usda.gov or by contacting your RMA Regional Office.

  • USDA Accepting Applications for Agribusiness Trade Mission to Southeast Asia

    The U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to Malaysia and Singapore on Oct. 30-Nov. 3. USDA’s Foreign Agricultural Service is now accepting applications from U.S. exporters who wish to participate in the trade mission.

    “Malaysia and Singapore are important markets in our efforts to diversify prospects for U.S. food and agricultural exports in Southeast Asia. These markets provide both a source of stability for American exports and a tremendous opportunity to further expand U.S. trade in the region,” Taylor said. “Consumer demand for U.S. products in both Malaysia and Singapore are on the rise, making this agribusiness trade mission extremely timely. It gives U.S. exporters a wonderful opening to build and strengthen their relationships with local importers.”

    Trade mission participants will travel to Kuala Lumpur and Singapore, connecting with key importers and learning first-hand from government and industry leaders about local market conditions. They will also take part in one-on-one meetings with potential customers and have the opportunity to visit local retail stores and food manufacturers to round out the program.

    Malaysia relies on imports of many key agricultural products, including wheat, rice, protein meal, dairy products, beef, and most deciduous and citrus fruits. U.S. agricultural and related products exports to Malaysia reached $1.13 billion in 2022. Consumer-oriented products represent nearly half of the total U.S. food and agriculture exports to Malaysia, reflecting growing consumer demand and the burgeoning food service sector. Other U.S. products, including soybeans, processed fruits and, vegetables, tree nuts, and prepared foods also remain popular in the country. Malaysia is a major food processing hub, re-exporting throughout Southeast Asia and beyond.

    Singapore is an important logistical hub, hosting headquarters for many key buyers of agricultural and food products in the Asia-Pacific region. U.S. agricultural exports to Singapore grew 190 percent from 2012 to 2022, reaching a record $1.4 billion in 2022. Small and highly urbanized, Singapore depends on food imports from a wide variety of suppliers. Singapore classifies as a high-income country, providing a sophisticated market for many U.S. consumer-oriented products.

    For additional information about this and other USDA trade missions, visit https://fas.usda.gov/topics/trade-missions. To apply for the Southeast Asia agribusiness trade mission. The application deadline is August 2.

  • USDA Expands Crop Insurance Coverage Options for Specialty Crops  

    The U.S. Department of Agriculture (USDA) is expanding its insurance coverage options for specialty crops and other actual production history (APH) crop programs. Through its Risk Management Agency (RMA), it will expand the availability of enterprise units to crops where they were previously unavailable, giving agricultural producers greater options to manage their risk.

    An enterprise unit allows a producer to insure all acres of the insured crop in the county together, as opposed to other unit structures that separate the acreage for insurance. Enterprise units are attractive to producers due to lower premium rates offered to recognize the lower risk associated with the geographic diversification. In general, the larger the enterprise unit, the lesser the risk, and the greater the enterprise unit discount.

    “We want to make sure we are giving the nation’s agricultural producers the strongest risk management tools possible – and one of those is flexibility,” said Marcia Bunger, Administrator for the Risk Management Agency. “This expansion of enterprise units gives producers more choices for how they can protect their operations and themselves best. That is our ultimate goal.”

    This furthers RMA’s efforts to improve and expand the insurance program for specialty crops as required by the 2018 Farm Bill. Moreover, this expansion also meets producer requests for enterprise units for other APH crop insurance programs. The initial set of targeted crops can enjoy this new option when it becomes effective on June 30, 2023. RMA plans to expand to dozens more specialty and other APH crop programs with these benefits in the coming months.

    “This expansion of enterprise units provides more producers the same options for discounted insurance coverage as row crops,” Bunger added.

    The following crops will have enterprise units available beginning with the 2024 crop year:

    • Alfalfa seed
    • Cultivated wild rice
    • Forage production
    • Mint*
    • Onions*
    • Potatoes* (Enterprise units will be available in California for the 2025 crop year)

    *Specialty Crop

    More Information

    Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov or by contacting your RMA Regional Office.

  • USDA Accepting Applications for Chile Agribusiness Trade Mission

    The U.S. Department of Agriculture’s Foreign Agricultural Service is accepting applications from U.S. exporters for a trade mission to Santiago, Chile.

    During the week of September 25-29, U.S. agribusinesses will participate in business-to-business meetings with potential importers from both Chile and Peru. The trade mission will coincide with the USDA-endorsed Espacio Food and Service trade show, Chile’s major food show and a significant gateway to the Latin American market, offering additional networking opportunities for U.S. participants.

    “This year we are celebrating the 200th anniversary of U.S.-Chile diplomatic relations and today Chile and the neighboring Peru are some of our key trading partners, representing the second and third largest agricultural markets in South America,” said FAS Administrator Daniel B. Whitley. “With the Espacio Food and Service trade show taking place at the same time, the upcoming trade mission to Santiago provides a unique opportunity to expand U.S. agricultural exports to Chile and Peru even further.”

    In addition to conducting business-to-business meetings, the trade mission participants will also have an opportunity to receive detailed market briefings from FAS staff and local and regional industry experts. The event will include receptions and other opportunities to network, engagements with USDA leadership, and relevant site and retail visits in Santiago and the surrounding area.

    Total agricultural exports to these markets have grown significantly since the establishment of the Chile Free Trade Agreement and the Peru Trade Promotion Agreements and exceeded $2 billion in 2022. In January – April 2023, U.S. agricultural exports to Chile have increased by 4 percent compared to the same period in the prior year. The region offers a modern and dynamic food retail sector as well as relatively high per capita incomes and purchasing power. Strong opportunities exist for exporters across many sectors, including but not limited to:

    • Alcoholic beverages
    • Animal protein
    • Cheese
    • Consumer-oriented products
    • Dog and cat food
    • Ingredients for processing
    • Tree nuts
    • Wheat

    To apply, please complete the Santiago, Chile Agribusiness Trade Mission Application. The deadline to apply for the Chile trade mission is Wednesday, July 5th.

    This is the fourth USDA trade mission of 2023. FAS will also be leading trade missions later this year to Malaysia/Singapore and Angola. To learn more about the USDA trade missions, visit: Trade Missions | USDA Foreign Agricultural Service.

  • Nominations for Farmers and Ranchers to Serve on Local FSA Committees

    The U.S. Department of Agriculture (USDA) is now accepting nominations for county committee members for elections that will occur later this year. Additionally, USDA’s Farm Service Agency (FSA) is unveiling a new GIS tool to make it easier for producers to participate in the nomination and election processes for county committee members, who make important decisions on how federal farm programs are administered locally.

    All nomination forms for the 2023 election must be postmarked or received in the local FSA office by Aug. 1, 2023.

    “Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency, and they serve as the eyes and ears for the producers who elected them,” said FSA Administrator Zach Ducheneaux. “In order for county committees to be both effective and equitable in their decision-making at the local level, they must reflect the full diversity of American agriculture. I am excited that we have another opportunity through this year’s nominations and elections cycle to make our committees more inclusive, and in turn, better equipped to best serve all our customers. I encourage you to consider serving the farmers, ranchers and producers in your community on your local FSA county committee, and I thank you in advance for your public service.”

    Elections will occur in certain Local Administrative Areas (LAA) for members. LAAs are elective areas for FSA committees in a single county or multi-county jurisdiction and they may include LAAs that are focused on an urban or suburban area.

    Customers can locate their LAA through a new GIS locator tool available at fsa.usda.gov/elections.

    “Based on feedback from stakeholders, including the USDA Equity Commission, we are unveiling this new tool to make it easier for producers to effectively participate in the process,” Ducheneaux added.

    Agricultural producers may be nominated for candidacy for the county committee if they:

    • Participate or cooperate in a USDA program; and
    • Reside in the LAA that is up for election this year.

    A cooperating producer is someone who has provided information about their farming or ranching operation to FSA, even if they have not applied or received program benefits. Individuals may nominate themselves or others and qualifying organizations may also nominate candidates. USDA encourages minority producers, women and beginning farmers or ranchers to nominate, vote and hold office.

    Nationwide, more than 7,700 dedicated members of the agricultural community serve on FSA county committees. The committees are made up of three to 11 members who serve three-year terms. Committee members are vital to how FSA carries out disaster programs, as well as conservation, commodity and price support programs, county office employment and other agricultural issues.

    Urban and Suburban County Committees 

    The 2018 Farm Bill directed USDA to form urban county committees as well as make other advancements related to urban agriculture, including the establishment of the Office of Urban Agriculture and Innovative Production. FSA established county committees specifically focused on urban agriculture. The urban county committees will work to encourage and promote urban, indoor and other emerging agricultural production practices. Additionally, the new county committees may address areas such as food access, community engagement, support of local activities to promote and encourage community compost and food waste reduction.

    Urban committee members are nominated and elected to serve by local urban producers in the same jurisdiction. Urban county committee members will provide outreach to ensure urban producers understand USDA programs and serve as the voice of other urban producers and assist in program implementation that support the needs of the growing urban community.

    The 17 county committees for urban agriculture are located in:

    • Albuquerque, New Mexico
    • Atlanta, Georgia
    • Chicago, Illinois
    • Cleveland, Ohio
    • Detroit, Michigan
    • Dallas, Texas
    • Grand Rapids, Michigan
    • Los Angeles, California
    • Minneapolis-St. Paul, Minnesota
    • New Orleans, Louisiana
    • New York, New York
    • Oakland, California
    • Philadelphia, Pennsylvania
    • Phoenix, Arizona
    • Portland, Oregon
    • Richmond, Virginia
    • St. Louis, Missouri

    Learn more at farmers.gov/urban.

    More Information 

    Producers should contact their local FSA office today to register and find out how to get involved in their county’s election, including if their LAA is up for election this year. To be considered, a producer must be registered and sign an FSA-669A nomination form. Urban farmers should use an FSA-669-A-3 for urban county committees. These forms and other information about FSA county committee elections are available at fsa.usda.gov/elections.

    Election ballots will be mailed to eligible voters beginning Nov. 6, 2023.

    To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • USDA Invites Input on Crop Insurance Coverage for Prevented Planting

    The U.S. Department of Agriculture (USDA) published a Request for Information today, announcing public listening sessions and soliciting public comments on possible changes to prevented planting crop insurance coverage.  Coinciding with the public comment period, USDA’s Risk Management Agency (RMA) will hold in-person and virtual listening sessions June through August. This includes in-person listening sessions in Arkansas, Arizona, California, Colorado, Indiana, Michigan, New Mexico, North Dakota, Pennsylvania, South Carolina and Texas. Meanwhile, RMA will accept written comments through its request for information until September 1.

    “We truly care what our customers – the Nation’s agricultural producers – have to say. That’s why we’re hosting listening sessions in 11 states in addition to accepting written comments,” said RMA Administrator Marcia Bunger. “We listen to their needs so that we can adapt, improve, and help them manage their risks and provide better opportunities to protect their operations.”

    The request for information on prevented planting requests input on prevented planting topics to include:

    • Harvest Price Option – Feedback on whether to allow the prevented planting payment calculations to be based on the higher of projected price or harvest price under the revenue protection plan of insurance.
    • “1 in 4” Rule – Input on the challenges or experiences since the rule (to be eligible for a prevented planting coverage acreage must have been planted to a crop, insured, and harvested in at least 1 out of the previous 4 crop years) was implemented nationwide.
    • 10 percent additional coverage option – Input on if RMA should reinstate the option to buy-up prevented planting coverage by 10 percent.
    • Contract price – Whether prevented planting costs are higher for contracted crops and how prevented planting payments should be calculated for contract crops.
    • General – Willingness to pay additional premium for expanded prevented planting benefits, recommendations on other prevented planting limitations, etc.  

    RMA will hold a virtual listening session via Microsoft Teams on June 8 and at least a dozen in-person sessions over the next few months. Additional details on the listening sessions are available on the RMA website.

    The request for information, which includes details for submitting feedback, is available in this Federal Register notice.

    Prevented planting insurance provisions provide valuable coverage when extreme weather conditions prevent expected plantings. Prevented planting is when a producer is unable to plant an insured crop due to an insurable cause of loss in time to grow a viable crop. Final planting dates and late planting periods are detailed in a producer’s crop insurance policy, and they vary by crop and location. Prevented planting coverage is intended to assist with normal costs associated with preparing the land up to the point of seed going into the ground (pre-plant costs).

    More Information

    Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov or by contacting your RMA Regional Office.

  • Assistance to Help Organic Dairy Producers Cover Increased Costs

    The U.S. Department of Agriculture (USDA) announces assistance for dairy producers with the new Organic Dairy Marketing Assistance Program (ODMAP). ODMAP is established to help mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. Specifically, under the ODMAP, USDA’s Farm Service Agency (FSA) is making $104 million available to organic dairy operations to assist with projected marketing costs in 2023, calculated using their marketing costs in 2022.

    “Organic dairy producers have faced significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic grain and forage commodities,” said FSA Administrator Zach Ducheneaux. “Without assistance, many organic dairies, particularly small organic dairies, will cease production, which not only impacts the domestic supply and consumption of organic milk but also the well-being of many rural communities across the country. This program will keep our small organic dairies in operation as they continue to weather a combination of challenges outside of their control.”

    FSA will begin accepting applications for ODMAP on May 24, 2023. Eligible producers include certified organic dairy operations that produce milk from cows, goats and sheep.

    Adam Warthesen, co-chair of the Organic Trade Association’s Organic Feedstuffs Relief Task Force, and Senior Director of Government and Industry Affairs for Organic Valley said: “With unprecedented organic feed costs and inflationary pressures over the last couple of years, resources like ODMAP are really going to matter as farmers plan for the rest of this year.”

    Britt Lundgren, Senior Director of Sustainability and Government Affairs at Stonyfield, said: “The costs facing organic dairy today are uncommon and putting serious strain on operations. USDA is right to step in and offer support, and this is a good first step. The alternative is we lose family farmers. We look forward to working with USDA to cover more of the actual costs organic dairies are facing.”

    Lia Sieler, Executive Director of Western Organic Dairy Producers Alliance, said: “We welcome the monetary resources allocated to dairy farmers through ODMAP with much anticipation. Input costs have been at an unprecedented high with no foreseeable changes and farmers are struggling to keep up with these high costs at their current pay price for the specialty products they produce. Farmers are struggling to continue producing a quality, safe and nutritious product with the current costs of doing business. We thank USDA with the help of many members of Congress for stepping in, hearing our voices and working diligently to get money pushed out as quick as possible to help alleviate some of this pain. Our work is not done, but this is a major win for our industry in a time of such uncertainty.”

    Chris Adamo, Vice President of Public Affairs and Regenerative Agriculture Policy with Danone North America, said: “Recent increases to cost of feed and overall inputs have significantly impacted organic dairy farms, and on behalf of Horizon Organic, we are grateful for USDA’s thoughtful work and strong support for the farms that supply our customers’ milk.”

    How ODMAP Works

    FSA is providing financial assistance for a producer’s projected marketing costs in 2023 based on their 2022 costs. ODMAP provides a one-time cost-share payment based on marketing costs on pounds of organic milk marketed in the 2022 calendar year.

    ODMAP provides financial assistance that will immediately support certified organic dairy operations during 2023 keeping organic dairy operations sustainable until markets return to more normal conditions.

    How to Apply

    FSA is accepting applications from May 24 to July 24, 2023. To apply, producers should contact FSA at their local USDA Service Center. To complete the ODMAP application, producers must certify to pounds of 2022 milk production, show documentation of their organic certification, and submit a completed application form.

    Organic dairy operations are required to provide their USDA certification of organic status confirming operation as an organic dairy in 2023 and 2022 along with the certification of 2022 milk production in hundredweight.

    ODMAP complements other assistance available to dairy producers, including Dairy Margin Coverage (DMC) and Supplemental DMC, with more than $300 million in benefits paid for the 2023 program year to date.  Learn more on the FSA Dairy Programs webpage

    More Information

    To learn more about USDA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and other programs by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • $130 Million in USDA Assistance to Help Farmers Facing Financial Risk

    The U.S. Department of Agriculture (USDA) today announced that nearly $130 million in additional, automatic financial assistance has been obligated for qualifying farm loan program borrowers who are facing financial risk. The announcement is part of the $3.1 billion to help distressed farm loan borrowers that was provided through Section 22006 of the Inflation Reduction Act (IRA).

    Since the IRA was signed by President Biden in August 2022, including the payments announced today, USDA is providing approximately $1.1 billion in immediate assistance to more than 20,000 distressed borrowers.

    “Through the Inflation Reduction Act, Congress directed USDA to deliver financial assistance to distressed farm loan borrowers as quickly as possible, and that is what we are delivering to help producers across the country stay on their land,” said Agriculture Secretary Tom Vilsack. “USDA is hard at work to provide our most vulnerable producers the opportunity to generate long-term stability and success. Our goal is to make sure we provide producers access to the tools they need to help get back to a financially viable path and ultimately succeed as thriving agricultural businesses.”

    Borrowers who received these automatic payments include Farm Service Agency (FSA) direct loan borrowers whose interest exceeded principle owed on outstanding debts; borrowers who had a balance up to 60 days past due as of Sept. 30, 2022 and remained delinquent; and borrowers with a recent restructure between Feb. 28, 2020, through March 27, 2023, or who had accepted an offer to restructure on or before March 27, 2023, but had not yet closed that restructure.

    Individual Applications for Farmers Seeking Assistance

    In May, FSA will begin accepting and reviewing individual distressed borrower assistance requests from direct loan borrowers who missed a recent installment or are unable to make their next scheduled installment. All FSA borrowers should have received a letter detailing the process for seeking this type of assistance even before they become delinquent. As the letter details, borrowers who are within two months of their next installment may seek a cashflow analysis from FSA using a recent balance sheet and operating plan to determine their eligibility.  Also in May, FSA borrowers will receive a letter detailing a new opportunity to receive assistance if they took certain extraordinary measures to avoid delinquency on their loans, such as taking on or refinancing more debt, selling property, or cashing out retirement or college savings accounts. FSA also plans to begin working through these types of cases in May.

    As USDA learns more about the types of situations financially distressed farmers are facing, the Department will continue to update borrowers and the public about new eligibility criteria. USDA will also provide regular updates about its progress in deploying this funding to farmers who need it.

  • May USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for May 2023, which are effective May 1, 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 May 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.

    Disaster Support

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past 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 March 2023, FSA announced that, in the coming weeks, the agency would begin the process of providing approximately $123 million in additional, automatic financial assistance to farm loan program borrowers who are facing financial risk. This assistance will include:

    • Assistance to direct loan borrowers who were past due on a qualifying direct loan as of Sept. 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 Feb. 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.