California Ag Network

Tag: USDA

  • Preliminary 2023 Grape Crush Report Reveals Slight Increase from 2022

    The USDA National Agricultural Statistics Service released the preliminary California Grape Crush Report at noon on February 10th, revealing a total 2023 crush of 3,728,923 tons, up 1.6% from the 2022 crush of 3,670,861 tons. Red wine varieties accounted for the largest share of all grapes crushed, at 1,959,024 tons, up 2.3% from 2022. White wine varieties crushed totaled 1,709,270 tons, up 15.3% from 2022. Tons crushed of raisin type varieties totaled 43,621, down 58.9% from 2022, and tons crushed of table type varieties totaled 17,008, down 89.9% from 2022.

    The Grape Crush Report includes the total number of tons crushed for concentrate production. In determining grape tonnage crushed for concentrate production, each processor was required to report the estimated equivalent tons of grapes crushed for grape concentrate. For the 2023 season, this total was 282,343 tons, 7.6% of the 2023 grape crush total. This report provides only the aggregate figure for grapes crushed for concentrate production and does not include information by district, type, or variety.

    The 2023 average price of all varieties was $1,038.97, up 11.4% from 2022. Average prices for the 2023 crop by type were as follows: red wine grapes, $1,346.13, up 13.6% from 2022; white wine grapes, $733.33, up 6.4% from 2022; raisin grapes, $285.60, down 7.7% from 2022; and table grapes, $195.57, down 8.7% from 2022.

    LEADING GRAPE VARIETIES AND DISTRICTS

    In 2023, Chardonnay continued to account for the largest percentage of the total tonnage crushed at 17.5%. Cabernet Sauvignon accounted for the second largest percentage of the total crush at 17.3%. Raisin grape varieties crushed for wine accounted for 1.2% of the total crush and table varieties crushed for wine were .5% of the total crush.

    District 13 (Madera, Fresno, Alpine, Mono, Inyo Counties; and Kings and Tulare Counties north of Nevada Avenue (Avenue192)), had the largest share of the State’s crush at 1,032,365 tons. The average price per ton in District 13 was $344.08.

    Grapes produced in District 4 (Napa County) received the highest average price at $6,943.33 per ton, up 3.7% from 2022. District 3 (Sonoma and Marin counties) received the second highest average price at $2,915.82 per ton, up 2.9% from 2022.

    The 2023 Chardonnay average price of $1,070.81 was up 4.0% from 2022 and the Cabernet Sauvignon average price of $2,141.17 was up 9.5% from 2022. The 2023 average price for French Colombard was $318.06, down 3.2% from 2022, while the Zinfandel average price was up 15.1% from 2022, at $757.23 per ton.

    Read more details from the USDA National Agricultural Statistics Service HERE, and read an in-depth report on the 2023 Crush in the March issue of American Vineyard Magazine.

  • USDA Temporarily Suspends Continuance Referendum Requirement for California Raisins

    The U.S. Department of Agriculture (USDA) is announcing the temporary suspension of the continuance referendum requirement under the federal marketing order regulating the handling of raisins produced from grapes grown in California.

    This action suspends the continuance referendum requirement while USDA conducts formal rulemaking to amend the marketing order. The suspension will remain in place until Nov. 26, 2029.

    The final rule was published in the Federal Register on Jan. 23, 2024. An interim final rule was published in the Federal Register on Oct. 16, 2023. AMS received one comment in support of the rule. Accordingly, no changes were made from the interim final rule to the final rule published.

    More information about the marketing order regulating the handling of raisins produced from grapes grown in California is available on the 989 raisins webpage on the Agricultural Marketing Service (AMS) website.

    Authorized by the Agricultural Marketing Agreement Act of 1937, marketing orders are industry-driven programs that help producers and handlers achieve marketing success by leveraging their own funds to design and execute programs that they would not be able to do individually. AMS provides oversight to fruit, vegetable and specialty crops marketing orders and agreements to help ensure fiscal accountability and program integrity.

  • Public Hearing in February on Proposed Amendments to California Raisins Marketing Order

    The U.S. Department of Agriculture (USDA) announced it will hold a public hearing on proposed amendments to the federal marketing order for California raisins Feb. 13-14, 2024, from 9 a.m. to 5 p.m. PT at the Raisin Administrative Committee offices in Fresno, California.

    The committee, which locally administers the marketing order, recommended the following amendments:

    • Reduce membership from 47 to 21.
    • Eliminate the designated cooperative bargaining association member seat.
    • Lower quorum requirements from 25 to 14.
    • Remove producer district representation.
    • Remove the requirement for separate member and alternate nominations for independent or small cooperative producers.
    • Remove two factors for establishing marketing policy.
    • Add language to clarify the quality of reconditioned raisins.
    • Add authority to accept voluntary contributions.
    • Add language regarding ownership of intellectual property.

    The hearing will continue, if necessary, until all amendments have been addressed. USDA will conduct a producer referendum if the hearing record favors the proposed amendments.

    The hearing will provide all interested persons an opportunity to speak in support of or in opposition to the proposals and for USDA to receive such evidence on the record. People may also file briefs after the hearing, and file exceptions to any recommended decision that may be issued.

    All attendees are required to make a notice of appearance on the record. All persons wishing to submit written material as evidence at the hearing should be prepared to submit multiples copies of such material during the hearing.

    Hearing details:

    Date:               Feb. 13-14, 2024

    Time:              9 a.m. to 5 p.m. PT

    Location:        Raisin Administrative Committee offices

    2445 Capitol Street, Suite 200, Fresno, California

    The hearing notice was published in the Federal Register on Jan. 12, 2024.  Copies may be obtained from Christy Pankey, Marketing Specialist, or Matthew Pavone, Chief, Rulemaking Services Branch, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email: Christy.Pankey@usda.gov or Matthew.Pavone@usda.gov.

    Authorized by the Agricultural Marketing Agreement Act of 1937, marketing orders are industry-driven programs that help producers and handlers achieve marketing success by leveraging their own funds to design and execute programs that they would not be able to do individually. AMS provides oversight to fruit, vegetable and specialty crops marketing orders to ensure fiscal accountability and program integrity.

  • $207 Million Announced for Clean Energy and Domestic Fertilizer Projects to Strengthen American Farms and Businesses

    U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is investing $207 million in renewable energy and domestic fertilizer projects to lower energy bills, generate new income, create jobs, and strengthen competition for U.S. farmers, ranchers and agricultural producers. Many of the projects are being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis.

    The announcement was made by Secretary Vilsack at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. This funding advances President Biden’s Investing in America and Bidenomics agenda to grow the nation’s economy from the middle-out and bottom up, create jobs and spur economic growth in rural communities by increasing competition in agricultural markets, lowering costs and expanding clean energy.

    “President Biden and USDA are ensuring farmers, ranchers and small businesses are not only a part of the clean energy economy, but directly benefitting from it,” Secretary Vilsack said. “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.”

    The Department is awarding $207 million in 42 states for projects through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP).

    The REAP awards total $157 million for 675 projects in 42 states, including more than $94 million from President Biden’s Inflation Reduction Act. The REAP program delivers on the President’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. These investments will cut energy costs for farmers and ag producers that can instead be used to create jobs and new revenue streams for people in their communities. For example:

    • In Colorado’s La Plata County, a grant for $187,000 will install a solar array that, through a power purchase agreement, will benefit a wastewater treatment facility. The facility is expected to save $58,000 per year, bringing down costs for residents. It will replace 652,923 kilowatt hours or 98 percent of the plant’s energy use per year, which is enough energy to power 60 homes.
    • A soybean farm in Pennsylvania will install a 1,248 kilowatt solar photovoltaic system that will save $262,000 per year. These funds can be reinvested to grow the business or create more jobs for the local community. It will also save the farm 2,814,000 kilowatt hours per year, which is enough energy to power 259 homes.
    • Sturgis Meats in Meade, South Dakota will install a refrigeration system that will save $32,000 in energy costs per year. It will also save the company 255,000 kilowatt hours per year, which is enough energy to power 23 homes.

    Projects financed through FPEP will help U.S. farmers increase independent, domestic fertilizer production. Today’s investments include $50 million in seven projects in seven states. President Biden committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation. For example:

    • ARE Properties LLC in Nebraska will build a fully automated fertilizer facility designed to manufacture custom products based on the results of plant tissue and soil samples. All equipment in the facility runs on natural gas with the long-range strategy to retrofit the facility for alternative energy sources in the future.
    • Biogas Corporation will purchase and install a new anaerobic digestion facility in Monroe County, North Carolina. This project is expected to create 19 additional positions.  The new state-of-the-art facility will produce 50,000 tons of organic fertilizer and ammonium sulfate annually, all available to farming operations or resellers supporting local producers. Through the unique combustion process, the facility projects to generate 55,000 megawatts of clean energy per year to be purchased and distributed through Duke Energy Carolinas.

    USDA is making the REAP and FPEP awards in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and West Virginia.

    Since the start of the Biden-Harris Administration, USDA has invested more than $166 million in 40 projects nationwide to boost domestic fertilizer production through FPEP. USDA has also taken steps to support producers in leveraging these tools through nutrient management assistance and climate-smart management practices. During that same time, USDA has invested more than $1.6 billion through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners lower energy costs, generate new income, and strengthen their resiliency of operations.

    Background

    The Rural Energy for America Program (REAP) provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs for American families.

    USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.

    The Fertilizer Production Expansion Program (FPEP) provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more. Funding helps boost domestic fertilizer production, strengthen competition and lower costs for U.S. farmers.

    The Biden-Harris Administration and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors. Factors included the war in Ukraine, a lack of competition in the fertilizer industry, and more.

    FPEP is part of a broader effort to help producers boost production and address global food insecurity. It is also one of many ways the Administration is promoting fair competition, innovation and resiliency across food and agriculture while combating the climate crisis.

  • Soil Health Improvement Incentives to Boost Crops

    America’s farmers rely on a host of practices such as cover cropping and crop rotation to maintain soil health, grow more productive crops and feed the U.S. and countries around the world. However, current research is too sparse to precisely demonstrate how these practices can actually affect the yields and bottom lines for farmers.

    Agricultural lenders and crop insurers do not currently offer incentives for farmers who incorporate these practices to improve soil health because they have no research-based economic rationale for doing so, according to Frederi Viens, a professor in the Department of Statistics at Rice University. Meanwhile, he said there is ample evidence that the federal crop insurance program indirectly provides strong incentives to continue practices that are damaging to soil health.

    Viens said this misalignment of incentives is a missed opportunity for all parties involved, and it’s one of the reasons he has taken the role of lead statistician on a multi-year, multi-institution research project supported by grants from the Agriculture and Food Research Initiative at the U.S. Department of Agriculture’s National Institute for Food and Agriculture and from the Foundation for Food and Agriculture Research in partnership with the public advocacy nonprofit organization Land Core.

    The project’s goal is to provide evidence that more sustainable practices reduce production risk while not significantly reducing overall yields — or better yet, improving them. Viens argues that with such evidence, a shift to more sustainable farming practices could be viewed as realistic by all parties.

    “For the first time we are conducting a research project to demonstrate at scale how engaging in these farming ‘best practices’ can benefit farmers, insurance providers and the federal government, which provides ample farm subsidies,” Viens said, adding that the way the U.S. farming system is set up now is not sustainable for the long term.

    “The problem is that if we continue with business as usual, soil health is going to continue to deteriorate, and climate change will make things even worse,” he said. “And we may get to a point where there is nothing left in the ground to grow anything. This is obviously super concerning.”

    Using sophisticated statistical techniques, Viens and his fellow researchers will determine the risk-mitigation benefits and related cost savings associated with practices that improve soil health. By highlighting the economic upside of these practices, Viens said the federal crop insurance program will be able to offer better prices and pay out less in claims. Meanwhile, farm lenders can lower loan rates and/or offer improved terms to farmers adopting good soil-health practices. Viens says he expects that farmland valuation will start to systematically reflect the net positives of these practices.

    “It’s a total win-win, or in this case, a win-win-win,” Viens said. “Farmers will save money on their premiums and produce more abundant crops. Lenders will reduce their risk and hence increase their profit margins. The federal government won’t be spending as much taxpayer money on subsidies and crop insurance claims, all because soils will be healthier and cropping will become more diverse; thus, low yields will occur less frequently, stabilizing each farm operation’s finances, lowering the risk exposure for their lenders and for the federal government.

    “And finally — and most importantly — incentivization and implementation of these farming practices will improve long-term sustainability of the U.S. farming system by making it more resilient to extreme weather events,” Viens continued. “This is even more important when one knows that these threats will increase in frequency and in severity because of climate change.”

    Viens is part of two closely allied groups of researchers working on the project. One group led by Harry Schomberg, a research ecologist and agronomist at the USDA’s Sustainable Agricultural Systems Laboratory in Beltsville, Maryland, is currently using data from about 20 experimental farms in the Midwest, California, Canada, Maryland, Mexico and Tennessee, which covers a vast diversity of different types of crops, cropping systems and agro-ecological zones. Preliminary results show strong evidence of a simultaneous increase in climate resilience and yield under increased rotational complexity.

    The agronomy lead on these projects is Timothy Bowles, an associate professor of agroecology and sustainable agricultural systems and director of University of California, Berkeley’s Agroecology Lab. The economic analysis at the level of full farm operations is being performed with the collaboration of Ph.D. students at Rice, Michigan State University, and led by Lawson Connor, an assistant professor in the Department of Agricultural Economics and Agribusiness at the University of Arkansas who specializes in crop production economics.

    Viens and his team of Ph.D. students will support all teams involved with their statistical expertise in modeling and analysis in addition to Viens’ research background in quantitative finance and insurance mathematics and his hands-on knowledge of farming practices.

    More information on the grants is online at https://landcore.org/news-post/2023/6/22/land-core-awarded-ffar-grant-to-expand-soil-health-risk-model and https://food.berkeley.edu/from-the-field/quantifying-the-risk-reduction-value-of-soil-health/.

  • USDA Surveying California Beef & Dairy Cattle Operations

    The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will survey about 2,000 cattle operations in California to provide an up-to-date measure of U.S. cattle inventories.

    “This information helps producers make timely, informed business decisions and plan for herd expansion or reduction. It also helps packers and government leaders evaluate expected slaughter volume for future months and determine potential supplies for export,” said Director Gary Keough. “Obtaining the current count of cattle will serve as an important decision-making tool for the entire agriculture industry.”

    During the first two weeks of January, California producers will have the opportunity to report their beef and dairy cattle inventories, calf crop, death loss and cattle on feed information. To make it as convenient as possible for producers to participate in the survey, NASS offers the option of responding via the Internet, telephone, or mail.

    NASS safeguards the privacy of all responses and publishes only state- and national-level data in aggregate, ensuring that no individual producer or operation can be identified.

    The January Cattle report will be released on January 31, 2024. This and all NASS reports are available online at www.nass.usda.gov/publications. For more information, call the NASS Pacific Regional Field Office at (916) 738-6600.

  • Blue Diamond Growers 113th “Growing Together” Annual Meeting Highlights a Year of Resilience

    At the 113th Blue Diamond Growers “Growing Together” Annual Meeting on Nov. 15 in Modesto, Blue Diamond Growers’ CEO, Kai Bockmann, reflected on his first ten months in the leadership role by acknowledging significant challenges faced by growers and the world’s largest almond cooperative.

    In Bockmann’s remarks – along with those of Blue Diamond Growers’ Board Chairman, Dan Cummings – both pointed to remarkable headwinds for the almond industry, including higher input costs and inflationary pressures, depressed market prices, shifts in consumer shopping patterns, unfavorable weather conductions, and reduced crop sizes. To help counter these challenges, Blue Diamond Growers is advancing an aggressive strategic growth plan to navigate the marketplace conditions and drive substantial growth.

    “Volatility is our new normal, but our destination is set – and it is one of growth,” said Bockmann. “While this past year brought many challenges for our growers, no challenge is insurmountable. We have a rich history, an exceptional brand, and the right people and culture to deliver against our ambitious growth plan.”

    In laying out the plan, Bockmann shared with the annual meeting audience that what has helped bring the cooperative to where it is today, will not get it to where it is going in terms of growth and market expansion. The new growth plan prioritizes expansion into the massive foodservice channel and strategically selected international markets, while strengthening the value-added business, doubling down on product innovation, and driving for operational efficiencies.

    “Foodservice is a trillion dollar industry that represents a significant growth opportunity for Blue Diamond, and we will directly target that sector as a strategic priority,” said Bockmann. “Additionally, we will diversify and innovate our product portfolio beyond our flagship Blue Diamond Snack Almonds® and Almond Breeze® brands. We will build on the tremendous success of these products – which are both the #1 brands in America for almonds and almondmilk.”

    Bockmann shared that flavor-focused product innovation remains a top priority commenting that “no one does flavor like Blue Diamond” as evidenced by the widely popular Chilé N Lime flavored snack nuts. The flavor was launched as a limited time offer at Costco and won the “Best Nuts” award in PEOPLE Magazine’s 2023 Food Awards.

    The Blue Diamond Research & Development team will continue to innovate with new flavors, while advancing new and existing categories, including plant-based yogurt, chocolate, baking, beverages and plant-based cheese. On the foodservice front, the strategic growth plan focus is already delivering results. The Blue Diamond International Consumer and R&D teams worked closely with Maeil Dairies in the past year to develop Almond Breeze® Barista Blend, which was introduced in 6,500 Starbucks across China earlier this year.

    “I’m confident that Blue Diamond Growers is poised to thrive in the years to come because we are stronger together,” said Bockmann. “We are excited to grow together as we bring our strategic plan and collective vision to life.”

    Supporting Grower Success and Advancing Sustainability

    In addition to tackling the marketplace challenges with strategy, innovation, and expansion, Blue Diamond Growers also concepted and launched a new grower-focused buying coalition. To help connect growers with trusted, well-known suppliers and build local, long-term relationships, the Blue Diamond Growers Connect Marketplace aims to reduce production costs for farmers by negotiating better discounts with suppliers via Group Purchasing Organizations and the co-ops’ own internal platform. The goal of the marketplace is to reduce growers’ costs by 5-15%.

    Additionally, a notable highlight from the year is Blue Diamond Growers’ advancement in sustainability. To continue growing the cooperative’s commitment to stewardship, Blue Diamond’s Member Relations team held several online webinars, including hosting the Almond Board of California Almond Stewardship Platform and the Pollinator Partnership to discuss and educate growers on Bee-Friendly Farming.

    Along with the offered webinars, growers were encouraged to participate in Blue Diamond’s Orchard Stewardship Incentive Program (OSIP), a program where growers can earn financial incentives for implementing best practices related to orchard management, environmental issues, occupational health and safety, and community investment.

    In July of this year, the U.S. Department of Agriculture (USDA) awarded Blue Diamond a five-year, $45 million “Partnerships for Climate-Smart Commodities” grant, a program designed to help farmers implement “climate-smart” practices on their land. The program offers growers no-cost cover crop seed and a financial incentive to plant cover crops and/or conservation cover on their land. These practices notonly work toward taking carbon out of the atmosphere, but they also enhance orchard biodiversity and improve soil health. The USDA grant complements
    Blue Diamond’s OSIP by lowering the cost of initiating the pollinator-friendly practices required to receive Bee-Friendly Farming certification.

    “Without question it has been a challenging year, but the loyalty and leadership demonstrated by our board – combined with the resilence of our growers and dedication of Blue Diamond employees – will allow us to overcome the challenges together,” said Cummings. “I’m confident Blue Diamond will deliver great prosperity and a sustainable future for our growers, employees, their families, and the communities we call home.”

    Blue Diamond Annual Report Now Available

    In conjunction with the Annual Meeting, the Blue Diamond Growers 2023 “Growing Together” Annual Report is now available on the Blue Diamond website at www.bluediamond.com.

    About Blue Diamond

    Blue Diamond Growers, a grower-owned cooperative representing approximately 3,000 of California’s almond growers, is the world’s leading almond marketer and processor. Established in 1910, it created the California almond industry and opened world markets for almonds. Blue Diamond is dedicated to delivering the benefits of almonds around the world and does so by providing high-quality almonds, almond ingredients, and branded products. Headquartered in Sacramento, the company employs more than 1,800 people throughout its processing plants, receiving stations and gift shops. To learn more about Blue Diamond Growers, visit www.bluediamond.com.

  • U.S. Ag Exporters Can Now Apply to Participate in South Korea Trade Mission

    The U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs, Alexis Taylor, will lead the agribusiness trade mission to Seoul, South Korea on March 25 – 28, 2024. USDA is currently inviting U.S. exporters who wish to participate in this trade mission to submit their application.

    “North Asian markets are a source of stability for U.S. exports and an opportunity for market share expansion due to its heavy reliance on food imports and underlying macroeconomic growth,” said Taylor. “While the Republic of Korea is already one of our top export markets, we see tremendous potential for growth as the demand for health and fitness, ready-to-eat, and convenience products is growing, providing a great opportunity for U.S. exporters to expand their sales in the region.”

    The trade mission will offer U.S. agribusinesses the potential to increase or expand their food and agricultural exports to the region. While in Seoul, participants will engage in two days of business-to-business meetings with potential importers, processors and distributors. Additionally, attendees will receive in-depth market briefings from USDA’s Foreign Agricultural Service and industry trade experts to better understand market dynamics and consumer trends, as well as participate in site visits and other networking opportunities.

    With a population of roughly 52 million people and limited arable land, the Republic of Korea (South Korea) relies on imports to satisfy consumer demand for food variety, lower prices and greater convenience. In 2022, South Korea imported approximately $41.1 billion worth of agricultural goods, and the United States was the leading supplier with $10.4 billion in agricultural exports. The United States is South Korea’s top overall supplier and its leading source for an array of farm products, including beef, almonds, fresh cherries, fresh oranges, hides and skins, soybeans, dried distillers grains (DDGS), ethanol and wheat. The United States and the Republic of Korea implemented the United States-Korea Free Trade Agreement (KORUS FTA) in 2012.

    As a result of the pandemic, as well as demographic and economic trends in South Korea, the market has seen a boom in e-commerce. In addition to traditional hypermarkets and retail markets, e-commerce platforms can be important to increasing sales in Korea. The market has been trending to higher demands for products of convenience, such as ready-to-eat foods, home meal kits and smaller portion-size packages. There has also been an emphasis on health and fitness products due to general healthy lifestyle changes as well as an aging population.

    U.S. exporters who wish to participate in this agribusiness trade mission must apply by December 18, 2023. Click to apply online.

    For those U.S. companies selected, USDA highly recommends purchasing travel insurance and checking with the airline on their cancellation/adjustment policies and flexibility. We recognize the global travel situation remains fluid and uncertain. USDA will continue to monitor the situation carefully and will keep participants apprised of any changes to entry requirements.

  • USDA Now Accepting Applications for Farm Loans Online

    The U.S. Department of Agriculture (USDA) has launched an online application for Direct Loan customers. More than 26,000 customers who submit a Direct Loan application each year can now use an online, interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet and build a farm operating plan. This tool is part of a broader effort by USDA’s Farm Service Agency (FSA) to streamline its processes, improve customer service, and expand credit access.

    “The Biden Administration is working hard to make it easier for farmers and ranchers to get the loans they need to keep growing food, fiber, and fuel for our country,” said Deputy Secretary Xochitl Torres Small. “Online services are commonplace in commercial lending, and with USDA Farm Service Agency’s new online loan application feature, it is now easier for producers to get the financing they need to start, expand, or maintain their farming and ranching operations.”

    The online farm loan application replicates the support an applicant would receive when completing a loan application in person with an FSA Farm Loan Officer, while continuing to provide customers with one-on-one assistance as needed.  This tool and other process improvements allow farmers and ranchers to submit complete loan applications and reduce the number of incomplete and withdrawn applications.

    Through a personalized dashboard, borrowers can track the progress of their loan application. It can be accessed on farmers.gov or by completing FSA’s Loan Assistance Tool at farmers.gov/loan-assistance-tool. To use the online loan application tool, producers must establish a USDA customer account and a USDA Level 2 eAuthentication (“eAuth”) account or a Login.gov account. For the initial stage, the online application tool is only available for producers who will be, or are currently, operating their farm as an individual. FSA is expanding the tools availability to married couples applying jointly and other legal entities in 2024.

    Farm Loan Improvement Efforts

    FSA has a significant initiative underway to streamline and automate Farm Loan Program customer-facing business processes. For the over 26,000 producers who submit a Direct Loan application to FSA annually, and its 85,000 Direct Loan borrowers, FSA has made improvements this year, including:

    More Information

    FSA continues to accept and review individual requests for assistance from qualifying borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans or those who were unable to make a recent installment or are unable to make their next scheduled installment for installments through January 15, 2024. All requests for assistance must be received by Dec. 31, 2023. 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.

    The Inflation Reduction Act, a historic, once-in-a-generation investment and opportunity for 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 $1.6 billion in assistance to more than 27,000 distressed direct and guaranteed FSA loan borrowers.

  • December USDA Lending Rates for Ag Producers

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

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans

    FSA offers farm ownership, operating and emergency 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.   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 December 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 an 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, 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 $1.7 billion in immediate assistance to more than 30,000 financially distressed direct and guaranteed FSA loan borrowers.

    FSA recently announced additional automatic assistance to qualifying, economically distressed guaranteed farm loan program and Emergency Loan borrowers who face financial risk.

    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. Producers without an account can sign up today.