California Ag Network

Tag: USDA

  • California FarmLink Program Helps Farmers Plan Successions Successfully

    According to the USDA’s Census of Agriculture, fully 96% of the nation’s 2.2 million farms are family-owned and operated. But as the baby boom generation continues to age, an estimated 70% of U.S. farmland will change hands in the next 20 years – and the USDA warns that if a farm or ranch family has not adequately planned for succession, it is likely to go out of business, consolidate into larger operations with neighboring farms, or be converted to non-farm uses.

    To help farming families plan for a successful succession, California FarmLink – a certified nonprofit Community Development Financial Institution – recently launched The Regenerator: A Year of Farm Succession Planning. The program is designed to walk families through all the issues that can arise to help ensure that succession goes smoothly. The next cohort of family farmers and ranchers will begin work in November, said Liya Schwartzman, FarmLink’s Senior Program Manager for their Equity andConservation on Working Lands division.

    “FarmLink actually started out in 1999 with a focus on supporting retiring farmers to find someone to lease or take over their operations, but the work we were doing had its limitations. Short workshops weren’t cutting it, and it’s hard to maintain a trajectory when you’re working with 20 families in different stages of planning,” Schwartzman said.

    “I thought there must be a better way, and after we studied programs across the country, we came up with a cohort model to bring people in who are in similar stages of being ready to seek assistance in transferring their land and their businesses to successors.”

    FarmLink launched The Regenerator as a small pilot program in the fall of 2021 with just three families involved, and all three completed the program and created executable plans. After reviewing and fine-tuning the program, the nonprofit is hoping for seven to 10 participants this year, with a vision of scaling up the program in future years.

    FarmLink engages a team of professionals – including CPAs, estate-planning attorneys, appraisers, and transition specialists – to aid the families in crafting plans that fully meet their unique needs. The program also provides $1,600 to each participating group to work with these providers, using funds provided by a USDA educational grant.

    Schwartzman said one of the first things that a family needs to do is determine if family members are interested in taking overand how that would occur.

    “The majority of successors may be heirs, but there is a trend of the immediate heirs moving away from farming. Sometimes the family will have grandchildren who want to come back to the farm, but if nobody in the family is interested, retiring farmers will need to look outside the family. Often a farm manager could be a perfect successor,” she said.

    “But people should start sooner rather than later because it can take several years to find the right successor and complete the transition process.”

    As part of its efforts to support nonprofits making a difference in California agriculture, four Farm Credit organizations serving the state’s farmers and ranchers – AgWest Farm Credit, American AgCredit, CoBank and Fresno Madera Farm Credit – have sponsored FarmLink since 2018. These organizations are part of the nationwide Farm Credit System, the largest provider of credit to U.S. agriculture.

    Kevin Ralph, California State President for AgWest Farm Credit, said participating Farm Credit organizations are proud to support FarmLink’s efforts to preserve family farms.

    “This is a relationship-driven business and Farm Credit prides itself on being trusted advisers to our customers – really understanding our clients’ business and educating them on their options,” Ralph said. “FarmLink’s novel program builds on that and will really help farming and ranch families properly manage their succession issues.”

    Regional Marketing Manager Jacob DeBoer with American AgCredit also noted that the evolution of agriculture is inevitable – and exciting. A sizable percentage of farms without family members who want to take over the operation is providing opportunities for new and up-and-coming farmers – especially women and Latinos – to purchase farm and ranch lands and create strong, viable operations.

    “There are nearly six times more California farmers age 65+ than ones under 35,” DeBoer said. “This succession tsunami will provide opportunities to expand the diversity of California agriculture, which will help ensure a prosperous future for farming and ranching in the Golden State.”

    Schwartzman said another key component of the program is working to build communications skills. “Succession planning most often falls apart when retiring farmers, their heirs and successors, have a breakdown in communication. This can be a very emotional and very intense time. It means someone will no longer be with us when plans are executed. And also, it’s the transfer of something the retiring generation has spent a lifetime building, so not preparing and educating people about effective communication skills and including a plan for mediation is to do a disservice and can be the downfall of the transition,” she said.

    But the biggest reason FarmLink is working to provide succession planning is the potential impact of so many farms changing hands. “This will shape the food system for the following century. We need to put as many resources as we can behind preserving and growing these farm businesses that are about to go through these transitions,” she said.

    Applications are still being accepted for this year’s program. For more information, visithttps://www.californiafarmlink.org/courses/the-regenerator or contact Schwartzman at liya@cafarmlink.org.

    About Farm Credit:

    AgWest Farm Credit, American AgCredit, CoBank and Fresno Madera Farm Credit are cooperatively owned lending institutions providing agriculture and rural communities with a dependable source of credit. For more than 100 years, the Farm Credit System has specialized in financing farmers, ranchers, farmer-owned cooperatives, rural utilities and agribusinesses. Farm Credit offers a broad range of loan products and financial services, including long-term real estate loans, operating lines of credit, equipment and facility loans, cash management and appraisal and leasing services…everything a “growing” business needs. For a link to this article and for more information, visit www.farmcreditalliance.com

     

    About California FarmLink:

    California FarmLink is a nonprofit Community Development Financial Institution investing in the prosperity and well-being of farmers, ranchers, and fishers who have limited access to financial resources. Founded in 1999, the organization works across California with a focus on serving communities of color and beginning farmers and ranchers. FarmLink partners with farmers, ranchers, professional advisors, impact investors, public agencies and other nonprofits to advance equity in California agriculture. Learn more at www.cafarmlink.org

  • 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.

  • $21 Million in Grants to Lower Energy Costs Rural & Ag Businesses

    As part of President Biden’s Investing in America agenda, U.S. Department of Agriculture (USDA) Rural Business-Cooperative Service Administrator Dr. Karama Neal announced that USDA is making $21 million in technical assistance grants available through the Rural Energy for America Program (REAP) to help agricultural producers and rural small businesses access federal funds for renewable energy and energy efficiency improvements.

    “Rural America deserves its share of the historic investments in the Inflation Reduction Act,” Neal said. “That’s why the Biden Administration is making sure rural people get a fair chance at grants to make energy more affordable, create new economic opportunity, and reduce greenhouse gas emissions. The technical assistance grants I am announcing today will provide hands-on support to farmers, ranchers and rural small business owners seeking federal funds for renewable energy systems, like wind and solar, and energy efficiency measures. These investments not only help producers and small businesses lower energy costs, but also access new markets and strengthen their operations.”

    Eligible recipients for these grants include state, Tribal or local governments; colleges and universities; electric cooperatives and utility companies; and for-profit and nonprofit organizations. Recipients may use the funds to:

    •    Help rural agricultural producers and small business owners apply for REAP funding.
    •    Provide information on how business owners and agricultural producers can improve the energy efficiency of their operations and use renewable energy technologies and resources.
    •    Conduct required energy assessments and audits.
    •    Help agricultural producers and small business owners plan, build or develop renewable energy or energy efficiency projects.

    Projects eligible for funding can be located in eligible rural areas in the 50 states, Puerto Rico and U.S. territories.

    This announcement is part of President Biden’s Investing in America agenda and the Bidenomics strategy to grow the American economy from the middle out and bottom up by rebuilding our nation’s infrastructure, driving over $500 billion in private-sector manufacturing investments, creating good-paying jobs, and building a clean-energy economy to tackle the climate crisis and make our communities more resilient. REAP is also part of the Justice40 Initiative, which is advancing environmental justice by ensuring that 40 percent of the overall benefits of certain federal investments reach disadvantaged communities that are marginalized and overburdened by pollution and underinvestment.

    USDA will give funding priority to applicants proposing to assist disadvantaged communities, applicants pursuing projects using underutilized technologies and applicants seeking grants under $20,000.

    The Department also encourages interested applicants to contact their USDA Rural Development state office.

    For additional information, see the July 13 Federal Register.

    Inflation Reduction Act: Background

    The Biden Administration championed the Inflation Reduction Act to help provide new funding and unprecedented incentives to expand clean energy, transform rural power production, create jobs and spur economic growth. It is the largest single investment in rural electrification since the Rural Electrification Act of 1936.

    Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America. The Inflation Reduction Act provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy efficiency improvements that will significantly reduce greenhouse gas emissions.

    To learn more about investment resources for rural areas, visit www.rd.usda.gov or contact the nearest USDA Rural Development state office.

    USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.

  • U.S. Economic Slowdown Likely Ahead as Monetary Policy Actions Begin to Take Effect

    The U.S. economy continues to defy gravity and remains strong despite lingering inflationary pressures, higher borrowing costs and a barrage of other headwinds. Consumers continue to spend aggressively on services, businesses are still investing and the labor market remains incredibly strong. Secure jobs are the most important element in consumer spending and well-employed Americans have powered the economic recovery for three years.

    However, looming risks to the economy are increasing in number and size. According to a new quarterly report from CoBank’s Knowledge Exchange, the full impact of monetary policy actions—raising interest rates, quantitative easing and contracting the money supply—have yet to be felt. Those policy actions, combined with depleted consumer savings, tighter commercial bank lending standards and the persistently inverted yield curve are likely to result in a mild recession by the fourth quarter of 2023.

    “There is still a lot of wind at the back of this economy and we don’t believe a severe contraction is coming,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “But we do believe it is important to not misinterpret delayed impacts for minimal impacts. Monetary effects can be slow in developing, and history tells us that the economy can seem just fine right before a recession hits.”

    The labor market remains relatively tight, but the situation has improved significantly as female and non-native workers have stormed back into the work force. The labor force participation rate for women between the ages of 25-54 now stands at an all-time high, up more than 4 percentage points from the low in April 2020.

    Foreign-born employment has increased at roughly double the pace of native-born employment since April 2020. The successes in these two groups have been critical so far in the economic recovery. But looking forward, it raises the question of how many more workers are available to be coaxed in off the sidelines. Ultimately, the U.S. labor force challenges are far from over.

    Animal Protein & Dairy

    As the summer grilling season kicked off, beef demand remained incredibly resilient despite elevated prices for consumers. Retail beef prices averaged $7.50 per pound in May, a record high for the period, and an increase of 2% year-over-year. Robust demand combined with tighter cattle supplies spurred market momentum for cattle. Fed cattle values reached record levels, above $180 per cwt. and feeder cattle shot above $240 per cwt. While consumers have yet to balk at higher beef prices, things could quickly change when seasonal support wanes.

    Excess hog supply and weak pork demand put hog prices in jeopardy this spring. After a steady start to the year, the CME lean hog index tumbled about $10 per cwt., to $72 from mid-March to late April. However, more favorable market conditions across the animal protein segment drove lean hog values up 30% through May and June. While still down about $15 year-over-year, the pork cutout landed in the upper $90s, gaining about $20 per cwt. through the quarter.

    Domestic chicken consumption was up about 4% year-over-year through June 1, which has helped chip away at elevated cold storage holdings. Wholesale broiler meat prices have largely rebounded to pre-pandemic levels, following significant declines in late 2022 and early 2023. Feed costs have come down about 10% from last year but remain well above their historic averages. For broiler integrators, increased feed costs coupled with higher operational expenses have crimped profitability.

    U.S. milk producers continue to struggle in the current price environment. The national all-in mailbox milk price has dropped below the $20 per cwt. mark after averaging $25.34 per cwt. in 2022. While several factors are to blame for this year’s milk price decline, the sharp drop in American/cheddar-style cheese prices is the most significant. Prices for the category have dropped by one-third since the beginning of the year. Milk and feed futures suggest producer profitability should improve considerably by October when Class III milk prices are anticipated to increase by about $3 per cwt.

    Cotton, Rice & Specialty Crops

    U.S. cotton production is rebounding from last year’s crop that was devastated by extreme drought across the southwest. Recent rainfall in top-producing Texas is expected to reduce abandonment following three years of severe drought. The U.S. cotton crop is now estimated at 16.5 million bales, up 14% from last year. Price inflation for clothing and apparel in the U.S. continues to ease with the moderation of cotton prices, which may work to draw in new consumer demand.

    U.S. rice production is expected to recover from last year’s small crop, although concerns over dryness and worsening conditions in the mid-South have led to increased volatility of rough rice prices. With improved water availability this year, California medium grain rice production is also expected to rebound with planted acreage at 465,000 acres. That’s a substantial increase from last year’s planted acreage of 220,000 acres that were restricted by historic drought conditions.

    Sugar prices remain historically high as markets ration tight global supplies. USDA currently calls for a rebound in world sugar production for 2023-2024, but concerns are growing that El Nino will result in smaller harvests in 2023-2024. In the U.S., there is no relief in sight for high prices as wet weather delayed planting across northern states this spring, which resulted in a smaller U.S. sugarbeet crop.

    The tight farm labor market continues to be especially challenging for U.S. specialty crop producers. The Federal Reserve Bank of San Francisco reported that weekly median wages for farm workers swelled to a record high $915 in April, a 24% increase from the year earlier. In June, the House Agriculture Committee created a bipartisan working group, tasked with evaluating the H-2A program and finding solutions for the labor supply challenges facing farmers.

    Food & Beverage

    While food manufacturers generally indicate they are back to business as usual in the post-pandemic era, many consumers continue to harbor a crisis-management mentality when it comes to food costs. Rising food prices are challenging both at-home and away-from-home food spending. The Consumer Price Index for all food in May was 6.7% higher than May 2022, while food away-from-home prices were up 8.3%. To offset higher prices, consumers are continuing behaviors initially seen during the pandemic, namely eating more meals at home. Foot traffic in restaurants remains well below pre-pandemic levels.

    Power, Water & Communications

    Falling fuel and energy prices have brought some much-needed relief to rural consumers, who were uniquely disadvantaged by rising energy bills in recent years. Gasoline, diesel, heating oil, natural gas and electricity all cost less than they did a year ago. Rural discretionary incomes fell by a staggering 50% from 2020 to 2022 compared to 13% for urban residents. Transportation and home energy expenses were responsible for two-thirds of the inflationary divide between rural and urban households.

    Microsoft, Google and Meta are investing billions of dollars in artificial intelligence applications, which have exploded onto the scene in recent months. Applications like ChatGPT will dramatically increase the need for data processing capacity, fiber network connectivity and other communications infrastructure. Telecommunications operators in rural and smaller cities are well positioned to meet this growing need, as data storage and computation needs to occur in near proximity to where AI applications are run.

    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 76,000 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.

  • Eleven New Ag Officers Sworn into Foreign Service

    The U.S. Department of Agriculture’s Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor administered the oath of office today to 11 employees of USDA’s Foreign Agricultural Service who will serve American agriculture internationally as members of the Foreign Service, including three from California.

    At U.S. embassies and diplomatic missions on five continents, diplomats begin their careers as agricultural attachés, where they will track and report on global agricultural production and commerce, find export opportunities, improve food security, and support U.S. foreign policy goals.

    “I am extremely proud of this diverse group of diplomats who completed their rigorous training and will now serve on the frontlines of agricultural diplomacy,” Taylor said. “These talented officers will strengthen our Foreign Service as they begin their work protecting and advancing the interests of U.S. agriculture, which today is more crucial than ever as the world’s agricultural trade grows more competitive and dynamic.”

    The officers sworn in today are:

    • Craig Elliot from Petaluma, Calif., assigned to the OAA in Tokyo, Japan.
    • Erica Summe from Florence, Ky., assigned to the ATO in Tokyo, Japan.
    • Harrison Grafos from Spokane, Wash., assigned to the OAA in Dubai, UAE.
    • Joanna Brown from Washington, D.C., assigned to the OAA in New Delhi, India.
    • Jadon Marianetti from San Jose, Calif., assigned to the OAA in Beijing, China.
    • James Yi from Philadelphia, Pa., assigned to the OAA in Hanoi, Vietnam.
    • Lita Echiverri from San Francisco, Calif., assigned to the FAS Agricultural Trade Office (ATO) in Mexico City, Mexico.
    • Rishan Chaudry from Pullman, Wash., assigned to the OAA in Ankara, Turkey
    • Shoshana Griffith from Seattle, Wash., assigned to the OAA in Seoul, South Korea.
    • Tacarra Birmingham from Chicago, Ill., assigned to the FAS Office of Agricultural Affairs (OAA) in Ottawa, Canada.
    • Victoria Dokken from Deltona, Fla., assigned to the ATO in Beijing, China.

    More information about FAS and its work to advance U.S. agricultural interests around the globe is available at www.fas.usda.gov.

    USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy, and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

  • July USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for July 2023, which are effective July 3, 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 July 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. On May 1, 2023, FSA announced that nearly $130 million in additional, automatic financial assistance had been obligated for qualifying farm loan program borrowers facing financial risk. This assistance included:

    • 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 exceeded the principal owed (on a loan-by-loan basis).

    Since payments began in October 2022, USDA has provided $1.14 billion to 20,506 financially distressed direct and guaranteed FSA loan borrowers.

    In May 2023, FSA began accepting and reviewing individual requests for assistance if they took certain extraordinary measures to avoid delinquency on their direct FSA loans, such as taking on or refinancing more debt, selling property, or cashing out retirement or college savings accounts. On May 19, USDA mailed a letter to all FSA direct loan borrowers detailing eligibility and how to request extraordinary measures assistance.

    Also in May, FSA started 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 to determine their eligibility..

    For more information 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.

  • Varroa Mites and Deformed Wing Virus Make Honeybees More Susceptible to Insecticides

    The first of two apiaries, established in 2014 in Stoneville, Mississippi, provided honey bees for studying the impact of pesticides on honey bees. (Photo by Yu-Cheng Zhu, D5121-1)

    Controlling for Varroa mites, the parasitic mites that feed on honey bees and serve as vectors for viral diseases like deformed wing virus (DWV), can help with improving honeybee populations and make bees less susceptible to harmful insecticides, according to a recent study published in Environmental Pollution.

    Foraging honey bees may be directly exposed to toxic insecticide sprays in the field or exposure may come from honeybees collecting and bringing pesticide-contaminated pollen and nectar back to their hives to feed larvae and young bees. The presence of insecticides, along with other environmental stressors in agricultural areas, can be a factor leading to issues like colony loss — something beekeepers from around the world are trying to overcome.

    “Previous research has shown how chemicals like pesticides make bees more susceptible to mites,” said Yu-Cheng Zhu, a research entomologist at ARS’s Pollinator Health in Southern Crop Ecosystems Research Unit in Stoneville, Mississippi. “In our study, we wanted to see if mites and viral infestations make bees more susceptible to insecticides.”

    In a study, researchers with the U.S. Department of Agriculture (USDA)’s Agricultural Research Service (ARS) applied the miticide amitraz (Apivar), a product commonly used for treating Varroa mites, off-label to four bee hives and left the other four hives untreated. They monitored the mite population density monthly and DWV density in early, middle, and late season.

    Researchers collected bees from miticide-treated and untreated hives, and quantified gene expressions of four immune genes and two physiology-related genes. They also tested bees’ sensitivity to five representative insecticides. In addition, bees’ natural mortalities were recorded during three seasons.

    “Miticide treatment led to minor or undetectable mite and DWV infestations during the whole bee season, while untreated colonies had substantially higher mite and DWV infestations,” said Zhu.

    The data analyses showed that Varroa mite population irregularly fluctuated over the bee season and mite population density was not dynamically or closely correlated with the seasonal shift of honey bee natural mortality. Unlike mites, DWV density in untreated colonies progressively increased over the bee season. The density was highly correlated with the seasonal increase in honey bee natural mortality.

    “In the untreated hives, the increased DWV infestations resulted in decreased physiological and immunity-related functions in late-season honey bees, making the bees more susceptible to insecticides and increasing natural morality rates during the season,” said Zhu.

    According to Zhu, Varroa mites, also known as Varroa destructor, can reduce fat body and body fluids that contain important detoxification enzymes and immune proteins in honey bees. As a result, bees have impaired immune, detoxification/defense systems, and other essential processes. Coupling those impairments with exposure to insecticides can be detrimental to bee populations.

    “Having impaired immunity, especially later in the season with fewer food sources, can be challenging for honey bees,” said Zhu.

    Zhu, whose work focuses on the toxicological impact of pesticides on beneficial insects in the Mississippi Delta Area, said that the study’s results indicated the importance of studying the “bottom-up” effects of mite infestations on the overall health of honey bees in real-world contexts.

    “Chemical control is still a major method in preventing crop loss and controlling insect pest populations,” said Zhu. “It is important to study the effects of chemical control in honey bee populations so we can find best practices for protecting the health of bees.”

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.

  • India Will Eliminate Twenty Percent Retaliatory Tariff on US Walnuts

    United States Trade Representative Katherine Tai’s announcement today that India agreed to remove retaliatory tariffs on walnuts, as well as additional US products, is welcome news.  Trade representatives from the United States and India have been working together on a package of trade deliverables announced today during this week’s visit of India’s Prime Minister Modi for meetings with President Biden and a joint session of Congress.

    “The California walnut industry has had a long-standing partnership with the India marketplace which is an integral part of the industry’s overall long term long-term strategic growth and market development plan.” said Pam Graviet, Senior Director of Global Programs for the California Walnut Commission.  “Indian consumers and trade partners continue to recognize the premium quality of California walnuts and the nutritional value and great taste they bring to the Indian diet. Elimination of India’s retaliatory tariffs will benefit Indian consumers and businesses, as well as the California walnut industry,” she added.

    The California walnut industry brought this ongoing issue to the attention of the Biden Administration early in the presidency and appreciate their tenacity and commitment which led to this agreement. We commend USTR Ambassador Katherine Tai and Ambassador Doug McKalip on negotiating this successful outcome for California’s walnut producers and processors. Ambassador McKalip recently visited California and had an occasion to tour walnut and almond orchards and learn firsthand the severe financial impact the 20% retaliatory tariff inflicted on the California walnut industry.

    We also appreciate USDA Secretary Tom Vilsack, Foreign Agricultural Service (FAS) Administrator Daniel Whitley and the FAS personnel who helped the industry through this challenging period.  The Market Access Program (MAP) continues to be a crucial element in enabling us to maintain our relationships in India and seek new market opportunities. We are grateful for efforts by federal, state, local elected officials, regulators, and their staff for diligently keeping this topic on the forefront of trade discussions.

    Robert Verloop, the Chief Executive Officer for the California Walnut Commission said, “the California walnut growers have been severely impacted by a host of unprecedented events over the last few years; including the various trade tariffs, COVID pandemic-induced supply chain and transportation disruptions, global economic downturn, inflationary pressures, high dollar values, the complications brought on by the war in Ukraine and the persistent drought and heat wave that severely impacted our 2023 crop.”

    “Tree nut growers, most of whom are multi-generational family farms, make a long-term investment in their crops.  Walnut orchards can be highly productive for over 30 years; accordingly, the growers make decisions to produce the revered California walnuts with the expectations that we have fair and equitable access to global markets which represent more than 65% of our sales. The removal of this tariff is welcomed by our industry and provides a pathway to strengthening our trade relations with this important market and trading partner” added Verloop.

    Ms. Graviet stated, “California walnuts are perfectly aligned to meet the global demands for more healthy, nutritious, and great tasting plant-based foods.  The removal of the retaliatory tariff in India will enable our growers to help meet these demands in India.  We thank our Indian trade partners and retailers for their ongoing support and commitment to California walnuts and look forward to building greater distribution and consumption of our walnuts.”

  • Organic Trade Association Awarded Lead Role in USDA Organic Partnership Program

    The Organic Trade Association (OTA) has been selected as a national partner for the U.S. Agriculture Department’s (USDA) Transition to Organic Partnership Program, a key component of USDA’s broad multi-agency drive to expand organic agriculture by providing more direct support and technical assistance to producers across the United States. Rodale Institute, long a recognized leader in research and technical expertise on organic agriculture, will be the core partner to OTA.

    As the Lead Cooperator for this project, the trade association will manage and oversee activities throughout the country that support market development for organic products, facilitate the matching of organic producers and suppliers, and educate handlers in effective ways of dealing with organic products.

    The Transition to Organic Partnership Program (TOPP) is a critical part of USDA’s $300 million Organic Transition Initiative (OTI) announced last year to help foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers. OTI is the largest single investment in organic agriculture ever made by the USDA. In announcing the program, USDA said its aim is to “build new and better markets and streams of income for farmers and producers” and reverse a trend of slow growth in farmers transitioning to organic, open opportunities for new and beginning organic farmers, and expand consumer access to organic foods.

    Through TOPP, USDA and its partnering organizations will provide locally-based farmer training and education in six regions throughout the country. The national-level TOPP agreements will supplement and collaborate with this regional work, providing nationally-focused coordination and services.

    “OTA is honored to be named national partner for USDA in this important program,” said Tom Chapman, CEO of the trade association. “Supporting market development and access for transitioning and organic producers and handlers is vital for the long-term success of USDA’s Organic Transition Initiative. By leveraging our experience and in-depth knowledge of organic, industry network, and collaborative approach, we know we can contribute to the success of the USDA TOPP initiative, and having Rodale as our core partner ensures even greater outcomes for the program.”

    “Consumer demand for organic products has been growing rapidly in the United States, but domestic production and handling capacity have not kept pace.” said Jeff Tkach, CEO of Rodale Institute. “Through this national partnership with the USDA and the Organic Trade Association, Rodale Institute, the global leader in organic agricultural research, education, and direct farmer support programs, will teach producers how to successfully adopt certified organic handling and processing practices. The Institute’s innovative organic consulting division will also provide on-the-ground training and market development assistance to producers across the nation. If one thing is clear, it’s that this critical and in-demand partnership will lead to better outcomes for both producers and consumers of organic agriculture in the United States.”

    Among the various activities that OTA, Rodale and other partners will develop are:

    • Technical assistance and workshops at the national and regional levels on the various aspects of developing markets for organic products, including educating and empowering farmers and handlers by addressing market trends, marketing and business strategies, and other relevant topics to help them succeed in the organic marketplace;
    • Strategies to connect organic producers with buyers, including the organization of in-person buyer/seller events and hosted buyer tours of regional areas that will provide a forum for networking and interaction, as well as listing participants in online clearinghouses and databases that allow for targeted searching;
    • The Handler Transition Training/Education program which will provide comprehensive training materials and educational resources to support handlers in effectively managing organic products, looking at such handling concerns as labeling, contamination prevention, storage, fraud prevention plans and more.

    “USDA’s Organic Transition Initiative takes real steps to build the next generation of organic producers and strengthen organic supply chains,” said Chapman. “We are deeply grateful for the opportunity to support this major program and to help organic continue its forward path.”

    About the Organic Trade Association

    The Organic Trade Association (OTA) is the membership-based business association for organic agriculture and products in North America. OTA is the leading voice for the organic trade in the United States, representing over 10,000 organic businesses across 50 states. Its members include growers, shippers, processors, certifiers, farmers’ associations, distributors, importers, exporters, consultants, retailers and others. OTA’s Board of Directors is democratically elected by its members. OTA’s mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace.