California Ag Network

Tag: USDA

  • Consumer Demand for Beef Remains Strong Among Inflation Woes, New Report Shows

    According to the newly released “Today’s Beef Consumer” report from the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, demand for beef continues to remain strong. The compilation of research from 2022, outlined below, shows that despite various challenges faced by the industry, consumers have repeatedly stated that they will continue purchasing beef, both in retail and foodservice settings.

    Consumer Insights
    Consumer demand for beef remains strong overall. In fact, more than two-thirds of consumers reportedly eat beef on a weekly basis, or more. Inflation is certainly top of mind and more than three-quarters of consumers, 78%, report noticing an increase in the price of food whether at retail or foodservice. Beef however has experienced far lower levels of inflation when compared to other proteins in the “food at home” category, which we will explore next.

    Retail
    During the pandemic consumers were forced to cook at home and many have continued to do so as it has become a popular way to make a dollar stretch and combat inflation. Analysis for the Today’s Beef Consumer report found 76% of meals are now cooked at home and 94% of consumers who are cooking more at home say they will continue to do so. In 2022 fresh ground beef accounted for 50% of volume of beef sales, likely due to the lower price point as well as a renewed consumer interest in comfort foods and nostalgic recipes, like meatloaf. In 2022, meatloaf was also the most popular page on BeefItsWhatsForDinner.com with almost 1.7 million pageviews. This trend is expected to continue as a recent survey found that 20% of consumers say they plan to purchase more ground beef in the coming year.

    Foodservice
    It is no surprise that beef sales at foodservice declined sharply in 2020 and 2021. In 2022, sales in both dollars and volume rebounded to surpass the pre-pandemic level of 2019.

    Online Shopping
    Another pandemic trend that seems to be here to stay is online shopping, both at retail and foodservice. 64% of consumers say they are ordering groceries online, with 44% of consumers including fresh beef in those grocery orders. When it comes to foodservice, online ordering has become overwhelmingly popular. 80% of consumers say they order meals online and 70% use online ordering for burgers.

    Beef Substitutes
    Fresh meat and beef substitutes continue to represent a small percentage of the market. When it comes to protein sources, consumers consistently rank beef as a top source of protein.

    As we head into 2023 demand for beef remains strong and consumers continue to purchase and order beef, whether in person or online. To view the entire study, click here or visit BeefResearch.org.

    About the Beef Checkoff
    The Beef Checkoff was established as part of the 1985 Farm Bill. The Checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States may retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

    About NCBA, a Contractor to the Beef Checkoff
    The National Cattlemen’s Beef Association (NCBA) is a contractor to the Beef Checkoff Program. The Beef Checkoff is administered by the Cattlemen’s Beef Board, with oversight provided by the U.S. Department of Agriculture.

  • California Ag Producers Near Feb. 6 Deadline for 2022 Ag Census

    The U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) reminds California farmers and ranchers that the deadline to respond to the 2022 Census of Agriculture is next week, Feb. 6. Producers can respond online at agcounts.usda.gov or by mail.

    Last month, NASS mailed the Census of Agriculture questionnaires to every known ag producer in California, the U.S., and Puerto Rico. Conducted just once every five years, the ag census provides a complete account of the nation’s farms and ranches and the people who operate them. Responding to the Census of Agriculture is required by federal law under Title 7 USC 2204(g) Public Law 105-113. The same law requires NASS to keep all individual operations’ informationconfidential, use the data for statistical purposes only, and publish the data in aggregate form to prevent disclosing the identity of any individual producer or farm operation.

    “The Census of Agriculture is vital to agriculture at the local, county, state, and National level. It provides the only source of uniform, comprehensive, and impartial agriculture data,” says Gary Keough, Director of the NASS Pacific Regional Field Office.

    The Census of Agriculture remains the nation’s only comprehensive and impartial agriculture data for every state, county, and U.S. territory. Farm operations of all sizes, urban and rural, which produced and sold, or normally would have sold, $1,000 or more of agricultural products in 2022, are included in the ag census.

    Producers who have submitted their completed ag censuses may disregard any additional ag census letters and forms. Whether producers responded online or by mail, they can verify their reports were received by going to agcounts.usda.gov, entering their survey codes, and checking the submitted date under the status column of the My Surveys tab. The status update is not always immediate. The update can take a few minutes up to several days, especially if the questionnaire was returned by mail.

    NASS will release the results of the ag census in 2024. Visit nass.usda.gov/agcensus, for more information.

  • USDA Announces Additional Assistance for Dairy Farmers

    The U.S. Department of Agriculture (USDA) recently announced the details of additional assistance for dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program (PMVAP) and a new Organic Dairy Marketing Assistance Program (ODMAP). The update to PMVAP and the new ODMAP will enable USDA to better support small- and medium-sized dairy operations who weathered the pandemic and now face other challenges.

    “This funding was urgently needed by dairy farms in California and throughout the Western United States.  Our years of drought and low farmer pay price have already pushed many organic dairies out of the market.  We need to find better long-term solutions to keep farms out of crisis, and hope Congress will prioritize better longtime solutions in the 2023 farm bill,” says  Zach Cahill, Cahill Organic Dairy in Ferndale, California and President of Western Organic Dairy Producers Alliance (WODPA).

    The Organic Trade Association (OTA) also welcomes the creation of a new ODMAP to help small- and medium-sized dairy operations. OTA shared, “Unprecedented shocks to global trade necessitate action and this action is critically necessary to ensure the livelihood of many organic dairy farmers. Organic dairy farmers are facing catastrophic economic challenges as the availability of organic feedstuffs has declined dramatically, resulting in costs climbing significantly over the past 18 months. OTA and its members have spearheaded a drive in Congress to bring this urgent issue to the attention of USDA, and we thank USDA for urgently recognizing the unique needs of organic producers.

    “While losses due to the combination of unforeseen market circumstances and an inadequate Class I pricing system have not been fully remedied, USDA and congressional efforts will aid thousands of dairy producers who otherwise would have absorbed losses created by policies that didn’t work for them,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “It’s not every day that lawmakers step up and resolve a problem that could have been left to lie. We never gave up, and we’re pleased that others didn’t either.”

    “The Biden administration continues to fulfill its commitments to fill gaps in pandemic assistance for producers. USDA is announcing a second set of payments of nearly $100 million to close-out the $350 million commitment under PMVAP through partnerships with dairy handlers and cooperatives to deliver the payments.,” said USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt. “USDA is also announcing new assistance targeted to small to medium size organic dairy farmers to help with anticipated marketing costs as they face a variety of challenges from weather to supply-chain challenges.”

    Pandemic Market Volatility Assistance Program

    PMVAP assists producers who received a lower value due to market abnormalities caused by the pandemic and ensuing Federal policies. As a result of the production cap increase, USDA’s Agricultural Marketing Service (AMS) will make PMVAP payments to eligible dairy farmers for fluid milk sales between 5 million and 9 million pounds from July through December 2020. This level of production was not eligible for payment under the first round of the PMVAP.  Payment rates will be identical to the first round of payments, 80 percent of the revenue different per month, on fluid milk sales from 5 million to 9 million pounds from July through December 2020.  USDA will again distribute monies through agreements with independent handlers and cooperatives, with reimbursement to handlers for allowed administrative costs. USDA will contact handlers with eligible producers to notify them of the opportunity to participate.

    As part of the first round, PMVAP paid eligible dairy farmers on up to 5 million pounds of fluid milk sales from July through December 2020. The first round of payments distributed over $250 million in payments to over 25,000 eligible dairy farmers. These dairy farmers received the full allowable reimbursement on fluid milk sales up to 5 million pounds.

    More information about the PMVAP production cap increase is available at www.ams.usda.gov/pmvap.

    Organic Dairy Marketing Assistance Program

    The new ODMAP, to be administered by USDA’s Farm Service Agency (FSA), is intended to help smaller organic dairy farms that have faced a unique set of challenges and higher costs over the past several years that have been compounded by the ongoing pandemic and drought conditions across the country. Many small organic dairy operations are now struggling to stay in business and FSA plans to provide payments to cover a portion of their estimated marketing costs for 2023. Final spending will depend on enrollment and each producers projected production, but ODMAP has been allocated up to $100 million.

    The assistance provided by ODMAP will be provided through unused Commodity Credit Corporation funds remaining from earlier pandemic assistance programs. The assistance will help eligible organic dairy producers with up to 75 percent of their future projected marketing costs in 2023, based on national estimates of marketing costs. This assistance will be provided through a streamlined application process based on a national per hundredweight payment. The payments will be capped at the first five million pounds of anticipated production, in alignment with preexisting dairy programs that target assistance to those smaller dairies that are most vulnerable to marketing challenges. This program is still in development.

    Details about the Organic Dairy Marketing Assistance Program will be available and updated at www.farmers.gov as more details are released in a Notice of Funds Availability later this year.

  • California Producers, Processors Awarded $300,000 in Dairy Business Innovation Initiative Grants

    The California Dairy Innovation Center (CDIC) announced five California winners of Dairy Business Innovation Initiative grants by the Pacific Coast Coalition, the USDA-funded Initiative hosted by Fresno State University supporting dairy product, process and packaging innovation. The winners include Capstone Ranch/Wonder Cow (Madera County), Central Coast Creamery (San Luis Obispo County), Foggy Bottom Boys (Humboldt County), Schoch Family Farmstead (Monterey County) and Weststeyn Dairy Farm (Glenn County).

    The grants are the first in the $1.8 million DBII award from the USDA that created the Pacific Coast Coalition to support dairy businesses in California, Oregon and Washington in the development, production, marketing, and distribution of dairy products. These are supplemented by additional phases of funding (2022-2025) totaling over $20 million announced in November by USDA. A second round of funding, which will award around $4 million in grants from $50k to $1 million, will be announced this month.

    For Cal Poly Dairy Science graduate Rob Diepersloot, founder of WonderCow, Inc. the award will focus on pilot-scale testing of the feasibility and regulatory applications for an innovative dairy-based beverage. Diepersloot said, “We started WonderCow in order to harness the functional ingredients that dairy has to offer and bring them to families in an easy and practical way. This grant will provide much support to accelerate our path to market and add considerable value; not only to our milk-based product, but more importantly, to the families who will benefit from the health factors it will bring.”

    “Receiving this grant will kick start a chain of events that promises an overall increase in our company’s revenue and will benefit our employees and all of our dairy partners,” said Reggie Jones, owner of the Paso Robles-based Central Coast Creamery. “The grant will enable us to purchase processing equipment to increase our production capacity by 40%, which translates to more income for our dairy partners. This also has a significant impact on the local economy.”

    Cody Nicholson Stratton, key partner of Foggy Bottom Boys applied for funding to purchase equipment to manufacture a value-added milk product from the farm’s milk. “Being able to create extra revenue from a portion of our total milk volume will ensure that our farm remains financially sustainable and operational,” Stratton said. “We are consistently asked where our milk goes. This farmstead product line will offer our customers more ways to engage with our brand/business. We are excited to be able to offer our dairy with our family branded label.”

    As one of the last dairies on the Central Coast of California, Schoch Dairy knows well the challenges of small-scale dairy production. Schoch received an award for equipment to produce new European style cheeses and butter products that are not common in California. “We believe this will be a major step that moves us from a local into a regional supplier of innovative farmstead dairy products as well as demonstrating the viability of a smaller-scale dairy operating profitably,” said Beau Schoch, third generation dairy farmer, engineer and project manager for the project. “Schoch Family Farmstead would like to lead the way in our region thanks to this grant.”

    The grant will allow Weststeyn Dairy Farm to study the feasibility of high-pressure processing (HPP). Stephen Weststeyn, third generation farmer said, “I studied dairy processing at Cal Poly, San Luis Obispo, with the dream of making dairy products someday from our milk on our farm. The dairy industry is in desperate need of innovation. There is a window of opportunity here in the U.S. to apply new technologies to milk and milk packaging to reset milk’s image. Applying the HPP process to milk gives the opportunity to not only to refresh milk’s image, but it also allows the opportunity to create a better, fresher tasting product, improve shelf life, and open milk to a new field of possibility and development with functional beverages.”

    Funded through the U.S. Department of Agriculture, Agricultural Marketing Service, DBII program funded initiatives focus on product, process and packaging innovation and serve to:

    • Diversify dairy product markets to reduce risk and develop higher value uses for dairy products.
    • Promote business development that diversifies farmer income through processing and marketing innovation.
    • Encourage the use of regional milk production.

    The grants are the first in the $1.8 million DBII award from the USDA that created the Pacific Coast Coalition to support dairy businesses in California, Oregon and Washington in the development, production, marketing, and distribution of dairy products. These were supplemented by additional phases of funding (2022-2025) totaling over $20 million announced in November by USDA.

    “The continued investment in dairy innovation at both the farm and plant level will help take our industry to the next level,” said John Talbot, CEO of the California Milk Advisory. “And CMAB’s California Dairy Innovation Center was instrumental in this grant process and has resources to guide qualified California dairy businesses to take full advantage of these opportunities.”

    “We appreciate Fresno State University, host of the DBII grant,” said Talbot. “The dedication of Dr. Carmen Licon and Dr. S. Pheasant and the administrators and grant staff at Fresno State have moved this initiative forward in a significant way and created a smooth pathway for grants to start making a difference.”

    The CDIC’s Steering Committee, which includes representatives of California Dairies Inc., California Dairy Research Foundation, California Milk Advisory Board, Cal Poly San Luis Obispo, Dairy Management Inc., Fresno State University, Hilmar Cheese, Leprino Foods, and UC Davis assisted in the thorough review process and recommended funding applications based on objective criteria.

    Grants are available to anyone operating a dairy farm or dairy processing plant in California that focus on product, process, packaging innovation for dairy manufacturing. This includes feasibility studies and workforce training. Proposals can include requests for funding for qualified equipment, feasibility studies, innovation in packaging as well as training of the workforce. This is a reimbursement program with applicants reimbursed upon presentation of invoices/receipts for approved projects. Grants are available to qualified applicants throughout California. For more information on upcoming grants, please contact CMAB’s California Dairy Innovation Center: vlagrange@cmab.net.

    About the California Dairy Innovation Center
    The California Dairy Innovation Center (CDIC) coordinates pre-competitive research and educational training in collaboration with industry, check-off programs, and research/academic institutions in support of a common set of innovation and productivity goals. The CDIC is guided by a Steering Committee that includes California Dairies Inc., California Dairy Research Foundation, California Milk Advisory Board, Cal Poly San Luis Obispo, Dairy Management Inc., Fresno State University, Hilmar Cheese, Leprino Foods, and UC Davis.

  • 2023 Dairy Margin Coverage Deadline Extended to Jan. 31

    The U.S. Department of Agriculture (USDA) has extended the deadline for producers to enroll in Dairy Margin Coverage (DMC) and Supplemental Dairy Margin Coverage (SDMC) for program year 2023 to Jan. 31, 2023.

    DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.

    “We recognize this is a busy time of year with many competing priorities, so we’ve extended the DMC enrollment deadline to ensure every producer who wants coverage for 2023 has the opportunity to enroll in the program,” said Farm Service Agency (FSA) Administrator Zach Ducheneaux. “Early projections indicate DMC payments are likely to trigger for the first eight months in 2023. We all know that markets fluctuate, sometimes at a moment’s notice and sometimes with no warning at all, so now’s the time to ensure your operation is covered. Please don’t let this second chance slide.”

    Nearly 18,000 operations that enrolled in DMC for 2022 have received margin payments for August and September for a total of $76.3 million. At $0.15 per hundredweight for $9.50 coverage, risk coverage through DMC is a relatively inexpensive investment.

    DMC offers different levels of coverage, even an option that is free to producers, aside from a $100 administrative fee. Limited resource, beginning, socially disadvantaged, and military veteran farmers and ranchers are exempt from paying the administrative fee, if requested. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.

    Supplemental DMC 

    Last year, USDA introduced Supplemental DMC, which provided $42.8 million in payments to better help small- and mid-sized dairy operations that had increased production over the years but were not able to enroll the additional production. Supplemental DMC is also available for 2023.  The enrollment period for 2023 Supplemental DMC is also extended to Jan. 31, 2023.

    Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023.  Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds.

    For producers who enrolled in Supplemental DMC in 2022, the supplemental coverage will automatically be added to the 2023 DMC contract that previously established a supplemental production history.

    Producers who did not enroll in Supplemental DMC in 2022 can do so now. Producers should complete their Supplemental DMC enrollment before enrolling in 2023 DMC. To enroll, producers will need to provide their 2019 actual milk marketings, which FSA uses to determine established production history.

    DMC Payments 

    FSA will continue to calculate DMC payments using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses.  These updated feed calculations use 100% premium alfalfa hay rather than 50%.

    For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.

  • December USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for December 2022, which are effective Dec. 1, 2022. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

    Operating, Ownership and Emergency Loans

    FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for 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 December 2022 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.

    Pandemic and Disaster Support

    FSA broadened the use of the Disaster Set Aside (DSA), normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 or a second DSA for a natural disaster for producers with an initial DSA for COVID-19. The COVID-DSA is available for borrowers with installments due before Dec. 31, 2022, and whose installment is not more than 90 days past due when the DSA request is made. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to 12 months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. Use of the expanded DSA program can help to improve a borrower’s cashflow in the current production cycle.

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

    Inflation Reduction Act Assistance for Distressed Producers

    On August 16, 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. USDA has allocated up to $1.3 billion for initial steps to help these distressed borrowers. This includes both automatic and case-by-case assistance. For more information producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.

  • Ag Conservation Easement Programs Permanently Protect Over 3.4 Million Acres

    American Farmland Trust‘s Farmland Information Center recently released results from its annual survey of state Purchase of Agricultural Conservation Easement (PACE) programs. Purchase of Agricultural Conservation Easement programs use public funds to compensate property owners for keeping their land available for agriculture. The findings from the 2022 survey are summarized in “Status of State Purchase of Agricultural Conservation Easement Programs.

    As of the start of this calendar year, PACE programs in 30 states have invested more than $5 billion in state funds to acquire nearly 18,500 easements and permanently protect more than 3.4 million acres. Pennsylvania, Maryland, New Jersey, Delaware, and Massachusetts lead the nation in easements acquired while Colorado, Pennsylvania, Maryland, New Jersey, and California stood out for acres protected to date (see maps). Key partners, including local governments, USDA Natural Resource Conservation Service and other federal agencies, foundations, and landowners, have spent an additional $3 billion to complete these projects.

    Annual Trends Show Increased Pace of Protection, Lower Acquisition Costs, and Uptick in Local Match

    In 2021, programs reported acquiring 589 easements on approximately 106,700 acres, spending over $183.7 million in state funds and leveraging more than $118 million from other sources to do deals. For the single year, program activity in Pennsylvania, Maryland, Delaware, Ohio, and New Jersey topped the list for easements acquired. California, Pennsylvania, New York, Colorado, and Maryland lead for acres protected (see tables).

    While annual state spending was down 3%, total funds invested in easement acquisitions grew 8% from 2020 levels. This reflects a nearly 31% rise in funding from non-state sources, as reported by program managers. Local government contributions represented the most significant share of non-state funding, up 70%. The value of landowner donations also more than doubled, while the Agricultural Conservation Easement Program – Agricultural Land Easement component (ACEP-ALE) kicked in an additional 18% of the non-state dollars. ACEP-ALE is a voluntary federal conservation program implemented by the USDA Natural Resources Conservation Service (NRCS) that protects agricultural land from conversion to non-agricultural uses. ACEP-ALE provides matching funds to eligible entities to acquire conservation easements on farmland and ranch land.

    The number of easements acquired in 2021 decreased from 2020, but the total acreage protected increased by more than 12% year-over-year. Notably, the average easement size increased 28% from 141 acres per easement in 2020 to 181 acres per easement in 2021—also an increase from both the 2018 and 2019 average easement sizes.

    Average cost for acquisition, meanwhile, was at its lowest point in four years. Based on total funds spent, the average cost to protect an acre of farmland or ranchland dropped 3% from $2,926 per acre in 2020 to $2,833 in 2021.

    AFT’s Farmland Information Center has been conducting its annual survey of State PACE programs since 1995. The 2022 State PACE Program Survey collects information about transactions completed in calendar year 2021 and summarizes cumulative data through January 2022. Other nationwide surveys conducted by the Farmland Information Center include a survey of local PACE programs, and of land trusts that protect agricultural land. The data collected through these surveys help AFT track the progress of on-the-ground programs working to save our nation’s farmland.

    For more information on Purchase of Agricultural Conservation Easements, visit AFT’s Farmland Information Center website. The FIC is a clearinghouse for information about farmland protection and stewardship and is a public/private partnership between the USDA Natural Resources Conservation Service and American Farmland Trust.

    American Farmland Trust is the only national organization that takes a holistic approach to agriculture, focusing on the land itself, the agricultural practices used on that land, and the farmers and ranchers who do the work. AFT launched the conservation agriculture movement and continues to raise public awareness through our No Farms, No Food message. Since our founding in 1980, AFT has helped permanently protect over 7 million acres of agricultural lands, advanced environmentally-sound farming practices on a half million additional acres and supported thousands of farm families.

  • Napa Valley’s Neal Family Vineyards Achieves Regenerative Organic Certification

    Napa Valley’s biodynamic winegrowing pioneer Mark Neal is pleased to announce that his Howell Mountain estate winery, Neal Family Vineyards, has achieved Regenerative Organic Certified® as recognized by the Regenerative Organic Alliance (ROA). The ROA was established in 2018 and is today considered the highest level of certification. There are only five vineyard estates worldwide that hold Regenerative Organic Certified® status and Neal Family Vineyards now represents the first Napa Valley vineyard to receive this certification.

    “I first achieved organic certification in 1984 but being the first in Napa Valley to achieve the Regenerative Organic Certified® stamp of approval is still an exciting accomplishment for us because of what it stands for,” said Neal, vintner, founder, and owner of Neal Family Vineyards. “ROA was founded to address climate change, soil degradation, biodiversity loss, factory farming and fractured rural communities globally.  Regenerative organic agriculture is a collection of practices that focus on regenerating soil health and the full farm ecosystem. This new certification goes farther than any other organic certification – including CCOF (California Certified Organic Farmers) – by requiring specific farming practices that build soil health, ensure fairness to farmers and farm workers, and improve animal welfare. We have always exclusively used organic and biodynamic practices in our vineyards, and this certification further cements that commitment to the land and our community.”

    Mark Neal is considered one of Napa Valley’s earliest organic and biodynamic pioneers and the valley would not be where it is today without his early advocacy for organic farming. He and his father started Jack Neal & Son (JNS) in 1968 and his vineyards have been certified organic starting in 1984 – long before there was any marketing cachet around sustainability. Today, under Mark’s leadership, Jack Neal & Son manages the most CCOF Certified acres in Napa Valley and can claim the largest biodynamic farming operation in the United States, effectively making Mark Neal one of Napa Valley’s most influential grape growers when it comes to ethical farming.

    The ROA was founded by Patagonia (the American outdoor clothing retailer that has become a paragon of environmental and social responsibility activism), Dr. Bronner’s (the largest organic soap and personal care company certified under the USDA’s National Organic Program), as well as a group of farmers, business leaders and experts in soil health, animal welfare and social fairness. Before a company can apply to become Regenerative Organic Certified®, they must first hold a National Organic Program certification. After that, they must prove and demonstrate soil health practices, such as no or minimal tillage, cover cropping and crop rotation; social fairness in the form of living wages and healthy working conditions for employees; and animal welfare with pasture-based grazing. The criteria for the animal welfare scope includes the Five Freedoms; freedom from hunger or thirst, freedom from discomfort, freedom from pain, injury or disease, freedom to express normal behavior, and freedom from fear, distress, and mental suffering.

    In a recent letter from Patagonia Founder, Yvon Chouinard, to the brand’s customers about upcoming changes to the company, Chouinard said, “Earth is now our only shareholder,” and that is something Mark Neal truly believes in. Since its founding in 1998, Neal Family Vineyards has always been a leader in educating and demonstrating organic practices in the Napa Valley. The winery’s four estate vineyards have been certified organic by CCOF since 2009 and certified biodynamic by Demeter Biodynamic since 2021. Alongside Fetzer Vineyards, Bonterra Vineyards, Truett Hurst, and Tablas Creek, Neal Family Vineyards is one of the few winery estates in California to receive Regenerative Organic Certified®.

    About Neal Family Estates

    Family owned and operated, Neal Family Vineyards is a boutique winery that specializes in crafting Cabernet Sauvignon from meticulously farmed, 100% biodynamic, and 100% estate vineyards on Neal Family’s signature Howell Mountain and Rutherford Dust properties in Napa Valley. Founded by Napa Valley biodynamics pioneer Mark Neal, Neal Family Vineyards believes great wines come from great ingredients that only organic and biodynamic vineyards can produce. After taking a leading role in the implementation of certified organic and biodynamic agricultural practices in Napa Valley, Neal Family continues to commit to organic and biodynamic practices. All four of the winery’s estate vineyards have been certified organic by CCOF since 2009, certified biodynamic by Demeter Biodynamic since 2021 and was the first Napa Valley vineyard to be Regenerative Organic Certified® by Patagonia’s Regenerative Organic Alliance in 2022. Mark also owns and operates Jack Neal & Son (JNS) Vineyard Management, the largest biodynamic farming operation in the United States. For more information, please visit www.NealVineyards.com/.

    About Regenerative Organic Certified®

    Regenerative Organic Certified® is an agricultural certification for food, fiber, and personal care ingredients. Based on three pillars, it requires farmers to go above and beyond by practicing agricultural techniques that ensure healthy soil, the ethical and humane treatment of animals, and fairness for farmers and workers. It was created to address the climate crisis, soil degradation, biodiversity loss, factory farming, and fractured rural economies globally. For more information, please visit https://regenorganic.org/

  • Ag Mediation: When Disagreements Happen on the Farm

    We all find ourselves in situations where we need to have tough conversations. No one wants to deal with conflict, yet it’s important to remember that productive conversations are still possible, even when it seems like neither side is willing to budge.

    For farmers, hard conversations might involve banks, businesses, government agencies, neighbors, or family members. Knowing what to say can be difficult when the farm’s success depends on the outcome.

    Agricultural mediators have seen these challenges firsthand. Trained agricultural mediators understand the industry and can facilitate conversations between parties to resolve their differences without taking a side.

    Jenna Muller

    Jenna Muller mediates farm disputes in California. In addition to being a lawyer, Muller also is an owner at Full Belly Farm, a 450-acre organic, fruit, and vegetable operation in Northern California. As a farmer, she knows the myriad challenges and opportunities facing family farms and agricultural businesses.

    Muller says, “Conflict may be an unavoidable part of life, but it doesn’t have to be negative. When handled correctly, conflict can also be an opportunity for growth and understanding.” She has helped farmers resolve disagreements about organic certification, address property-line disputes with neighbors, and helped family members find consensus about how to run the farm. “Sometimes,” she says,” the hardest part is just starting the conversation.”

    Agricultural Mediation Programs Exist Across the U.S.

    Agricultural mediation programs exist in 43 states across the U.S. Muller is one of two staff agricultural mediators for the California Agricultural Mediation Program (CALAMP). The head of the department of agriculture in each state certifies an entity to administer the mediation program, and the USDA provides funding support to make mediation free for farmers.

    Since 1988, the programs have helped those in the agriculture industry resolve issues informally, without the transaction costs associated with the legal system. It’s also confidential, so farmers can feel open to exploring all solutions.

    Matt Strassberg

    Matt Strassberg is an agricultural mediator and director of CALAMP. He brings over thirty years of experience in environmental law and mediation to the work.

    Strassberg says a common issue that can benefit from mediation is farmer and neighbor or community member disputes. He says a mediator’s job isn’t to decide who’s legally right or what to do next but to encourage open discussion and leave the decision-making up to the parties involved.

    “Many farmers are hesitant to engage with community members when these issues arise because they fear the situation will escalate,” Strassberg said. “As mediators, we work with farmers to help them resolve these types of right-to-farm issues so they can let go of the stress they are carrying.”

    A common question farmers ask is if they will have to talk about their feelings during mediation.

    “Sometimes mediation focuses solely on making the best economic decision under the circumstances and has little to do with emotions or feelings,” Strassberg says. “More often than not, we find that the substantive issue was stressing the relationship between the parties. Once we help the parties find some common ground, they can reconnect with one another as business partners, neighbors, or community members. Having that neutral person, the mediator, there to moderate the discussion and ask good questions makes a difference.”

    Tips for Having Productive Conversations

    Agricultural mediators say farmers can learn how to have tough conversations and feel good about them by following these tips.

    1)     Listen with Curiosity

    Before you share your point of view, listen to understand the other person. Try saying: “Can you tell me more about why this is important to you?” I’d like to understand more about what you’re trying to tell me, so I don’t fill in the blanks with something that’s not true.”

    2)     Playback and Reflect

    People like to know that you understand them. Be sure you understand the other person’s concerns. Try saying: “It sounds like you’re worried about [insert their concerns]. Am I getting that right?”

    3)     Acknowledge

    Be sure that you acknowledge the issue’s impact on them. Show that it’s important to you to solve the problem. Try saying: “I see how this has affected you. It’s important to me to try to resolve this.”

    4)     Share Your Perspective

    Once someone feels heard and acknowledged, they have more capacity to understand what you are going through. At this point, you are not sharing solutions yet; you’re sharing what you’re going through. Try saying: “The impact of this issue on me has been…”

    5)     Connect & Problem Solve

    If you’ve taken the time to understand someone else, they will probably have a better ability to understand what you want to say. Having felt heard, they are more likely to listen to you. Now you can problem-solve together. Try saying: “It sounds like we both want to see this handled. Here’s something I can do. What do you think?”

    It Takes Time to Learn New Conversation Skills

    Mary Campbell

    Mary Campbell, a mediator with CALAMP, says to remember it’s okay to make mistakes.

    “Don’t be afraid to give these tools a shot. It’s a practiced skill, and people will always appreciate your effort and understanding,” Campbell says. “It’s better to try and to take the time to hear each other.”

    To practice your skills, Campbell suggests interacting with people who aren’t close to you.

    “The most challenging place to practice is at home, with family or close friends. Instead, practice with someone who may have a different viewpoint from you on a topic, but with whom you don’t have a strong emotional connection. Give yourself permission to learn and keep trying. It is not win or fail; it is win or learn,” Campbell says.

    If you need more assistance with an upcoming conversation, your state mediation program may be able to help. The first step is to contact an agricultural mediator to discuss your unique situation. You can find your state mediation program at www.agriculturemediation.org/certified-states.

    The list of agricultural issues eligible for free mediation varies by state. Free mediation is often available for debt issues, farm loans, family-farm transitions, farmer-neighbor disputes, land and equipment leases, organic certification, pesticide issues, USDA farm and conservation programs, USDA rural development loans, and wetlands determinations. — By the California Agricultural Mediation Program

  • Farmers Can Now Make 2023 Crop Year Elections, Enroll in Ag Risk and Price Loss Coverage Programs

    Agricultural producers can now change election and enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage programs for the 2023 crop year, two key safety net programs offered by the U.S. Department of Agriculture (USDA). Signup began Monday, and producers have until March 15, 2023, to enroll in these two programs. Additionally, USDA’s Farm Service Agency (FSA) has started issuing payments totaling more than $255 million to producers with 2021 crops that have triggered payments through ARC or PLC.

    “It’s that time of year for produces to consider all of their risk management options, including safety-net coverage elections through Agriculture Risk Coverage and Price Loss Coverage,” said FSA Administrator Zach Ducheneaux. “We recognize that market prices have generally been very good, but if the ongoing COVID-19 pandemic, frequent catastrophic weather events and the Ukraine war have taught us anything, it’s that we must prepare for the unexpected. It’s through programs like ARC and PLC that FSA can provide producers the economic support and security they need to manage market volatility and disasters.”

    2023 Elections and Enrollment

    Producers can elect coverage and enroll in ARC-County (ARC-CO) or PLC, which provide crop-by-crop protection, or ARC-Individual (ARC-IC), which protects the entire farm. Although election changes for 2023 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm and makes an election change for 2023, they must sign a new contract.

    If producers do not submit their election by the March 15, 2023 deadline, their election remains the same as their 2022 election for crops on the farm.  Farm owners cannot enroll in either program unless they have a share interest in the farm.

    Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.

    Web-Based Decision Tools

    In partnership with USDA, the University of Illinois and Texas A&M University offer web-based decision tools to assist producers in making informed, educated decisions using crop data specific to their respective farming operations. Tools include: 

    • Gardner-farmdoc Payment Calculator, a tool available through the University of Illinois allows producers to estimate payments for farms and counties for ARC-CO and PLC.  
    • ARC and PLC Decision Tool, a tool available through Texas A&M that allows producers to obtain basic information regarding the decision and factors that should be taken into consideration such as future commodity prices and historic yields to estimate payments for 2022.   

     2021 Payments and Contracts

    ARC and PLC payments for a given crop year are paid out the following fall to allow actual county yields and the Market Year Average prices to be finalized. This month, FSA processed payments to producers enrolled in 2021 ARC-CO, ARC-IC and PLC for covered commodities that triggered for the crop year.

    For ARC-CO, producers can view the 2021 ARC-CO Benchmark Yields and Revenues online database, for payment rates applicable to their county and each covered commodity. For PLC, payments have triggered for rapeseed and peanuts. 

    For ARC-IC, producers should contact their local FSA office for additional information pertaining to 2021 payment information, which relies on producer-specific yields for the crop and farm to determine benchmark yields and actual year yields when calculating revenues.  
     
    By the Numbers  
    In 2021, producers signed nearly 1.8 million ARC or PLC contracts, and 251 million out of 273 million base acres were enrolled in the programs.  For the 2022 crop year signed contracts surpassed 1.8 million, to be paid in the fall of 2023, if a payment triggers. 
    Since ARC and PLC were first authorized by the 2014 Farm Bill and reauthorized by the 2018 Farm Bill, these safety-net programs have paid out more than $34.9 billion to producers of covered commodities.   

    Crop Insurance Considerations

    ARC and PLC are part of a broader safety net provided by USDA, which also includes crop insurance and marketing assistance loans.

    Producers are reminded that ARC and PLC elections and enrollments can impact eligibility for some crop insurance products.

    Producers on farms with a PLC election have the option of purchasing Supplemental Coverage Option (SCO) through their Approved Insurance Provider; however, producers on farms where ARC is the election are ineligible for SCO on their planted acres for that crop on that farm.

    Unlike SCO, the Enhanced Coverage Option (ECO) is unaffected by an ARC election.  Producers may add ECO regardless of the farm program election.

    Upland cotton farmers who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan (STAX) on their planted cotton acres for that farm.

    More Information

    For more information on ARC and PLC, visit the ARC and PLC webpage or contact your local USDA Service Center.