California Ag Network

Tag: USDA

  • Roller Crimping – A Cover Crop Termination Option

    With the end of harvest comes the beginning of winter prep work. One practice that provides a bevy of positive impacts for orchards is planting a winter cover crop. Adding organic matter to the soil via cover crops can improve water infiltration and water holding capacity of the soil. Fixing nitrogen and breaking up compacted soil can also be achieved by selecting appropriate species for your cover crop mix.

    While the benefits of winter cover cropping in orchards are well-known, the particulars of when and how to terminate the cover crop can be overwhelming. Using herbicides to terminate a crop can be expensive, and achieving good coverage can be difficult with large amounts of biomass. Mowing or tilling can disrupt the soil, losing some of the accumulated carbon. Annie Edwards and Margaret Smither-Kopperl with the USDA recently released a report on termination using a roller crimper in orchard systems. Their findings show that, while this can be a great tool to maximize the benefits of cover cropping, roller crimping works best with certain cover crop species and growth stages.

    Figure 1. Roller crimper implement. Photo credit: Tracy Robillard, USDA NRCS.

    Roller crimping is a common practice in other parts of the country but had not yet been studied in California orchard systems. A roller crimper is a drum-shaped implement with blunt curved blades (Figure 1.) that rolls over and crushes down the vegetation without disturbing the roots. This creates a mat of biomass over the soil’s surface, similar to mulch. This has been shown to reduce soil temperatures, conserve soil moisture, decrease erosion, and reduce herbicide use. The timing of roller crimping is critical; too early and you won’t have enough biomass produced to adequately cover the soil and provide the desired benefits. Too late and the cover crop may have produced seed that can germinate in the current season, depending on irrigation practices and precipitation.

    Research completed at the USDA’s Lockeford Plant Materials Center compared four different cover crop seed mixes to determine how well the roller crimper terminated each. Additionally, each of the four mixes was crimped at 6 different times to evaluate which growth stage was most successful for termination. Data on “bounce back” (when plants stood back up and continued to grow) as well as regrowth, biomass, vegetative stage, and cover crop canopy height were collected.

    • Results showed that the brassica mix “bounced back” and regrew when roller crimped too early. Termination with the roller crimper was most effective when these species were at least a week into flowering, with termination remaining effective through “seed maturing” stage.This termination timing allowed for good biomass accumulation,  and the study notes that the brassica mix formed a vegetative mat when crimped, which is the ultimate goal of this termination technique.
    • The fava beans alone remained crimped after the plants had visible early pods reaching about 3/16”. The fava beans and the brassica mix were the only treatments that were completely successfully terminated with the crimper.
    • The “annual plow down” mix, consisting of oats, vetch, peas and fava beans, showed best results when crimped at early visible pods in the fava. This mix also had the largest biomass accumulation over the season. However, the oats in the mix had a high rate of “bounce back”. Crimping was not an ideal method of termination for this mix.
    • The triticale crop continued to regrow when crimped too early. Crimping was most successful for this species after the plants started to flower. However, even then, the triticale “bounced back” and was never fully successfully crimped.

    Ultimately, roller crimping is most effective for termination of cover crop mixes without grass species. Crimping brassica mixes and fava beans produces a vegetative mat that can protect soil and maximize the benefits of cover cropping. It is key to use this technique at the appropriate vegetative growth stage for the species in your mix, as crimping too early can necessitate repeating the practice.

    The entire USDA report, including seeding densities, seed sources, and photos can be found here. — By Becky Wheeler-Dykes, UCCE Farm Advisor, Glenn, Tehama and Colusa Counties

  • New Project Aims to Use Farm Waste to Fuel Bioeconomy

    In California’s Northern San Joaquin Valley, crop leftovers such as almond shells, fruit peels and orchard trimmings can potentially be converted into sustainable bioproducts and biofuels – with the right technology. The philanthropy Schmidt Sciences’ Virtual Institute on Feedstocks of the Future, which supports replacing fossil feedstocks with renewable biomass sources, has awarded new funding to a group investigating how to make better use of the diverse agricultural waste in the region.

    “This is an important project for California as it quantifies the diverse ‘ingredients’ in the North San Joaquin Valley available to fuel the emerging biomanufacturing industry in the state,” said Gabe Youtsey, chief innovation officer for the University of California Agriculture and Natural Resources. “This foundational work will kickstart a completely new innovation bioeconomy in the Central Valley that will create new high-paying jobs for our communities and support a resilient food and agriculture industry through circular biomanufacturing.”

    Circular biomanufacturing is a process that uses waste streams as raw materials to create new products.

    “Circular means taking waste streams from agriculture such as almond shells or grape pomace, forest waste or food processing waste and using that material as the ‘feedstock’ in a fermentation tank to create new bioproducts,” Youtsey explained.

    The group, “Building the Circular Bioeconomy in the North San Joaquin Valley” or BioCircular Valley, is co-led by the Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab), UC Berkeley, and BEAM Circular, with partners at UC Merced, UC Agriculture and Natural Resources, the Almond Board of California and USDA Agricultural Research Station in Albany.

    “California has this incredible diversity of materials, but they aren’t well understood – and this makes it difficult to know how to extract the most value out of them,” said Corinne Scown, a senior scientist at Berkeley Lab and UC Berkeley and one of the project leads. “We want to characterize them and make that information available so companies can more easily figure out which feedstock is a good match for them, and then use that agricultural residue to make everything from bio-based polymers and chemicals to sustainable materials and aviation fuels.”

    One of the group’s goals is to build a publicly accessible database and user-friendly map full of information about different feedstocks, the raw plant materials and biomass that can be broken down and used to make bioproducts. That includes where feedstocks are located, when they are available, how they are currently disposed of, how they perform in different bioreactors, how much sugar or lignin they contain, whether they can be processed with other feedstocks, their greenhouse gas footprint, the potential cost, and much more.

    UC ANR’s role is to collect data on available feedstocks from forest, agricultural and food processing byproducts, as well as municipal waste streams through sampling and observation.

    “We will do this through the extensive knowledge and relationships we have with the California agriculture industry in the North San Joaquin Valley,” Youtsey said. “UC ANR will also support industry outreach as new ‘conversion’ technologies are developed, to pilot them with California growers and processors.”

    The project will also test ways to improve the flexibility of the conversion process, which breaks down feedstocks to prepare them to make bioproducts. Researchers will apply artificial intelligence to their lab-generated data to improve predictions of how feedstocks can be processed most efficiently or blended together. Being able to use the same technique on different (or mixed) kinds of plant matter would open up ways for companies to make bioproducts more easily.

    “Our region has a fantastic combination of diverse and large-scale agricultural activities alongside manufacturing expertise, making this a great place to scale up bioeconomy innovation,” said Karen Warner, CEO of BEAM Circular. “This project will allow us to reduce barriers to using our region’s abundant waste streams in more sustainable and valuable ways, so that we can create the products that people need with renewable inputs that are better for the planet.”

    The project builds on ongoing efforts to establish biomanufacturing capabilities in the northern San Joaquin Valley, which includes San Joaquin, Stanislaus and Merced counties. Providing better data on how to convert the valley’s millions of tons of agricultural waste into valuable products may spur biomanufacturing companies to build facilities nearby, minimizing how far the raw materials have to be moved and generating new jobs.

    “This project is designed to benefit a region that has massive potential, but so far has been economically left behind, and to develop a new industry that can provide improvements in air quality, water quality and greenhouse gas emissions as well as significant opportunities in economic equity and the creation of new jobs,” said Blake Simmons, director of Berkeley Lab’s Biological Systems and Engineering Division and the BioCircular Valley project lead.

    “This kind of research started as basic science, and now we’re bringing information and solutions to people who can use them. And the knowledge generated through this project will advance not only the ability of the NSJV to make use of its own regionally available future feedstocks, but will also accelerate the understanding of feedstocks relevant across California and across the U.S.”

    The new funds for the project come from the Virtual Institute on Feedstocks of the Future, a partnership between Schmidt Sciences and the Foundation for Food & Agriculture that supports collaboration on research to transform biomass into alternative feedstocks for biomanufacturing. The award is one of five, which total $47.3 million over five years. It is expected that the five teams will collaborate to share best practices and knowledge to boost the bioeconomy at the national level.

    “We are grateful for Schmidt’s generous support that will help deploy advanced technologies on the ground,” said Alicia Chang, interim president of Berkeley Lab Foundation. “The foundational research and expertise developed through work for the Department of Energy sets the stage for this team to apply their capabilities to bring jobs and lift the community and the economy in the Northern San Joaquin Valley.” — By Lauren Biron & Pam Kan-Rice, UCANR

  • USDA to Help Dairy Producers Offset Milk Loss Due to H5N1

    The U.S. Department of Agriculture (USDA) is accepting applications through its updated Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP) to provide financial assistance to eligible dairy producers who incur milk losses due to Highly Pathogenic Avian Influenza, also known as H5N1infection in their dairy herds.  USDA’s Farm Service Agency (FSA) expanded ELAP through the rule-making process to assist with a portion of financial losses resulting from reduced milk production when cattle are removed from commercial milking in dairy herds having a confirmed positive H5N1 test. Positive test results must be confirmed through the USDA’s Animal and Plant Health Inspection Service (APHIS) National Veterinary Services Laboratories (NVSL).

    “USDA remains committed to working with producers, state veterinarians, animal health professionals, and our federal partners as we continue to detect the presence of H5N1 in dairy herds and take additional measures to contain the spread of the disease,” said Agriculture Secretary Tom Vilsack. “When something unexpected, like H5N1, threatens the economic viability of the producers we serve, we are committed to finding ways, where we have the authority to do so, to revisit existing program policies and provide the financial support needed to help producers recover and sustain production.”

    ELAP provides emergency relief to eligible producers of livestock, honeybees, and farm-raised fish to assist with losses due to disease, adverse weather, or other conditions, such as wildfires, that are not covered by other FSA disaster assistance programs.

    H5N1 infections have been detected in 14 states including California, Colorado, Idaho, Iowa, Kansas, Michigan, Minnesota, New Mexico, North Carolina, New Mexico, Ohio, South Dakota, Texas and Wyoming.  Dairy producers in all states are reminded to stay vigilant and follow established APHIS biosecurity, detection and testing guidelines.  In addition to testing, enhanced biosecurity is critical to containing this virus.  USDA works closely with state animal health official, producers, and industry organizations to provide guidance and resources for cleaning and disinfection not only on affected farms but for all livestock producers as a part of practicing good biosecurity.  APHIS has made available a number of biosecurity documents on its landing page.

    ELAP Eligibility

    Eligible adult dairy cattle must be:

    • Part of a herd that has a confirmed positive H5N1 test from NVSL;
    • Initially removed from commercial milk production at some point during the 14-day time period before the sample collection date for the positive H5N1 test date through 120 days after the sample collection date for the positive H5N1 test;
    • Milk-producing, currently lactating; and
    • Maintained for commercial milk production, in which the producer has a financial risk, on the beginning date of the eligible loss condition.

    Applying for ELAP Assistance

    To apply, producers need to submit the following to FSA:

    • Proof of herd infection through a confirmed positive H5N1 test (based on USDA’s APHIS H5N1 case definition) on individual animal or bulk tank samples confirmed by NVSL;
    • A notice of loss indicating the date when the loss is apparent, which is the sample collection date for the positive H5N1 test; and
    • An application for payment certifying the number of eligible adult dairy cows, the month the cows were removed from production, and the producer’s share in the milk production.

    The final date to file a notice of loss and application for payment for eligible losses is 30 days after the end of the prior calendar year, which is January 30.

    Calculating ELAP Payments

    The per cow milk loss payment due to H5N1 will be determined based on an expected 21-day period of no milk production when a cow is removed from the milking herd, followed by seven days when the cow has returned to milking but produces 50% of the normal amount of production.

    ELAP payments are determined using a per head payment rate calculated based on the monthly all-milk price and national milk production published by the National Agricultural Statistics Service and a standard number of days with reduced or no production — (per head payment rate x number of eligible adult dairy cows x producer’s share in milk production x 90%)

    To apply, producers should contact the FSA at their local USDA Service Center.

    More Information

    Details on updated ELAP policy to provide financial assistance for milk loss due H5N1.

    USDA continues to work with the Food and Drug Administration, Centers for Disease Control and Prevention, and State veterinary and public health officials to investigate H5N1 among cattle. APHIS continues to provide confirmatory testing for samples from livestock as well as guidance for producers, veterinarians, and state animal health officials.  Learn more at APHIS’ Highly Pathogenic Avian Influenza Detections in Livestock webpage.

  • Landmark Agreement Secures U.S. Dairy & Meat Exporters’ Rights to Use Common Names

    The Consortium for Common Food Names (CCFN), National Milk Producers Federation (NMPF), International Dairy Foods Association and U.S. Dairy Export Council (USDEC) commended the passage into law of commitments by the Chilean National Congress that safeguards the rights of U.S. cheese and meat exporters to use certain common names – such as “parmesan” and “prosciutto” – to market and sell their products in the Chilean market.

    The agreement came together following an exchange of letters between U.S. Trade Representative Katherine Tai and Chile’s Undersecretary of International Economic Relations Claudia Sanhueza on June 21, which confirmed a mutual understanding and agreement that U.S. exporters will be able to continue to market their products in Chile using a number of common cheese and meat terms.

    Certain provisions under the EU-Chile trade agreement signed in December 2023 enabled the unfair treatment of U.S. meat and dairy products by abusing geographical indication protections. In response, CCFN, NMPF and USDEC worked closely with U.S. and Chilean government officials to address the U.S.-Chile Free Trade Agreement’s (FTA) threats to U.S. cheese and meat products.

    Included in the agreement is a mutual understanding regarding “prior users” of certain cheese and meat terms in the market. For a limited number of products that the EU allowed to be grandfathered and that American exporters had exported to Chile prior to the updated FTA, all U.S. producers of those products will have the right to continue to use those terms in Chile. In addition, an extensive list of common names will also be protected for use in Chile for all U.S. producers. The exchange of letters is now integrated into the FTA between the two countries and is subject to its provisions, including the FTA’s enforcement measures.

    “CCFN applauds the Administration for their initiative to negotiate the protection of parmesan and a number of other key products,” said Jaime Castaneda, executive director for CCFN. “We greatly appreciate USTR and USDA’s work with the Chilean government and urge the Administration to continue its efforts to push back against the European Union’s strategic monopolization of common names. To that end, it’s vital that the U.S. establish a firm policy of proactively seeking protections for common name products with key trading partners all around the world.”

    “Chile is a critical market and partner for U.S. dairy in Latin America,” said Krysta Harden, president and CEO of USDEC. “We greatly appreciate USTR and USDA for their hard work to strengthen this relationship, which will directly help U.S. producers grow their businesses in Chile. We look forward to continuing to work together to create new avenues for U.S. dairy exports and to avoid similar challenges from cropping up in other international markets.”

    “IDFA applauds the Biden Administration for its ongoing efforts to protect U.S. dairy exports by enforcing existing agreements and developing innovative solutions, such as this exchange of letters, to resolve unnecessary trade irritants,” said Becky Rasdall, senior vice president, trade and workforce policy, IDFA. “Throughout the process, IDFA has provided confidential feedback to U.S. negotiators and advocated as appropriate with Chilean officials, including by sharing U.S. perspectives on the economic damages of GIs with Chilean members of parliament and staff.

    “In a period of no new FTA negotiations, it is imperative to protect our existing agreements. We appreciate the Biden Administration agreeing with this sentiment and responding to the EU’s attempt to limit the benefits of the U.S.-Chile FTA. IDFA commends the efforts of USTR and USDA staff in Washington and Santiago for ensuring U.S. cheeses can continue to be exported to one of our oldest FTA partners.”

    “This agreement is a milestone for U.S. dairy producers,” said Gregg Doud, president and CEO of NMPF. “It ensures that many of our products will maintain fair access to the Chilean market, supporting the growth and success of American dairy farmers on a global scale. Now, we need to build on that momentum by securing agreements with other trading partners to protect export opportunities for even more U.S. cheeses.”

    The agreement will enter into force 90 days from the National Congress’ Sept. 3 approval.

  • September USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for September 2024, which are effective Sept. 1, 2024. USDA Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

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

    Operating, Ownership and Emergency Loans
    FSA offers farm ownership, operating and emergency loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation.

    Interest rates for Operating and Ownership loans for September 2024 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.

    Farm Loan Program Process Improvement
    FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes, to take effect Sept. 25, 2024, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.

    FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:

    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing or visiting a local Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.
    • A new educational hub with farm loan resources and videos.

    More Information
    Since the Inflation Reduction Act was signed by President Biden in August 2022, USDA’s Farm Service Agency has provided approximately $2.4 billion in immediate assistance to more than 43,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for 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 farm records data and customer information by logging into their farmers.gov account. Producers without an account can sign up today.

    FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.

  • West Coast Smoke Exposure Task Force Launches Comprehensive Website for Wine Industry

    The West Coast Smoke Exposure Task Force (WCSETF) is excited to announce the launch of its new website – www.wcsetf.org. This user-friendly website is designed to feature comprehensive smoke exposure resources to assist growers, winemakers, and others serving the wine and winegrape sector.

    The website offers a centralized hub of information from WCSETF, universities, government agencies, and industry groups, including:

      • ●  Frequently asked questions
      • ●  Best practices
      • ●  Labs
      • ●  Contracts
      • ●  Crop insurance
      • ●  Wildfire preparedness
      • ●  Informational videos
      • ●  University resources
      • ●  Research
      • ●  News and events

    Posted on the website are updated best practices that include grape sampling protocol for growers as well as micro-fermentation and nano-scale fermentation protocols.

    “The goal with this website is to consolidate and share as much information as possible regarding smoke exposure,” said Natalie Collins, chair of the WCSETF Steering Committee and president of the California Association of Winegrape Growers. “Instead of having to search multiple websites for information, the industry can now use the WCSETF website as a convenient, go-to resource. The site is a work in progress and will continue to be updated with additional content.”

    The WCSETF originated from discussions in early 2019 between grower leaders and industry group representatives from California, Oregon and Washington. Since then, the task force has convened educational webinars – including its annual Smoke Summit – and produced reference materials to assist growers and winemakers with certain challenges associated with smoke-exposed wine grapes. WCSETF Steering Committee members include wine grape industry organizations from California, Oregon and Washington. They work in partnership with scientists from the University of California, Davis, Oregon State University, Washington State University and the USDA’s Agricultural Research Service (ARS). Other task force committees focus on industry specific needs, such as research and communications, and include members in the West Coast wine industry.

    The website is supported by a grant from USDA ARS through the Washington Wine Industry Foundation.

  • USDA, USTR Seek New Ag Trade Advisory Committee Members

    The U.S. Department of Agriculture and the Office of the U.S. Trade Representative are accepting applications for new members to serve on the agricultural trade advisory committees.

    The Agricultural Policy Advisory Committee is comprised of senior representatives from across the U.S. agricultural community who advise USDA and USTR on overall trade policy matters, while members of the six Agricultural Technical Advisory Committees provide technical advice and guidance from the perspective of their specific product sectors:

    • Animals and animal products
    • Fruits and vegetables
    • Grains, feed, oilseeds and planting seeds
    • Processed foods
    • Sweeteners and sweetener products
    • Tobacco, cotton, peanuts and hemp

    Committee members appointed from this round of nominations will serve four-year terms beginning in Jan. 2025. To be considered for committee membership, applicants must have expertise in U.S. agriculture and experience in international trade. They must be U.S. citizens, qualify for a security clearance and be willing to serve without compensation for time, travel or expenses. The committees hold frequent video or teleconference calls and generally meet in Washington, D.C., twice a year.

    Applications must be received by 5 p.m., EDT, on Friday, Sept. 20, 2024. Any applications received after the deadline will be considered for future appointments, as appropriate. For complete application instructions and information about the committees, please visit: https://fas.usda.gov/topics/trade-advisory-committees.

  • Expanding Innovative Domestic Fertilizer Production

    U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA is partnering with American business owners to expand innovative domestic fertilizer production, creating jobs in rural communities and strengthening local economies. The Department is awarding $35 million for seven projects in seven states through the Fertilizer Production Expansion Program (FPEP), which is funded by the Commodity Credit Corporation. This program provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more. This funding advances President Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up.

    “The Biden Administration continues to make innovative investments that bolster rural communities and support farmers, ranchers and small business owners,” Secretary Vilsack said. “The investments announced today will increase domestic fertilizer production and strengthen our supply chain, while creating good-paying jobs to benefit all Americans.”

    To date, USDA has invested $286.6 million in 64 projects across 32 states through FPEP. These projects have created 768 new jobs in communities across the country and will increase domestic fertilizer production by over 5.6 million tons.

    These investments will boost domestic fertilizer production and lower costs for U.S. farmers. For example:

    • Dramm Corp. in Wisconsin will use a $776,000 grant to increase their production capacity and expand their network of customers and farmers while reducing their carbon footprint and increasing employee safety. Using fish offal collected from commercial and sport fishermen, Dramm produces a liquid fish fertilizer suitable for organic and traditional farming while keeping millions of pounds of waste out of landfills and fresh waterways.
    • In Virginia, AdvanSix, an ammonium sulfate producer, will expand a facility with an almost $12 million grant. The company currently provides 31,400 ag producers with ammonium sulfate on the East Coast and in the Midwest. Through this project, AdvanSix will expand their operational capacity by 195,000 tons per year, increasing total production to more than 36,000 producers.

    USDA is also making awards to facilities in California, Iowa, New York, Oregon and Tennessee.

    President Biden and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors such as war in Ukraine and a lack of competition in the fertilizer industry. The Administration committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation.

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

    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. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To learn more, visit www.usda.gov. To subscribe to USDA Rural Development updates, visit the GovDelivery subscriber page.

  • A New Day for Farm Financing

    Around 40 years ago, a rancher and his family took in a fall day watching an admittedly motley herd of cows get on a truck, never to return to the ranch.  There are countless stories like this that exist as a result of the Farm Financial Crisis of the 80s. In that era, the federal government took a much different approach to distressed borrowers than we have in the last few years. The Inflation Reduction Act gave USDA’s Farm Service Agency (FSA) the tools we needed to help keep producers operating while folks all across the agency are working to improve our ability to better serve producers—producers just like that rancher from 40 years ago.

    One of that rancher’s kids was me. Today, that kid has the privilege to share the culmination of several years of work, and countless years of staff experience in helping producers. The Enhancing Program Access and Delivery for Farm Loans Rule is the centerpiece of many agriculture financing improvements we’re working on at FSA.

    This rule helps producers currently in our portfolio and improves opportunities for those seeking new loans by ensuring that our tools are deployed in a manner best suited to promote producer profitability and resilience. This rule establishes some of the most significant changes in the last 40 years.

    As a child of the Farm Financial Crisis and having spent my previous professional life in various roles of farm advocacy, I’d heard countless stories from FSA borrowers and former borrowers—heck, even folks that had never applied—recounting their perception of the shortcomings of FSA’s lending efforts.  With this rule, we are taking many of these shortcomings off the table, because we believe that the performance of our portfolio can be used as an example for the rest of the ag lending industry. We’ve heard the concerns loud and clear. In response, in recent years, we’ve announced several FSA lending improvements and flexibilities including:

    • A new loan assistance tool
    • A streamlined application
    • Online loan payments option
    • A “fast track” loan approval process

    And there are more of these farm loan enhancements to come. We’ll visit more when appropriate, but for now I’d like to talk about the rule, and our broader credit reforms. The Biden administration has clearly demonstrated a dedication to listening to stakeholders and a willingness to promote change. The rule we publish today serves to codify many of the best practices we’ve seen across the country from our staff; while at the same time support our staff in a new approach tailored to the “actual needs” of a borrower.

    The rule is part of a holistic effort in support of the Biden administration’s commitment to our ag producers.  Twelve legislative proposals included in the President’s FY 25 Budget were offered as well, several of which are being contemplated by our friends on the Hill during their ongoing deliberations.

    You can read the rule changes for yourself in the Federal Register and here’s a one page fact sheet, but I will illustrate the meaningful impact the rule represents by sharing producer sentiments that will hopefully be a thing of the past for agency and the borrowers we serve – concerns expressed like:

    “FSA takes every dang thing I have as security; they tie my hands so I can’t make decisions when I need to.” 

    “I have to work off the place so I can afford to live.”

    “Losing the family farm is bad enough, but did they have to take my house?”

    The changes in this rule, signal a producer-centric approach to finance. Our tools can now be used to provide borrowers the financial freedom and flexibility to improve profitability and resilience. Allowing the borrower the opportunity and means to save for long-term needs and make strategic investments from their existing production income; can help demonstrate that when the terms of finance meet the “actual needs” of the producer, everybody wins; it’s akin to giving our producers a raise.

    Over the next few weeks, we will work diligently to train our staff and inform our stakeholders across the country, to ensure we’re ready for the fall loan season. As always, your patience is appreciated, but please feel free to reach out if you think we can be of assistance here in the national office.

    To say that it has been one of the great privileges of my life to contribute alongside our team to this effort, is a woeful understatement.

    Many of you have seen the black vest that I wear for my “formal attire.” It belonged to that rancher mentioned at the beginning of this blog. I have worn it to keep me grounded and remind me of my “why.” Its work is done, now it’s time to get my own. —By Zach Ducheneaux, USDA Farm Service Agency Administrator

  • USDA Launches Online Debt Consolidation Tool for Farmer and Rancher Viability

    The U.S. Department of Agriculture (USDA) is announcing the launch of the Debt Consolidation Tool, an innovative online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.

    “Providing producers with options to structure their debt in a manner that affords them every opportunity to meet the goals of their agricultural operation is the best way to ensure the nation’s farmers and ranchers build financial equity and resilience,” said FSA Administrator Zach Ducheneaux.

    A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt may also provide farmers and ranchers additional cash flow flexibilities.

    The Debt Consolidation Tool is a significant addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs. The tool enhances customer service and increases opportunities for farmers and ranchers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming and ranching operation, retirement accounts, or college savings accounts.

    Producers can access the Debt Consolidation Tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox, or the Safari browser. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.

    Additional Farm Loan Programs Improvements

    FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes, to take effect September 25, 2024, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.

    FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made several impactful improvements including:

    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet, and build a farm operating plan.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.
    • A new educational hub with farm loan resources and videos.

    USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation. To conduct business with FSA, please contact your local USDA Service Center.

    FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.