California Ag Network

Tag: USDA

  • USDA Updates Farm Loan Programs to Increase Financial Freedom and Profitability for Ag Producers

    The U.S. Department of Agriculture (USDA) has announced changes to the Farm Service Agency’s (FSA) Farm Loan Programs, effective Sept. 25, 2024 — changes that are intended to increase opportunities for farmers and ranchers to be financially viable. These improvements, part of the Enhancing Program Access and Delivery for Farm Loans rule, demonstrate USDA’s commitment to improving farm profitability through farm loans designed to provide important financing options used by producers to cover operating expenses and purchase land and equipment.

    “USDA recognizes that Farm Service Agency’s loan making and servicing activities are critical for producers, especially in tough times. Providing borrowers the financial freedom to increase profits, save for long-term needs and make strategic investments is the best way to ensure the nation’s farmers and ranchers can build financial equity and resilience,” said Zach Ducheneaux, FSA Administrator. “Implementing these improvements to our Farm Loan Programs is the next step in our ongoing commitment to removing lending barriers that may prevent access to credit for borrowers, especially those who need it most.”

    Farm loan policy changes outlined in the Enhancing Program Access and Delivery for Farm Loans rule, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.

    The three most notable policy changes include:

    • Establishing a new low-interest installment set-aside program for financially distressed borrowers. Eligible financially distressed borrowers can defer up to one annual loan installment per qualified loan at a reduced interest rate, providing a simpler and expedited option to resolve financial distress in addition to FSA’s existing loan servicing programs.
    • Providing all eligible loan applicants access to flexible repayment terms that can increase profitability and help build working capital reserves and savings. By creating upfront positive cash flow, borrowers can find opportunities in their farm operating plan budgets to include a reasonable margin for increased working capital reserves and savings, including for retirement and education.
    • Reducing additional loan security requirements to enable borrowers to leverage equity. This reduces the amount of additional security required for direct farm loans, including reducing the frequency borrowers must use their personal residence as additional collateral for a farm loan.

    Additional Farm Loan Program Improvements

    Under the Biden-Harris Administration, USDA’s FSA has embarked on a comprehensive and systemic effort to ensure equitable delivery of Farm Loan Programs and improve access to credit for small and mid-size family farms. FSA has also included additional data in its annual report to Congress to provide information that Congress, stakeholders, and the general public need to hold USDA accountable on the progress that has been made in improving services to underserved producers. This year’s report shows FSA direct and guaranteed loans were made to a greater percentage of young and beginning farmers and ranchers, as well as improvements in the participation rates of minority borrowers. The report also highlights FSA’s microloan program’s new focus on urban agriculture operations and niche market lending, as well as increased support for producers seeking direct loans for farm ownership in the face of increasing land values across the country.

    FSA 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.

    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 off ices and locally elected county committees. For more information, visit, www.fsa.usda.gov

  • $22M for 29 Projects to Expand Conservation for Livestock Producers

    The U.S. Department of Agriculture (USDA) has awarded $22 million for 29 selected projects in 36 states that expand access to conservation technical assistance for livestock producers and increases the use of conservation practices on grazing lands. USDA’s Natural Resources Conservation Service (NRCS) is funding the cooperative agreements through its Grazing Lands Conservation Initiative (GLCI), which empowers partners to increase availability of grazing land technical assistance for livestock producers, including historically underserved producers, as well as Native American tribal governments.

    “Privately owned grazing lands cover nearly one-third of the American landscape,” said NRCS Chief Terry Cosby. “Through these selected projects and cooperative agreements, NRCS leverages the knowledge and expertise of partners to help livestock producers, advance climate-smart agriculture and serve producers who choose voluntary, private land conservation.”

    Selected projects focus on one or more of the following priorities: 

    • Addressing local natural resource concerns.    
    • Using climate-smart agriculture and forestry practices and principles.    
    • Encouraging existing and new partnerships to advance the resource needs of underserved communities.    
    • Identifying and implementing strategies to quantify, monitor, report on and verify conservation benefits associated with grazing management systems. 
    • Utilizing Indigenous Traditional Ecological Knowledge, where applicable.   

    Projects include:

    • The Wolfe’s Neck Farm Foundation, Inc. plans to expand managed grazing in New England and Eastern New York through partnerships, climate-smart technical assistance and education. 
    • Virginia State University plans to provide outreach, training and technical assistance to underserved and veteran ranchers in Virginia on alternative grazing practices and herd management. 
    • Rolling Hills Resource Conservation and Development Council, Inc. plans to improve grazing management in Georgia by educating producers in the art and science of grazing and introduce them to the latest technology within the grazing industry. 
    • The Valley Stewardship Network plans to continuing momentum in Wisconsin for conservation grazing through farmer-led watershed management initiatives, technical assistance and ecological monitoring.
    • Chico State Enterprises plans to provide technical assistance and workforce development on grazing lands in Northern California. Project activities include working with underserved producers to increase their participation in new and existing grazing coalitions; create a new professional course in Indigenous Traditional Ecological Knowledge (ITEK).
    • National Grazing Lands Coalition plans to expand organizational capacity to support grazing coalitions that create local-grassroots-programs across the nation and on indigenous grazing lands to target local resource concerns.

    The full list of projects is available on the GLCI webpage. 

    More on GLCI   

    Funded by the Farm Bill, GLCI was developed as a coordinated effort to identify priority issues, find solutions and effect change on private grazing land, enhancing existing conservation programs. NRCS is reviving and revitalizing GLCI to leverage partner capacity, expertise and technical assistance to expand the footprint of well-managed grazing systems across the country.

    GLCI also supports the National Grazing Lands Coalition to help state grazing coalitions form and persist with participation from historically underserved producers and Native American tribal governments and organizations.

  • New Fire Insurance Protection-Smoke Index (FIP-SI) Crop Insurance Endorsement for California Grape Growers

    The U.S. Department of Agriculture (USDA) has released additional details on a new crop insurance endorsement to better protect California wine grape growers from the devastating impacts of wildfire smoke. The Fire Insurance Protection-Smoke Index (FIP-SI) endorsement, developed by USDA’s Risk Management Agency (RMA) in collaboration with industry stakeholders, including the California Association of Winegrape Growers (CAWG), is set to be available as a pilot program for the 2025 crop year.

    FIP-SI will be available to grape growers in all California counties, with the deadline to sign up for coverage being January 31, 2025.

    The endorsement is designed to provide grape growers with an additional layer of financial protection in the event of significant smoke exposure. This area-wide policy triggers a loss when a minimum number of cumulative Smoke Events occur during the insurance period, as defined in the policy using data from the National Oceanic and Atmospheric Administration’s (NOAA) Hazard Mapping System Smoke Product.

    “The 2020 wildfires sent shockwaves through the wine industry, with losses from smoke-exposed fruit felt throughout the state. Since that devastating year, we’ve been working diligently to find solutions to better safeguard California’s winegrape growers from the impacts of wildfire smoke,” said Natalie Collins, CAWG President. “The introduction of this targeted risk management tool for smoke marks a significant step forward in protecting the livelihoods of our growers and the future of the wine industry as we continue to face the challenges posed by increased wildfire activity.”

    Collins continued, “CAWG extends its gratitude to RMA’s Product Development Team for their extensive work in crafting and introducing this critical crop insurance endorsement. We also commend U.S. Senator Alex Padilla and Congressman Mike Thompson for their advocacy in calling for action through crop insurance to better protect the CA wine industry.”

    CAWG will host an educational webinar on Thursday, November 14 at 10:00am, where Relation Insurance Services will present in-depth information on the new FIP-SI endorsement. The webinar will discuss how FIP- SI interacts with growers’ existing policies, and answer any questions from growers.

    Resources:

    About the California Association of Winegrape Growers (CAWG)

    CAWG is a statewide nonprofit trade association advocating for California’s winegrape growers to ensure the sustainability of the winegrape industry. CAWG promotes the industry’s long-term success by advancing the adoption of sound public policies and fostering awareness and understanding of winegrape growers’ contributions to the economy, environment, and California communities. Learn more at cawg.org.

  • $400M to Address Drought, Conserve Water through Production of Water-Saving Commodities

    Agriculture Secretary Tom Vilsack announced the U.S. Department of Agriculture (USDA) will invest $400 million with at least 18 irrigation districts to help farmers continue commodity production while also conserving water across the West. This funding – which will support irrigation districts and producers in using innovative water savings technologies and farming practices while producing water-saving commodities in the face of continued drought – is expected to conserve up to 50,000 acre-feet in water use across 250,000 acres of irrigated land in production, while expanding and creating new, sustainable market opportunities.

    This historic funding builds on the Biden-Harris Administration’s work to conserve water, increase the efficiency of water use, upgrade existing infrastructure, and overall strengthen water security in the West. With historic water conservation enabled by President Biden’s Investing in America agenda, the Department of the Interior’s Bureau of Reclamation announced in May 2024 it had staved off the immediate possibility of the Colorado River System’s reservoirs from falling to critically low elevations that would threaten water deliveries and power production. Due to record conservation investments as well as improved hydrology, Lake Mead levels today, at elevation 1075 feet, are the highest since May 2021, when they were at 1073 feet. The Administration is now working to ensure the long-term sustainability and resilience by focusing on long-term water conservation in several basins across the west.

    Agricultural producers are the backbone of rural communities across the West and many of them are struggling under prolonged drought conditions,” Vilsack said. “USDA is taking an ‘all hands’ approach to help address this challenge, including these new partnerships with irrigation districts to support producers. We want to scale up the tools available to keep farmers farming, while also voluntarily conserving water and expanding markets for water-saving commodities.”

    Partnering with Irrigation Districts to Support Water Conservation, Produce Water-Saving Commodities

    USDA worked to select irrigation districts based on several commodity production and water management-related criteria in order to maximize the ability to achieve program objectives, leveraging available data from the Department of the Interior’s Bureau of Reclamation to ensure close alignment and partnership. USDA’s Economic Research Service (ERS) provided data and analysis to support the preliminary selections. Districts that have been preliminarily selected for potential inclusion in this program include:

    • Black Canyon Irrigation District, Idaho
    • Brooklyn Canal Company, Utah
    • Central Oregon Irrigation District, Ore.
    • Central Arizona Irrigation and Drainage District, Ariz.
    • Corcoran Irrigation District, Calif.
    • East Columbia Basin Irrigation District, Wash.
    • Elephant Butte Irrigation District, N.M.
    • Glenn – Colusa Irrigation District, Calif.
    • Greybull Valley Irrigation District, Wyo.
    • Hidalgo & Cameron Counties Irrigation District 9, Texas
    • Huntley Project Irrigation District, Mont.
    • Imperial Irrigation District, Calif.
    • Maricopa – Stanfield Irrigation and Drainage District, Ariz.
    • Palisade Irrigation District, Colo.
    • Quincy Columbia Basin Irrigation District, Wash.
    • Solano Irrigation District, Calif.
    • Sutter Mutual Water Company, Calif.
    • Truckee-Carson Irrigation District, Nev.

    The preliminary selected districts may receive up to $15 million each in the awards and will enter into sub-agreements with the producers participating within the district. Depending on available funding, awards to additional districts may be possible.

    Producers who participate will receive payments for voluntarily reducing water consumption while maintaining commodity production. The needs of producers will determine the specific strategies for water conservation, including irrigation improvements, shifts in management practices, shifts in cropping systems, and other innovative strategies. USDA will learn from the diversity of strategies used and identify additional opportunities to maintain and expand water-saving commodity production in the future.

    Participating producers and irrigation districts will commit to ensuring continued commodity production in the areas where water consumption is reduced. USDA is working to finalize agreements with the preliminarily selected districts, which will include the details of each individual district’s water-saving strategies, commodities to be produced, and specific budgets. Following the finalization of those awards, producers within the participating districts will work directly through their irrigation districts to participate. USDA and the preliminarily selected districts will provide more details on the agreements and opportunities for producers to directly enroll.

    “Maricopa-Stanfield Irrigation and Drainage District is pleased to be working with USDA to implement practices and projects that save water and improve efficiencies at a time when the historic drought in the southwest has put so much pressure on our agricultural producers. Investing in agriculture is an investment in America,” the District said.

    “Quincy-Columbia Basin Irrigation District is excited to enter into partnership with USDA to help bring Federal dollars to local growers. Our top priority is providing efficient and dependable irrigation water to our constituents, and we look forward to working with USDA to explore new water-efficient practices in the Columbia Basin,” the District said.

    “Greybull Valley Irrigation District (GVID) is extremely excited to explore water conservation efforts with the USDA Water-Saving Commodities team, this is a great opportunity for the District and their producers. GVID is always looking for ways to conserve water while supplying their producers with a steady flow for their crops, livestock, underground pipelines and pivots. The District is looking forward to discovering other conservation measures that would be very beneficial for all GVID members,” GVID said.

    Investing in Water Conservation in Tribal Communities and Acequias

    In addition to the preliminarily selected districts announced today, USDA is also announcing a Tribal set-aside within the program, targeting up to $40 million in funding for additional awards within Indian Country. USDA will work with the Department of the Interior’s Bureau of Indian Affairs (BIA), Tribes, and Tribal producers to reduce water consumption and maintain land in agricultural production – supporting the production of water-saving commodities. USDA is partnering with BIA to use available data and ensure meaningful engagement with Tribes to establish selection criteria that reflect the specific needs and water management systems within Indian Country. Additional information for further engagement and selections will be provided in the weeks ahead.

    USDA will also include targeted assistance to support water-saving commodity production for acequias, recognizing that many irrigators in the Southwest are formed under the community-based acequia model instead of the irrigation district model. Additional information regarding targeted assistance to acequias that reflects the historical nature of their water distribution structure will follow.

    Additional information for further engagement with Tribes and acequias will be provided in the weeks ahead.

    Historic Investments in Western Water Complement Water-Saving Commodities Program

    USDA’s Natural Resources Conservation Service (NRCS) is working to help producers and communities conserve water, manage and prepare for the effects of climate change and build drought resilience in the West through its Western Water and Working Lands Framework for Conservation Action (Western Water Framework), which was launched in 2023. The Western Water Framework describes how NRCS assistance is used to address water resource related issues in 17 states in the West. In fiscal year 2023, NRCS provided $2.3 billion in conservation investments that help producers and communities in Western states better steward water resources, including investments that also support climate change mitigation. This total includes a boost of 9.7 percent or $213.3 million from the Inflation Reduction Act.

    The Western Water Framework includes key NRCS conservation programs, including the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP) and Agricultural Conservation Easement Program (ACEP). Within EQIP NRCS has created a WaterSMART Initiative (WSI), to coordinate investments with the Bureau of Reclamation’s WaterSMART investments in priority areas.

    For Fiscal Year 2024, NRCS selected 9 new priority areas and is continuing to offer funding in 36 prior approved areas, making $29.7 million in EQIP funding available through the WSI across 16 states.

    EQIP and CSP provide conservation planning and funding to help with implementation of conservation practices. Practices like irrigation water management improve irrigation efficiency and mitigate climate change. Meanwhile, practices like conservation crop rotation, cover crop, residue and tillage management, no-till, and nutrient management help producers build resilience to future drought. ACEP gives producers and landowners tools to protect wetlands, grasslands and agricultural lands which can be used to conserve water.

    Together, these efforts by FSA and NRCS advance USDA’s efforts to create more, new, and better market opportunities, sustainably grow agricultural productivity to feed a growing population, and help farmers and natural resource managers manage and prepare for the effects of climate change.

    Learn more about the Western Water Framework.

  • August USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for August 2024, which are effective Aug. 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 August 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 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.

  • Oakville Bluegrass Cooperative Opens Enrollment for USDA Incentive

    Oakville Bluegrass Cooperative opened enrollment for the inaugural year of the USDA climate-smart partnerships incentive to plant Oakville bluegrass, a summer-dormant perennial cover crop. Because Oakville bluegrass is dormant from April through September, it doesn’t compete with cash crops for water or nutrients making it ideal for California permanent crops. Planted on over 900 acres of vineyards and tree nut orchards, this low growing, drought tolerant cover crop will last over ten years when well managed, significantly reducing labor and input costs for growers. When well managed, this low growing, drought tolerant cover crop will last over ten years significantly reducing labor and input costs for growers.

    The first cohort of growers who take advantage of the USDA incentive can receive a $100/acre incentive per seeded acre of the cover crop on up to 150  acres. The incentive is part of the USDA’s Climate Smart Commodities Program to equip growers with resources to implement climate smart practices.

    In addition to the USDA incentive, Oakville Bluegrass Cooperative is offering free seed shipping and waiving install fees for a limited time for growers who commit to planting at least 20 seeded acres. Growers who are interested in participating in the USDA incentive and this special offer are encouraged to submit their preliminary plans soon in order to take advantage of these opportunities.

    “Oakville bluegrass occupies a unique place in the market as a permanent cover solution,” Mike Morgenfeld, Managing Director for Oakville Bluegrass Cooperative shared. “When established correctly, it reduces operating costs over time while also building soil health and conserving water. Due to its low profile and drought resistance, it’s a unique solution for specialty crop growers in California. We’re excited to offer a way for growers to start their journey with this novel cover crop at a reduced cost.”

    Interested growers can attend an online informational session on July 24 at 11 am by registering at https://www.obc.ag/events/obc-info-session-july or visit https://www.obc.ag/usda-climate-smart for more information.

  • Vietnam Grants Market Access For California Peaches And Nectarines

    The United States Department of Agriculture (USDA) announced that Vietnam has granted market access for California peaches and nectarine effective immediately. Eliminating the phytosanitary barriers keeping California peaches and nectarines out of the Vietnamese market required multiple rounds of technical negotiations over the course of several years.

    “This market access is a big win for California’s nectarine and peach producers,” said USDA’s Jenny Lester Moffitt, Under Secretary for Marketing and Regulatory Programs. “Our APHIS trade team members have worked diligently to make this opened market a reality for Vietnam’s citizens. We are thrilled they will now have access to the fine peach and nectarine fruit that California produces.”

    The California Fresh Fruit Association (CFFA) would like to extend its appreciation to the USDA’s Animal and Plant Health Inspection Service, Foreign Agricultural Service, and Agricultural Research Service’s negotiators and experts, the California Department of Food and Agriculture, and the Fresno County and Tulare County Agricultural Commissioner offices for their invaluable contributions to this process.

    “This is a fantastic example of USDA scientists providing the quality and objective research that was essential for Vietnam’s approval and for future U.S. industry exports,” said Dr. Chavonda Jacobs-Young, USDA Chief Scientist and Under Secretary for Research, Education and Economics. “This new international market access underscores the critical value of federal scientific research and data to the overall food supply system.”

    There will be strict production and packing protocols in place but given the enduring success of existing export programs, California stone fruit shippers have already demonstrated a commitment to meeting Vietnam’s requirements.

    “The California stone fruit industry identified Vietnam as a strategic export market because Vietnamese consumers value high quality and sweet fruit. Naturally, the varieties California growers have invested in over the years will be popular there. Access to this market is something our industry has been working towards for a significant amount of time, so we are looking forward to introducing the best stone fruit in the world to a new group of consumers” said Caroline Stringer, CFFA Director of Trade.

    The California Fresh Fruit Association is a voluntary, public policy organization that represents growers, packers, and shippers of the California table grape, blueberry, kiwi, pomegranate, and deciduous tree fruit communities. CFFA serves as a representative for these growers, shippers, and packers, on issues at both the state and federal levels. More information on the Association can be found at www.cafreshfruit.com.

  • USDA Expands Insurance Options for Specialty and Organic Growers

    The U.S. Department of Agriculture (USDA) is expanding crop insurance options for specialty and organic growers beginning with the 2025 crop year. USDA’s Risk Management Agency (RMA) is expanding coverage options by allowing enterprise units by organic farming practice, adding enterprise unit eligibility for several crops, and making additional policy updates. This is the first of several announcements this summer, which will include the expansion of the shellfish policy in the Northeast and new coverage for grape growers in the West and beyond. These expansions and other improvements build on other recent RMA efforts to better serve specialty crop producers and reach a broader group of producers.

    “The Risk Management Agency is excited to expand coverage options for specialty and organic growers including the availability of enterprise and optional units for many producers,” said RMA Administrator Marcia Bunger. “Expanding our coverage options gives producers more opportunities to manage their risks. We will continue to build on our work through future announcements later this summer.”

    The following changes will be made beginning with the 2025 crop year:  

    • Enterprise and Optional Units:
      • Expand Enterprise Units (EU) to almonds, apples, avocado (California), citrus (Arizona, California, and Texas), figs, macadamia nuts, pears, prunes, and walnuts.
      • Allow non-contiguous parcels of land that qualify for Optional Units (OU) to also qualify for EU.
      • Allow EUs by organic farming practice for alfalfa seed, almonds, apples, avocado (California), cabbage, canola, citrus (Arizona, California and Texas), coarse grains, cotton, ELS cotton, dry beans, dry peas, figs, fresh market tomatoes, forage production, grass seed, macadamia nuts, millet, mint, mustard, pears, potatoes (northern, central, and southern), processing tomatoes, prunes, safflower, small grains, sunflower seed, and walnuts. 
      • Expand OUs by organic practice to all remaining crops where OUs are available, and the organic practice is insurable.
    • Walnut Quality Adjustment: Allow sunburned damaged walnuts to be eligible for indemnity payments through quality adjustment.
    • Almond Leaf Year: Expand insurance coverage to younger trees by including trees in their fifth leaf year after being set out.

    These revisions come through the Expanding Options for Specialty and Organic Growers Final Rule published today by the Federal Crop Insurance Corporation (FCIC). This Final Rule will update the Common Crop Insurance Policy Basic Provisions, Area Risk Protection Insurance Basic Provisions, and includes changes to individual Crop Provisions. The enterprise unit availability will continue to be rolled out throughout the year with each crop’s contract change date and RMA will continue to evaluate expanding EUs to additional crops.

    Additional changes in the June 30 Final Rule include:

    • New Breaking Acreage:
    • Reduce administrative burdens on growers and the delivery system by removing written agreement requirements on new breaking acreage.
    • Reduce coverage penalties on perennial specialty crop producers and producers of intensively managed crops, such as alfalfa, when they move to row crop production. This allows for a seamless transition without losing crop insurance coverage.
    • Assignment of Indemnity: Provide flexibility for an indemnity payment to be issued via automated clearing house (ACH) or other electronic means when these methods do not allow for multiple payees.
    • Good Farming Practices (GFP): Streamline and shorten the FCIC GFP reconsideration process by closing the administrative file following FCIC’s initial GFP determination.
    • Double Cropping and Annual Forage: Clarify a producer must prove insurance history for the annual forage crop and meet the current double cropping requirements to receive a full prevented planting payment.

    RMA continues to explore ways to improve risk management tools for specialty crop producers and will be announcing additional program enhancements later this summer. Some of those improvements include:  

      Piloting the Fire Insurance Protection – Smoke Index (FIP-SI) crop insurance program for grapes in California for the 2025 crop year. The pilot program is an index-based endorsement to the Actual Production History (APH) Grape policy that provides additional protection against smoke damage and covers the liability between the APH policy’s coverage level and 95%.

      Expanding the Enhanced Coverage Option (ECO) to walnuts and citrus crops and increasing premium support to be consistent with the Supplemental Coverage Option.

      Expanding the Grapevine insurance program to an additional 29 counties in California. Grapevine insurance offers protection against vine losses in the event of several named perils.

      Releasing new Organic Practice Guidelines to producers for the 2025 crop year. These guidelines are to help producers report planted or perennial acreage insured under a certified organic or transitional practice.

    More Information

    This announcement further advances USDA’s recently announced Specialty Crops Competitiveness Initiative, a Department-wide effort to increase the competitiveness of specialty crops products in foreign markets, enhance domestic marketing, and improve production and processing practices.

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

  • USDA Begins to Survey Farmers’ Conservation Estimates in 2024

    As the 2024 crop season moves forward, the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) will contact producers nationwide to determine the effects of conservation on working lands.

    “The USDA’s Conservation Effects Assessment Project is an expanded effort to help the farming community better understand the environmental impacts of conservation practices,” said Gary R. Keough, NASS Pacific Regional Director. “CEAP is vital to help determine what resources farmers may need to further protect the soil, water and related resources in their area.” NASS representatives will visit farms between August 2024 and February 2025 to collect information such as on-farm production practices; chemical, fertilizer and manure applications; integrated pest management activities; and installed conservation practices.

    USDA NASS safeguards the privacy of all respondents. The information provided will be used for statistical purposes only. In accordance with federal law, responses will be kept confidential and will not be disclosed in identifiable form.

    The survey data will be published in the Crop Production report in 2025. This and all other NASS reports are available online at www.nass.usda.gov/Publications. For more information, call the NASS Pacific Regional Field Office at 1-800-851-1127.

  • USDA Issues Recommended Decision Proposing Amendments to All Federal Milk Marketing Orders

    On July 1st, the U.S. Department of Agriculture (USDA) issued a Recommended Decision on its website proposing to amend the uniform pricing formulas applicable in all 11 Federal milk marketing orders (FMMOs). The Recommended Decision follows a 49-day national hearing held from August 23, 2023, to January 30, 2024, in Carmel, Indiana, where USDA heard testimony and received evidence on 21 proposals from the dairy industry.

    The Recommended Decision puts forth a package of amendments to update formulas and factors based on the evidentiary record of the proceeding. More specifically, this decision recommends the following:

    1) Milk Composition Factors: Update the factors to 3.3 percent true protein, 6.0 percent other solids, and 9.3 percent nonfat solids.

    2) Surveyed Commodity Products: Remove 500-pound barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program survey and rely solely on the 40-pound block cheddar cheese price to determine the monthly average cheese price used in the formulas.

    3) Class III and Class IV Formula Factors: Update the manufacturing allowances to: Cheese: $0.2504; Butter: $0.2257; NFDM: $0.2268; and Dry Whey: $0.2653. The Recommended Decision also proposes updating the butterfat recovery factor to 91 percent.

    4) Base Class I Skim Milk Price: Update the formula as follows: the base Class I skim milk price would be the higher-of the advanced Class III or Class IV skim milk prices for the month. In addition, adopt a rolling monthly Class I extended shelf life (ESL) adjustment that would provide for better price equity for ESL products whose marketing characteristics are distinct from other Class I products. .

    5) Class I differentials: Update the Class I differential values to reflect the increased cost of servicing the Class I market. The county-specific Class I differentials are specified in the decision.

    Regarding this announcement, Greg Doud from the National Milk Producers Federation reflected, “An effort that took more than three years, more than 200 meetings, 49 days of a record-long Federal Order hearing, and countless hours of analysis and discussion were reflected in a recommended USDA plan for Federal Milk Marketing Order modernization that incorporates much of the comprehensive approach to improvements we advocated throughout. Yes, not every detail is exactly as we would have had it – we always knew that would be the case. And USDA’s plan isn’t set in stone – we take very seriously the comment period we will soon be in and plan a detailed response to this proposal. Our FMMO task force is meeting to discuss the plan next week; even as we speak, our staff and cooperative experts are putting pen to paper to better understand how various parts of the USDA plan will interact to affect dairy farmers and the cooperatives they own, as well as the broader industry. That’s all to say our work is far from over. But Monday’s decision was arguably the critical milestone in this process. And this industry – led by the member-owners of the nation’s leading dairy cooperatives – has many reasons to be heartened by the improvements USDA has proposed to the nation’s Federal Milk Marketing Order system.”

    Looking ahead, Laurie Fischer from the American Dairy Coalition shared some concerns with the recommended decision. “Even though the draft decision appears to be responsive to dairy farmers, it does not treat all Orders fairly and could result in farmers voting “no” to the changes, only to discover that they’ve unintentionally voted out the individual Order in which they vote,” Fischer suggests. “We will take time to fully digest the draft decision and economic impacts and will be working to educate farmers on what the voting process is, who is eligible to vote, and what their vote means.”

    Publication of the Recommended Decision in the Federal Register is anticipated in early July 2024, and will invite public comments on the recommended proposals. Once it is published, comments may be submitted at the Federal eRulemaking portal: http://www.regulations.gov. Comments may also be filed with the Hearing Clerk, U.S. Department of Agriculture, Room 1031-S, Washington, DC 20250-9200, fax number (202) 720-9976. All comments should reference the docket number and the date and page number of this issue of the Federal Register. All comments will be made available for public inspection in the Office of the Hearing Clerk during regular business hours or can be viewed at: http://www.regulations.gov.

    Copies of the hearing notice may also be obtained from USDA/AMS/Dairy Program; STOP 0225 – Rm. 2530; 1400 Independence Avenue, S.W., Washington, D.C. 20250-0225.