California Fruit and Vegetable

Category: Economics

  • Farmer Member on CA Water Resources Control Board Urges Farmers

    Although the California Water Resources Control Board may not be terribly popular amidst local farming communities due to recent actions that have not been in the best interests of agriculture, what you may not know is that there are farmers that sit on this board, including Dorene D’Adamo.  Watch this brief interview with Dorene as she explains that it will take much more that a couple farming board members to make a difference in water issues today.  Read more about it in Pacific Nut Producer Magazine.

    Please thank our sponsor Duarte Nursery and attend one of their upcoming Bennett Hickman Almond Field Days in Pixley or Modesto.

  • Current Status of CA Groundwater Sustainability Agencies – Deadline Approaching

    The California State Water Resources Control Board is getting ready to crack down on farmers for their increased use of groundwater unless their local Groundwater Sustainability Agencies can come up with a sustainable plan that will not overdraft local groundwater resources.  Watch this brief interview with Taryn Ravazzini from the California Department of Water Resources as she shares a progress report of this local GSAs at work.

    Please thank our sponsor Duarte Nursery and attend one of their upcoming Bennett Hickman Almond Field Days in Pixley or Modesto.

  • USDA Announces Details of Support Package for Farmers

    U.S. Secretary of Agriculture Sonny Perdue today announced further details of the $16 billion package aimed at supporting American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals.

    In May, President Trump directed Secretary Perdue to craft a relief strategy in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. The Market Facilitation Program (MFP), Food Purchase and Distribution Program (FPDP), and Agricultural Trade Promotion Program (ATP) will assist agricultural producers while President Trump works to address long-standing market access barriers.

    “China and other nations have not played by the rules for a long time, and President Trump is the first President to stand up to them and send a clear message that the United States will no longer tolerate unfair trade practices,” Secretary Perdue said. “The details we announced today ensure farmers will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe.

    “Our team at USDA reflected on what worked well and gathered feedback on last year’s program to make this one even stronger and more effective for farmers. Our farmers work hard, are the most productive in the world, and we aim to match their enthusiasm and patriotism as we support them,” Secretary Perdue added.

    Background:

    American farmers have dealt with unjustified retaliatory tariffs and decades of non-tariff trade disruptions, which have curtailed U.S. exports to China and other nations. Trade damages from such retaliation and market distortions have impacted a host of U.S. commodities. High tariffs disrupt normal marketing patterns, raising costs by forcing commodities to find new markets. Additionally, American goods shipped to China have been slowed from reaching market by unusually strict or cumbersome entry procedures, which affect the quality and marketability of perishable crops. These boost marketing costs and unfairly affect our producers. USDA is using a variety of programs to support American farmers, ranchers, and producers.

    Participating in the Trade Mitigation Call – Agriculture Secretary Sonny Perdue, USDA Chief Economist Rob Johansson, Under Secretary for Farm Production and Conservation Bill Northey, Acting Deputy Under Secretary for Food, Nutrition, and Consumer Services Brandon Lipps.

    Details of USDA’s Market Facilitation Program (MFP)

    MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.

    Payments will be made by the Farm Service Agency (FSA) under the authority of the Commodity Credit Corporation (CCC) Charter Act to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton, and wheat. MFP assistance for those non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. Those per-acre payments are not dependent on which of those crops are planted in 2019. A producer’s total payment-eligible plantings cannot exceed total 2018 plantings. County payment rates range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county.

    Dairy producers who were in business as of June 1, 2019, will receive a per hundredweight payment on production history, and hog producers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.

    MFP payments will also be made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts. Each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, or in the case of ginseng, based on harvested acres in 2019.

    Acreage of non-specialty crops and cover crops must be planted by August 1, 2019 to be considered eligible for MFP payments.

    The MFP rule and a related Notice of Funding Availability will be published in the Federal Register on July 29, 2019, when signup begins at local FSA offices. Per-acre non-specialty crop county payment rates, specialty crop payment rates, and livestock payment rates are all currently available on farmers.gov.

    MFP payments will be made in up-to three tranches, with the second and third tranches evaluated as market conditions and trade opportunities dictate. If conditions warrant, the second and third tranches will be made in November and early January, respectively. The first tranche will be comprised of the higher of either 50 percent of a producer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranches two or three. USDA will begin making first tranche payments in mid-to-late August.

    MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000. Eligible applicants must also have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000 or, 75 percent of the person’s or legal entity’s average AGI for tax years 2014, 2015, and 2016 must have been derived from farming and ranching. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

    Many producers were affected by natural disasters this spring, such as flooding, that kept them out of the field for extended periods of time. Producers who filed a prevented planting claim and planted an FSA-certified cover crop, with the potential to be harvested qualify for a $15 per acre payment. Acres that were never planted in 2019 are not eligible for an MFP payment.

    In June, H.R. 2157, the Additional Supplemental Appropriations for Disaster Relief Act of 2019 was signed into law by President Trump, requiring a change to the first round of MFP assistance provided in 2018. Producers previously deemed ineligible for MFP in 2018 because they had an average AGI level higher than $900,000 may now be eligible for 2018 MFP benefits. Those producers must be able to verify 75 percent or more of their average AGI was derived from farming and ranching to qualify. This supplemental MFP signup period will run parallel to the 2019 MFP signup, from July 29 through December 6, 2019.

    For more information on the MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.

    Details of USDA’s Food Purchase and Distribution Program (FPDP)

    Additionally, CCC Charter Act authority will be used to implement an up to $1.4 billion FPDP through the Agricultural Marketing Service (AMS) to purchase surplus commodities affected by trade retaliation such as fruits, vegetables, some processed foods, beef, pork, lamb, poultry, and milk for distribution by the Food and Nutrition Service (FNS) to food banks, schools, and other outlets serving low-income individuals.

     

    Purchasing:

    AMS will buy affected products in four phases, starting after October 1, 2019 with deliveries beginning in January 2020. The products purchased can be adjusted between phases to accommodate changes due to: growing conditions; product availability; market conditions; trade negotiation status; and program capacity. AMS will purchase known commodities first. By purchasing in phases, procurements for commodities that have been sourced in the past can be purchased more quickly and included in the first phase.

    Vendor Outreach:

    To expand the AMS vendor pool and the ability to purchase new and existing products, AMS will ramp up its vendor outreach and registration efforts. AMS has also developed flyers on how the process works and how to become a vendor for distribution to industry groups and interested parties. Additionally, AMS will continue to host a series of free webinars describing the steps required to become a vendor. Stakeholders will have the opportunity to submit questions to be answered during the webinar. Recorded webinars are available to review by potential vendors, and staff will host periodic Question and Answer teleconferences to better explain the process.

    Product Specifications:

    AMS maintains purchase specifications for a variety of commodities, which ensure recipients receive the high-quality product they expect. AMS in collaboration with FNS regularly develops and revises specifications for new and enhanced products based on program requirements and requests. AMS will be prioritizing the development of those products impacted by unjustified retaliation. AMS will also work with industry groups to identify varieties and grades sold to China and other markets imposing retaliatory tariffs, such as premium apples, oranges, pears, and other products. AMS will develop or revise specifications to facilitate the purchase of these premium varieties in forms that meet the needs of FNS nutrition assistance programs.

    Outlets:

    The products discussed in this plan will be distributed to States for use in the network of food banks and food pantries that participate in The Emergency Feeding Assistance Program (TEFAP), elderly feeding programs such as the Commodity Supplemental Foods Program (CSFP), and tribes that operate the Food Distribution Program on Indian Reservations (FDPIR).

    These outlets are in addition to child nutrition programs such as the National School Lunch Program, which may also benefit from these purchases.

    Additionally, the rule provides flexibility for FNS to explore new channels of non-profit distribution of product, should the availability of distribution through traditional channels prove to be insufficient. FNS will offer products through traditional channels prior to consideration of new outlets.

    Distribution:

    AMS has coordinated with FNS, industry representatives, and other agency partners to determine necessary logistics for the purchase and distribution of each commodity, including trucking, inspection and audit requirements, and agency staffing.

    Details of USDA’s Agricultural Trade Promotion Program (ATP)

    USDA’s Foreign Agricultural Service (FAS) will administer the ATP under authorities of the CCC. The ATP will provide cost-share assistance to eligible U.S. organizations for activities such as consumer advertising, public relations, point-of-sale demonstrations, participation in trade fairs and exhibits, market research, and technical assistance. Last week, USDA awarded $100 million to 48 organizations through the ATP to help U.S. farmers and ranchers identify and access new export markets.

    The 48 recipients are among the cooperator organizations that applied for $200 million in ATP funds in 2018 that were awarded earlier this year. As part of a new round of support for farmers impacted by unjustified retaliation and trade disruption, those groups had the opportunity to be considered for additional support for their work to boost exports for U.S. agriculture, food, fish, and forestry products.

    Already, since the $200 million in assistance was announced in January, U.S. exporters have had significant success, including a trade mission to Pakistan that generated $10 million in projected 2019 sales of pulse crops, a new marketing program for Alaska seafood that led to more than $4 million in sales of salmon to Vietnam and Thailand, and a comprehensive marketing effort by the U.S. soybean industry that has increased exposure in more than 50 international markets. These funds will continue to generate sales and business for U.S. producers and exporters many times over as promotional activity continues for the next couple of years.

     

  • USDA Announces Details of Support Package for Farmers

    U.S. Secretary of Agriculture Sonny Perdue today announced further details of the $16 billion package aimed at supporting American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals.

    In May, President Trump directed Secretary Perdue to craft a relief strategy in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. The Market Facilitation Program (MFP), Food Purchase and Distribution Program (FPDP), and Agricultural Trade Promotion Program (ATP) will assist agricultural producers while President Trump works to address long-standing market access barriers.

    “China and other nations have not played by the rules for a long time, and President Trump is the first President to stand up to them and send a clear message that the United States will no longer tolerate unfair trade practices,” Secretary Perdue said. “The details we announced today ensure farmers will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe.

    “Our team at USDA reflected on what worked well and gathered feedback on last year’s program to make this one even stronger and more effective for farmers. Our farmers work hard, are the most productive in the world, and we aim to match their enthusiasm and patriotism as we support them,” Secretary Perdue added.

    Background:

    American farmers have dealt with unjustified retaliatory tariffs and decades of non-tariff trade disruptions, which have curtailed U.S. exports to China and other nations. Trade damages from such retaliation and market distortions have impacted a host of U.S. commodities. High tariffs disrupt normal marketing patterns, raising costs by forcing commodities to find new markets. Additionally, American goods shipped to China have been slowed from reaching market by unusually strict or cumbersome entry procedures, which affect the quality and marketability of perishable crops. These boost marketing costs and unfairly affect our producers. USDA is using a variety of programs to support American farmers, ranchers, and producers.

    Participating in the Trade Mitigation Call – Agriculture Secretary Sonny Perdue, USDA Chief Economist Rob Johansson, Under Secretary for Farm Production and Conservation Bill Northey, Acting Deputy Under Secretary for Food, Nutrition, and Consumer Services Brandon Lipps.

    Details of USDA’s Market Facilitation Program (MFP)

    MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.

    Payments will be made by the Farm Service Agency (FSA) under the authority of the Commodity Credit Corporation (CCC) Charter Act to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton, and wheat. MFP assistance for those non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. Those per-acre payments are not dependent on which of those crops are planted in 2019. A producer’s total payment-eligible plantings cannot exceed total 2018 plantings. County payment rates range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county.

    Dairy producers who were in business as of June 1, 2019, will receive a per hundredweight payment on production history, and hog producers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.

    MFP payments will also be made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts. Each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, or in the case of ginseng, based on harvested acres in 2019.

    Acreage of non-specialty crops and cover crops must be planted by August 1, 2019 to be considered eligible for MFP payments.

    The MFP rule and a related Notice of Funding Availability will be published in the Federal Register on July 29, 2019, when signup begins at local FSA offices. Per-acre non-specialty crop county payment rates, specialty crop payment rates, and livestock payment rates are all currently available on farmers.gov.

    MFP payments will be made in up-to three tranches, with the second and third tranches evaluated as market conditions and trade opportunities dictate. If conditions warrant, the second and third tranches will be made in November and early January, respectively. The first tranche will be comprised of the higher of either 50 percent of a producer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranches two or three. USDA will begin making first tranche payments in mid-to-late August.

    MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000. Eligible applicants must also have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000 or, 75 percent of the person’s or legal entity’s average AGI for tax years 2014, 2015, and 2016 must have been derived from farming and ranching. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

    Many producers were affected by natural disasters this spring, such as flooding, that kept them out of the field for extended periods of time. Producers who filed a prevented planting claim and planted an FSA-certified cover crop, with the potential to be harvested qualify for a $15 per acre payment. Acres that were never planted in 2019 are not eligible for an MFP payment.

    In June, H.R. 2157, the Additional Supplemental Appropriations for Disaster Relief Act of 2019 was signed into law by President Trump, requiring a change to the first round of MFP assistance provided in 2018. Producers previously deemed ineligible for MFP in 2018 because they had an average AGI level higher than $900,000 may now be eligible for 2018 MFP benefits. Those producers must be able to verify 75 percent or more of their average AGI was derived from farming and ranching to qualify. This supplemental MFP signup period will run parallel to the 2019 MFP signup, from July 29 through December 6, 2019.

    For more information on the MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.

    Details of USDA’s Food Purchase and Distribution Program (FPDP)

    Additionally, CCC Charter Act authority will be used to implement an up to $1.4 billion FPDP through the Agricultural Marketing Service (AMS) to purchase surplus commodities affected by trade retaliation such as fruits, vegetables, some processed foods, beef, pork, lamb, poultry, and milk for distribution by the Food and Nutrition Service (FNS) to food banks, schools, and other outlets serving low-income individuals.

     

    Purchasing:

    AMS will buy affected products in four phases, starting after October 1, 2019 with deliveries beginning in January 2020. The products purchased can be adjusted between phases to accommodate changes due to: growing conditions; product availability; market conditions; trade negotiation status; and program capacity. AMS will purchase known commodities first. By purchasing in phases, procurements for commodities that have been sourced in the past can be purchased more quickly and included in the first phase.

    Vendor Outreach:

    To expand the AMS vendor pool and the ability to purchase new and existing products, AMS will ramp up its vendor outreach and registration efforts. AMS has also developed flyers on how the process works and how to become a vendor for distribution to industry groups and interested parties. Additionally, AMS will continue to host a series of free webinars describing the steps required to become a vendor. Stakeholders will have the opportunity to submit questions to be answered during the webinar. Recorded webinars are available to review by potential vendors, and staff will host periodic Question and Answer teleconferences to better explain the process.

    Product Specifications:

    AMS maintains purchase specifications for a variety of commodities, which ensure recipients receive the high-quality product they expect. AMS in collaboration with FNS regularly develops and revises specifications for new and enhanced products based on program requirements and requests. AMS will be prioritizing the development of those products impacted by unjustified retaliation. AMS will also work with industry groups to identify varieties and grades sold to China and other markets imposing retaliatory tariffs, such as premium apples, oranges, pears, and other products. AMS will develop or revise specifications to facilitate the purchase of these premium varieties in forms that meet the needs of FNS nutrition assistance programs.

    Outlets:

    The products discussed in this plan will be distributed to States for use in the network of food banks and food pantries that participate in The Emergency Feeding Assistance Program (TEFAP), elderly feeding programs such as the Commodity Supplemental Foods Program (CSFP), and tribes that operate the Food Distribution Program on Indian Reservations (FDPIR).

    These outlets are in addition to child nutrition programs such as the National School Lunch Program, which may also benefit from these purchases.

    Additionally, the rule provides flexibility for FNS to explore new channels of non-profit distribution of product, should the availability of distribution through traditional channels prove to be insufficient. FNS will offer products through traditional channels prior to consideration of new outlets.

    Distribution:

    AMS has coordinated with FNS, industry representatives, and other agency partners to determine necessary logistics for the purchase and distribution of each commodity, including trucking, inspection and audit requirements, and agency staffing.

    Details of USDA’s Agricultural Trade Promotion Program (ATP)

    USDA’s Foreign Agricultural Service (FAS) will administer the ATP under authorities of the CCC. The ATP will provide cost-share assistance to eligible U.S. organizations for activities such as consumer advertising, public relations, point-of-sale demonstrations, participation in trade fairs and exhibits, market research, and technical assistance. Last week, USDA awarded $100 million to 48 organizations through the ATP to help U.S. farmers and ranchers identify and access new export markets.

    The 48 recipients are among the cooperator organizations that applied for $200 million in ATP funds in 2018 that were awarded earlier this year. As part of a new round of support for farmers impacted by unjustified retaliation and trade disruption, those groups had the opportunity to be considered for additional support for their work to boost exports for U.S. agriculture, food, fish, and forestry products.

    Already, since the $200 million in assistance was announced in January, U.S. exporters have had significant success, including a trade mission to Pakistan that generated $10 million in projected 2019 sales of pulse crops, a new marketing program for Alaska seafood that led to more than $4 million in sales of salmon to Vietnam and Thailand, and a comprehensive marketing effort by the U.S. soybean industry that has increased exposure in more than 50 international markets. These funds will continue to generate sales and business for U.S. producers and exporters many times over as promotional activity continues for the next couple of years.

     

  • New Studies Show Soil Health Practices Increase Farm Profitability

    Today, American Farmland Trust(AFT), the organization behind the national movement No Farms No Food®,is releasing four case studies that show that healthier soil on farmland brings economic benefits to farmers and environmental benefits to society. These case studies were developed in partnership with USDA’s Natural Resources Conservation Service (NRCS).

    AFT Water Initiative Director Dr. Michelle Perez, the lead researcher on the project, is unveiling the case studies at the Soil and Water Conservation Society annual conference today. The case studies were developed as part of a 2018 NRCS Conservation Innovation Grant (CIG) project, “Accelerating Soil Health Adoption by Quantifying Economic and Environmental Outcomes and Overcoming Barriers on Rented Lands,”and feature farms in California, Illinois, Ohio and New York.

    “Increasingly, we understand that better soil health – and specific practices aimed at building soil organic matter, fostering microbial life in the soil, reducing nutrient loss, and protecting soil from erosion – lead to higher net income for farming operations. These case studies contribute to the growing body of quantitative evidence that improving soil health increases farmer profitability,” said Dr. Perez.

    The two-page case studies focus on corn-soybean production in Illinois and Ohio, almond production in California and a diversified rotation (sweet corn, alfalfa, corn for silage or grain) in New York. The four farmers featured implemented soil health practices like no-till or strip-till, nutrient management, cover crops, compost, and mulching.

    “When it comes to conservation, producers have to make decisions based on what makes the most sense for their operations,” said NRCS Chief Matthew Lohr. “These case studies provide information on the economic benefits of using soil health management systems, demonstrating the value of adopting these systems.”

    With soil health management, producers can increase their yield, decrease their risk and input costs, and improve their profits, all while conserving our nation’s resources for the public at large, on their farms, in their watersheds, and beyond. Soil health management systems are good for farmers and for the public.

    “Increased implementation of soil health is critical to AFT’s holistic approach to saving the land that sustains us. Ensuring a sustainable future for this planet and our society requires we value the land, the practices on the land and the people who steward that land. AFT’s case studies showcase farmers who took the risk and are now enjoying the benefits of implementing practices that will support food production for a growing population while improving our environment and sequestering carbon. Farmers across the country can now embrace these practices and, with the help of staffers from AFT and our partner NRCS, put them into practice with greater confidence and profitability,” says John Piotti, AFT president and CEO.

    Highlights from the case studies include:

    • All four of the farmers profiled saw improved yields ranging from 2% to 22% that they attributed, in part, to their soil health practices. The average return on investment was 176% for the four farms in the study and ranged from 35% to 343%. The study accounted for other factors at play in increased yield such as improved seed varieties and increased seeding rates.
    • All four farmers saw improved water quality outcomes, both by witnessing reduced soil and water runoff and as estimated by USDA’s Nutrient Tracking Tool (NTT). NTT estimated that nitrogen reductions ranged from 40% to 98%, phosphorus reductions ranged from 74% to 92%; and sediment reductions ranged from 76% to 96% from specific fields in each farm.
    • All four farmers saw improved climate outcomes, as estimated by USDA’s COMET-Farm Tool. The tool estimated that total greenhouse gas emission reductions from specific fields in each farm ranged from 16% to 560%, corresponding to taking three-fourths of a car to 17 cars off the road.

    All four farmers have been implementing different soil health practices over different time frames and a variety of cropping systems. With these case studies and the ones that will be released in the fall, AFT is building a diverse library of on-farm examples of soil health investments that have led to economic gain.

    We hope that farmers who have been considering adding soil health practices to their operation will be able to use these case studies to approach their existing landowners, from whom they rent their land, to discuss sharing the risks and rewards of the soil health investments. We think farmers may be able to use the case studies with a new landlord to add new fields. Should that materialize, we hope farmers will also share the case studies with their bankers to secure additional financing for the farm expansion.

    Farmers across the country can reach out to their local NRCS and Soil and Water Conservation District staff to help them implement soil health practices on their farm. In the watersheds featured in the four case studies, farmers can reach out to both the local NRCS and SWCD staff as well as the four AFT authors of the case studies.

    We hope our conservation partners at NRCS, SWCD and Extension, plus our partners in the private sector, crop consultants, cover crop seed dealers, and strip-till equipment providers, use these case studies with their customers to help answer questions about the costs and benefits of adopting soil health practices.

    AFT’s first four case studies can be foundon AFT’s “Accelerating Soil Health” webpage.

    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 Foodmessage. Since our founding in 1980, AFT has helped permanently protect over 6.5 million acres of agricultural lands, advanced environmentally-sound farming practices on millions of additional acres and supported thousands of farm families.

    USDA’s Natural Resources Conservation Service (NRCS) mission is “Helping People Help the Land.” NRCS helps America’s farmers, ranchers and forest landowners conserve the nation’s soil, water, air and other natural resources. All programs are voluntary and offer science-based solutions that benefit both the landowner and the environment.

  • Agricultural Leaders Announce Support For USMCA

    Agricultural leaders around the Central Valley announced their support for the United States-Mexico-Canada Trade Agreement, referred to as the USMCA and call upon Congress to act quickly and to vote on the agreement.  The USMCA would replace the 1994 North American Free Trade Agreement (NAFTA) and offers Agricultural more opportunities.

    The Agricultural Industry plays a vital role in California’s economy. California produces and grows the safest food in the world. In 2017 – 2018, 77,100 farms and ranches in the state, received a total of $50.13 billion for their commodities. Agricultural exports in 2017 were $16.8 billion to Canada and $26.8 billion to Mexico for a total of $43.6 billion.

    The ability to export, assures California will continue to remain the leading state in our nation for agricultural commodities.  The USMCA would continue to expand our exports into both Mexico and Canada, which would ensure more economic growth in California, providing more jobs and resources to our state.

    We believe that the USMCA would better serve the interests of American workers, businesses, farmers, ranchers and would help us continue our long-term good relationships with both Canada and Mexico.

    It is important for our California Congressional members to stand with our industry and encourage Congress to vote before summer recess and pass the USMCA.

    Signed by the following organizations:

    Nisei Farmers League, African-American Farmers of California, Tulare County Farm Bureau, California Apple Commission, California Blueberry Commission, Olive Growers Council of California, Stanislaus County Farm Bureau, Milk Producers Council, Merced County Farm Bureau

  • Western Growers Statement on U.S. and Mexico Trade Deal

    In response to the deal reached by the U.S. and Mexico to avert the addition of five percent tariffs on all Mexican goods, Western Growers President and CEO Tom Nassif issued the following statement:

    “We are pleased that this potential impediment to trade between our two countries has been avoided. Mexico represents one of the largest export markets for U.S. agricultural goods, and any tit-for-tat escalation of tariffs would be devastating for American farmers, in particular given the current barriers to access to Chinese markets.

    “As significant as this deal is in maintaining our regular flow of trade with Mexico, it is equally critical in clearing the pathway for passage and implementation of the U.S.-Mexico-Canada Agreement (USMCA). Like NAFTA before it, the USMCA maintains zero-tariff treatment for all produce, a provision that led to the tripling of U.S. exports to Mexico over the past 25 years. Additionally, the USMCA contains favorable terms that will advance science-based sanitary and phytosanitary measures and strengthen Mexico’s labor standards.

    “With the threat of tariffs no longer standing in the way, as well as other early obstacles that have now been removed, the onus is on Congress to pass the USMCA, which we urge with the greatest expediency.”

     About Western Growers:

    Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico. Our members and their workers provide half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook.

     

  • U.S. Organic Sales Break Through $50 Billion Mark in 2018

    Clean, transparent, fresh, sustainable. Environmentally friendly, animal humane, high quality, social activism. Those traits are all identified with organic, and in 2018 they all helped push organic sales to unprecedented levels. The U.S. organic market in 2018 broke through the $50 billion mark for the first time, with sales hitting a record $52.5 billion, up 6.3 percent from the previous year, according to the 2019 Organic Industry Survey released Friday by the Organic Trade Association.

    New records were made in both the organic food market and the organic non-food market. Organic food sales reached $47.9 billion, for an increase of 5.9 percent. Sales of organic non-food products jumped by 10.6 percent to $4.6 billion. The growth rate for organic continued to easily outpace the general market: in 2018, total food sales in the U.S. edged up just 2.3 percent while total non-food sales rose 3.7 percent.US Organic Sales Announcement

    CHART: TOTAL U.S. ORGANIC SALES AND GROWTH, 2009-2018

    Millennials are pushing for transparency and integrity in the food supply chain, and they are savvy to misleading marketing. The USDA Organic seal is gaining new appeal as consumers realize that organic is a certification that is not only monitored and supported by official standards, but is the only seal that encompasses the spectrum of Non-GMO, no toxic pesticides or chemicals, dyes or preservatives.

    Almost 6 percent (5.7 percent) of the food sold in this country is now organic. Today’s consumers can find organic products – food and non-food items — in every aisle of their grocery stores. They can choose organic in their favorite big box store, their club warehouse store, even in their neighborhood convenience store, and increasingly on the internet. Organic is no longer a niche market.

    “Organic is now considered mainstream. But the attitudes surrounding organic are anything but status quo,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association. “In 2018, there was a notable shift in the mindset of those working in organic toward collaboration and activism to move the needle on the role organic can play in sustainability and tackling environmental initiatives.”

    “Activism is a natural reaction from an industry that is really close to the consumer. When we are in an environment where government is not moving fast enough, the industry is choosing to move to meet the consumer rather than get stalled,” said Batcha.

    Produce still reigns supreme

    Still the stalwart of the organic industry, sales of organic fruits and vegetables rose to $17.4 billion in 2018 for  a 5.6 percent rate of growth, on par with the growth attained in 2017. By comparison, the overall fruits and vegetables category, including both organic and conventional products, grew by just 1.7 percent in 2018.

    Fruits and vegetables now account for 36.3 percent of all organic food sales. Organic fruits and vegetable make up close to 15 percent (14.6 percent) of all the produce sold in the U.S., and have nearly doubled their market share in the last ten years.

    Produce is a gateway to organic for consumers, especially Millennials and those with young families. Industry experts note that the more people learn about health and wellness, the more people buy fresh produce.

    Popular in the organic produce aisles: the classics like carrots, greens, apples, bananas. Also hitting stride are organic berries, avocados, brussel sprouts, cauliflower and tropical fruits like mangoes and papayas. And outside the fresh produce section, the frozen, canned, and dried vegetable and fruit sections also made gains.

    Innovation is key in the organic dairy market

    Shoppers, especially young families, are increasingly seeking out products made from high-quality simple ingredients from brands committed to sustainable agriculture and its environmental benefits. Those shoppersturn to organic dairyas a trusted clean product free of antibiotics, synthetic hormones and chemicals. But growth in the U.S. dairy sector slowed for the second straight year due largely to shifting diet trends. Still the second-largest organic category, dairy and egg sales were $6.5 billion in 2018, up 0.8 percent from 2017.

    Although growth in organic egg sales has slowed from the strong double-digit growth seen in the first part of this decade, the $858 million category still grew by a solid 9.3 percent in 2018. As more consumers get into organic, organic egg demand is expected to continue growing.

    But where skim milk and low fat products were not so long ago favored by consumers, products high in healthy fats and protein are now popular. Many Millennials have also moved away from livestock-based products toward plant-based foods and beverages. Experts said that to satisfy today’s consumer, the importance of innovation in the organic dairy sector has never been greater. In 2018, the industry responded with milk beverages with increased protein, more full-fat dairy products, new flavors and grass-fed products.

    Organic reaching far beyond food

    Consumers are making the connection that the same reasons they choose to eat organic food apply to the non-food products they use–whether napkins for their dinner table, food for their pets, lotions they put on their skin or the supplements they ingest. Consumers want clean labels and to reduce the chemical load on their bodies. Millennials also have a higher awareness around supply chain transparency and sustainability. All of these factors bode well for the future of the organic non-food industry.

    In 2018, the organic non-food category reached $4.6 billion in sales with a growth rate of 10.6 percent. This rate is both well above the 7.4 percent growth rate reported in 2017, and the 3.6 percent growth rate reported in 2018 for the overall non-food industry (conventional and organic combined).

    The strongest growth came from fiber, the largest of the non-food categories, which accounts for 40 percent of the organic non-food market. In 2018, fiber recorded $1.8 billion in sales, up from $1.6 billion in 2017.

    An organic outlook of innovation and activism

    The outlook for organic is not without its challenges, but all expectations are that innovation and activism by the organic industry will continue to build as the sector works to maintain the credibility of the Organic seal and the trust of consumers.

    “Organic is in a unique and tough environment. The government is slowing the advancement of the organic standard, but the positive news is that industry is finding ways to innovate and get closer to the consumer without walking away from the organic program—the sector is innovating yet requiring that federal organic be in place,” said Batcha. “So, whether it’s grass-fed, regenerative, or Global Organic Textile Standard certified, they all have to be organic. The industry is committed to standards and giving consumers what they want.”

    This year’s survey was conducted from January through April 2019 and produced on behalf of the Organic Trade Association byNutrition Business Journal (NBJ). More than 200 companies completed a significant portion of the in-depth survey. Executive summaries of the survey are available to the media upon request. The full report can be purchased online.

  • USDA Extends Deadline to May 17 for Producers to Certify 2018 Crop Production for Market Facilitation Program Payments

    USDA extended the deadline to May 17 from May 1 for agricultural producers to certify 2018 crop production for payments through the Market Facilitation Program (MFP), which helps producers who have been significantly affected by foreign tariffs, resulting in the loss of traditional exports. USDA’s Farm Service Agency (FSA) extended the deadline because heavy rainfall and snowfall have delayed harvests in many parts of the country, preventing producers from certifying harvested production.

    Payments will be issued only if eligible producers certify before the updated May 17 deadline.

    The MFP provides payments to producers of corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries and shelled almonds. FSA will issue payments based on the producer’s certified total production of the MFP commodity multiplied by the MFP rate for that specific commodity.

    “Trade issues, coupled with low commodity prices and recovery from natural disasters, have definitely impacted the bottom line for many agricultural producers,” said FSA Administrator Richard Fordyce. “The MFP payments provide short-term relief from retaliatory tariffs to supplement the traditional farm safety net, helping agricultural producers through these difficult times. Weather conditions this fall, winter and early spring have blocked many producers from completing harvest of their crops, and we want to make sure producers who want to finalize their MFP application have an opportunity.”

    Producers can certify production by contacting their local FSA office or through farmers.gov.

    About the Market Facilitation Program

    U.S. Secretary of Agriculture Sonny Perdue launched the trade mitigation program to assist farmers suffering from damage because of unjustified trade retaliation by foreign nations. FSA implemented MFP in September 2018 as a relief strategy to protect agricultural producers while the Administration works on free, fair and reciprocal trade deals to open more markets to help American farmers compete globally. To date, more than $8.3 billion has been paid to nearly 600,000 applicants.

    The MFP is established under the statutory authority of the Commodity Credit Corporation Charter Act and is administered by FSA.

    More Information

    For more information, contact your local FSA office or visit www.farmers.gov/MFP.

  • State of the California Tomato Industry with Bruce Rominger

    California processing tomato growers had a disappointing season in 2018, not because of their crop (they had a great crop), but because of the low returns due to a less than ideal market. Watch this brief interview with Bruce Rominger, Chairman of the California Tomato Growers Association, as he shares the current State of the Tomato industry, and read more in the coming issue of Vegetables West Magazine. Don’t currently receive Vegetables West? Subscribe for free at https://malcolmmedia.com/vegetables-west-magazine-subscriptions/