California Fruit and Vegetable

Tag: USDA

  • USDA COVID-19 Food Assistance Program to Support Farmers

    Summary

    By Schramm, Williams & Associates, Inc. — The U.S. Department of Agriculture (USDA) announced the $19 billion Coronavirus Food Assistance Program (CFAP) to support farmers and ranchers during the COVID-19 pandemic. This program is comprised of two major elements: direct payments to farmers and ranchers and commodity purchase and distribution.

    • Direct Payments Program – Provides $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
    • Purchase and Distribution Program – $3 billion of agricultural products, including meat, dairy, and produce will be purchased to support producers and provided food to those in need. USDA will work with local food and regional distributors to deliver food to food banks, as well as community and faith-based organization to provide food to those in need.

    CFAP uses funding authorities provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Families First Coronavirus Response Act (FFCRA), USDA’s existing CCC funding, and Section 32 authority.

    Direct Assistance Program

    Source of Funds

    This program is funded using the $9.5 billion emergency program secured in the CARES Act and $6.5 billion in Credit Commodity Corporation (CCC) funding.

    Payment Allocations

    USDA will provide $16 billion in direct payments to farmers and ranchers including:

    • $2.1 billion for specialty crops producers
    • $500 million for others crops

    Payment Calculations

    Producers will receive a single payment determined using two calculations:

    1. Price losses that occurred January 1 – April 15, 2020.
    2. Producers will be compensated for 85% of price loss during that period.
    3. The expected losses from April 15 through the next two quarters.
    4. Will cover 30% of expected losses.

    Limitations

    • The payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity.
    • Qualified commodities must have experienced a 5% price decrease between January and April.

    Expected Timeframe

    Program Sign-up: Beginning in Early May

    Payment Distribution: End of May or early June

    Food Purchase and Distribution Program

    Commodity Procurement

    It will begin with the procurement of an estimated:

    • $100 million per month in fresh fruits and vegetables;
    • $100 million per month in a variety of dairy products;
    • $100 million per month in meat products.

    Distribution

    The distributors and wholesalers will provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith-based organizations, and other non-profits serving Americans in need.

    Additional Food Purchasing

    In addition to the two targeted programs, USDA will utilize other available funding sources to purchase and distribute food to those in need.

    • USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis, and food bank needs.
    • The FFCRA and CARES Act provided an at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.

     

    Further details regarding eligibility, rates, and other implementation will be released at a later date.

  • USDA Announces Feeding Program Partnership in Response to COVID-19

    U.S. Secretary of Agriculture Sonny Perdue today announced a collaboration with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver nearly 1,000,000 meals to students in a limited number of rural schools closed due to COVID-19: 
     
    “Feeding children who are affected by school closures is a top priority for President Trump and this Administration. USDA is working with private sector partners to deliver boxes of food to children in rural America who are affected by school closures,” said Secretary Perdue. “Right now, USDA and local providers are utilizing a range of innovative feeding programs to ensure children are practicing social distancing but are still receiving healthy and nutritious food. This whole of America approach to tackling the coronavirus leverages private sector ingenuity with the exact same federal financing as the Summer Food Service Program. USDA has already taken swift action to ensure children are fed in the event of school closures, and we continue to waive restrictions and expand flexibilities across our programs.” 
     
    “We are grateful to come alongside USDA, PepsiCo, and McLane Global to ensure that children impacted by school closures get access to nutritious food regardless of where they live. We know from first-hand experience that families with children who live in rural communities across the U.S. are often unable to access the existing food sites. Meal delivery is critical for children in rural America to have consistent access to food when school is out. This is one way we, as citizens of this great nation, can respond to our neighbors in need,” said Jeremy Everett, Executive Director, Baylor University Collaborative on Hunger and Poverty. 
     
    “McLane Global was proud to take part in the success of the summer Meals-2-You home delivery pilot program in 2019. It was a great opportunity to bring private industry best practices together with the USDA to combat rural hunger. Given the rapid disruptions driven by COVID-19, we can work together to swiftly take this model nationwide. McLane Global is ready to do its part to support the fight against hunger through this crisis,” said Denton McLane, Chairman, McLane Global. 
     
    “As schools around the country close, millions of schoolchildren now don’t know where their next meal is coming from. In the face of this unprecedented crisis, it’s critical that the private sector help ensure these students have access to nutritious meals,” said Jon Banner, Executive Vice President, PepsiCo Global Communications and President, PepsiCo Foundation. “PepsiCo is committing $1 million to help Baylor create a solution with USDA to identify children most in need and then we will help reach them with at least 200,000 meals per week—one way we are deploying our food and beverage resources to help those most vulnerable.” 
     
    Background:

    USDA will utilize best practices learned through a summer pilot program in 2019 to deliver food boxes to children affected by school closures due to COVID-19 in rural America. Baylor will coordinate with the appropriate state officials to prioritize students who do not currently have access to a Summer Food Service Program (SFSP) site and have an active outbreak of COVID-19. Initial capacity is limited, and additional vendors are requested and encouraged to ensure we can provide food to more rural children as additional schools close. USDA has created a single contact for those who have suggestions, ideas, or want to help feed kids across the country. Email FeedingKids@usda.gov.  
     
    The Baylor Collaborative on Hunger and Poverty, McLane Global, and PepsiCo will begin distributing next week and will quickly increase capacity of nearly 1,000,000 nutritious meals per week. In addition to distribution, PepsiCo will generously provide $1 million in funding to the Baylor Collaborative on Hunger and Poverty to facilitate nationwide distribution in the coming weeks. These boxes will contain five days worth of shelf-stable, nutritious, individually packaged foods that meet USDA’s summer food requirements. The use of this innovative delivery system will ensure rural children receive nutritious food while limiting exposure to COVID-19. USDA will reimburse private sector partners for the same rate as an SFSP site.
     
    Last week, Secretary Perdue announced proactive flexibilities to allow meal service during school closures to minimize potential exposure to the coronavirus. During an unexpected school closure, schools can leverage their participation in one of USDA’s summer meal programs to provide meals at no cost to students. Under normal circumstances, those meals must be served in a group setting. However, in a public health emergency, the law allows USDA the authority to waive the group setting meal requirement, which is vital during a social distancing situation. 
     
    USDA intends to use all available program flexibilities and contingencies to serve our program participants across our 15 nutrition programs. We have already begun to issue waivers to ease program operations and protect the health of participants. USDA is receiving requests for waivers on an ongoing basis. As of today, USDA has been asked to waive congregate feeding requirements in in all 50 states, the District of Columbia, and Puerto Rico and USDA has granted those requests.

  • USDA Announces Feeding Program Partnership in Response to COVID-19

    U.S. Secretary of Agriculture Sonny Perdue today announced a collaboration with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver nearly 1,000,000 meals to students in a limited number of rural schools closed due to COVID-19: 
     
    “Feeding children who are affected by school closures is a top priority for President Trump and this Administration. USDA is working with private sector partners to deliver boxes of food to children in rural America who are affected by school closures,” said Secretary Perdue. “Right now, USDA and local providers are utilizing a range of innovative feeding programs to ensure children are practicing social distancing but are still receiving healthy and nutritious food. This whole of America approach to tackling the coronavirus leverages private sector ingenuity with the exact same federal financing as the Summer Food Service Program. USDA has already taken swift action to ensure children are fed in the event of school closures, and we continue to waive restrictions and expand flexibilities across our programs.” 
     
    “We are grateful to come alongside USDA, PepsiCo, and McLane Global to ensure that children impacted by school closures get access to nutritious food regardless of where they live. We know from first-hand experience that families with children who live in rural communities across the U.S. are often unable to access the existing food sites. Meal delivery is critical for children in rural America to have consistent access to food when school is out. This is one way we, as citizens of this great nation, can respond to our neighbors in need,” said Jeremy Everett, Executive Director, Baylor University Collaborative on Hunger and Poverty. 
     
    “McLane Global was proud to take part in the success of the summer Meals-2-You home delivery pilot program in 2019. It was a great opportunity to bring private industry best practices together with the USDA to combat rural hunger. Given the rapid disruptions driven by COVID-19, we can work together to swiftly take this model nationwide. McLane Global is ready to do its part to support the fight against hunger through this crisis,” said Denton McLane, Chairman, McLane Global. 
     
    “As schools around the country close, millions of schoolchildren now don’t know where their next meal is coming from. In the face of this unprecedented crisis, it’s critical that the private sector help ensure these students have access to nutritious meals,” said Jon Banner, Executive Vice President, PepsiCo Global Communications and President, PepsiCo Foundation. “PepsiCo is committing $1 million to help Baylor create a solution with USDA to identify children most in need and then we will help reach them with at least 200,000 meals per week—one way we are deploying our food and beverage resources to help those most vulnerable.” 
     
    Background:
    USDA will utilize best practices learned through a summer pilot program in 2019 to deliver food boxes to children affected by school closures due to COVID-19 in rural America. Baylor will coordinate with the appropriate state officials to prioritize students who do not currently have access to a Summer Food Service Program (SFSP) site and have an active outbreak of COVID-19. Initial capacity is limited, and additional vendors are requested and encouraged to ensure we can provide food to more rural children as additional schools close. USDA has created a single contact for those who have suggestions, ideas, or want to help feed kids across the country. Email FeedingKids@usda.gov.  
     
    The Baylor Collaborative on Hunger and Poverty, McLane Global, and PepsiCo will begin distributing next week and will quickly increase capacity of nearly 1,000,000 nutritious meals per week. In addition to distribution, PepsiCo will generously provide $1 million in funding to the Baylor Collaborative on Hunger and Poverty to facilitate nationwide distribution in the coming weeks. These boxes will contain five days worth of shelf-stable, nutritious, individually packaged foods that meet USDA’s summer food requirements. The use of this innovative delivery system will ensure rural children receive nutritious food while limiting exposure to COVID-19. USDA will reimburse private sector partners for the same rate as an SFSP site.
     
    Last week, Secretary Perdue announced proactive flexibilities to allow meal service during school closures to minimize potential exposure to the coronavirus. During an unexpected school closure, schools can leverage their participation in one of USDA’s summer meal programs to provide meals at no cost to students. Under normal circumstances, those meals must be served in a group setting. However, in a public health emergency, the law allows USDA the authority to waive the group setting meal requirement, which is vital during a social distancing situation. 
     
    USDA intends to use all available program flexibilities and contingencies to serve our program participants across our 15 nutrition programs. We have already begun to issue waivers to ease program operations and protect the health of participants. USDA is receiving requests for waivers on an ongoing basis. As of today, USDA has been asked to waive congregate feeding requirements in in all 50 states, the District of Columbia, and Puerto Rico and USDA has granted those requests.

  • USDA Citrus Annual Report – Costa Rican Production Increases

    Costa Rica’s orange production reached 295,000 MT in MY2018/2019 and is forecast to increase to 310,000 MT in MY2019/2020. The industry has been able to avoid sharp fluctuations in production during the last couple of years. Area planted is not expected to change from the approximately 21,000 hectares currently planted, although the larger producers renovate older plantations every year. The United States is Costa Rica’s main destination for its orange juice (purchasing 67 percent of its total exports in 2018), followed by the European Union (mainly the Netherlands), and China. Costa Rican orange juice enters the United States duty free under the U.S.-CAFTA–DR trade agreement. 

    Costa Rica’s orange production is concentrated in the northern part of the Alajuela province, around Los Chiles, Guatuso and Upala, and in the northern part of Guanacaste, near the border with Nicaragua in an area known as Santa Cecilia. Two companies, TicoFrut and Del Oro, control most of the production and processing of oranges in the country. TicoFrut is the largest company in the sector. TicoFrut’s plantations are located primarily in the province of Alajuela near the border with Nicaragua, and in Nicaragua; and Del Oro’s in the province of Guanacaste, near the border with Nicaragua. Oranges are also grown in other regions of the country including Acosta, near the Central Valley, and Nandayure in Guanacaste. However, oranges from those areas are mostly sold as fresh fruit in the local market. Besides the two companies mentioned, there are some medium and small size independent producers. The smaller independent producers tend to enter or exit the activity in response to short term price fluctuations not only of oranges but of other crops such as pineapples or coffee. The larger operations have been stable and plan their activities with a longer term horizon. The harvest takes place mainly from January to May, with peak production reached in March and April. The majority of the oranges produced in Costa Rica are processed for juice concentrate for the export market. A relatively small volume of fresh fruit is sold for local consumption, and the processing plants also sell small volumes of juice to local clients.

    One of the two processing companies has orange plantations in Nicaragua, near the border. Growing conditions are favorable in that area, and land prices and labor costs are generally lower. The local industry has partnered with Nicaraguan businesses to plant orange groves in that country. The area planted is not expected to grow in Nicaragua or Costa Rica at this time, as the company prefers to improve its current operation through replanting and investments in irrigation. According to data from the Government of Costa Rica, the country imported 73,306 MT of fresh oranges from Nicaragua in 2018, compared to 67,992 MT during 2017. Imports from Nicaragua during 2019 reached 66,000 MT through October. Oranges from Nicaraguan plantations are trucked to Costa Rica for processing at TicoFrut’s plant located in Muelle, San Carlos.

    The local industry estimates area planted at around 21,000 hectares (ha) and 7.4 million orange trees, including the area planted on the Nicaraguan side of the border. The Government of Costa Rica estimates area planted slightly higher of 23,400 ha. The number of trees is gradually increasing because farmers are renovating their plantations with the “Flying Dragon” pattern, which allows for a higher number of trees per hectare (ha) and easier farm management. The “Flying Dragon” pattern is planted at 830 to 900 trees/ha, as compared to a range of 312 to 444 trees/ha for other varieties. As this pattern takes hold, the number of trees should increase in the next few years, as producers replant or renovate their farms using this variety. The main producers are renovating older plantations with new trees, rather than increasing new area planted. This process is expected to result in higher future production, without major changes in total area planted. For instance, one of the larger growers plans to renovate 295 ha of older plantations in 2020.

    The citrus greening disease, which was identified in 2011 in Costa Rica, remains a major concern for producers and has put a limit to the expansion of the industry because of the uncertainty it creates among growers. According to industry sources, the disease has now spread throughout most of the country’s growing areas. The disease is difficult to manage, as it increases production costs, which could result in high losses. So far, the largest grower has been able to contain the disease and has established strict controls to that effect, including constant farm surveillance, inspection of all farms, and eradication of 100 percent of the affected plants. The local industry uses agrochemicals and biological controls (a wasp that feeds on the vector of the disease, called Tamarixia Radiata), as part of their preventive measures. Although the disease has not caused significant losses to the larger producers, the small producers have suffered losses from its effects.

    Total production is forecast to increase by 15,000 MT in MY2019/2020, to 310,000 MT, due to renovations of the older citrus plantations. Production fell slightly in MY2018/2019 as some of the fruit fell from the trees and was not picked-up on time. Also, the rains on the Costa Rican side were normal during 2018 and produced a good flowering but later stopped and resulted in the loss of some of that flowering, and lower production of oranges during MY2018/2019. The local industry indicates that production has become more stable in the last few years as a result of the implementation of crop practices related to the control of post-blooming fruit drop over the last four years. Production on the Nicaraguan side is expected to be stronger in MY2019/2020 based on company crop surveys, thus resulting in a slightly higher production forecast.

    One of the main orange producers in the country invested in irrigation systems in some of the drier areas, particularly on the Nicaraguan side of the border. About 1,200 ha have irrigation, which has resulted in better yields in those areas.

    Costa Rica exports the majority of its orange production as frozen orange juice concentrate, but also exports non-frozen concentrate juice. According to information from the Costa Rican Trade Promotion Board (PROCOMER), during calendar year 2018 juice exports to all destinations amounted to 36,936 MT valued at $68.2 million. This compares to 29,152 MT valued at $61.9 million during 2017. Data available for January-October 2019 show a decline in volume and value, reaching 32,255 MT and $49.4 million respectively.

    The United States continues to be Costa Rica’s main destination for orange juice exports. Exports to the U.S. (including Puerto Rico) reached 24,657 MT valued at $57.5 million during 2018. During the period January – October 2019, exports to the U.S. amounted to 18,995 MT valued at $37.4 million. The main destination in the EU is the Netherlands. Exports to that country in 2017 were 3,290 MT, 7,954 in 2018, and 6,775 MT during January – October 2019. Exports to China more than doubled from 1,673 MT in 2018 to 4,631 MT during January – October of 2019, thus becoming Costa Rica’s third market in importance.

    Costa Rican orange juice enters the United States duty free under the CAFTA – DR. 

  • USDA Extends Deadline for Market Facilitation Programs

    Due to the prolonged and extensive impacts of weather events this year, the U.S. Department of Agriculture (USDA) today extended the deadline to December 20 for producers to enroll in the Market Facilitation Program.

    “2019 has challenged the country’s ag sector – prevented or late planting followed by a delayed harvest has been further complicated by wet and cold weather (and fire),” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “Because some of our producers are still in the field, time to conduct business at the local USDA office is at a premium.  We hope this deadline extension will allow producers the opportunity to participate in these important programs.”

    The Market Facilitation Program is part of a relief strategy to support American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals to open more markets to help American farmers compete globally. MFP payments are aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations.

    For more information, visit the MFP webpage or your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

  • USDA Extends Deadline for Market Facilitation Programs

    Due to the prolonged and extensive impacts of weather events this year, the U.S. Department of Agriculture (USDA) today extended the deadline to December 20 for producers to enroll in the Market Facilitation Program.

    “2019 has challenged the country’s ag sector – prevented or late planting followed by a delayed harvest has been further complicated by wet and cold weather (and fire),” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “Because some of our producers are still in the field, time to conduct business at the local USDA office is at a premium.  We hope this deadline extension will allow producers the opportunity to participate in these important programs.”

    The Market Facilitation Program is part of a relief strategy to support American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals to open more markets to help American farmers compete globally. MFP payments are aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations.

    For more information, visit the MFP webpage or your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

  • USDA to Survey Fruit Growers about Chemical Use

    In the next few weeks, the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will survey fruit growers in 12 states, including California, for its biennial Fruit Chemical Use Survey. Growers across the nation will provide information on bearing acreage, pest management practices, fertilizer types, and application rates for more than 21 fruit crops.

    “Growers benefit from providing this information because it is used to re-register products for their use, to illustrate the industry’s environmental practices, and to assure the quality of U.S. food to consumers here and around the world,” said Gary Keough, director of the NASS Pacific Regional Field Office, “I encourage every grower to take the time to respond if they receive this survey.”

    The Fruit Chemical Use Survey will provide much needed information about the current crop production practices used in the United States. The results of this survey will paint a detailed picture of pesticide use and other pest management practices used by the fruit growers across the nation. To conduct the survey, NASS representatives will contact selected California growers to arrange in-person interviews. The results of this survey will be available in aggregate form only, ensuring that no individual operation or producer can be identified, as required by federal law.

    Survey results will be published in NASS’s online database, Quick Stats, in July 2020. This database and all NASS reports are available on the agency’s web site: www.nass.usda.gov. For more information on NASS surveys and reports, call the NASS Pacific Regional Field Office at 1-800-851-1127.

  • 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.

     

  • Understanding Coyotes & How to Manage/Deter Them

    Once confined mostly to the Great Plains of North America, coyotes have spread across much of the continent, and can be a real threat and nuisance to farming communities. Check out this brief interview with USDA Wildlife Specialist Derek Milsaps, as he offers some recommendations on how to identify and deal with these pests.