USDA | Field 2 Field

April 21, 2020April 21, 2020

Farm Safety Net Programs See Record Signup

Farm safety net programs saw a record signup this go-around.

Producers signed a record 1.77 million contracts for the U.S. Department of Agriculture’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 crop year, which is more than 107 percent of the total farm safety net contracts signed compared with a 5-year average. USDA also reminds producers that June 30 is the deadline to enroll in ARC and PLC for the 2020 crop year.

“Producers for several years have experienced low commodity prices, a volatile trade environment and catastrophic natural disasters,” said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). “Farmers looking to mitigate these risks recognize that ARC and PLC provide the financial protections they need to weather substantial drops in crop prices or revenues.”

Producers interested in enrolling for farm safety net programs in 2020 should contact their FSA county office. Producers must enroll by June 30 and make their one-time update to PLC payment yields by September 30.

FSA attributes the significant participation in the 2019 crop year ARC and PLC programs to increased producer interest in the programs under the 2018 Farm Bill and to an increase in eligible farms because of the selling and buying of farms and new opportunities for beginning farmers and military veterans with farms having 10 or fewer base acres. Enrollment for 2019 ended March 16.

USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

For more information on ARC and PLC, download the program fact sheet or the 2014-2018 farm bills comparison fact sheet. Online ARC and PLC election decision tools are available at www.fsa.usda.gov/arc-plc. To locate the nearest USDA Service Center, visit farmers.gov/service-center-locator.

April 18, 2020April 18, 2020

USDA announces new $19 billion aid package for Ag, food

Here’s the entire Friday night press conference with Ag Secretary Sonny Perdue.

U.S. Secretary of Agriculture Sonny Perdue today announced the Coronavirus Food Assistance Program (CFAP). This new U.S. Department of Agriculture (USDA) program will take several actions to assist farmers, ranchers, and consumers in response to the COVID-19 national emergency. President Trump directed USDA to craft this $19 billion immediate relief program to provide critical support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need.

“During this time of national crisis, President Trump and USDA are standing with our farmers, ranchers, and all citizens to make sure they are taken care of,” Secretary Perdue said. “The American food supply chain had to adapt, and it remains safe, secure, and strong, and we all know that starts with America’s farmers and ranchers. This program will not only provide immediate relief for our farmers and ranchers, but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.”

CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities. The program includes two major elements to achieve these goals.

Direct Support to Farmers and Ranchers: The program will provide $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.
USDA Purchase and Distribution: USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. We 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, and $100 million per month in meat products. The distributors and wholesalers will then 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.

On top of these 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. Additional Background:USDA has taken action during the COVID-19 national emergency to make sure children and families are fed during a time of school closures and job losses, as well as increase flexibilities and extensions in USDA’s farm programs to ensure the U.S. food supply chain remains safe and secure. Feeding Kids and Families

USDA expanded flexibilities and waivers in all 50 states and territories to ensure kids and families who need food can get it during this national emergency.
USDA is partnering with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver more than 1,000,000 meals a week to students in a limited number of rural schools closed due to COVID-19.
USDA authorized Pandemic EBT in Michigan and Rhode Island, a supplemental food purchasing benefit to current SNAP participants and as a new EBT benefit to other eligible households to offset the cost of meals that would have otherwise been consumed at school.
USDA expanded an innovative SNAP online grocery purchase pilot program in Arizona and California, Florida and Idaho, and DC and North Carolina, in addition to Alabama, Iowa, Nebraska, New York, Oregon and Washington.

Actions to Ensure a Strong Food Supply Chain

USDA is working to ensure the food supply remains safe and secure.
USDA announced flexibilities to ensure food distribution for certain food products like dairy and eggs reach retail settings.
USDA announced farm loan flexibilities, deferrals, and maturity extensions.

Whole of Government Response in Rural America

USDA released The COVID-19 Federal Rural Resource Guide, a first-of-its-kind resource for rural leaders looking for federal funding and partnership opportunities to help address this pandemic.
USDA opened a second application window (April 14, 2020 to July 13, 2020) for $72 million of funding under the Distance Learning and Telemedicine (DLT) grant program.
USDA Rural Development lenders may offer 180-day loan payment deferrals without prior agency approval for Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees, and Water and Waste Disposal Loan Guarantees.
USDA will use the $100 million provided for the ReConnect Program in the CARES Act to invest in qualified 100 percent grant projects.

For all the information on USDA’s work during the COVID-19 pandemic and resources available, please visit https://www.usda.gov/coronavirus.

March 19, 2020March 19, 2020

H-2A Workers Help from USDA/Dept. of Labor

H-2A workers have been hard to find consistently in agriculture as long as I’ve been covering it, which is the better part of my adult life. I don’t have enough day-to-day experience dealing with this to know why on Earth we can’t seem to figure this out? Any ideas? Please leave a comment and let me know the whole story? And does this news from the USDA and Department of Labor actually help?

U.S. Secretary of Agriculture Sonny Perdue today announced a partnership between the U.S. Department of Agriculture (USDA) and the U.S. Department of Labor (DOL) to help facilitate the identification of foreign and domestic H-2A workers that may be available and eligible to transfer to other U.S. agricultural sector employers to fulfill critical workforce needs within the U.S. under existing regulatory authority during the COVID-19 pandemic.

For as long as I can remember, we’ve been struggling to get enough H-2A workers into the country consistently enough to make sure all our farmers can get their work done. Why can’t we figure this out? (Photo from agnetwest.com)

“Ensuring minimal disruption for our agricultural workforce during these uncertain times is a top priority for this administration,” Secretary Perdue said. “President Trump knows that these H-2A workers are critical to maintaining our food supply and our farmers and ranchers are counting on their ability to work. We will continue to work to make sure our supply chain is impacted as minimally as possible.”

“American farmers and ranchers are at the frontlines of maintaining the nation’s food supply,” Secretary Scalia said. “In these unprecedented times, it is critical for them to have the workforce they need. This new partnership between USDA and DOL will help support our farmers, ranchers, and American families.”

Background:USDA and DOL have identified nearly 20,000 H-2A and H-2B certified positions that have expiring contracts in the coming weeks. There will be workers leaving these positions who could be available to transfer to a different employer’s labor certification. The data, available on www.farmers.gov/manage/h2a, includes the number of certified worker positions, the current employer name and contact, attorney/agent name and contact, and the worksite address. This information will be a resource to H-2A employers whose workforce has been delayed because of travel restrictions or visa processing limitations. Employers should be aware that all statutory and regulatory requirements continue to apply. Employers are encouraged to monitor www.travel.state.gov for the latest information and should monitor the relevant Embassy/Consular websites for specific operational information.

March 3, 2020March 3, 2020

Hemp license application deadline is March 31

Hemp is being called a “new tool” in farmers’ toolboxes. I’m curious to see what kind of production Minnesota will see during the 2020 growing season. Does anyone have any idea as far as what kind of production we’re looking at this year?

Anyway, those farmers wanting to grow or process the crop in Minnesota in 2020 must apply for a license with the Minnesota Department of Agriculture (MDA) by March 31.

This is the fifth year of the state’s Industrial Hemp Program. Last year, 550 people held licenses to grow or process hemp. Over 7,300 acres and 400,000 indoor square feet were planted in Minnesota.

“We believe in the potential of the developing industry,” said Assistant Agriculture Commissioner Whitney Place. “We want to ensure that everyone who would like to grow and process it in Minnesota is able to do so. They simply need to apply by March 31.”

The online application for growers and processors can be found on the MDA website at www.mda.state.mn.us/industrialhemp. Along with the online form, first-time applicants need to submit fingerprints and pass a criminal background check.

The 2018 Federal Farm Bill legalized hemp as an agricultural commodity. Last fall, the U.S. Department of Agriculture (USDA) released an interim final rule that outlined state and tribal plans for growing the crop. Minnesota is continuing under the existing pilot program in 2020.

Questions about the MDA’s Hemp Program should be sent to hemp.mda@state.mn.us or 651-201-6600.

December 18, 2019December 18, 2019

Dairy Assistance Program Enrollment Reopened

The Minnesota Department of Agriculture (MDA) is reopening enrollment in its Dairy Assistance, Investment, and Relief Initiative (DAIRI) program for eligible milk producers through the end of the year.

Producers who have locked in five years of coverage through the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program and who have not already successfully enrolled in the Dairy Assistance program can apply.

The MDA has already issued $3.4 million to about 1,800 producers representing more than 1,550 farms in Minnesota through the program in its first round of payments.

Producers not yet successfully enrolled will not receive the first round of payment, but may receive a check for the second round of dairy assistance, which will be determined after all new enrollments have been received.

In order to qualify, farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. They will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.

An application form, an IRS Form W-9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are required to complete an application. All materials must be postmarked by December 31, 2019.

Producers who are already successfully enrolled and have received their first check do not need to take any action. They will automatically receive a second payment. However, producers who submitted incomplete applications and have not received a check must return any requested information by December 31, 2019, to be eligible for the second payment.

For additional information and the application form, visit the DAIRI program page of the MDA website.

October 30, 2019October 30, 2019

Hemp Production Rules in Place for U.S. farming

The U.S. Department of Agriculture hosted a press conference to announce the rollout of the U.S. Domestic Hemp Production Program. As long as farmers aren’t working in states that prohibit hemp farming by law, officials will work with farmers to help them establish an approved plan to produce industrial hemp on their operations.

Here’s the complete press conference audio from this week:

The U.S. Department of Agriculture officially announced the establishment of the Domestic Hemp Production Program. The program is designed to create a consistent regulatory framework involving hemp farming across the country. USDA Undersecretary for Marketing and Regulatory Programs Greg Ibach says the agency will work with states and tribes to help producers establish federally approved hemp production plans, as long as hemp production isn’t outlawed by their states.

The interim rule also calls for a public comment period so USDA can take input on the final rule before it’s enacted. Ibach says the 2020 growing season will be a “test drive” so USDA can make any needed corrections before publishing the final rule. He talks about some of the key provisions in the interim final rule.

There will be a 30-day waiting period for USDA to license farmers who want to grow hemp in states or tribes that don’t submit plans for federal approval. Ibach says they’ve gotten a lot of questions during the development process surrounding hemp testing for THC.

USDA Undersecretary for Farm Production and Conservation Bill Northey says once state and tribal plans are in place, hemp growers will be eligible for various government programs in 2020…tape

If you have any more question, contact your local Farm Service Agency office. They can point you in the right direction. You can also find more information online at farmers.gov/hemp.

September 11, 2019September 11, 2019

IFYE – the International Farm Youth Exchange Program

The International Farm Youth Exchange Program recently signed a Memorandum of Understanding with the U.S. Department of Agriculture. USDA and IFYE (iffy) will work together to promote cultural understanding between the U.S. and overseas countries. The MOU commends IFYE for its past and continuing contribution to international cultural understanding of rural areas across the world. Victoria Warren is President of IFYE. She says the MOU also means the USDA and her group will work together to continue the IFYE mission into the future.

The IFYE program sends young adults 19 and over to farms and rural areas in other countries and helps them learn to understand different cultures and ways of doing things. Warren says the experience isn’t just for young adults in rural America either.

Program participants should be interested in things like agriculture, foods, nutrition, or family consumer science to get the best possible program experience. Warren talks about what the participants will do when they’re overseas with exchange families.

Warren says IFYE isn’t like other exchange programs because participants aren’t there to go to school. However, that doesn’t mean the young adults don’t learn anything.

Warren participated in the program too. She made an overseas trip back in the late-1970s.

For more information about the program, go to www.ifyeusa.org.

August 8, 2019August 8, 2019

Markets Expert Talks Trade War, USDA reports

Markets occasionally confuse me. However, one part of a career in journalism/broadcasting that I really enjoy is calling people who can educate me on things I really don’t have much expertise in. The older I get, the more fun it is to learn (and try) new things, but I digress. I was working on an assignment with the National Association of Farm Broadcasting the other day and had to find out how the trade dispute between the U.S. and China is affecting commodity markets.

Well, here’s the thing. Commodity markets are not my area of expertise, so I called up Mike Zuzolo of Global Commodity Analytics and Consulting in Atchison, Kansas. He’s been in the markets for 2.5 decades so if you have a question, he’s the guy that can answer it.

As a farm broadcaster/editor, I was curious about how the China announcement that they wouldn’t be buying any American farm products right now was affecting the markets. Obviously, the effect wouldn’t be a positive one. However, as you’ll hear in the conversation, it could have been even worse.

And believe me, before we progress any further I need to stress that no one is saying things aren’t bad right now in the agricultural sector. I wanted to find out what the market reaction was to the announcement from China. Mike said the key reaction market reaction took place in the currency and stock markets.

“Quite frankly, Chad, I think this is maybe one of the few glimmers of good news, or potentially supportive news, for the commodity markets,” he said. “I think we’ve done a fairly good job in the markets of pricing in a good portion of the end result of these trade frictions turning into the beginnings of a trade war. It’s going to be playing out in the currency markets as we go forward.

“The net result is the commodity markets didn’t react as negatively as they could, simply because the strength of the U.S. dollar was dropping,” Zuzolo said. “When the dollar goes down, it makes our goods cheaper to export. At the same time when we had the news out of China, the gold market was making fresh, 6.5-year highs. That too is commodity supportive.”

Here’s the full conversation with Mike Zuzolo.

July 11, 2019July 11, 2019

Dairy Margin Coverage Program already helping producers

The U.S. Department of Agriculture’s Farm Service Agency (FSA) opened enrollment for the Dairy Margin Coverage (DMC) program on June 17 and has started issuing payments to producers who purchased coverage. Producers can enroll through Sept. 20, 2019.

“Times have been especially tough for dairy farmers, and while we hope producers’ margins will increase, the Dairy Margin Coverage program is providing support at a critical time for many in the industry,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “With lower premiums and higher levels of assistance than previous programs, DMC is already proving to be a good option for a lot of dairy producers across the country. USDA is committed to efficiently implementing the safety net programs in the 2018 Farm Bill and helping producers deal with the challenges of the ever-changing farm economy.”

Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. To date, nearly 10,000 operations have signed up for the new program, and FSA has begun paying approximately $100 million to producers for January through May.

May Margin Payment

DMC provides coverage retroactive to January 1, 2019, with applicable payments following soon after enrollment.

The May 2019 income over feed cost margin was $9.00 per hundredweight (cwt.), triggering the fifth payment for eligible dairy producers who purchase the $9.50 level of coverage under DMC. Payments for January, February, March and April also were triggered.

With the 50 percent hay blend, FSA’s revised April 2019 income over feed cost margin is $8.82 per cwt. The revised margins for January, February and March are, respectively, $7.71, $7.91 and $8.66.

Coverage Levels and MPP Reimbursements

Dairy producers can choose coverage levels from $4 up to $9.50 at the time of signup. More than 98 percent of the producers currently enrolled have elected $9.50 coverage on up to 95 percent of their production history.

More Information

On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.

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

July 10, 2019July 10, 2019

Acreage reporting deadline extended in 12 states

The U.S. Department of Agriculture (USDA) extended the acreage reporting deadline for farmers in states impacted by flooding and heavy moisture. The new deadline is July 22 for producers to report spring-seeded crops to USDA’s Farm Service Agency (FSA) county offices and crop insurance agents. The new deadline applies to producers in Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Minnesota, North Dakota, Ohio, Tennessee and Wisconsin.

“These are challenging times and we are here to help,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “This deadline extension is part of our broader effort to increase program flexibility and reduce overall regulatory burden for producers who are having to make some tough choices for their operations.”

Producers not in the selected states must file reports or be added to a county register by the original July 15 deadline.

“Producers in many parts of the country are experiencing a challenging spring and early summer. However, producers in these states are struggling with large delays and are unable to complete their other fieldwork,” Northey said.

Filing a timely crop acreage report helps farmers maintain eligibility for USDA conservation, disaster assistance, safety net, crop insurance, and farm loan programs. A crop acreage report documents all crops and their intended uses. It’s also an important part of record-keeping for your farm or ranch.

FSA offices are asking producers to set up appointments ahead of time before they come in to file a report. Producers who schedule appointments before the deadline will be on time, even if the appointment is after July 22.

Likewise, reports from producers in non-affected states who set up appointments before July 15 will be considered timely filed.

“We encourage you to contact your FSA county office today to set up an appointment,” Northey said. “Our team is standing by to help you complete this important process that keeps you eligible for key USDA programs.”

Other USDA Efforts to Help Producers

USDA is taking additional steps to help producers across the country, including:

Updating the haying and grazing date for producers who have planted cover crops on prevented plant acres;
Offering special sign-ups through the Environmental Quality Incentives Program for assistance to plant cover crops; and
Extending the deadline to report prevented plant acres in certain places.

For more information, visit our Prevented or Delayed Planting webpage.

More Information

To learn more, contact your FSA county office or visit fsa.usda.gov or farmers.gov/prevented-planting.