USDA Modifies Farm Loan Programs to Give More Opportunity to Producers

Farm Loan Modifications Create Flexibility for Farmers and Ranchers

Agriculture Secretary Tom Vilsack TODAY announced increased opportunity for producers as a result of the 2014 Farm Bill. A fact sheet outlining modifications to the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) Farm Loan Programs is available here.

“Our nation’s farmers and ranchers are the engine of the rural economy. These improvements to our Farm Loan Programs will help a new generation begin farming and grow existing farm operations,” said Secretary Vilsack. “Today’s announcement represents just one part of a series of investments the new Farm Bill makes in the next generation of agriculture, which is critical to economic growth in communities across the country.”

The Farm Bill expands lending opportunities for thousands of farmers and ranchers to begin and continue operations, including greater flexibility in determining eligibility, raising loan limits, and emphasizing beginning and socially disadvantaged producers.

Changes that will take effect immediately include:

Elimination of loan term limits for guaranteed operating loans.
Modification of the definition of beginning farmer, using the average farm size for the county as a qualifier instead of the median farm size.
Modification of the Joint Financing Direct Farm Ownership Interest Rate to 2 percent less than regular Direct Farm Ownership rate, with a floor of 2.5 percent. Previously, the rate was established at 5 percent.
Increase of the maximum loan amount for Direct Farm Ownership down payments from $225,000 to $300,000.
Elimination of rural residency requirement for Youth Loans, allowing urban youth to benefit.
Debt forgiveness on Youth Loans, which will not prevent borrowers from obtaining additional loans from the federal government.
Increase of the guarantee amount on Conservation Loans from 75 to 80 percent and 90 percent for socially disadvantaged borrowers and beginning farmers.
Microloans will not count toward loan term limits for veterans and beginning farmers.

Additional modifications must be implemented through the rulemaking processes. Visit the FSA Farm Bill website for detailed information and updates to farm loan programs.

Patrick Cavanaugh2016-05-31T19:38:07-07:00March 25th, 2014|

Tulare Water Rally Needs You on March 26th

Water Rally in Tulare Needs You!

Mario Santoyo, Executive Director of California Latino Water Coalition, announced a Water Rally on Wednesday, March 26^th in Tulare. We urge everyone with agricultural water interests to attend and advocate for increased water allocations!

Mario Santoyo

Santoyo commented:

You all are very aware of the water crisis that has been plaguing the West Side farmers due to federal pumping restrictions, well now with this year’s historic drought combined with those same pumping restrictions the East Side farmers will be in the same crisis condition.

The only hope for farmers on both sides of this Valley to survive this year is a change in the Delta Operations by both the State and Federal governments in order to maximize the flexibilities they have under this crisis to deliver more water south of the Delta, so an upcoming rally is intended to send that message.

The initial event flyer for the rally along with a water supply update on the East Side farmers’ dire situation is below.

Patrick Cavanaugh2016-05-31T19:38:07-07:00March 22nd, 2014|

Record California Table Grape Shipments

117.4M Boxes of Grapes Shipped Surpasses the $100M Mark for Second Time in History

It was announced TODAY that California shipped a record volume of 117.4 million boxes (116.2 19-pound box equivalents) of fresh California grapes during the 2013 season, a total crop value of $1.7 billion.

The 2013 season started with shipments in early May and continued into February 2014. California produces 99 percent of the commercial fresh grapes grown in the United States.

“Over the past 10 years the volume has significantly increased,” said Kathleen Nave, president of the California Table Grape Commission. “In 2003 the crop was under 80 million boxes. In 2012 the 100 million box mark was crossed for the first time in history, and in 2013 another record was set with the crop totaling 117.4 million boxes.”

Exports also hit a new record in volume, with 48.6 million boxes shipped to export markets including Canada – a 17 percent increase over the previous year. The top export markets in volume included Canada at 11.9 million, followed by China/Hong Kong at 7.9 and Mexico at 6.6. The 48.6 million boxes exported represented 41 percent of the total crop volume.

With the 2014 season a little over a month away, the commission is gearing up its global campaign for Grapes from California which includes retail, consumer and foodservice programs.

Patrick Cavanaugh2016-05-31T19:38:08-07:00March 20th, 2014|

Webinar to Examine Environmental Impact of Produce Safety Proposed Rule

Today the U.S. Food and Drug Administration announced it will hold a webinar on April 4 to discuss the scope of the Environmental Impact Statement (EIS) for the agency’s Food Safety Modernization Act (FSMA) proposed rule to establish standards for growing, harvesting, packing and holding of produce for human consumption.

The FDA is holding this meeting to seek public input on the issues and alternatives that it should consider when preparing the EIS and to inform the public of the provisions of the proposed rule that may significantly affect the quality of the human environment and anticipated alternatives FDA plans to consider.

In an update received earlier today, FDA noted that it is “identifying a number of issues and a range of potential alternatives to be considered in the EIS.”

Alternatives have been identified in areas where potential environmental impacts are likely, including the following:

Microbial standard for agricultural water used during growing activities for covered produce using a direct water application method
Minimum application intervals for biological soil amendments of animal origin
Measures related to animal grazing and animal intrusion
Scope of proposed rule and implications to land use and land management.

The meeting will be from 1:00-5:00 p.m. at the Harvey W. Wiley Federal Building in College Park, Maryland. The meeting will also be Webcast at 2 p.m. For more details on how to participate in person or online, visit the FDA website.

PMA members and industry are also encouraged to visit the FSMA Resource Center for additional information on the FSMA and its numerous proposed rules.

Patrick Cavanaugh2016-05-31T19:38:08-07:00March 19th, 2014|

Science Advisory Report Posted

The California Department of Food and Agriculture‘s (CDFA) Asian Citrus Psyllid (ACP) and Huanglongbing (HLB) Ad Hoc Science Advisory Panel (SAP) is a group of scientists selected by the Secretary to provide scientific advice to the Department to ensure that they are using the best science available when developing program policy and protocols.

These scientists consist of experts from states that have already experienced the sequence of events associated with ACP/HLB infestation, as well as California-based scientists with local knowledge to ensure a diverse perspective.

The panel met in December 2013 and was tasked with providing recommendations on a series of non-regulatory questions vetted by CDFA.

This report contains the list of questions and the answers from the ACP-SAP. In addition, the report contains the SAP’s comments and recommendations for consideration in the development of ACP/HLB programs in California.

Among the many questions answered in the report, here are a few:

What is the appropriate size of treatment areas around ACP find sites in eradication zones under a variety of scenarios?
Would it be beneficial to freeze dry leaves from asymptomatic, VOC positive trees for future analysis, when technology improves?
With most of the ACP detections in Tulare County being on traps placed on poles rather than within the canopy, should we change trap placement for the ACP program?
On March 23, 2014 we will be 2 years without a HLB detection in California. What should be our exit strategy?

For a copy of the letter, click here.

If you have any questions or concerns, please do not hesitate to contact the Citrus Program Manager, Victoria Hornbaker at 916-654-0317 or via email at Victoria.Hornbaker@cdfa.ca.gov.

Patrick Cavanaugh2016-05-31T19:38:09-07:00March 19th, 2014|

California Strawberry Commission Economic Report: Industry Has Postive Local and State Impact

TODAY, the California Strawberry Commission released a first-ever statewide economic report detailing the $3.4 billion economic contributions of strawberry farming to the state. The report titled, Sustaining California Communities: Economic Contributions of Strawberry Farming (February 2014) showcases the positive impact strawberries have on local communities.

With the best climate in the world for sustainably growing strawberries, California continues to lead the United States and the world in strawberry production. California strawberry farmers are responsible for growing nearly 90 percent of U.S. strawberries. If California were a country, it would be the world’s largest producer of strawberries. California’s 400 family-owned strawberry farms generate an estimated 70,000 farm jobs, while growing strawberries on less than 40,000 acres (less than one percent of all California farmland).

“Not only does California have the best climate on earth to grow strawberries, it also has the most innovative and hardworking strawberry farmers in the world,” said Rick Tomlinson, President of the California Strawberry Commission. “These 400 small family farms are the foundation for on-farm jobs, as well as packaging, shipping, processing, marketing, nutrition, science, and export jobs that create opportunity in our Central Coast communities and healthy food for consumers.”

Strawberry farming has a multiplier effect, creating jobs and generating revenue beyond the farm. For every farm dollar made, 97 cents is invested back into the community. Strawberry farming accounts for an estimated $108 million in annual tax revenue. This in turn supports local, state and regional government services. Taxes support teachers, police and firefighters, and through a dedicated program, college scholarships support higher education opportunities for children of strawberry farm workers.

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Source: California Strawberry Commission

“California strawberry farming is a tremendous asset to the state and nation,” said economist Jim Schaub, Ph.D. “The dollars that come into strawberry farms go back out as wages, land costs, payments for farm inputs and services, regulatory costs, and property and business taxes.”

From inception to harvest, the entire lifecycle of a strawberry begins and ends in California. In Northern California, roughly a billion plants are nurtured in open fields from October to February. These hardy, healthy nursery plants are then shipped to the Central Coast: the world’s premier region for growing strawberries. Every step of the way, strawberries provide hundreds of communities with jobs, income and tax revenue necessary to sustaining local economies.

The California Strawberry Commission is a state government agency located in Northern California that represents an industry of 600 growers, shippers and processors of California strawberries. With a focus on food safety education, Commission strategies also include production and nutrition research, trade relations, public policy and marketing communications.

Patrick Cavanaugh2017-09-03T00:44:43-07:00March 18th, 2014|

Drought Could Affect Current and Future Food Prices

California Farm Bureau Federation reported today that with hundreds of thousands of acres of farmland expected to be left unplanted this year due to water shortages, market analysts and economists say shoppers will likely begin to see higher prices on some food items later this year.

Sean Villa, president of Great West Produce, a produce broker in Los Angeles County, said he expects a number of products to be affected later this year, including broccoli, sweet corn and melons from growing regions in Fresno, Mendota and Huron, where farmers will likely cut acreage due to water shortages.

Gary Tanimura, a vegetable grower based in the Salinas Valley, said he will have to reduce his summer melon production in the San Joaquin Valley by about 20 percent due to lack of water.

Tanimura said spring and fall lettuce production in the San Joaquin Valley also could drop by 25 percent to 30 percent this year.

Cindy Jewell, director of marketing for California Giant Berry Farms in Watsonville, said farms in the Oxnard growing region—which typically plant a second crop in the summer for fall production—may not be able to do that this year.

“If the water situation continues to be this severe, there may not be as many of those acres replanted for fall production,” she said, adding that if the drought continues into fall and winter, when most strawberries are planted, it could affect what’s planted for next year’s harvest.

Because California supplies nearly 90 percent of the nation’s strawberries, Jewell said it is not likely that there will be much of a production shift to other regions.

“It’s not like someone else could step in and do that,” she said. “It’s all about climate and location.”

On the beef market, the California drought may have the most impact on niche products such as grassfed, organic or natural beef, said Lance Zimmerman, a market analyst for Colorado-based Cattlefax. Those programs typically rely more on local or semi-regional supplies, he said.

Retail beef prices have risen nationwide, Zimmerman said, because of improved demand and continued declines in supply caused by several years of drought in other major beef-producing regions in the Southern Plains and the Southeast.

In states where drought conditions have improved, ranchers are now trying to build back their herds, so they’re not sending as many animals to market, particularly mature cows, and that has driven up prices on meat cuts such as chuck roast and ground beef, he added.

On the produce market, fair weather accompanying the drought has, for now, caused vegetable crops to come to market ahead of schedule, creating an overlap of products from the desert region and the San Joaquin Valley.

That, combined with reduced demand from East Coast markets due to severe winter weather, has led to temporary oversupplies of some vegetables, Tanimura said, while Jewell reported that berry production has also been stimulated by warm winter weather.

Patrick Cavanaugh2016-05-31T19:38:09-07:00March 18th, 2014|