Agriculture Support March 2021

AGRICULTURE SUPPORT 2021

A SUPPLEMENT OF

Daily Journal media

PAGE 2 | AGRICULTURE SUPPORT

USDA announces Pandemic Assistance for Producers For the Journal

Agriculture Secretary Tom Vilsack announced Wednesday, March 24 that USDA is establishing new programs and efforts to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions.

The new initiative — USDA Pandemic Assistance for Producers — will reach a broader set of producers than in previous COVID-19 aid programs. USDA is dedicating at least $6 billion toward the new programs. The department will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, as well as provide support for the food supply chain and producers of renewable fuel, among others. Existing programs like the Coronavirus Food Assistance Program (CFAP) will fall within the new initiative and, where statutory authority allows,

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HELPING PRODUCERS: USDA announced March 24 that they are establishing new programs and efforts for financial assistance to farmers, ranchers and producers impacted by COVID-19 market disruptions. will be refined to better address the needs of producers.

USDA Pandemic Assistance for Producers was needed, said Vilsack, after a review of previous COVID-19 assistance programs targeting farmers identified a number of gaps and disparities in how assistance was distributed as well as inadequate outreach to underserved producers and smaller and medium operations.

“The pandemic affected all of agriculture, but many farmers did not benefit from previous rounds of pandemic-related assistance. The Biden-Harris administration is committed to helping as many producers as possible, as equitably as possible,” said Vilsack. “Our new USDA Pandemic Assistance for Producers initiative will help

get financial assistance to a broader set of producers, including to socially disadvantaged communities, small and medium sized producers, and farmers and producers of less traditional crops.”

USDA will reopen signup for CFAP 2 for at least 60 days beginning on April 5. The USDA Farm Service Agency (FSA) has committed at least $2.5 million to improve outreach for CFAP 2 and will establish partnerships with organizations with strong connections to socially disadvantaged communities to ensure they are informed and aware of the application process.

The payments announced today (under Part 3, below) will go out under the exist-

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ing CFAP rules; however, future opportunities for USDA pandemic assistance will be reviewed for verified need and during the rulemaking process, USDA will look to make eligibility more consistent with the farm bill. Moving forward, USDA Pandemic Assistance for Producers will utilize existing programs, such as the local agricultural marketing program, farming opportunities training and outreach, and Specialty Crop Block Grant program, and others to enhance educational and market opportunities for agricultural producers.

USDA Pandemic Assistance for Producers

Part 1: Investing $6 Billion to expand help and assistance to more producers USDA will dedicate at least $6 billion to develop a number of new programs or modify existing proposals using discretionary funding from the Consolidated Appropriations Act and other coronavirus funding that went unspent by the previous administration.

Where rulemaking is required, it will commence this spring. These efforts will include assistance for:

• Dairy farmers through the dairy donation program or other means: • Euthanized livestock and poultry.

• Biofuels.

• Specialty crops, beginning farmers, local, urban and organic farms.

• Costs for organic certification or to continue or add conservation activities.

• Other possible expansion and corrections to CFAP that were not part of today’s announcement such as to support dairy or other livestock producers.

• Timber harvesting and hauling.

• Personal Protective Equipment (PPE) and other protective measures for food and farm workers and specialty crop and seafood producers, processors and distributors.

• Improving the resilience of the food supply chain, including assistance to meat and poultry operations to facilitate interstate shipment.

• Developing infrastructure to support donation and distribution of perishable commodities, including food donation and distribution through farm-to-school, restaurants or other community organizations.

• Reducing food waste.

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Part 2: Adding $500 Million of New Funding to Existing Programs USDA expects to begin investing approximately $500 million in expedited assistance through several existing programs this spring, with most by April 30. This new assistance includes: • $100 million in additional funding for the Specialty Crop Block Grant program, administered by the Agricultural Marketing Service (AMS), which enhances the competitiveness of fruits, vegetables, tree nuts, dried fruits, horticulture and nursery crops.

• $75 million in additional funding for the farmers opportunities training and outreach program, administered by the National Institute of Food and Agriculture (NIFA) and the Office of Partnerships and Public Engagement, which encourages and assists socially disadvantaged, veteran, and beginning farmers and ranchers in the ownership and operation of farms and ranches.

• $100 million in additional funding for the local agricultural marketing program, administered by the AMS and Rural Development, which supports the development, coordination and expansion of direct producer-to-consumer marketing, local and regional

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• $75 million in additional funding for the Gus Schumacher Nutrition Incentive Program, administered by the NIFA, which provides funding opportunities to conduct and evaluate projects providing incentives to increase the purchase of fruits and vegetables by low-income consumers.

• $20 million for the Animal and Plant Health Inspection Service to improve and maintain animal disease prevention and response capacity, including the National Animal Health Laboratory Network.

• $20 million for the Agricultural Research Service to work collaboratively with Texas A&M on the critical intersection between responsive agriculture, food production, and human nutrition and health.

• $28 million for NIFA to provide grants to state departments of agriculture to expand or sustain existing farm stress assistance programs.

• Approximately $80 million in additional payments to domestic users of upland and extra-long staple cotton based on a formula set in the Consolidated Appropriations Act,

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LOOKING TO HIT PAYDIRT

Stronger markets, chance to plant earlier encourages farmers

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PREPPING FOR A SUCCESSFUL SEASON: With the commodity market up, area farmers are encouraged and have an optimistic outlook for the 2021 season.

By Brian Hansel The Daily Journal

Two years ago local grain farmers were looking at a late planting season, last year COVID-19 had them grappling with the possibility of not having the seed, fertilizer and field support they needed to put in crops.

So with another growing season on tap what is the mood of producers in 2021?

Some farmers are encouraged by a better commodity market going into the planting season.

“They are definitely up,” Farmers Elevator manager Jon Stueve said, suggesting the more optimistic outlook by farmers is fueled by a stronger demand. “We’ll see what the

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prices do. There is a pretty fair price on the soybeans right now, compared to where they have been, for fall delivery.”

After dealing with customers of Elbow Lake Co-Op Grain manager Kevin Stein has also picked up some good vibes.

“The planting outlook is pretty positive and it seems like we’ll get into the fields early,” Stein said.

Stein feels the U.S. agriculture market also promises to be stronger.

“Demand is better, exports throughout the year have been good which has led to a tighter supply,” Stein said.

Ashby Equity agronomy lead Taylor Volker agrees farmers are more upbeat and a big reason is because of the prospects for an earlier planting season.

“Things are looking really great, there is not much snow on the ground and the weather has been pretty great and looks to be that way for the next few weeks,” Volker said. “I think there are definitely high hopes to get in early this year and get planting by mid-April.”

As much as farmers would like a dry

planting season Volker believes that none of them would be disappointed if their fields received more moisture. A fairly dry winter has left the soil short of moisture.

“I think that right now we are pretty dry overall so getting some rain after planting will be important,” Volker said.

A stronger market going into the planting season is also responsible for more optimism in Volker’s opinion.

“I’d say they are definitely an improvement from the last couple of years here and that is definitely making guys more optimistic too, getting them excited for the season.” Volker said. “It’s just nice to see for once, not looking at those prices that are so low.”

Yet while the weather is cooperating and prices look good farmers have some gray skies to deal with. Better projected prices for their crops are also bringing higher fertilizer prices.

“Farmers are kind of looking at that too but that’s a lot easier to handle when you’re SEE OUTLOOK PAGE 6

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BACK OUT IN THE FIELD: Farmers take a look out into the field during harvest. Farmer Don Viger is encouraged by the export market over the winter months and believes farmers can take advantage of current prices with their new crop.

OUTLOOK Continued from page 5

looking at $5 a bushel corn as opposed to $3.”

A year ago Don Viger, who farms near Dalton, was a grain farmer with questions. Weather and the market were wild cards that Viger had experience with but COVID-19 was something else. Minnesota Gov. Tim Walz used executive orders to shut down stores and have people quarantine at home. The shakeup was tremendous – businesses were forced to close and many that remained open experienced staff shortages.

Farmers like Viger depend on getting the seed, fuel and chemicals they order but fertilizer application is a must. At one point he was told that if any of the applicator employees being counted on for help caught the virus it would shut the whole business down.

With the spring planting season close

Viger does not have the same fears he did in 2020.

“It’s not back to normal but I guess I don’t have any real concerns going into spring’s work,” Viger said.

Viger has been encouraged by the export market in recent months. Corn prices have jumped according to the United States Department of Agriculture’s February report.

A strong global-feed demand for corn nearly doubled the bushel price between May of 2020 and January 2021.

“We’ve had a nice rally over the winter months with the old crop and with the new crop you can contract them at pretty decent prices right now so a person has to take advantage of that.”

Corn and soybeans have been the two major crops in recent years and Viger’s crop planning will be affected by what the USDA reports at the end of March.

“If everybody thinks they are going to plant corn when there is a record number of corn acres obviously that is going to affect your commodity prices,” Viger said.

AGRICULTURE SUPPORT | PAGE 7

ASSISTANCE Continued from page 3

2021 that USDA plans to deliver through the Economic Adjustment Assistance for Textile Mills program.

Part 3: Carrying out formula payments under CFAP 1, CFAP 2, CFAP AA The Consolidated Appropriations Act, 2021, enacted December 2020 requires FSA to make certain payments to producers according to a mandated formula. USDA is now expediting these provisions because there is no discretion involved in interpreting such directives, they are self-enacting.

• An increase in CFAP 1 payment rates for cattle. Cattle producers with approved CFAP 1 applications will automatically receive these payments beginning in April. Information on the additional payment rates for cattle can be found on farmers.gov/cfap. Eligible producers do not need to submit new applications, since payments are based on previously approved CFAP 1 applications. USDA estimates additional payments of more than $1.1 billion to more than 410,000 producers, according to

the mandated formula.

• Additional CFAP assistance of $20 per acre for producers of eligible crops identified as CFAP 2 flat-rate or price-trigger crops beginning in April. This includes alfalfa, corn, cotton, hemp, peanuts, rice, sorghum, soybeans, sugar beets and wheat, among other crops. FSA will automatically issue payments to eligible price trigger and flat-rate crop producers based on the eligible acres included on their CFAP 2 applications. Eligible producers do not need to submit a new CFAP 2 application. For a list of all eligible row-crops, visit farmers.gov/cfap. USDA estimates additional payments of more than $4.5 billion to more than 560,000 producers, according to the mandated formula.

• USDA will finalize routine decisions and minor formula adjustments on applications and begin processing payments for certain applications filed as part of the CFAP additional assistance program in the following categories: • Applications filed for pullets and turfgrass sod.

• A formula correction for row-crop producer applications to allow producers with a non-actual production history (APH) insur-

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Part 4: Reopening CFAP 2 sign-up to improve access & outreach to underserved producers

As noted above, USDA will reopen signup for of CFAP 2 for at least 60 days beginning on April 5.

• FSA has committed at least $2.5 million to establish partnerships and direct outreach efforts intended to improve outreach for CFAP 2 and will cooperate with grassroots organizations with strong connections to socially

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disadvantaged communities to ensure they are informed and aware of the application process.

Please stay tuned for additional information and announcements under the USDA Pandemic Assistance to Producers initiative, which will help to expand and more equitably distribute financial assistance to producers and farming operations during the COVID-19 national emergency. Please visit www.farmers.gov for more information on the details of today’s announcement.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean-energy capabilities in rural America, and committing to equity across the department by removing systemic barriers and building a workforce more representative of America.

To learn more, visit www.usda.gov.

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ance policy to use 100% of the 2019 agriculture risk coverage-county option (ARC-CO) benchmark yield in the calculation.

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