PROGRAM GUIDE FOR
TEXAS PRODUCERS 2022-2023
MESSAGE FROM COMMISSIONER SID MILLER Howdy Neighbors, Here at the Texas Department of Agriculture (TDA), one of our most important missions is to protect and promote production agriculture in the Lone Star State. A cornerstone of that mission is to ensure that agricultural producers have the tools they need to grow and prosper. The TDA has a variety of ways to help those who either produce or market Texas agricultural products. My team at TDA created this Producers Program Guide to briefly explain the programs, services and assistance that we can provide your farm, ranch or business. Agriculture is never easy. Even in the best of times. So, take a close look at the ways we can help you reach the next level, expand into new markets, improve customer service or help bridge the gap in tough times. My team stands ready to assist in whatever way we can. More details on any of these programs is just an email or a phone call away. Thank you for being part of the best agricultural economy in the world. Remember friends, Texas Agriculture Matters! Sincerely,
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TABLE OF CONTENTS
This publication is focused on production agriculture and recurring programs that directly serve individual producers. Often, one-time grants and targeted programs are also available to producers. The Texas Department of Agriculture houses many other programs related to community development, rural health, licensing, regulation, weights and measures, and food and nutrition. Information about all TDA programs and opportunities can be found at texasagriculture.gov.
FINANCING
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LICENSING AND REGULATION
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MARKETING
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General TDA Contacts CUSTOMER RELATIONS (800) 835 – 5832 Customer.Relations@TexasAgriculture.gov PUBLIC INFORMATION (512) 475 – 1609 Pub.Info@TexasAgriculture.gov
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FINANCING
YOUNG FARMER GRANT CONTACT: Grants@TexasAgriculture.gov | (512) 463 – 6695
Overview The purpose of the Young Farmer Grant program is to provide financial assistance in the form of dollar-for-dollar matching grant funds to young agricultural producers that are engaged or will be engaged in creating or expanding an agricultural business in Texas.
Eligibility • Applicant between 18 and 46 years of age • Propose a distinct project to grow the agricultural operation • Must apply as an individual (no corporations, LLCs, or partnerships) • May not be related to any TDA employee or TAFA board member
Application period Twice a year, with applications typically due by the end of April and October
Award amount $5,000 to $20,000 with a 1:1 matching requirement (paid on a reimbursement basis)
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INTEREST RATE REDUCTION PROGRAM CONTACT: Grants@TexasAgriculture.gov | (512) 463 – 2537
Overview The Interest Rate Reduction (IRR) Program is intended to facilitate a lower interest rate to agricultural producers or agribusiness owners. The IRR program provides an interest reduction to the borrower on a qualifying bank loan for an eligible project.
Eligibility • Application submitted by a lender that makes commercial loans and is an approved depository for state funds • Loan proceeds must be used for agriculture-related operating expenses
Application period Open enrollment
Award amount The lender and the borrower determine repayment, maturity, and collateral for the loan. Total linked deposit loans to any one borrower may not exceed $500,000.
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AGRICULTURE LOAN GUARANTEE PROGRAM CONTACT: Grants@TexasAgriculture.gov | (512) 463 – 2537
Overview The Agricultural Loan Guarantee Program (ALG) provides financial assistance to establish or enhance farming or ranching operations or to establish an agricultural-related business. Funds for the ALG program are used to support the lender’s capital and add protection against reasonable risk associated with the loan by honoring a percentage of debt.
Eligibility • Application submitted by a lender that makes commercial loans • Borrower credit score of at least 650 • Equity injection of at least 15% of the loan amount • Debt to equity ratio of 2:1 or less • Debt service coverage of 1.25 or better
Application period Open enrollment
Award amount The lender and the borrower determine interest rates, maturity, and collateral. There are two options for a guarantee depending on the terms of the loan: • $250,000 or 90% of the loan amount, whichever is less • $500,000 or 80% of the loan amount, whichever is less
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ORGANIC COST SHARE REIMBURSEMENT PROGRAM CONTACT: Grants@TexasAgriculture.gov | (512) 463-4406
Overview The Texas Department of Agriculture (TDA) has a cooperative agreement with the United States Department of Agriculture (USDA) to provide cost share assistance to producers, processors, distributors or other handlers of organic agricultural products.
Eligibility • Texas-based organic producers and/or handlers • Operations must possess current USDA organic certification
Application period Late summer
Award amount 50% of a producer’s certification costs up to $500 per certificate, per year
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FINANCING
STAR FUND CONTACT: STARfund@TexasAgriculture.gov | (512) 463 – 6695
Overview The State of Texas Agricultural Relief (STAR) Fund is designed to provide relief to Texas agricultural entities adversely impacted by natural disasters and is funded entirely by private donations. STAR Fund money may be used to assist farmers, ranchers, and agribusiness owners in rebuilding fences, restoring operations, and paying for other agricultural disaster relief.
Eligibility • Agricultural business/operation/farm/ranch located in a county with a state-declared disaster • Agricultural-related expenses directly resulting from the disaster that are not covered by insurance or other governmental sources • Entity has not received another STAR Fund award in the preceding 24 months
Application period Typically applications are open from the date of a state-declared disaster proclamation plus 90 days.
Award amount 50% cost share for eligible expenses up to $4,000
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LICENSING AND REGULATION
PRODUCE RECOVERY FUND CONTACT: AgCommodities@TexasAgriculture.gov | (512) 936 - 4178
Overview The Produce Recovery Fund provides a means of recovery for producers and other produce dealers who do not receive payment for Texas grown perishable commodities sold on consignment or credit. The law requires any person or business purchasing perishable commodities on credit to obtain a General Handler and Marketer of Perishable Commodity (HMPC) license from TDA.
Cost • Complaint filing fee: $50 • HMPC license: $400
Award amount • Up to $50,000 for claims from the same contract • Up to $85,000 in a given calendar year • If a purchasing entity does not have an HMPC license but is required to, recovery is limited to 80% of the contract amount. Producers should always verify the HMPC license when selling on credit.
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LICENSING AND REGULATION
PRODUCE SAFETY
Qualified Exemptions (determined by TOPS)
To be eligible for a qualified exemption, the farm must meet two requirements:
CONTACT: ProduceSafety@TexasAgriculture.gov (512) 475 - 0336
• Farm must have food sales averaging less than $500,000 per year during the previous three years; and
Overview
• Farm’s sales to qualified end-users must exceed sales to all others combined during the previous three years. A qualified end-user is either (a) the consumer of the food or (b) a restaurant or retail food establishment that is located in the same state or the same Indian reservation as the farm or not more than 275 miles away.
The Food Safety Modernization Act (FSMA) authorizes the U.S. Food and Drug Administration (FDA) to take a preventative approach to food safety. The law incorporates new enforcement actions that are designed to achieve higher rates of compliance with preventative safety standards. As part of FSMA, the Produce Safety Rule establishes, for the first time, science-based minimum standards for the safe growing, harvesting, packing, and holding of fruits and vegetables grown for human consumption.
A farm with a qualified exemption must still meet certain modified requirements, including disclosing the name and the complete business address of the farm where the produce was grown either on the label of the produce or at the point of purchase. These farms are also required to establish and keep certain documentation.
Texas Office of Produce Safety (TOPS)
Operations not covered by the Produce Safety Rule
TDA partners with the FDA through a cooperative agreement to advance efforts for a nationally integrated food safety system. This has occurred through planning and establishing a State Produce Safety Program that encourages the safe production of fresh fruits and vegetables.
• Produce that is not a raw agricultural commodity • Produce commodities that FDA has identified as rarely consumed raw • Food grains • Produce that is used for personal or on-farm consumption
Requirements for Covered Farms
• Farms that have an average annual value of produce sold during the previous three year period of $25,000 or less
• On-farm assessments to ensure compliance to the Produce Safety Rule • Grower training
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LICENSING AND REGULATION
ORGANIC CERTIFICATION CONTACT: Organic@TexasAgriculture.gov | (512) 936 – 4178
Overview The mission of the Texas Department of Agriculture Organic Certification Program is to ensure the integrity of organic agriculture products produced and manufactured in Texas by providing certification services to Texas producers and agribusinesses. As an accredited Certifying Agent by the United States Department of Agriculture National Organic Program, the TDA Organic Certification Program has the authority to certify organic producers as well as processors, distributors and retailers of organic agricultural products. To be certified, an operation must comply with organic production and handling regulations established by the USDA National Organic Program (NOP).
Cost • Crop Scope: $1,000 for operations with less than 50 acres, and $1,500 for operations with more than 50 acres. Additional costs for materials used. • Handler Scope: $1,500 with additional costs for labeling and multi-ingredient products. • Livestock Scope: $1,000 with additional costs for materials used.
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LICENSING AND REGULATION
AGRICULTURAL PESTICIDE APPLICATOR LICENSE CONTACT: Pesticides@TexasAgriculture.gov | (512) 463 – 7622
Overview The Texas Pesticide Law requires that agricultural pesticide applicators be licensed or certified by TDA in order to lawfully use a restricted-use pesticide, state-limited-use pesticide or regulated herbicides. Agricultural pesticide applicators are required to take a certification exam and obtain continuing education credits. No license is required to apply general-use pesticides to produce agricultural commodities.
Types of licenses PRIVATE – Someone who uses or supervises the use of regulated pesticides and herbicides to produce an agricultural commodity on personal property, their employer’s property, or without compensation COMMERCIAL – Someone who operates a business or is employed by a business that applies regulated pesticides to the property of another person for hire or compensation NONCOMMERCIAL – Someone who is required to be licensed, but does not qualify as commercial
Cost • Private: $100 • Commercial: $200/year • Noncommercial: $140/year • General standards and category exams: $64/exam
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LICENSING AND REGULATION
SEED CERTIFICATION CONTACT: AgCommodities@TexasAgriculture.gov | (979) 542 – 3691
Overview The mission of the Seed Certification Program is to create and make available a source of seeds and vegetative propagation materials of crops and plants grown, conditioned, certified, and distributed to insure genetic purity and identity in relation to TDA standards. The program licenses Certified Seed Growers and Registered Plant Breeders, presents variety requests to the State Seed and Plant Board for approval, conducts field inspections on certified seed productions, and prints certification labels.
Cost • Certified Seed Grower: $250 • Registered Plant Breeder: $250 • Variety Eligibility Application: $100 • Field Inspections: $100 per field plus acreage fees • Certified Labels: $0.18 per 100 pounds
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LICENSING AND REGULATION
SEED ARBITRATION CONTACT: AgCommodities@TexasAgriculture.gov | (979) 542 - 3691
Overview Seed arbitration is a hearing before the Seed Arbitration Board to determine a dispute between the purchaser and seller of seed sold in Texas regarding the failure of seed to produce or perform as represented by the warranty, by the label, or as a result of negligence.
Filing a Complaint The purchaser begins arbitration by mailing a sworn complaint and a non-refundable filing fee of $500 to TDA. The purchaser must send a copy of the complaint to the seller via certified mail. The purchaser must submit the sworn complaint no later than the 10th day after the date that the purchaser discovered the defect. The seller files an answer to the complaint with TDA and sends a copy to the purchaser by certified mail no later than 15 days after receipt of the complaint.
Process TDA conducts a preliminary investigation. TDA will refer the complaint, the answer, and preliminary investigation findings to the Seed Arbitration Board. The Board then will schedule a hearing and give reasonable notice to all parties. The Board will report its findings and recommendations to the Commissioner no later than 60 days after the date of the referral. TDA then transmits the report to all parties via certified mail.
Dispute Settlement The purchaser must go through this process before they can take a seed company to court. The board cannot make a seed company reimburse a purchaser, but the purchaser can utilize the findings and recommendations of the board in court.
Cost
$500 per complaint filed with TDA
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MARKETING
GO TEXAN CONTACT: GOTEXAN@TexasAgriculture.gov | (877) 99 – GOTEX gotexan.org
Overview The GO TEXAN program is a Texas Department of Agriculture initiative dedicated to identifying and supporting Texas-based businesses and connecting them with customers across the Lone Star State and around the world. GO TEXAN partners are entitled to use the iconic GO TEXAN mark on their products and receive access to many opportunities to grow their business.
Cost • Tier 1 ($100) • Tier 2 ($500) • Tier 3 ($1000) • Champion ($5000+)
GO TEXAN Benefits • Use of the GO TEXAN certification mark • Access to funding through reimbursement grants • Social media features, promotional opportunities and new market exposure • Buyer meetings • FREE product photography • Access to sample and sell product at events throughout Texas and beyond such as the GO TEXAN Pavilion at the State Fair of Texas, major stock shows, rodeos, expos and food shows • Access to inbound and outbound trade missions
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FARM FRESH NETWORK CONTACT: FarmFresh@TexasAgriculture.gov | (512) 463 – 2276
Overview Texas Farm Fresh Network makes it simple for Texas producers to connect with local schools, child and adult care centers, and summer meal programs. Farm Fresh Network members provide a wide variety of seasonally available Texas-grown food products. Getting local Texas products into local cafeterias helps boost the economy and ensures that children are served nutritious, quality products from our state.
Required Information • Company Contact • Distribution Range • Product Offering and Availability
Benefits • Inclusion in state-wide food sourcing database • Access to special events and networking opportunities • Technical assistance and marketing support
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MARKETING
INTERNATIONAL TRADE CONTACT: GoGlobal@TexasAgriculture.gov | (512) 463 – 6098
Overview The International Marketing Team works to connect consumers, retailers, processors, chefs, and agribusiness partners around the world with products that are Texas made, by Texas makers. The Texas Department of Agriculture partners with a number of organizations to help promote opportunities for Texas agricultural commodities, food, beverages, and livestock and genetics to go abroad.
Programs • State Trade Expansion Program (STEP) Grants • Southern United States Trade Association (SUSTA) Cost Share • Inbound and Outbound Trade Missions • Export Readiness Training
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AgriStress Helpline Helpline number (833) 897 – 2474 FarmLifeHelp.com
Overview The mission of the AgriStress Helpline is to provide a confidential resource to help people in the agricultural community access mental health resources and information. The crisis service helpline was designed by TDA, in partnership with the national nonprofit AgriSafe Network and the Southwest Ag Center at the University of Texas at Tyler. This initiative is part of the broader TDA Farmer Mental Health and Suicide Prevention Program that seeks to reduce the stigma around mental health.
Unique features of the helpline • Accessible to the Texas agricultural community 24/7 • Staffed by credentialed professionals trained to respond appropriately to the agricultural community through a program developed by experts in mental health, agriculture production, mediation, and financial analysis • Utilizes a “care navigation” process that triages for safety with crisis intervention and directs callers to the appropriate resources for their situation
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