News release from the National Association of State Departments of Agriculture (NASDA)

Today, U.S. Senators Tammy Baldwin (D-WI), Susan Collins (R-ME) and Angus King (I-ME) along with Representatives Xochitl Torres Small (D-NM) and Dusty Johnson (R-SD) introduced the Farming Support to States Act, to provide state departments of agriculture with access to immediate, flexible funding to aid in responding to urgent and emerging issues in the food and agriculture supply chain caused by the COVID-19 pandemic.

National Association of State Departments of Agriculture (NASDA) President and North Dakota Agriculture Commissioner Doug Goehring voiced support for the bill, which would provide $1 billion for food and agriculture aid to the states.

“The Farming Support to States Act will provide states with the funds they need to foster a more resilient food system,” said Commissioner Goehring. “We thank Senators Baldwin, Collins, and King, and Representatives Torres Small and Johnson, for their collaborative work to provide much needed aid that will meet the unique needs of agriculture and rural communities in America. NASDA Members are uniquely qualified to provide long-term recovery for their agricultural communities.”

(NOTE – California and CDFA are NASDA members)

State departments of agriculture are using existing resources to triage the needs of their producers. States have proven their ability to effectively respond to the unique needs of food and agriculture producers in their communities. A few examples of how funding from the Farming Support to States Act could be used include:

1. Ensuring our agricultural workforce and our food supply stays safe,  
2. Supporting market development for local and regional food systems, 
3. Expanding and diversifying food processing and distribution,  
4. Expanding farmer mental health services,  
5. Funding job workshops, critical food safety training and more. 

“The Farming Support to States Act is an excellent example of the smart policymaking needed to ensure COVID-19 recovery efforts reach the nooks and crannies of rural America,” said NASDA CEO Dr. Barb Glenn. “NASDA Members are using existing resources to keep our producers afloat. While we don’t yet know every long-term solution needed, state departments of agriculture are ready to work for their agricultural producers.”

NASDA is a nonpartisan, nonprofit association which represents the elected and appointed commissioners, secretaries and directors of the departments of agriculture in all fifty states and four U.S. territories. NASDA grows and enhances agriculture by forging partnerships and creating consensus to achieve sound policy outcomes between state departments of agriculture, the federal government and stakeholders.

Learn more about the Farming Support to States Act at www.nasda.org/farmingsupportostates

USDA News Release

U.S. Secretary of Agriculture Sonny Perdue today announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have 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 and deliver boxes to Americans in need.

“America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Secretary Perdue. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work, and determination.”

Beginning May 26, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses.

Background:

CFAP provides vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.

Non-Specialty Crops and Wool

Non-specialty crops eligible for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also eligible. Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A payment will be made based 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates.

Livestock

Livestock eligible for CFAP include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.

Dairy

For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter. 

Specialty Crops

For eligible specialty crops, the total payment will be based on the volume of production sold between January 15 and April 15, 2020; the volume of production shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.

Eligibility

There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

Applying for Assistance

Producers can apply for assistance beginning on May 26, 2020. Additional information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through August 28, 2020.

Payment Structure

To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available. USDA Service Centers are open for business by phone appointment 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

By Former USDA Secretary Mike Johanns

The coronavirus pandemic has reminded everyone of just how critical agriculture is to the success of our country. 

As the country continues to suffer and aims to reconfigure supply chains to meet changing demands, food workers across the United States continue in overdrive to make sure our citizens have the food they need. We need to start seriously considering what we can do for the agriculture sector to ensure its strength long into the future. 

As other sectors of the American economy face collapse, the agriculture industry’s resiliency is on full display. And even though product choice still isn’t at pre-pandemic levels, supermarket shelves continue to replenish — in large part because of the industry’s long fought ability to adapt and innovate. 

The American agriculture industry has had to endure many challenges in order to remain competitive on a global scale. One solution American farmers have turned to is the dramatic increase in use of new technologies, or precision agriculture. 

EarthSense Inc. developed a product called “TerraSentia,” a self-driving robot that collects and instantaneously delivers in-field plant trait data. TerraSentia comes equipped with “machine vision and machine learning based analytics [that] seamlessly convert field data to specific, actionable information about plant-traits.” 

Autonomous equipment fueled by machine learning and Artificial Intelligence programs have also worked to provide farmers with instant data, paired with the advent of DNA sequencing to breed plants for desirable traits which can, for example, create necessary efficiencies and boosts output.

John Deere has an autonomous sprayer with electric motors in development, as well as “See and Spray” products that utilize AI and computer vision to manage decisions about every crop line in a field. 

Now, in light of these trying times, many agriculture companies are adapting to address the vital needs of the country. Even slight adjustments are crucial to keeping us moving.

Many small and large farms alike are also switching away from sales to retailers and instead delivering more directly to families – which requires implementing new systems, procedures and trainings. 

Meat producers have faced several challenges in the wake of this pandemic, but continue to adjust to stave off shortages. Producers had already started shifting to less restaurant demand by producing cuts geared toward home cooking (ie. from chicken wings to chicken breasts). These shifts will continue to progress with limited cuts and perhaps larger packaged portions.  

We’re even seeing alcohol makers like Tito’s Vodka, Kahlua and Absolut pivoting their distilleries to produce hand sanitizer which is a sorely needed commodity right now. This has required transforming facilities, procuring custom equipment and components and testing formulas. 

We need to do more to support the companies that are doing everything they can to prop us up. These innovations and adaptations need to be rewarded.

So, What Would Help the Agriculture Industry Now?

Some food businesses have received funds from PPP and EIDL to stay afloat right now, but there are other existing incentives to tap into. And if we’re looking at finding all available incentives right now for survival or longer-term innovation, we need to ensure agricultural businesses have the requisite capital.

Even before this crisis hit, a panelist at the 2020 AgTech Innovation Summit pointed at cost as the biggest hurdle in moving the industry forward. And according to a November 2019 report by TIME Magazine, farm debt – at more than $400b – has been at an all-time high with more than half of all farmers losing money every year.

This need for capital is what Congress intended to address when it enacted tax incentives such as the Research and Development Tax Credit (R&D Credit) to spur innovation and this has proven to be effective.

The R&D Credit was enacted, originally in response to foreign competition in the auto industry in the ‘80’s, to encourage U.S. businesses to innovate, keep technical talent in the states and help our country’s economy thrive and remain a worldwide powerhouse. The idea was to reward these companies for the time and resources exerted to help push their industry forward through innovations and adaptations.

Congress recognizing the power of the credit, has greatly expanded it over the years through judicial activity and legislative changes, specifically to increase the number of industries and activities that can qualify for the credit. It would, therefore, not be a radical idea for Congress to reprogram the credit even further to help the agriculture sector right now. 

As it stands, those in the agriculture industry can already claim the R&D Credit for any number of activities or efforts. These include implementing the automation wonders like TerraSentia but can also include something as simple as experimenting with different feed formulas, fertilizers or new irrigation systems.  

What Can We Ask Washington to Do?

We need to push for ‘adapting in times of crisis’ to qualifying R&D activities. If the intent of the credit is to keep innovation here in America, then what companies like Tito’s and the small local farmers are doing to save our country during this pandemic should qualify. 

As our policymakers continue to grapple with how to stimulate the economy, they should take a hard look at the R&D Credit as a tool to reward what agriculture is doing to keep us fed and protected. 

In doing so, they could reduce our dependence on foreign produced foods, keep jobs in America, and ensure the long-term viability of agriculture as critical to our infrastructure.

 Mike Johanns was the U.S. Secretary of Agriculture from 2005-2007 as well as the Governor of Nebraska from 1999-2005 and the state’s U.S. Senator from 2009-2015.

Link to article on Agri-Pulse web site.

By Doug Goehring

COVID-19 has brought about a flurry of stay-at-home orders, essential business declarations, and funding and program changes in all levels of government. Just as people with pre-existing health conditions are most susceptible to this virus, agriculture’s preexisting conditions have been fully exposed and compounded by the immediate and necessary response to COVID-19.  

Unlike other industries, many agricultural businesses did not enter this pandemic in a strong financial position. Extreme weather, trade disruptions, and several years of low commodity prices have dealt serious blows to the rural economy in recent years. Rural communities – 20% of whom are economically-dependent on farming – were already more likely to have higher poverty rates, lower rates of insurance coverage, and more exposure to some of industries hit hardest by COVID19 (e.g., tourism). 

The Small Business Administration, which is lending to farmers and ranchers for the first time in history, is getting a taste for the unique needs of the food and ag industry. Administering the $342 billion Paycheck Protection Program (PPP) is no easy lift. Toss in things like H-2A foreign labor and lack of profitability and you’ve got a perfect storm of inequity in how these funds are accessed. Because of this, only 1.28% of funds were allocated to “agriculture, forestry, fishing, and hunting” when the first round of funding was exhausted in mid-April. While modifications were made in the second tranche of $175 B PPP funding, the jury is still out on whether agriculture had better luck accessing these funds.  

As lawmakers cautiously return to Washington, additional coronavirus relief measures are on their mind. It is critical that that we implement smart, sensible policies that will aid a recovering nation. Recent economic stimulus will provide a much-needed band aid, but more will be needed to protect vulnerable businesses and populations.  

State departments of agriculture have proven their ability to support COVID-19 relief efforts. States have acted as conveners and leaders. They are nimble and able to adjust to local conditions. And they have a keen sense of what works – and what does not – in their jurisdictions. Working in concert with federal partners, state departments of agriculture can continue supporting the agricultural economy. Farmers and ranchers are hustling to keep us fed. Phase Four can’t leave them in the dust.  

Doug Goehring is a third-generation corn, soybean, wheat, sunflower, and barley farmer from Menoken, North Dakota. He has served as the North Dakota Agriculture Commissioner since 2009 and is currently the president of the National Association of State Departments of Agriculture. 

Link to article on Agri-Pulse web site

As California farmers have experienced a sudden loss of up-to 50 percent of their markets due to the COVID-19 pandemic, CDFA secretary Karen Ross is teaming up with California Grown to urge Californians to support their farmers by continuing to buy California-grown products. This open letter from the secretary appeared in connection with advertisements in the Los Angeles Times, the San Francisco Chronicle, the New York Times California newsletter, and McClatchy newspapers, including the Fresno Bee, Modesto Bee and the Sacramento Bee. The ad and letter will run this week in Spanish-language publications in the Central Valley.

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After all that we’ve been through these past few months, Californians are long overdue for a reason to break bread in celebration. Now, we have one. By simply enjoying the delicious foods made from the world’s best ingredients (which are obviously grown right here in California) – we can help support the 1.2 million jobs and $263 billion in state revenue that California farming generates each year.

Everyone has been touched by COVID-19, and our state’s farmers and farmworkers are no exception. With sheltering in place and its effect on the restaurant and hospitality industries, many farmers and farmworkers also face substantial financial loss. So, even as they continue to work diligently to keep our nation fed by growing over 400 crops and providing a third of the vegetables and two thirds of the fruits and nuts in the U.S. – their livelihoods, along with those rural communities who support them – are at risk. A healthy agriculture sector is foundational in taking care of humanity’s basic needs. Now more than ever, we need to secure and strengthen our food supply and the distribution chains that deliver it.

So, what can you do? Well, first always be sure to follow the social distancing guidelines outlined by your city. Then, when you go to the grocery store or farmer’s market – make sure to choose fruits, vegetables, meats, dairy, wine, flowers, and garden and nursery plants that were grown in California.

Each California Grown purchase directly helps support our local farmers and stabilize our economy. So, let’s show support for those who work so hard to support us. Let’s get this beautiful state of ours back on track. Buy local. Buy California Grown.

With gratitude,

Karen Ross, Secretary
California Department of Food and Agriculture

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California Grown is offering a guide to help consumers find or ask for groceries from California, and a chart letting them know which crops are in season.

Governor Gavin Newsom submitted a revised 2020-2021 budget proposal to the State Legislature today.

Because of COVID-19, California and economies across the country are confronting a steep and unprecedented economic crisis — facing massive job losses and revenue shortfalls.

The Governor’s budget reflects that emergency. The administration is proposing a budget to fund our most essential priorities, and to support workers and small businesses as we restart our economy.

Because of the size of the hole, there is no responsible way to avoid cuts. The budget document shows that the most painful cuts will be triggered if the federal government does not pass a package that helps states.

Here are some of items of note for CDFA.

Farm to School: This proposal requesting $10,000,000 in 2020-21, and $1,504,000 GF in 2021-22 and ongoing is sustained as it was in the Governor’s January budget. The funding would establish six positions to provide baseline and expansion support to the Office of Farm to Fork’s (CDFA-F2F) California Farm to School Network. This request includes $8,496,000 to be made available for grants to qualifying Local Educational Agencies participating in the farm to school incubator pilot, and it would allow CDFA-F2F to create a roadmap to transformational change in the school food system that supports California farmers, expands food access, and helps achieve the state vision of a California for All.

CalCannabis:  The May Revision includes $64,302,000 and 165 positions to continue the implementation of cannabis cultivation licensing and enforcement under the Medical and Adult Use Cannabis Regulation and Safety Act.  This will enable CalCannabis to continue planning for consolidation with the three cannabis licensing agencies and work with the State Legislature in the coming year with the goal of establishing the new Department of Cannabis Control in July 2021.

Proposition 12: The May Revision includes $1,443,000 and 6 positions in 2020-21, and $2,818,000 and 15 positions in 2021-22 and ongoing to fund this program. The people of California overwhelmingly voted in favor of Proposition 12; in favor of poultry, swine and veal calves raised with strict enforced requirements regarding confinement practices in the production of the products that will be sold in California.

Fairgrounds: The Network of California Fairs has historically supported its own operations through revenue-generating activities with limited supplemental state support. As a result of COVID-19 impacts, fairs are canceling revenue-generating activities and are projected to lose approximately $98 million in revenue between March and June 2020, and revenue loss is expected to continue. Many fairs have little to no reserves and must initiate the layoff process immediately as they may become insolvent. The May Revision includes $40.3 million to support state-affiliated fairs that are projected to have insufficient reserves to pay legally mandated costs that may be incurred during the state civil service layoff process, including staff salary, payout of leave balances, and insurance. 

The May Revision eliminates $2,250,000 that was proposed for Cal Expo in the Governor’s Budget in January, as that is factored into the $40.3 million proposed in the May Revision.

Fresno-Merced Future of Food (F3) Innovation Initiative:  The May Revise reduces funding from $33 million to $2 million.  The Fresno-Merced Future of Food (F3) Innovation Initiative seeks to develop world-recognized, Climate-Smart Food and Agriculture Systems that provide solutions to chronic economic and environmental challenges within the Central Valley that have been exasperated by the COVID outbreak. The Administration sees this proposal as a unique opportunity to spur new technologies appropriate for all scales of agriculture and job growth within the food and agriculture system that is inclusive and sustainable.

The May Revision eliminates $2,250,000 that was proposed for Cal Expo in the Governor’s Budget in January, as that is factored into the $40.3 million proposed in the May Revision.

Cap and Trade: Historically, CDFA’s Climate Smart Agriculture programs have been funded by auction proceeds from the cap-and-trade program: the Greenhouse Gas Reduction Fund. The May Revision maintains the Governor’s Budget program allocations but adds a “pay-as-you-go” mechanism and certain priority programs, such as the FARMER program. After fulfilling the allocations to these programs, any remaining auction proceeds would be allocated to other programs, including methane reduction and healthy soils, on a proportional basis.

State Water Efficiency and Enhancement Program (SWEEP): The May Revision eliminates $20 million that was included in the Governor’s Budget in January for SWEEP grants. Although the new fiscal reality prevents SWEEP from being included in this proposed revised budget, the fact is that there are a total of 725 projects funded with past investment of $72 million. That has resulted in significant work to improve resiliency. CDFA will continue to partner with NRCS and other grant programs to promote this kind of on-farm water use efficiency.

Biodiversity: The May Revision eliminates $3,901,000 from CDFA’s budget that was authorized in the Budget Act of 2019. 

The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) and Farm Service Agency (FSA) will host a webinar on Thursday, May 14, 2020, at 1 p.m. ET, for farmers, ranchers and other producers interested in applying for direct payments through the Coronavirus Food Assistance Program (CFAP).

This webinar is an opportunity for producers to learn about the general application process and required documentation prior to the official beginning of signup. Producers interested in participating may register in advance for webinar at https://www.zoomgov.com/webinar/register/WN_SPWI7yOFSqaGG1JKzhEbjA.

After registering, you will receive a confirmation email containing information about joining the webinar. We encourage participants to submit questions through the Q&A box or by emailing CFAP.webinars@usda.gov. While questions will not be answered live during the webinar, answers will be posted at farmers.gov/CFAP.

USDA is hosting this webinar to share what information is needed to apply for direct payments through CFAP, once the application period begins. Producers who are new to participating in FSA programs are especially encouraged to join the webinar. More details about CFAP direct payments will be announced soon.

As part of President Trump and Secretary Perdue’s April 17 announcement of a $19 billion Coronavirus Farm Assistance Program, USDA will provide $16 billion in direct support based on losses for agricultural producers where prices and market supply chains have been impacted. Also, USDA will assist eligible producers facing additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19. A recording of the webinar, the answers to its questions, and other CFAP information can be found at farmers.gov/CFAP.  

How delightful would it be to see the smile in your loved ones’ eyes this Mother’s Day weekend as you deliver freshly picked flowers or strawberries from a farm stand or Certified Farmers’ Market?

To help us all continue to enjoy the healthy foods of California Grown and support our farmers, CDFA is offering guidelines during the COVID-19 pandemic.

On the CDFA Coronavirus (COVID-19) Resources for Food and Agriculture web page there is a page with Guidance for Operating Certified Farmers’ Markets, and a page with Guidance for Farmer Direct Sales and Pick-Your-Own Operations.

With the weather warming and farms blooming, now is the prime time for fresh fruits, nuts, vegetables and flowers, as well as eggs, dairy and meat! Please be sure to follow local and state COVID-19 health guidelines. Be healthy – eat healthy – California Grown! And be sure to thank a farmer for the bounty they provide to us!

USDA News Release

The U.S. Department of Agriculture (USDA) has announced the availability of $3 million for grants through its new Office of Urban Agriculture and Innovative Production. The competitive grants will support the development of urban agriculture and innovative production projects through two categories, Planning Projects and Implementation Projects. USDA will accept applications on Grants.gov until midnight July 6, 2020.

“These grant opportunities underscore USDA’s commitment to all segments of agriculture, including swiftly expanding areas of urban agriculture,” Under Secretary for Farm Production and Conservation Bill Northey said. “Such projects have the potential to address important issues such as food access and education and to support innovative ways to increase local food production in urban environments.”

“We are proud to be able to offer support though this cross-agency effort,” said Under Secretary for Marketing and Regulatory Programs Greg Ibach. “In creating this grant opportunity, USDA will build upon its years of experience providing technical support, grant funding and research to help farmers and local and urban food businesses grow.”

Planning Projects

USDA is making available $1 million for Planning Projects that initiate or expand efforts of farmers, gardeners, citizens, government officials, schools and other stakeholders in urban areas and suburbs. Projects may target areas of food access, education, business and start-up costs for new farmers and development of policies related to zoning and other needs of urban production.

Implementation Projects

USDA is making available $2 million for Implementation Projects that accelerate existing and emerging models of urban, indoor and other agricultural practices that serve multiple farmers. Projects will improve local food access and collaborate with partner organizations and may support infrastructure needs, emerging technologies, educational endeavors and urban farming policy implementation.

Webinar

A webinar, which will be held on June 3, 2020, from 2 to 4 p.m. Eastern Daylight Time, will provide an overview of the grants’ purpose, project types, eligibility and basic requirements for submitting an application. Information on how to register and participate in the webinar,      or listen to the recording, will be posted at farmers.gov/urban.     

More Information

The Office of Urban Agriculture and Innovative Production was established through the 2018 Farm Bill. It includes representatives from many USDA agencies, including Farm Service Agency and Agricultural Marketing Service, and is led by the Natural Resources Conservation Service. More information is available at farmers.gov/urban.     

Additional resources that may be of interest to urban agriculture entities include AMS grants to improve domestic and international opportunities for U.S. growers and producers and FSA loans.

Link to news release on USDA web site.