Category: Ag Notebook

USDA to Triple Commitment with Initial $2.8 Billion Investment Piloting New Revenue Streams for America’s Climate-Smart Farmers, Ranchers and Forest Landowners, with Additional Projects to Come

DENVER, Colo., Sept. 19, 2022  – Agriculture Secretary Tom Vilsack announced today that the Biden-Harris Administration through the U.S. Department of Agriculture is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity, including 17 projects that applicants indicate will impact the state of Colorado, with projects from the second funding pool to be announced later this year. Ultimately, USDA’s anticipated investment will triple to more than $3 billion in pilots that will create market opportunities for American commodities produced using climate-smart production practices. These initial projects will expand markets for climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production and provide direct, meaningful benefits to production agriculture, including for small and underserved producers. Applicants submitted more than 450 project proposals in this first funding pool, and the strength of the projects identified led USDA to increase its investment in this opportunity from the initial $1 billion Vilsack announced earlier this year.

“There is strong and growing interest in the private sector and among consumers for food that is grown in a climate-friendly way,” said Vilsack. “Through today’s announcement of initial selections for the Partnerships for Climate-Smart Commodities, USDA is delivering on our promise to build and expand these market opportunities for American agriculture and be global leaders in climate-smart agricultural production. This effort will increase the competitive advantage of U.S. agriculture both domestically and internationally, build wealth that stays in rural communities and support a diverse range of producers and operation types.”

Earlier this year, Vilsack announced that USDA had allocated $1 billion for the program, divided into two funding pools. Because of the unprecedented demand and interest in the program, and potential for meaningful opportunities to benefit producers through the proposals, the Biden-Harris administration increased the total funding allocation to more than $3 billion, with projects from the second funding pool to be announced later this year. Vilsack made the announcement from the campus of Penn State University, which is the lead partner on one of the selected pilot projects to implement climate-smart practices, quantify and track the greenhouse gas benefits and develop markets for the resulting climate-smart commodities.

Funding for Partnerships for Climate-Smart Commodities will be delivered through USDA’s Commodity Credit Corporation in two pools. Projects announced today are from the first funding pool, which included proposals seeking funds ranging from $5 million to $100 million. USDA received over 450 proposals from more than 350 entities for this funding pool, including nonprofit organizations; for-profits and government entities; farmer cooperatives; conservation, energy and environmental groups; state, tribal and local governments; universities (including minority serving institutions); small businesses; and large corporations. Applications covered every state in the nation as well as tribal lands, D.C. and Puerto Rico. The tentative selections announced today reflect this broad set of applicants and geographic scope, and the proposals include plans to match on average over 50% of the federal investment with nonfederal funds.

USDA will work with the applicants for the 70 identified projects to finalize the scope and funding levels in the coming months. A complete list of projects identified for this first round of funding, including the 17 projects that may impact Colorado, is available at usda.gov/climate-smart-commodities. These projects include:

• Expanding the STAR Program Across Colorado and the West – This project offers a comprehensive approach that empowers conservation districts and other eligible entities to help build climate-smart markets and provide technical assistance to a diverse range of producers; provides three years of financial and technical assistance to producers; quantifies and verifies climate benefits on behalf of producers; develops a rating as a market signal so participants earn more for products grown with healthy soil practices; and evaluates and validates carbon and soil-water research for the arid West. Lead Partner: Colorado Department of Agriculture
• The Partnership to Define Climate-Smart Commodities Impact and Unlock Consumer Demand (TSIP Partnership for Impact and Demand) – This project will build climate-smart markets and streamline field data collection and combine sample results with modeling to make impact quantifications accurate and locally specific but also scalable. Targeted farms produce value-added and direct-to-consumer specialty crops as well as the 19 most common row crops in the United States. Lead Partner: The Meridian Institute
• Transforming the Farmer-to-Consumer Supply Chain with Climate-Smart Agriculture Partnerships – This program will focus on creating end-to-end supply chain partnerships to optimize the value of climate-smart commodities, focusing on dairy feedstock and including a manure management component. Lead Partner:Carbon A List LLC
• Reducing GHG Emissions and Improving Soil Carbon Sequestration Potential through High-Carbon Soil Amendment – This pilot project will support expansion of climate-smart markets and implementation of climate-smart practices to augment conservation Best Management Practices and generate reference data to support development of regionally optimized ecosystem services models. The geographic focus of this project (CO, NE, WY, MT) has naturally low basal soil organic carbon, which means greater sequestration potential. Lead Partner: The Western Sugar Cooperative

Spanning up to five years, these 70 projects will:

• Provide technical and financial assistance to producers to implement climate-smart production practices on a voluntary basis on working lands;
• Pilot innovative and cost-effective methods for quantification, monitoring, reporting and verification of greenhouse gas benefits; and
• Develop markets and promote the resulting climate-smart commodities.

The projects announced today will deliver significant impacts for producers and communities nationwide. USDA anticipates that these projects will result in:

• Hundreds of expanded markets and revenue streams for producers and commodities across agriculture ranging from traditional corn to specialty crops.
• More than 50,000 farms reached, encompassing more than 20-25 million acres of working land engaged in climate-smart production practices such as cover crops, no-till and nutrient management.
• More than 50 million metric tons of carbon dioxide equivalent sequestered over the lives of the projects. This is equivalent to removing more than 10 million gasoline-powered passenger vehicles from the road for one year.
• More than 50 universities, including multiple minority-serving institutions, engaged and helping advance projects, especially with outreach and monitoring, measurement, reporting and verification.
• Proposals for the 70 selected projects include plans to match on average over 50% of the federal investment with nonfederal funds.

Projects were selected based on a range of criteria, with emphasis placed on greenhouse gas and/or carbon sequestration benefits and equity. The Notice of Funding Opportunity included a complete set of project proposal requirements and evaluation criteria.

USDA is currently evaluating project proposals from the second Partnerships for Climate-Smart Commodities funding pool, which includes funding requests from $250,000 to $4,999,999. Projects from this second funding pool will emphasize the enrollment of small and/or underserved producers, and/or monitoring, reporting and verification activities developed at minority-serving institutions. USDA expects to announce these selections later this Fall.

More Information

Partnerships for Climate-Smart Commodities is part of USDA’s broader strategy to position agriculture and forestry as leaders in climate change mitigation through voluntary, incentive-based, market-driven approaches. Visit usda.gov/climate-smart-commodities to learn more about this effort, and usda.gov/climate-solutions for climate-related updates, resources and tools across the Department.

Under the Biden-Harris administration, USDA is engaged in a whole-of-government effort to combat the climate crisis and conserve and protect our Nation’s lands, biodiversity and natural resources including our soil, air and water. Through conservation practices and partnerships, USDA aims to enhance economic growth and create new streams of income for farmers, ranchers, producers and private foresters. Successfully meeting these challenges will require USDA and our agencies to pursue a coordinated approach alongside USDA stakeholders, including State, local and Tribal governments.

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, fairer markets for all producers, ensuring access to safe, 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.

FSA is investing in two outreach and education efforts for farmers and ranchers, including those who are new to agriculture or who have been historically underserved by programs.

First, FSA is announcing $10 million in the new Taxpayer Education and Asset Protection Initiative. Through this initiative, FSA has partnered with the University of Arkansas and the National Farm Income Tax Extension Committee to deliver tax education resources for farmers and ranchers, which includes engagement with agricultural educators, and tax professionals through partnerships with community groups and minority serving institutions across the country.

Second, FSA is investing $4.5 million in outreach for the Conservation Reserve Program Transition Incentives Program (CRP TIP), which increases access to land for new farmers and ranchers. FSA will award cooperative agreements to 15 to 20 partner and stakeholder organizations to conduct outreach and technical assistance and promote awareness and understanding among agricultural communities, particularly those who are military veterans, new to farming, or historically underserved.

Farmers and ranchers can use the Farm Loan Discovery Tool on farmers.gov to find information on USDA farm loans that may best fit their operations.

USDA’s Farm Service Agency (FSA) offers a variety of loan options to help farmers finance their operations. From buying land to financing the purchase of equipment, FSA loans can help.

USDA conducted field research in eight states, gathering input from farmers and FSA farm loan staff to better understand their needs and challenges.

How the Tool Works

Farmers who are looking for financing options to operate a farm or buy land can answer a few simple questions about what they are looking to fund and how much money they need to borrow. After submitting their answers, farmers will receive information on farm loans that best fit their specific needs. The loan application and additional resources also will be provided.

Farmers can download application quick guides that outline what to expect from preparing an application to receiving a loan decision. There are four guides that cover loans to individuals, entities, and youth, as well as information on microloans. The guides include general eligibility requirements and a list of required forms and documentation for each type of loan. These guides can help farmers prepare before their first USDA service center visit with a loan officer.

Farmers can access the Farm Loan Discovery Tool by visiting farmers.gov/fund and clicking the “Start” button. Follow the prompts and answer five simple questions to receive loan information that is applicable to your agricultural operation. The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser, and is fully functional on mobile devices. It does not work in Internet Explorer.

About Farmers.gov

In 2018, USDA unveiled farmers.gov, a dynamic, mobile-friendly public website combined with an authenticated portal where farmers will be able to apply for programs, process transactions, and manage accounts.

The Farm Loan Discovery Tool is one of many resources on farmers.gov to help connect farmers to information that can help their operations. Earlier this year, USDA launched the My Financial Information feature, which enables farmers to view their loan information, history, payments, and alerts by logging into the website.

USDA is building farmers.gov for farmers, by farmers. In addition to the interactive farm loan features, the site also offers a Disaster Assistance Discovery Tool. Farmers can visit farmers.gov/recover/disaster-assistance-tool#step-1 to find disaster assistance programs that can help their operation recover from natural disasters.

For help preparing the application forms, contact the Farm Loan staff located in the Adams County USDA Service Center at 303-659-0525 or visit fsa.usda.gov

There are options for Farm Service Agency (FSA) loan customers during financial stress. If you are a borrower who is unable to make payments on a loan, contact your local FSA Farm Loan Manager to learn about your options. The Farm Loan staff is located in the Adams County USDA Service Center at 303-659-0525 or visit fsa.usda.gov.

The USDA Farm Service Agency (FSA) encourages you to review available USDA crop risk protection options, including federal crop insurance and Noninsured Crop Disaster Assistance Program (NAP) coverage, before the approaching crop deadlines

Federal crop insurance covers crop losses from natural adversities such as drought, hail and excessive moisture. NAP covers losses from natural disasters on crops for which no permanent federal crop insurance program is available.

The following crops in Adams County have a NAP application deadline as follows:

September 1:  Triticale

September 30:  Barley

You can determine if crops are eligible for federal crop insurance or NAP by visiting the RMA website.

NAP offers higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production. NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production.

For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties.

Beginning, underserved, veterans and limited resource farmers are now eligible for free catastrophic level coverage.

Federal crop insurance coverage is sold and delivered solely through private insurance agents. Agent lists are available at all USDA Service Centers or at USDA’s online Agent Locator. You can use the USDA Cost Estimator to predict insurance premium costs.

For more information on NAP, service fees, sales deadlines, contact your Adams County USDA Service Center at 303-659-0525 or visit fsa.usda.gov.

ELAP provides emergency assistance to eligible livestock, honeybee, and farm-raised fish producers who have losses due to disease, adverse weather, or other conditions.

• Livestock – additional cost of transporting livestock feed, additional cost of transporting water because of an eligible drought.

If you’ve suffered an eligible loss during calendar year 2022, you must file:

• A notice of loss within 30 calendar days after the loss is apparent.
• An application for payment by Jan. 30, 2023

The Farm Service Agency wishes to remind producers in Adams County that they are eligible to apply for 2022 Livestock Forage Disaster Program (LFP) benefits on native and improved pastures.

LFP provides compensation if you suffer grazing losses for covered livestock due to drought on privately owned or cash leased land or fire on federally managed land.

County committees can only accept LFP applications after notification is received by the National Office of qualifying drought or if a federal agency prohibits producers from grazing normal permitted livestock on federally managed lands due to qualifying fire.  You must complete a CCC-853 and submit the required supporting documentation no later than January 30, 2023, for 2022 losses.

For additional information about LFP, including eligible producer and eligible livestock criteria, contact the Adams County USDA Service Center at 303-659-0525, option 2 or visit fsa.usda.gov.

Agricultural Land Easements protect the long-term viability of the nation’s food supply by preventing conversion of productive working lands to non-agricultural uses. Land protected by Agricultural Land Easements provide additional public benefits including environmental quality, historic preservation, wildlife habitat and protection of open space.

NRCS provides financial assistance to eligible partners for purchasing Agricultural Land Easements that protect the agricultural use and conservation values of eligible land. In the case of working farms, the program helps farmers and ranchers keep their land in agriculture. The program also protects grazing uses and related conservation values by conserving grasslands including rangeland, pastureland and shrubland.  Eligible partners include Indian tribes, state and local governments and non-governmental organizations that have farmland or grassland protection programs.

Under the Agricultural Land component, NRCS may contribute up to 50 percent of the fair market value of the Agricultural Land Easement.  Where NRCS determines that grasslands of special environmental significance will be protected, NRCS may contribute up to 75 percent of the fair market value of the Agricultural Land Easement.

If you have an EQIP contract and need to install conservation practices or activities these must be implemented to remain in compliance with your contract.  If you have conservation practices or activities that are behind schedule or planned items that you may not complete as scheduled, please contact your local NRCS office immediately to discuss your options for maintaining your contract compliance. If you are waiting on technical assistance or engineering designs call your local NRCS Office.