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Credit and Financial Assistance News

12/7/09

Grants Available to Improve Consumer Access to Fresh, Locally Grown Foods through Farm Stands, Farmers’ Markets

Harrisburg – Pennsylvania consumers will have better access to nutritious, locally grown farm products through the help of grants to producers who market and sell their products at farmers’ markets or farm stands, acting Agriculture Secretary Russell Redding said today.

The Direct Farm Sales Grant Program is a competitive award that provides up to $7,500 to eligible Pennsylvania-based farmers, non-profit organizations and local governments selling specialty crops like fruits and vegetables. 

“More consumers are choosing to purchase fresh, locally grown foods,” said Redding. “This grant program supports farmers who have made the decision to take their goods directly to consumers. At $5.8 billion, Pennsylvania ranks third nationally in direct farm sales. That level of sales reinforces just how important it is that we support the state’s farmers’ markets and farm stands.”

Redding also said taking goods to a farmers’ market or food stand can help farmers to build lasting relationships with consumers.

More than $96,000 is available through the grant program this year. Recipients must provide a 25 percent match in funding or in-kind services to receive a grant.

Grants may be used to cover the costs of a farm stand or farmers market associated with:

·  Developing a business plan;

·  Opening at a new location, including site selection, demographic research, farmer recruitment and sales potential analysis;

·  Promoting an existing location through marketing materials, media outreach and advertising;

·  Personnel costs;

·   Purchasing tables, stands and other display materials;

·  Providing nutrition education materials or educational materials about Pennsylvania farm products; and

·  Outreach to program participants to increase involvement in food assistance programs.

Last year, 40 applicants benefitted from the program.

Applications must be delivered or postmarked by Friday, Jan. 8. Completed applications may be delivered or mailed to: Department of Agriculture, Bureau of Food Distribution, 2301 N. Cameron St., Room 401, Harrisburg, PA 17110-9408.

For more information about the grant program or to download an application, visit www.agriculture.state.pa.us and search “Direct Farm Sales Grant Program.”

Media contact: Justin Fleming, 717-787-5085

Farm Storage Facility Loan Changes Implemented

ISSUE:

Section 1614 of the 2008 Farm Bill made several changes to the Farm Storage Facility Loan program (FSFL).  However, implementation of these new provisions required regulatory changes.  USDA today announced details of the new regulation.  FSA offices will begin accepting applications on August 17.

IMPACT:

Major changes to the program include:

  • New facility types will be eligible for the FSFL program, including fruit and vegetable cold storage facilities, and hay and renewable biomass facilities;
  • FSFL’s will be available in 10 and 12 year terms;
  • Maximum FSFL amounts are increased to $500,000;
  • Application fees are increased to $100; and
  • Borrowers will be allowed to increase the down payment from 15 percent to 20 percent to negate the requirement for a severance agreement.

Contact: Tara Smith, 202-406-3675, taras@fb.org or Mary Kay Thatcher, 202-406-3661, mkt@fb.org

Agriculture Secretary Vilsack Announces Immediate Relief for Struggling Dairy Producers

7/31/09

Obama Administration to raise dairy support prices, will increase dairy farmers' revenue by $243 million
 

WASHINGTON, July 31, 2009 - Agriculture Secretary Vilsack today announced that the Obama Administration is taking immediate action to support struggling dairy farmers by increasing the amount paid for dairy products through the Dairy Product Price Support Program (DPPSP). USDA estimates show that these increases, which will be in place from August 2009 through October 2009, will increase dairy farmers' revenue by $243 million.

"The Obama Administration is committed to pursuing all options to help dairy producers," said Vilsack. "The price increase announced today will provide immediate relief to dairy farmers around the country and keep many on the farm while they weather one of the worst dairy crises in decades."

The increase announced today will raise the price paid for nonfat dry milk from $0.80 per pound to $0.92 per pound, the price paid for cheddar blocks from $1.13 per pound to $1.31 per pound, and the price of cheddar barrels from $1.10 per pound to $1.28 per pound. This increase in the support price will have an immediate effect upon dairy farmers' bottom line. Temporarily raising the price of these dairy products increases the price that dairy farmers receive for their milk.

USDA estimates that today's announcement is expected to increase the all milk price received by dairy producers. The increase will result in the government purchase of an additional 150 million pounds of non-fat dry milk (NDM) and an additional 75 million pounds of cheese.

Prior to today's announcement, USDA had taken several steps to provide support for dairy farmers, including the following:

  • In March, USDA transferred approximately 200 million pounds of nonfat dry milk to USDA's Food and Nutrition Service, which will not only remove inventory from the market, but also support low-income families struggling to put nutritious food on their tables.
  • USDA expects to spend more than $1 billion in fiscal year 2009 on purchases of dairy products (Dairy Product Price Support Program) and payments to producers (Milk Income Loss Contract (MILC).
  • On March 22, 2009, USDA reactivated USDA's Dairy Export Incentive Program (DEIP), to help U.S. dairy exporters meet prevailing world prices in addition to encouraging the development of international export markets in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries.
  • Since March 22, USDA has encouraged the export of 20,000 tons of nonfat dry milk.
  • From July 2008 through June 30, 2009, DEIP has announced allocations of 68,201 metric tons of nonfat dry milk; 21,097 metric tons of butterfat; 3,030 metric tons of various cheeses and 34 metric tons of other dairy products.
  • USDA is working with the Department of State to identify foreign assistance programs such as U.S. Agency for International Development (USAID) and McGovern-Dole International Food for Education and Child Nutrition Program to make the following available:
  • At least 1 million pounds on a competitive basis, for the production of casein;
  • About 500,000 pounds for use in the McGovern-Dole International Food for Education and Child Nutrition Program; and
  • About 1 million pounds for use by the U.S. Agency for International Development, based on anticipated requests from the State Department.
  • USDA is currently reviewing federal dairy policy to determine what changes are needed to reduce price volatility and enhance farmer profitability.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272(voice), or (202) 720-6382 (TDD).

Farm Bureau: USDA Milk Purchase Provides Two-Fold Assistance

WASHINGTON, D.C., March 27, 2009-The American Farm Bureau Federation today said that strategic purchases of dairy products made this week by the Agriculture Department for the nation's school lunch and nutrition programs will also help provide needed support to the nation's dairy farmers.

USDA announced on Thursday that $160 million in surplus dry milk will be made available for school lunches and food donations to help the poor. The action drew praise from AFBF, which prior to the action sent a letter to Agriculture Secretary Tom Vilsack calling for such action.

In that letter, AFBF President Bob Stallman urged the administration to take additional action to immediately help dairy farmers weather the crushing collapse in dairy prices.

"Given the suddenness and severity of the plunge in farm-level milk prices, a significant number of farmers won't survive much longer with the prices they're receiving," Stallman said. "The farm-level milk prices in February were down nearly 50 percent from the beginning of 2008, even though farmers' input costs, including feed and fuel, are still above historic averages. The economic downturn, growth in world supplies of dairy products, lower international and domestic demand, and high input costs are leaving farmers unable to even cover their input costs."

Stallman called the USDA purchase of dairy products a "two-fold opportunity to assist U.S. dairy producers and provide ample amounts of dairy products to nutrition programs at a time when many Americans need this assistance."

 






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