USDA to Provide Payments to Livestock Producers Impacted by Drought or Wildfire

New Emergency Livestock Relief benefits to be delivered through two-phased approach; compensation for 2021 forage losses

WASHINGTON, March 31, 2022 – The U.S Department of Agriculture (USDA) today announced that ranchers who have approved applications through the 2021 Livestock Forage Disaster Program (LFP) for forage losses due to severe drought or wildfire in 2021 will soon begin receiving emergency relief payments for increases in supplemental feed costs in 2021 through the Farm Service Agency’s (FSA) new Emergency Livestock Relief Program (ELRP).

“Producers of grazing livestock experienced catastrophic losses of available forage as well as higher costs for supplemental feed in 2021. Unfortunately, the conditions driving these losses have not improved for many and have even worsened for some, as drought spreads across the U.S.,” said Agriculture Secretary Tom Vilsack.  “In order to deliver much-needed assistance as efficiently as possible, phase one of the ELRP will use certain data from the Livestock Forage Disaster Program (LFP), allowing USDA to distribute payments within days to livestock producers.” 

Background 
On September 30, 2021, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43). This Act includes $10 billion in assistance to agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters experienced during calendar years 2020 and 2021. Additionally, the Act specifically targets $750 million to provide assistance to livestock producers for losses incurred due to drought or wildfires in calendar year 2021. ELRP is part of FSA’s implementation of the Act. 

For impacted ranchers, USDA will leverage LFP data to deliver immediate relief for increases in supplemental feed costs in 2021. LFP is an important tool that provides up to 60% of the estimated replacement feed cost when an eligible drought adversely impacts grazing lands or 50% of the monthly feed cost for the number of days the producer is prohibited from grazing the managed rangeland because of a qualifying wildfire.   

FSA received more than 100,000 applications totaling nearly $670 million in payments to livestock producers under LFP for the 2021 program year. 

Congress recognized requests for assistance beyond this existing program and provided specific funding for disaster-impacted livestock producers in 2021.  

ELRP Eligibility – Phase One 

To be eligible for an ELRP payment under phase one of program delivery, livestock producers must have suffered grazing losses in a county rated by the U.S. Drought Monitor as having a D2 (severe drought) for eight consecutive weeks or a D3 (extreme drought) or higher level of drought intensity during the 2021 calendar year, and have applied and been approved for 2021 LFP. Additionally, producers whose permitted grazing on federally managed lands was disallowed due to wildfire are also eligible for ELRP payments, if they applied and were approved for 2021 LFP.

As part of FSA’s efforts to streamline and simplify the delivery of ELRP phase one benefits, producers are not required to submit an application for payment; however, they must have the following forms on file with FSA within a subsequently announced deadline as determined by the Deputy Administrator for Farm Programs: 

• CCC-853, Livestock Forage Disaster Program Application
• Form AD-2047, Customer Data Worksheet.
• Form CCC-902, Farm Operating Plan for an individual or legal entity. 
• Form CCC-901, Member Information for Legal Entities (if applicable). 
• Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs (if applicable). 
• Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, if applicable, for the 2021 program year. 
• A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the ELRP producer and applicable affiliates. 

ELRP Payment Calculation – Phase One 

To further expedite payments to eligible livestock producers, determine eligibility, and calculate an ELRP phase one payment, FSA will utilize livestock inventories and drought-affected forage acreage or restricted animal units and grazing days due to wildfire already reported by the producer when they submitted a 2021 CCC-853, Livestock Forage Disaster Program Application form.  

Phase one ELRP payments will be equal to the eligible livestock producer’s gross 2021 LFP calculated payment multiplied by a payment percentage, to reach a reasonable approximation of increased supplemental feed costs for eligible livestock producers in 2021.  

The ELRP payment percentage will be 90% for historically underserved producers, including beginning, limited resource, and veteran farmers and ranchers, and 75% for all other producers.  These payments will be subject to a payment limitation.

To qualify for the higher payment percentage, eligible producers must have a CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, form on file with FSA for the 2021 program year. 

Payments to eligible producers through phase one of ELRP are estimated to total more than $577 million.  

ELRP - Phase Two    

Today’s announcement is only Phase One of relief for livestock producers.  FSA continues to evaluate and identify impacts of 2021 drought and wildfire on livestock producers to ensure equitable and inclusive distribution of much-needed emergency relief program benefits.   

Emergency Relief Program (ERP) Assistance for Crop Producers 

FSA is developing a two-phased process to provide assistance to diversified, row crop and specialty crop operations that were impacted by an eligible natural disaster event in calendar years 2020 or 2021.

This program will provide assistance to crop producers and will follow a two-phased process similar to that of the livestock assistance with implementation of the first phase in the coming weeks. Phase one of the crop assistance program delivery will leverage existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program data as the basis for calculating initial payments. 

Making the initial payments using existing safety net and risk management data will both speed implementation and further encourage participation in these permanent programs, including the Pasture, Rangeland, Forage Rainfall Index Crop Insurance Program, as Congress intended. 

The second phase of the crop program will be intended to fill additional assistance gaps and cover eligible producers who did not participate in existing risk management programs.   

Through proactive communication and outreach, USDA will keep producers and stakeholders informed as ERP implementation details are made available.   

Additional Livestock Drought Assistance 

Due to the persistent drought conditions in the Great Plains and West, FSA will be offering additional relief through the Emergency Assistance for Livestock, Honeybees and Farm-raised Fish Program (ELAP) to help ranchers cover above normal costs of hauling livestock to forage.  This policy enhancement complements previously announced ELAP compensation for hauling feed to livestock.  Soon after FSA announced the assistance for hauling feed to livestock, stakeholders were quick to point out that producers also were hauling the livestock to the feed source as well and encouraged this additional flexibility.   

It is important to note that, unlike ELRP emergency relief benefits which are only applicable for eligible losses incurred in the 2021 calendar year, this ELAP livestock and feed hauling compensation will not only be retroactive for 2021 but will also be available for losses in 2022 and subsequent years.    

To calculate ELAP program benefits, an online tool is currently available to help producers document and estimate payments to cover feed transportation cost increases caused by drought and will soon be updated to assist producers with calculations associated with drought related costs incurred for hauling livestock to forage 

More Information  
Additional USDA disaster assistance information can be found on farmers.gov, including USDA resources specifically for producer impacted by drought and wildfire and the Disaster Assistance Discovery Tool, Disaster-at-a-Glance fact sheet, and Farm Loan Discovery Tool. For FSA and Natural Resources Conservation Service programs, producers should contact their local USDA Service Center. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent.  

USDA touches the lives of all Americans each day in so many positive ways. Under 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 usda.gov.  

USDA is an equal opportunity provider, employer and lender.

Russia-Ukraine conflict will likely mean hardship, opportunity for agricultural producers

 

By Ryan McGeeney

U of A System Division of Agriculture 

 

Fast Facts: 

• Grain market futures trading highly volatile 
• Russia leading exporter of fertilizer; input prices continue to rise 
• U.S. producers may have opportunity for greater corn exports 

 

  

LITTLE ROCK — The Russian invasion of Ukraine is causing “gut-wrenching” volatility in grain markets and pushing already high prices for fertilizer and diesel even higher, economists with the University of Arkansas System Division of Agriculture said this week. 

Much of the world, including the United States, is imposing economic sanctions against Russia, including a halt of exports to Russia and the freezing of Russian assets in banks around the world.  

 

Together, Russia and Ukraine account for about 29 percent of global wheat trade, with Russia the world’s top wheat exporter. Ukraine accounts for about 16 percent of global corn exports. 

Scott Stiles, agricultural economist for the Division of Agriculture, said the situation will offer both opportunities and hardship for growers in Arkansas and elsewhere. 

“Over the past week, prices for the major grains traded to new highs,” Stiles said. July wheat futures contracts rose to $9.42-3/4 on Feb. 25 — the “highest the July contract has traded since February 2011.” 

 

However, “grain trading following the full invasion has been incredibly volatile,” he said, with July wheat contracts moving 93 cents in one trading session, from $8.50 to $9.42-3/4.   

 

“Unheard-of and gut-wrenching for growers and end-users alike,” Stiles said.  

 

Corn futures have been similarly turbulent, ranging from $5.94 to nearly $6.64 during Feb. 24-25 trading. 

 

How is the conflict affecting grain trade?
On Feb. 24, the Ukrainian government suspended commercial shipping from its ports. Cargill, ADM, Bunge and other privately owned grain companies have suspended operations in Ukraine. 

 

“At least for the moment, Russian exporters are still fulfilling existing contracts and ships are departing,” Stiles said. “From what I can gather today, the overwhelming majority of world grain importers are not making any new deals with Russia.” 

 

Stiles said that major wheat importers are currently looking at other sources outside the Black Sea region. ”In the near term, Australia, Canada, the EU and Argentina will see an uptick in wheat exports first,” he said. “The United States may see some increase in wheat exports as well.”  

The United States may see higher corn exports
Both China and the European Union have historically been major purchasers of corn from Ukraine — a market gap U.S. producers will likely have the opportunity to fill. While South America typically exports some amount of corn each year, those supplies won’t be available for a few more months, Stiles said. 

“Before the Ukraine-Russia situation was very concerning, corn and soybean futures had already been on edge due to a drought in key areas of South America,” Stiles said. “Weather issues in south Brazil and northeast Argentina kicked off a soybean price rally in early December.” 

Prices for both corn and soybean have risen steadily since late 2021, as global supplies of both crops have tightened. Cotton and rice prices are likewise at multi-year highs.   

“There's plenty of competition for acreage this year,” Stiles said. 

Input costs on the rise (again)
The Russian-Ukrainian conflict is pushing both fuel and fertilizer prices even higher, at a time when some input costs have already risen 300 percent or more over the previous year. 

“Russia is the world's largest fertilizer exporter,” Stiles said. 

After a brief period of moderation in January, U.S. Gulf prices for di-ammonium phosphate increased steadily throughout February, increasing about 20 percent in total. 

  

“Gulf urea prices were very volatile last week, trading in a $175/ton range,” Stiles said. “Following the invasion news, Gulf urea prices traded to $705/ton, which hasn't been seen since early January.” 

 

Belarus, which borders Ukraine to the north, is the third-largest global potash producer, accounting for 18 percent of global production. 

 

“Potash prices have now increased for three straight weeks,” Stiles said. “Belarus is a land-locked country and has had a transportation agreement with Lithuania for rail movement of potash to a port on the Baltic Sea, but that agreement ended Feb. 1. 

 

“Belarus is currently without port access,” he said. 

 

Crude oil has also been trading higher recently. West Texas Intermediate contract futures traded up to $112.51 on March 2. 

 

“That's the highest WTI crude has traded since May 2011,” Stiles said. “Diesel futures have traded near $3.45. This represents a major cost increase for ag producers. 

 

“A year ago, diesel futures were trading at $1.83 and WTI was $60 a barrel,” he said. “For growers that weren't able to lock in fuel costs at lower price levels, the sharp rise in energy costs may have some impact on planting decisions.” 

 

As of March 2, the U.S. had not sanctioned Russian exports of oil and gas, although U.S. President Joe Biden was quoted as saying the move was “on the table.” 

 

Stiles said there is always a degree of volatility in agricultural commodity trading, given the unpredictability of weather and trade disputes. The introduction of a war that disrupts global grain and energy trade, however, is truly a “black swan” event. 

“A lot depends on how long the conflict lasts,“ Stiles said. “In the near term, it appears Russia and Ukraine will both be out of the global grain market. That is having an impact not only on grain, but energy and fertilizer prices as well.” 

 

American Agricultural Exports Shattered Records in 2021

 

WASHINGTON, Feb. 8, 2022 – The American agricultural industry posted its highest annual export levels ever recorded in 2021, Secretary of Agriculture Tom Vilsack announced today. The final 2021 trade data published by the Department of Commerce this morning shows that exports of U.S. farm and food products to the world totaled $177 billion, topping the 2020 total by 18 percent and eclipsing the previous record, set in 2014, by 14.6 percent. “These record-breaking trade numbers demonstrate that U.S. agriculture is incredibly resilient as it continues to provide high-quality, cost-competitive farm and food products to customers around the globe and that the Biden-Harris Administration’s agenda is working for American farmers and producers,” Vilsack said. “This is a major boost for the economy as a whole, and particularly for our rural communities, with agricultural exports stimulating local economic activity, helping maintain our competitive edge globally, supporting producers’ bottom lines, and supporting more than 1.3 million jobs on the farm and in related industries such as food processing and transportation.” The United States’ top 10 export markets all saw gains in 2021, with six of the 10 – China, Mexico, Canada, South Korea, the Philippines and Colombia – setting new records. Worldwide exports of many U.S. products, including soybeans, corn, beef, pork, dairy, distillers grains and pet food, also reached all-time highs. China remained the top export destination, with a record $33 billion in purchases, up 25 percent from 2020, while Mexico inched ahead of Canada to capture the number two position with a record $25.5 billion, up 39 percent from last year. “It’s clear that our international trading partners are responding favorably to a return to certainty from the United States,” Vilsack said. “We owe our thanks to America’s agricultural producers who always work hard to be reliable global suppliers and the Biden-Harris Administration and USDA are fighting hard on their behalf to keep our home-grown products moving around the world. We’re strengthening relationships with our trading partners and holding those partners accountable for their commitments. We’re addressing transportation and infrastructure challenges through the work of the Administration’s Supply Chain Task Force and calling out ocean carriers that are putting profits above their responsibility to serve both importers and exporters. And we’re expanding opportunities for agricultural exports by knocking down trade barriers and partnering with industry on marketing and promotion efforts worldwide.” For a detailed summary of 2021 U.S. agricultural exports by market, view the 2021 U.S. agricultural exports by market summary. For a detailed summary of 2021 U.S. agricultural exports by product, view the 2021 U.S. agricultural exports by product summary.

Five Facts About the United States Drought Monitor

 

This is likely no surprise to you, but drought persists across the western U.S. and is intensifying in some areas. No geographic area is immune to the potential of drought at any given time. The U.S. Drought Monitor provides a weekly drought assessment, and it plays an important role in USDA programs that help farmers and ranchers build resilience and recover from drought. 

Learn five facts about the U.S. Drought Monitor.

USDA Urges Producers to Submit Applications for 2021 Grazing Loss Assistance by Jan. 31

 

To Expedite Future Assistance, Gather and Submit Loss Records Now for Livestock Forage Disaster Program 

WASHINGTON, Jan. 25, 2022 – The U.S. Department of Agriculture (USDA) reminds ranchers and livestock producers that they may be eligible for financial assistance through the Livestock Forage Disaster Program (LFP) for 2021 grazing losses due to a qualifying drought or fire. The deadline to apply for 2021 LFP assistance is Jan. 31, 2022. 

“Ongoing, widespread drought conditions have resulted in significant financial losses for agricultural producers, causing stress across rural America,” said Zach Ducheneaux, Farm Service Agency (FSA) Administrator. “I want to emphasize that the FSA is here to help offset these economic hardships and help producers rebuild with resilience. I’d like to encourage producers who suffered 2021 grazing losses to file their LFP applications as soon as possible to expedite payments. Timely filing is doubly important this year, as information gathered may be used to deliver upcoming disaster assistance.” 

For the 2021 program year, 901 counties in 26 states and territories have met drought severity levels that trigger LFP eligibility. More than $473.1 million has been paid, to date, to livestock producers eligible for 2021 LFP. For LFP, qualifying drought triggers are determined using the U.S. Drought Monitor. Visit the FSA LFP webpage for a list of eligible counties and grazing crops. 

LFP provides payments to eligible livestock producers and contract growers who also produce forage crops for grazing and suffered losses due to a qualifying drought or fire during the normal grazing period for the county.  Eligible livestock include alpacas, beef cattle, buffalo/bison, beefalo, dairy cattle, deer, elk, emus, equine, goats, llamas, reindeer or sheep that have been or would have been grazing the eligible grazing land or pastureland during the normal grazing period. 

To expedite the application process, producers are encouraged to gather and submit records documenting 2021 losses. Supporting documents may include information related to grazing leases, contract grower agreements, and more. 

More Information 
LFP is part of a broader suite of disaster assistance available through USDA.  

The Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP), which also has a Jan. 31, 2022, deadline, provides eligible producers with compensation for certain feed losses not covered by LFP as well as assistance with transporting water to livestock and feed transportation expenses. 

Additional disaster assistance information can be found on farmers.gov, including the Farmers.gov Drought Webpage, Disaster Assistance Discovery Tool, Disaster-at-a-Glance fact sheet, and Farm Loan Discovery Tool. 

For FSA and Natural Resources Conservation Service programs, including LFP and ELAP, producers should contact their local USDA Service Center. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Due to the pandemic, some USDA Service Centers are open to limited visitors. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent. 

USDA touches the lives of all Americans each day in so many positive ways. Under 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. 

USDA is an equal opportunity provider, employer and lender.

Making Your Land More Resilient to Drought

 

Trouble viewing this email? View it as a webpage. Now that the 2021 crop year has ended, it’s time to start planning for 2022 and beyond. Many farmers and ranchers west of the Mississippi River have had a very difficult year in 2021 due to drought. Those in other areas of the country were spared from the worst of the drought this time but may not be as lucky in future years. So, as you’re planning for 2022 production, you may want to consider some conservation practices that can help make your land and livestock more resilient to drought and help your bottom line. USDA’s Natural Resources Conservation Service can help you conserve water and build resilience to drought, through conservation practices that improve irrigation efficiency, boost soil health, and manage grazing lands. Learn more about how to make your land more resilient to drought.

CONTACT US: Farm Service Agency Natural Resources Conservation Service Risk Management Agency Service Center Locator

Let’s come together for animal ag: 2022 Stakeholders Summit registration now open

U.S. Farm Report’s Tyne Morgan to return as Summit moderator

 

January 4, 2022 – The Animal Agriculture Alliance announced today that registration is now open for the 2022 Stakeholders Summit, themed “Come Together for Animal Ag: Be Informed, Be Ready, Be Here!” The Alliance’s annual event brings together thought leaders from all links along the food supply chain to discuss hot-button issues and out-of-the-box ideas to connect the farm and food communities, engage influencers and protect the future of animal agriculture.

 

 

The 2022 event will return to an in-person format and is slated for May 11-12 in Kansas City, Missouri. A virtual attendance option will also be available with five preconference webinars scheduled for the weeks leading up to the main event. An outline of the Summit agenda has been posted on the event website and the full speaker lineup will be announced soon. To register, visit https://bit.ly/AAA22Summit. Early registration discounts are available through March 9.

 

“The Alliance is delighted to welcome Summit attendees back to Kansas City for our first in-person event since the onset of the COVID-19 pandemic,” said Kay Johnson Smith, Alliance president and CEO. “We know that the most effective way to safeguard the future of animal agriculture is to come together in person. The 2022 Stakeholders Summit is the perfect place to do just that as we bring together farmers, ranchers, veterinarians, animal feed companies, animal health companies, processors, allied associations and others involved in getting food from farm to fork.”

 

Tyne Morgan, host of U.S. Farm Report, will return as moderator for the event. Morgan plunged into broadcast at 16 through FFA public speaking and contest teams. While in high school, she worked at KMZU radio providing the daily farm market updates, as well as local, state and national agriculture news. Tyne attended the University of Missouri-Columbia where she majored in agriculture journalism, with an emphasis in broadcast. After spending countless hours on the road as AgDay and U.S. Farm Report national reporter, Tyne was named the first female host of U.S. Farm Report in 2014. Today, she travels the country, capturing the latest agricultural news, interviewing both farmers and industry leaders, as well as searching for compelling stories in rural America. 

 

Be sure to check the Summit website for the most up-to-date information. You can also follow the hashtag #AAA22 for periodic updates about the event. For general questions about Summit, please contact summit@animalagalliance.org or call (703) 562-5160.

 

Get involved:

Show your support for the Alliance’s premier event by becoming an official Summit sponsor today! For 2022 sponsorship opportunities, please visit https://animalagalliance.org/initiatives/stakeholders-summit/. For more information, contact Casey Kinler at ckinler@animalagalliance.org.  

 

Thank you to our 2022 Summit sponsors: Watt Global Media, Farm Journal, Meatingplace, National Pork Producers Council, National Cattlemen’s Beef Association, National Pork Board, American Feed Industry Association, United Egg Producers, Dairy MAX, Adisseo, Progressive Dairy, Kemin, American Farm Bureau Federation, Empirical, American Veal Association, National Chicken Council, Agri Beef, Edge Dairy Farmer Cooperative, North Carolina Farm Bureau and Eggland’s Best.

 

The Alliance also thanks the following members for their continued support of Summit and other Alliance programs: U.S. Poultry & Egg Association, Zoetis, Merck Animal Health, C.O.nxt, Diamond V, Genus PLC – PIC/ABS, Aviagen Group, Boehringer Ingelheim, Cargill, Dairy Farmers of America, Hendrix Genetics, Hy-Line North America, LLC, Iowa Soybean Association, Kanas Soybean Commission, Midwest Dairy, National Turkey Federation, Nutrien, Provimi North America, Inc., Seaboard Foods and Tyson Foods Inc.

 

About the Alliance:

The Animal Agriculture Alliance safeguards the future of animal agriculture and its value to society by bridging the communication gap between the farm and food communities. We connect key food industry stakeholders to arm them with responses to emerging issues. We engage food chain influencers and promote consumer choice by helping them better understand modern animal agriculture. We protect by exposing those who threaten our nation’s food security with damaging misinformation. 

Find the Alliance on Facebook, Twitter, and Instagram.