Celebrating America’s Farmers and Ranchers
President Obama and his Administration know that there is no limit to the economic potential of rural America. Thanks to the American farmer, we spend less of our paychecks at the grocery store than most people in other countries and we know that the food that we serve to our families is safe, wholesome and nutritious. American agriculture and related industries contribute $789 billion to the U.S. GDP (2013) and support one in 11 American jobs on and off the farm.
But the economic potential of rural America doesn’t stop at growing food. Market opportunities for everything from homegrown renewable energy and biobased plastics and materials, to farmers markets and food hubs, to rural manufacturing keep communities competitive and contribute to a strong national economy.
That’s why, over the course of nearly eight years, the U.S. Department of Agriculture has led the Administration’s efforts to invest in projects nationwide that support the diverse farmers, ranchers and growers who are driving the rural economy forward. USDA support strengthens new markets for homegrown agricultural products, ensures a robust agricultural safety net for producers when disaster strikes, sustains research and innovation that boosts farms and ranches of all sizes and production methods, and equips a strong next generation of farmers and ranchers with the tools they need to continue the legacy of American agriculture.
Helping Farmers and Ranchers Grow and Thrive
The passage and implementation of the 2014 Farm Bill was one of the most important accomplishments achieved by this Administration on behalf of America’s farmers and ranchers. This critical legislation provides authorization for services and programs that impact every American and millions of people around the world. It underpins nearly everything we do at USDA.
Farm and ranch operations have enjoyed unprecedented productivity and profitability over the past several years. However, all operations are vulnerable to the impacts of climate change, natural disasters and extreme weather, pest and disease outbreaks, market fluctuations and other unexpected events. The 2014 Farm Bill programs and investments provide a cushion for farmers and ranchers during leaner times, help keep American agriculture profitable, and keep farmers on the farm.
The new Farm Bill programs and policies built on historic investments made by USDA over the past eight years in support of robust, diverse, efficient and resilient farms and ranches, including:
Responding quickly to devastating natural disasters
While it took over one year after the 2008 Farm Bill was passed, disaster assistance programs were ready to go in under 10 weeks following the passage of the 2014 Farm Bill — 80 percent faster than in 2008. As of December 2015, more than 681,000 payments have been issued to producers totaling nearly $5.6 billion. This support helped to keep American agriculture profitable and keep farmers on the farm in the wake of devastating natural disasters.
Opening new markets for rural-grown and –made products
The past seven years have represented the strongest period for American agricultural exports in the history of our country, with U.S. agricultural product exports totaling $911.3 billion between fiscal years 2009 and 2015. This achievement is thanks in part to the Administration’s efforts to expand free trade, remove unfair, unscientific barriers to American agricultural exports, and connect with new customers and markets abroad. Since 2009, the United States has entered into free trade agreements with Colombia, Jordan, Oman, Panama, Peru, and South Korea. Plus, through organic equivalency agreements established by USDA with Canada, the European Union, Switzerland, Japan, and Korea, U.S. organic farmers and businesses have streamlined access to over $35 billion international organic markets.
The Administration has also concluded negotiating the Trans-Pacific Partnership. When implemented, the TPP agreement with 11 Pacific Rim countries will provide new market access across the board for America’s farmers and ranchers by lowering tariffs and eliminating other barriers, and will boost exports and support jobs in our rural economies. The agreement will advance U.S. economic interests in a critical region that accounts for nearly 40 percent of global GDP.
Pioneering innovative forms of credit for farmers and ranchers
We have provided nearly 109,000 agricultural producers with more than $34 billion in credit to help farm and ranch businesses grow and thrive. Annual lending to underserved/socially disadvantaged producers increased dramatically, from $379.4 million in FY 2008 to $827.3 million in FY 2015, a 118 percent increase.
During the course of this Administration, USDA also pioneered a new microloan program, which is now an important access point to credit for new, small or underserved farmers and ranchers. Since the program’s inception in January 2013, USDA has issued 16,000 microloans. Seventy percent of these loans have gone to beginning farmers.
Expanding and strengthening the farm safety net, particularly for organic producers and fruit and vegetable growers
Between 2009 and 2014, the Federal crop insurance program paid out more than $59 billion in indemnities so that farmers nationwide can continue to produce after suffering losses due to natural causes. During the historic 2012 drought, for example, the Federal crop insurance program paid out over $17 billion in indemnities.
In 2011, for the first time ever, USDA began offering crop insurance for organic producers that reflects organic market prices. Organic price elections have expanded from four crops, which were first offered in 2011, to 56 crops in 2016. USDA also eliminated the historical five percent surcharge on organic policy premiums for all crops, added more crops with organic price elections, and added a contract price option.
USDA also established the Whole Farm Revenue Protection insurance, a pilot program that allows producers to insure all commodities on the farm rather than just one, a critical coverage option for fruit and vegetable growers, beginning farmers and organic producers. In 2016, this program will be the first insurance program ever available in every county in the United States.
In the 2015 crop year, there were approximately 1.2 million crop policies spanning about 556,000 farm and ranch operations. These policies cover more than 297 million acres. Under the Obama Administration, USDA has offered a record number and variety of crop insurance options to farmers and growers, which means that for the first time ever, safety net options for producers more closely reflect the diversity of what they grow.
Unprecedented support for the growing local and regional foods market
The market for local food grew from $5 billion in 2008 to an estimated $11.7 billion in 2014, thanks in part to USDA’s unprecedented investment in nearly 40,000 farms and ranches, food entrepreneurs and communities through local food-related projects. This Administration was the first to invest significantly in local and regional foods, and coordinates this work across USDA through the Know Your Farmer, Know Your Food initiative.
Ending direct payments
We have enrolled 1.76 million farmers in the new Agriculture Risk Coverage (ARC) and Price Loss Coverage programs, more than who participated in the previous direct payments program. The program provided $4.8 billion in financial help to more than 900,000 farms that experienced a $20 billion drop in revenues during 2015.
Renewing agriculture’s focus on coexistence
USDA has implemented efforts to help different sectors of agriculture exchange information, build coalitions, and make decisions that contribute to or directly support coexistence between conventional, organic, identity-preserved, and genetically engineered (GE) crop production, the first Administration ever to do so.
Adding More Seats to the Table
At the start of the Administration, we recognized that the rapid aging of the American farmer was an emerging challenge. The average age of the American farmer now exceeds 58 years, and data shows that almost 10 percent of farmland in the continental United States will change hands in the next five years. That recognition has evolved into a robust, transparent, tech-based strategy to recruit the farmers of the future, led by USDA Deputy Secretary Krysta Harden and a team of dedicated USDA career employees.
The next generation of farmers and ranchers will reflect the diversity of the nation. They may come from farming backgrounds or be new to agriculture; they may be college graduates coming home to farm with their families; or they may be veterans, second career seekers, immigrants and people from all ethnic backgrounds.
Over the past eight years, we have engaged our resources to inspire a strong, productive next generation of farmers and ranchers by improving access to land, capital and risk management tools, including most recently prioritizing $5.6 billion over the next two years within USDA programs and services that serve new and beginning farmers and ranchers. In addition, USDA has supported a diverse American agriculture by:
Increasing the priority for new farmers for USDA lending assistance and other key programs
From 2009–2014, USDA increased our investment in new and beginning farmers across several key programs by 14.1 percent. We will continue to build on this investment moving forward.
Launching the first comprehensive, interactive online tool for new and beginning farmers
USDA has launched a new web tool that connects agricultural entrepreneurs with programs and resources available across the government.
Strengthening safety net options and provided incentives to make crop insurance more accessible to beginning farmers
New and beginning farmers and ranchers now hold nearly 49,000 policies, and have saved over $14 million in premiums and administrative fees, thanks to policy changes made over the course of this Administration.
Establishing a women in agriculture mentoring network
To celebrate and honor the contributions of women in agriculture, including the nearly 1 million women farmers nationwide and help women connect with other women leaders in agriculture, USDA created a women in agriculture mentoring network.
Expanding assistance for military veterans who want to pursue careers in agriculture
Today, more than 5 million veterans live in rural areas, a higher concentration than in any other part of the country. Whether they come from a rural area or not, opportunities in agriculture and related fields abound for returning service members. Over the course of the Administration, USDA has spearheaded an effort with partners like the Department of Defense and the Farmer-Veteran Coalition, among others, to help to ensure that returning Service members know that there are a wide variety of loans, grants, training and technical assistance for veterans who are passionate about a career in agriculture, no matter their experience level.
Driving solutions to the emerging challenge of land tenure
Ten percent of farmland in the continental U.S. will change hands in the next five years. USDA has brought together an internal team to consider these new insights and recommendations and how we might support land access and transitions of farmland. In addition, over the course of the Administration, we have facilitated over 2,500 contracts to transition over 400,000 acres of expiring conservation reserve program land from retired or retiring landowners to beginning or underserved producers for sustainable grazing or crop production.
Cover photo: U.S. Marine Corps veteran Calvin Riggleman holds an oregano seedling and soil on Bigg Riggs farm in Hampshire County, WV.
