Thursday February 14 Ag News

Nebraska Beef Council Board Meeting Notice

The Nebraska Beef Council Board of Directors will hold a conference call meeting on Monday, February 18, 2013. Topics covered during the call will include promotion opportunities in Japan as well as a financial update. For more information, please contact the Nebraska Beef Council at 308-236-7551.



NOAA: Continued Midwest Drought

Current ocean temperatures show the likelihood that there will be continued drought throughout this year in the Midwest and West, a worrying sign for farmers that suffered under severe drought in 2012, a government weather official said Thursday.

"The continuing conditions really look like we're setting up for a very similar level of drought in the Midwest and West," said Roger Pulwarty, director in charge of drought at the National Oceanic and Atmospheric Administration.

Pulwarty, who was testifying before the Senate Agriculture Committee, told lawmakers the prediction is far from certain and he hoped conditions would change.

It's still too early though to say if there will be a repeat of last year's drought, the worst to hit U.S. farmers since 1988, said Joe Glauber, the U.S. Department of Agriculture's chief economist.

"The early season is still a poor predictor of what happens later," said Glauber, who also testified at the hearing.

Pulwarty told lawmakers at the hearing that he hoped he was wrong in predicting drier conditions this year.

Glauber said drought conditions continue now through much of the western Corn Belt region -- a large portion of the Midwest that includes North Dakota, South Dakota, Minnesota, Colorado, Nebraska, Minnesota and Iowa.

USDA is monitoring the situation, he said.

Overall, though, drought conditions eased in the U.S. last week, according to the latest U.S. Drought Monitor map.

The contiguous U.S. was 55.73% in some level of drought as of Tuesday morning, down 1.11 percentage points from a week earlier, the monitor showed.

Corn was one of the hardest hit crops by drought in 2012.

The USDA was forced to reduce its estimate for corn production last year by 4 billion bushels after persistent high temperatures and a lack of rain scorched crops throughout the summer in the Midwest and throughout the country, Glauber said.

Livestock producers were hit particularly hard by last year's drought because it became harder and more costly to feed the animals.



Corn Belt Land Values Up 16% in 4Q 2012
Farmland values in the heart of the U.S. Corn Belt continued to surge in the fourth quarter of 2012, and could climb even further as farmer incomes remain strong, the Federal Reserve Bank of Chicago said Thursday.

The price of "good" farmland during the fourth quarter was up 16% versus a year ago, and climbed 7% during the last three months of the year, the Chicago Fed said. The bank said 2012 marked the third straight year farmland values have climbed substantially, gaining 52% during that time.

Historically high prices for crops such as corn and soybeans have driven the farmland gains. Prices for both crops hit record highs in 2012 thanks to the worst drought in decades.

Although the drought left many farmers with meager harvests, widespread use of insurance and the high crop prices helped farmers maintain their incomes.

The Chicago Fed district includes all of Iowa and most of the highest-yielding farmland in Illinois and Indiana. It also includes parts of Wisconsin and Michigan.

Seventy-one percent of bankers in the district expected farmland values to hold steady in the first quarter of 2013, while 28% expect them to climb. With the U.S. Department of Agriculture forecasting net farmer income to climb 14% in 2013, "there would seem to be at least another leg to be run" for farmland values, the Chicago Fed said.

Still, the rapid climb in farmland prices has fueled concerns of a bubble for some policy makers. St. Louis Federal Reserve Bank President James Bullard said Wednesday he was "concerned" about farmland prices, and that while there were clear fundamental reasons for them to climb, very low interest rates are also playing a role. Policy makers say a jump in interest rates could alter the farmland market.

The farm boom has sparked interest in farmland by outside investors, but buyers mostly remain farmers. The St. Louis Fed said in a report that nearly three-quarters of all farmland buyers were farmers. Most farmers are buying more land without taking on more debt, according to analysts.

The Chicago Fed noted that the pace of farmland sales picked up in the fourth quarter, as some owners looked to sell land before the end of the year because of tax changes starting Jan. 1. It added that agricultural credit conditions in the district improved in the fourth quarter versus a year ago.

The Fed's Kansas City district, which includes some of the areas of the central Plains hit hardest by the drought, will issue its own report on farmland trends on Friday.



New Iowa State Cow-Calf Specialist Ready To Work with Beef Industry

Growing up on an Indiana diversified crop and livestock farm and having the opportunity to become involved in the beef industry early in his life helped create Patrick Gunn’s passion. Showing cattle and being actively involved in 4-H and state junior beef associations shaped the passion. Undergraduate and graduate work with utilization of biofuel byproducts in beef cattle diets while maintaining those ties with the cattle associations strengthened the passion. And now as the new cow-calf specialist at Iowa State University, he’s embarking on a career that will allow that passion to flourish.

“Even prior to college, I had the ultimate goal of fostering a career that would allow me to work with beef producers on a daily basis, and assist those producers in making management decisions that would increase both productivity and profitability,” Gunn said. “And, although I am confident in my abilities, I know that the trust of a producer can only be earned over time, so I plan to utilize our network of experts both on campus and across the state to efficiently and effectively answer the questions presented by producers.”

Gunn, who joined the Iowa State University animal science department faculty earlier this month, said his appointment is 60 percent extension, 25 percent applied research and 15 percent teaching. His first priority is to meet with as many beef producers on a face-to-face basis as possible.

“I plan to spend a lot of time listening to the needs and views of producers around Iowa so I can help develop extension programming which not only addresses current needs, but also anticipates future needs of the cow-calf sector,” Gunn said. “I’m a firm believer in personal contact with producers, and while I’m comfortable in our technology-driven world, I plan to use a variety of platforms to effectively communicate with producers and partners across the Midwest.”

Gunn’s primary research focus is on nutrition and reproduction, including interaction between the two areas. With continued volatility in commodity markets, producers are looking for ways to reduce feed costs while maintaining productivity and herd health. In many instances, this involves the use of byproduct feeds in heifer and bull development rations as well as wintering cow rations, he said.

“While a great deal of data have been generated regarding how byproduct feeds impact feedlot production, the effect of these feedstuffs on reproduction and fertility is not as well understood. Plus, we now know that maternal nutrition during gestation and lactation can alter growth and development of the offspring, thus affecting potential profit for years to come,” he said. “So it’s imperative that we are attentive to how new and alternative management schemes affect the cow and her offspring.”

Gunn also plans to work with estrous synchronization schemes for heifers and cows, determining how to alter existing protocols to incur less labor and lower costs for producers without negatively impacting pregnancy rates.

He said the choice to accept this faculty position at Iowa State was easy.

“Getting the opportunity to work in a state that is as agriculturally minded as Iowa is exciting. Moreover, the opportunity to work with producers that are as passionate about the beef industry as those in this state was an opportunity I could not pass up,” he said. “The Iowa Beef Center comprises a talented and well-rounded group of individuals who each bring their own strengths to the table, and at the same time complement each other so that most any beef-related question should be able to be effectively addressed.”



New Iowa State University Weather Stations To Monitor Soil Moisture

Farmers will be able to check soil moisture levels around the state when Iowa State University’s Department of Agronomy upgrades weather stations at several research and demonstration farms.

With drought conditions continuing across Iowa, ISU Extension agronomist Elwynn Taylor said the stations offer a risk management tool for crop producers.

“The updated stations provide information on the soil moisture resource and the actual crop water consumption,” Taylor said. “Farmers will be able to know the yield limits being placed on crop yield by water stress as the season progresses.”

The new stations replace ones that have been monitoring weather data at the farms for more than 30 years. Taylor said the original units made up the world’s first nonmilitary network of automatic reporting weather stations.

They were networked, as the new ones will be, so their readings can be monitored on the Mesonet (http://mesonet.agron.iastate.edu/) weather web site.

Moisture sensors are placed a foot, two feet and four feet deep in the soil next to the station. Readings are taken every 15 minutes and sent by cellular phone text messages to the network.

The weather stations also measure rainfall, air and soil temperature, humidity, sunlight, wind speed and direction. A solar collector powers the units.

Taylor said the first of the new units was placed next to the previous model at the Northwest Research and Demonstration Farm near Sutherland. Another seven will be installed on research farms as weather permits. He said two farmers have paid for a station to be placed on their farms and a cooperative has ordered three stations.

“The goal is, with cooperators, to have one in every county,” he said.

It costs about $12,000 each for the equipment and installation. Campbell Scientific of Logan, Utah, produced the original units and the new ones.

“Twelve thousand dollars sounds like a lot of money, but these days when you consider the cost of farm equipment that’s not out of anybody’s reach, especially when you realize the payoff on it if you use it,” he said. “People have to be trained to use it, so they know what it means for their yield and what it means for their soil. The payoff will be just as great for any piece of farm equipment.”



ISU researchers receive grant to enhance soybean resistance to sudden death syndrome

Researchers at Iowa State University will use a grant totaling more than $5 million to strengthen the genetic resistance of soybeans to sudden death syndrome, a disease that has cost Iowa soybean producers millions in crop losses.

The five-year, $5.35 million grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture will allow an international team that includes nine ISU researchers to genetically modify soybeans in an attempt to fight off sudden death syndrome more effectively.

Madan Bhattacharyya, an associate professor of agronomy who will lead the research team, began studying sudden death syndrome in soybeans in 2003.  Bhattacharyya said that sudden death syndrome resistance in soybeans is encoded in numerous genes, each playing a small role in an individual plant’s resistance to the disease. Even elite soybean lines carry only partial resistance to the disease, he said. Researchers on the project hope to find new solutions that will provide a stronger resistance.

“Currently, the existing resistance mechanism isn’t strong,” Bhattacharyya said. “We would prefer something that does more to combat the disease.”

Soybean sudden death syndrome is an emerging disease that first appeared in Arkansas in 1971, he said. It’s caused by a Fusarium fungus that infects the roots of the soybean plant. The pathogen has never been detected from the diseased leaves or other above-ground tissues. The research group has recently shown that a small protein produced by the pathogen in the roots is the major cause of foliar soybean sudden death syndrome. The team has also shown that generation of a plant antibody against this protein enhances the disease resistance in transgenic soybean lines.

In 2010, sudden death syndrome cost Iowa soybean producers around $300 million in crop losses, Bhattacharyya said. That same year saw national crop losses approach $1 billion, he said.

“One of the reasons the disease is so devastating is that it begins in the root of the plant, and the pathogen stays in the infected roots,” he said. “By the time disease symptoms become visible in the leaves, it’s too late. There’s no effective fungicide to control the disease.”

Bhattacharyya and the ISU researchers will lead a team that includes personnel in Brazil and Argentina as well as in five other states. Nine of the 17 researchers involved in the program work at Iowa State, spanning a range of disciplines including genetics, plant breeding, plant pathology, electrical and computer engineering, computer science, sociology, economics and education.

In addition to research, the team will carry out education and outreach functions for 6-12th grade teachers and minority students interested in biotechnology and genetics. The education portion of the grant will be conducted both at Iowa State and Tuskegee University.

“This is a diverse team with a broad range of expertise,” Bhattacharyya said. “I’m looking forward to finding new ways to fight a disease that has caused serious hardship in leading soybean producing states, including Iowa.”



ICGA Student Members - Future Leaders in Agriculture

The future leaders in agriculture and Iowa Corn are already active in the organization and learning more about the industry. Student membership in the Iowa Corn Growers Association (ICGA) is increasing thanks to new student chapters and the impact of the Iowa Corn Collegiate Advisory Team (CAT).

The Iowa State University Corn Growers Association student chapter has been formed by students to increase involvement by their peers in the state's corn industry. Students have the opportunity to meet regularly and become immersed in the real-world issues that they will face when they graduate from college.

"In order to become industry leaders we need to have the proper training and networking to conquer the challenges we will face during our careers," says Brent Drey, a student from Sac County who serves as president of the Iowa State University Corn Growers Association. "We have meetings once a month and are having speakers at each meeting who are linked to the agriculture industry and will speak about current issues affecting agriculture."

In addition, Drey is one of 19 Iowa college students who have been named to the third Iowa Corn CAT group. The Iowa Corn Collegiate Advisory Team (CAT) is sponsored by the Iowa Corn Growers Association and the Iowa Corn Promotion Board. The Iowa Corn CAT assists the Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB) in developing programs that target and enhance Iowa Corn's relationship with students who are pursuing careers in agricultural production and agriculture business and industries.

"The newly named Iowa Corn Collegiate Advisory Team is made up of excellent students from across Iowa who are passionate about the future of agriculture in our state," says Bob Hemesath, a farmer from northeast Iowa and an ICGA director and chair of the committee overseeing the program.

Participants of the newly selected team include students from Iowa State University, Graceland University, Dordt College and Northwest Missouri State University as well as Iowa Lakes Community College, Indian Hills Community College, Southeastern Community College, North Iowa Area Community College, Kirkwood Community College, Iowa Central Community College, Iowa Western Community College, Des Moines Area Community College, Muscatine Community College and Ellsworth Community College.

"CAT is a great opportunity for me to learn more about the agricultural industry and also provides an opportunity for eager students to be Iowa corn advocates," says Cale Juergensen, who attends Iowa Lakes Community College.

More student members are joining Iowa Corn regularly and the interest in more student chapters of ICGA is increasing as well.

"As a member of ICGA, I hope to learn more about Iowa Corn and also have the opportunity to network with industry professionals as I share my passion for agriculture," says Lisa Nelson who attends Iowa State University.

For more information on ICGA student chapters or CAT, contact ICGA at 515-225-9242.



Commodity Classic Launches Mobile App

Today, Commodity Classic launched its first-ever mobile application, allowing attendees to access information, receive messages and engage in social media from their smart phones and tablets. The Commodity Classic convention and trade show mobile application gives show-goers the ability to make their own schedules, take notes on activities, lookup session and event times, navigate with maps and much more. Visit www.commodityclassic.com/app.

In less than two weeks, soybean, corn, wheat and sorghum growers from around the country will gather at the 18th Annual Commodity Classic in Kissimmee, Fla. for an experience that will educate, enlighten and entertain. From new product rollouts to thoughtful discussion of important agricultural issues  -  education is a key element of Commodity Classic.

"The innovation you'll witness and information you'll gather at Commodity Classic will absolutely change the way you farm," said Commodity Classic co-Chair Bob Worth. "Agriculture faces new challenges every year, and Commodity Classic's educational sessions and opportunities to speak with other growers and industry leaders will arm attendees with the tools they need to overcome these challenges and increase the profitability of their farming operation."

Commodity Classic is one of the largest farmer-run agricultural convention and trade show in the nation. Each year, acres of displays, equipment and technology fill the trade show floor and 2013 is no exception. Exhibitors bring their most knowledgeable people to Commodity Classic, giving attendees access to the best problem solvers in the industry.

The 2013 Commodity Classic takes place February 28-March 2 at the Gaylord Palms Resort & Convention Center and the Orlando World Center Marriott in Kissimmee, Fla., and is presented annually by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers. In addition to social opportunities, the event offers a wide range of learning and networking opportunities for growers in the areas of production, policy, marketing, management and stewardship-as well as showcasing the latest in equipment, technology and innovation.



Senate Agriculture Committee Hearing on 2012 Drought and Importance of Crop Insurance

Anngie Steinbarger, a soybean and corn farmer from Edinburgh, Ind., testified this morning on the importance of crop insurance and risk management for soybean farmers as part of the Senate Committee on Agriculture, Nutrition and Forestry’s first hearing on the farm bill in the 113th Congress. Testifying on behalf of the Indiana Soybean Alliance and the American Soybean Association (ASA), Steinbarger joined farmers representing the livestock and specialty crop industries in detailing the impacts of the historic drought of 2012 and expressing the importance of protecting crop insurance as Congress moves to pass a comprehensive farm bill later this year.

"The number one barrier to increasing our yields is lack of water. Dry weather in the months of July and August always limits our yield potential. We find crop insurance an effective tool in managing risk when we experience these weather events," said Steinbarger in her testimony. "We began using crop insurance is 1991 as a way to maintain our cash reserves and prevent the need to borrow operating money. … Our goal is not to make money off of crop insurance but to balance our yearly revenue so we will have operating money for the following crop year."

Steinbarger also noted her farm’s use of conservation tillage to reduce erosion and water use. "To manage our thin light soil types, we started our farming operation employing conservation tillage techniques such as CRP and NRCS cost share funding. To this day we still are advocates of no till farming as a way to preserve our soil and maintain soil moisture," she added.

Finally, Steinbarger joined her fellow witnesses in reinforcing the fact that crop insurance is not a profit center for farmers; rather, it is a way for farms to remain financially stable enough to plant again in the coming year. "We paid a substantial premium for crop insurance," she said. "… and that decision is keeping us in business for the 2013 crop year."



Senate Agriculture Committee Hearing on Drought Impact
From Jerry Kozak, President and CEO of NMPF:

“Today’s Senate testimony by USDA Chief Economist Dr. Joe Glauber highlights once again the harm that high feed costs are causing for the nation’s dairy farmers, and is stark evidence of the need for Congress to pass a farm bill that will provide a workable new safety net for dairy producers.

“Glauber noted that feed costs make up 51 percent of expenses for dairy -- the highest feed costs of any livestock commodity. Glauber also noted that because of high feed costs, milk feed ratios have remained near the low levels experienced during 2009.

“USDA’s analysis indicated that dairy will face continued tight margins in 2013, with net cash income expected to be lower in 2013 than last year for dairy farmers. Glauber also made this worrisome admission: ‘another year of below-trend yields and high [feed] prices would likely result in further liquidation’ of herds.

“These factors make it all the more urgent for the Senate and the House Agriculture committees, along with the full Senate and House, to pass a five-year farm bill that provides our dairy producers the security and stability they need. We need the Dairy Security Act – with its margin insurance and market stabilization program – to help buffer against the income-sapping effects of the drought, and other factors affecting feed prices.”



CHS will boost crude oil access with Express Pipeline connection

CHS Inc., an energy, grains and foods company and the nation's leading farmer-owned cooperative, announced today it will build a seven-mile connection in central Montana to link its Front Range Crude Oil pipeline with the Kinder Morgan Express Pipeline.

Kinder Morgan-Canada and Front Range Pipeline, LLC, a wholly owned CHS subsidiary, will construct storage, pipeline, and other associated equipment needed to connect the Express Pipeline to the Front Range Pipeline near Buffalo, Mont. Front Range Pipeline will invest about $15 million in the connecting pipeline and associated equipment. Once completed, this connection will allow access to an additional source and wider variety of Canadian crude oils for the CHS Laurel Refinery.

"This investment helps ensure that CHS can continually source crude oil for our Laurel Refinery, further strengthening our ability to produce reliable supplies of quality refined fuels products to meet the needs of our cooperatives, producers and other customers," said Jay Debertin, executive vice president and chief operating officer, Energy and Foods. "The link creates important refining flexibility for Laurel by providing access to additional varieties of Canadian crude oil."

Pending permitting and other approvals, the project is expected to begin this summer with completion estimated for fall 2014. Debertin added that in constructing and operating the new pipeline connection, CHS is committed to making safety and environmental protection its priorities as it does with all of its pipeline operations.

The Express Pipeline, originating at Hardisty, Alberta, Canada, is one of North America's major crude oil lines moving up to 280,000 barrels per day from Canada to U.S. markets in Montana, Wyoming, Utah and Colorado.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP), along with its partners (Ontario Teachers' Pension Plan Board and Borealis Infrastructure) entered into a definitive agreement to sell 100% of the Express Pipeline System to Spectra Energy Corp. The transaction is subject to customary consents and regulatory approvals and is expected to close in the first half of 2013.

The 55,000 barrels per day Laurel Refinery currently receives Canadian and Montana crude oil through the company's Front Range pipeline which extends from the Canadian border to the refinery. The planned pipeline connection will take place about 150 miles northwest of Laurel.

The connection to the Express Pipeline will not increase Laurel refining capacity.



NOPA January Soy Crush Seen Up

Soybean crush rates for January are expected to climb to 160.6 million bushels, as domestic processors crushed soybeans at a near record pace amid stout demand for soy products, according to a survey of industry analysts.

The National Oilseed Processors Association, in its monthly soybean crush report, is expected to say the crush rose above a strong December pace of 159.9 million bushels.

The association's report -- which includes only data from members -- is scheduled to be released Friday at noon EST (1700 GMT).

The pace of crushing will push processing just shy of the record crush for January at 162.2 million bushels set in 2009.

Strong domestic and export demand for soymeal and soyoil coupled with profitable processing margins gave crushers the incentive to keep processing at a robust pace, analysts said.

Analysts' estimates on the January crush ranged from 157 million bushels to 163.5 million bushels.

The U.S. Department of Agriculture acknowledged the strong crushing pace in a closely watched supply and demand report released Friday. The USDA raised its estimates for annual crush rates by 10 million bushels to 1.615 billion bushels. The increase was the fifth consecutive month that the USDA has raised its crush forecast.

The USDA cited both larger soybean meal exports and domestic use for the crush increase. The boost in domestic soybean meal consumption was in line with projected gains in meat production, the USDA said in the report.

Meanwhile, analysts expect an increase in soyoil stocks in January to 2.713 billion pounds, from 2.600 billion pounds in December. Estimates ranged from as low as 2.57 billion pounds to as high as 2.82 billion pounds.

Soyoil stocks are seen rising, reflective of a faster crush pace in January.



Vilsack Addresses Access to Credit for Veterans, Young and Beginning Farmers

Agriculture Secretary Tom Vilsack talked with veterans, young, beginning and socially-disadvantaged producers today at a community center in San Antonio, Texas, about USDA's work to expand credit for their farming operations. USDA is hearing from excited producers all across the country about USDA's new microloan program, designed to help small and family operations secure loans under $35,000. Since 2009, said Vilsack, USDA has continued to expand the overall number of loans to beginning farmers and ranchers as well as its lending to socially-disadvantaged producers by significant margins.

"In his recent State of the Union Address, President Obama laid out a vision for reigniting America's engine of growth and good-paying jobs—the American middle class," said Vilsack. "As a bright spot in our nation's economy, agriculture must continue to attract the smartest, hardest-working people in the nation so we can continue to feed our nation and the world. By further expanding access to credit to those just starting to put down roots in farming, USDA continues to help grow a new generation of farmers, while ensuring the strength of an American agriculture sector that drives our economy, creates jobs, and provides the most secure and affordable food supply in the world."

USDA announced the new microloan program in January to help small and family operations, beginning and socially disadvantaged farmers secure loans under $35,000. The new microloan program is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations. The microloan program will also provide a less burdensome, more simplified application process in comparison to traditional farm loans. The interest rate for microloans changes monthly and is currently 1.25 percent.

While USDA continues to introduce new products that are more responsive to the credit needs of its diverse customer base, the Department continues to expand its traditional farms loans. In fact, since 2009 USDA has made a record amount of farm loans—more than 134,000 loans totaling nearly $18 billion. USDA has increased the number of loans to beginning farmers and ranchers from 11,000 loans in 2008 to 15,000 loans in 2011. More than 40 percent of USDA's farm loans now go to beginning farmers. In addition, USDA has increased its lending to socially-disadvantaged producers by nearly 50 percent since 2008.

Through USDA's Strike Force Initiative, the Department is also helping to relieve persistent poverty in high poverty counties by improving access to programs and services. Since Strike Force began, farm loans have helped hundreds of minority producers in high-poverty counties in states with large populations of minority farmers and ranchers, including Arkansas, Colorado, Georgia, Mississippi, Nevada, and New Mexico.

For example, in fiscal year 2011, USDA made 959 loans totaling $79 million, with 76 percent going to beginning and socially-disadvantaged producers. In fiscal year 2012, USDA made 1,144 direct farm loans totaling nearly $91 million to producers in these high-poverty counties, with 79 percent of the loans going to beginning and socially-disadvantaged producers—a marked improvement.

These snapshots demonstrate how USDA continues to make year-over-year gains in expanding credit opportunities for minority, socially-disadvantaged and young and beginning farmers and ranchers across the United States.

Administered through USDA's Farm Service Agency (FSA) Operating Loan Program, the new microloan program offers credit options and solutions to a variety of producers. FSA has a long history of providing agricultural credit to the nation's farmers and ranchers through its Operating Loan Program. In assessing its programs, FSA evaluated the needs of smaller farm operations and any unintended barriers to obtaining financing. For beginning farmers and ranchers, for instance, the new microloan program offers a simplified loan application process. In addition, for those who want to grow niche crops to sell directly to ethnic markets and farmers markets, the microloan program offers a path to obtain financing. For past FSA Rural Youth Loan recipients, the microloan program provides a bridge to successfully transition to larger-scale operations.

Producers can apply for a maximum of $35,000 to pay for initial start-up expenses such as hoop houses to extend the growing season, essential tools, irrigation, delivery vehicles, and annual expenses such as seed, fertilizer, utilities, land rents, marketing, and distribution expenses. As their financing needs increase, applicants can apply for an operating loan up to the maximum amount of $300,000 or obtain financing from a commercial lender under FSA's Guaranteed Loan Program.

USDA farm loans can be used to purchase land, livestock, equipment, feed, seed, and supplies, or be to construct buildings or make farm improvements. Small farmers often rely on credit cards or personal loans, which carry high interest rates and have less flexible payment schedules, to finance their operations. Expanding access to credit, USDA's microloan will provide a simple and flexible loan process for small operations.