Friday December 22 Cattle on Feed, Hogs & Pigs, + CBP Rail Crossings and more Ag News

NEBRASKA CATTLE ON FEED DOWN 1%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.58 million cattle on feed on December 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 1% from last year. Placements during November totaled 490,000 head, down 3% from 2022. Fed cattle marketings for the month of November totaled 440,000 head, down 8% from last year. Other disappearance during November totaled 10,000 head, down 5,000 head from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 640,000 head on December 1, 2023, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 2 percent from November but up 2 percent from December 1, 2022. Iowa feedlots with a capacity of less than 1,000 head had 490,000 head on feed, up 3 percent from last month but down 8 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,130,000 head, up slightly from last month but
own 3 percent from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during November 2023 totaled 88,000 head, down 5 percent from October and down 7 percent from November 2022. Feedlots with a capacity of less than 1,000 head placed 75,000 head, up 9 percent from October but down 20 percent from November 2022. Placements for all feedlots in Iowa totaled 163,000 head, up 1 percent from October but down 14 percent from November 2022.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during November 2023 totaled 97,000 head, up 18 percent from October and up 3 percent from November 2022. Feedlots with a capacity of less than 1,000 head marketed 54,000 head, down 18 percent from October but up 15 percent from November 2022. Marketings for all feedlots in Iowa were 151,000 head, up 2 percent from October and up 7 percent from November 2022. Other disappearance from all feedlots in Iowa totaled 7,000 head.



United States Cattle on Feed Up 3 Percent

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 12.0 million head on December 1, 2023. The inventory was 3 percent above December 1, 2022.

By State                    1000 hd  -  % Dec 1 '22
Colorado ......:           1,030           99           
Iowa .............:           640             102             
Kansas ..........:          2,500          107            
Nebraska ......:          2,580           99         
Texas ............:          2,910          104           

Placements in feedlots during November totaled 1.87 million head, 2 percent below 2022. Net placements were 1.81 million head. During November, placements of cattle and calves weighing less than 600 pounds were 535,000 head, 600-699 pounds were 440,000 head, 700-799 pounds were 380,000 head, 800-899 pounds were 288,000 head, 900-999 pounds were 140,000 head, and 1,000 pounds and greater were 85,000 head.

By State            1000 hd  -  %  Nov '22
Colorado ......:         155           107         
Iowa .............:         88            93            
Kansas ..........:        385            92         
Nebraska ......:        490            97            
Texas ............:        390           105           

Marketings of fed cattle during November totaled 1.75 million head, 7 percent below 2022. Other disappearance totaled 54,000 head during November, 5 percent below 2022.

By State            1000 hd  -  %  Nov '22
Colorado ......:      150            88        
Iowa .............:       97           103        
Kansas ..........:     395            96           
Nebraska ......:     440            92          
Texas ............:     365            89            



United States hog inventory up slightly

United States inventory of all hogs and pigs on December 1, 2023 was 75.0 million head. This was up slightly from December 1, 2022, but down slightly from September 1, 2023. Breeding inventory, at 6.00 million head, was down 3 percent from last year, and down 3 percent from the previous quarter. Market hog inventory, at 69.0 million head, was up slightly from last year, but down slightly from last quarter.

The September-November 2023 pig crop, at 34.6 million head, was down slightly from 2022. Sows farrowing during this period totaled 2.97 million head, down 4 percent from 2022. The sows farrowed during this quarter represented 48 percent of the breeding herd. The average pigs saved per litter was 11.66 for the September-November period, compared to 11.22 last year.

United States hog producers intend to have 2.90 million sows farrow during the December 2023-February 2024 quarter, down 2 percent from the actual farrowings during the same period one year earlier, and down 1 percent from the same period two years earlier. Intended farrowings for March-May 2024, at 2.91 million sows, are down 1 percent from the same period one year earlier, and down 2 percent from the same period two years earlier.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 51 percent of the total United States hog inventory, up 3 percent from the previous year.

To obtain an accurate measurement of the U.S. swine industry, NASS surveyed 6,341 operators across the nation during the first half of December. The data collected were received by electronic data recording, mail, telephone, and face-to-face interviews.

NEBRASKA HOG INVENTORY UP 6%
Nebraska inventory of all hogs and pigs on December 1, 2023, was 3.80 million head, according to the USDA's National Agricultural Statistics Service. This was up 6% from December 1, 2022, and up 1% from September 1, 2023.

Breeding hog inventory, at 400,000 head, was down 2% from December 1, 2022, and down 2% from last quarter. Market hog inventory, at 3.40 million head, was up 7% from last year, and up 2% from last quarter.

The September - November 2023 Nebraska pig crop, at 2.19 million head, was up slightly from 2022. Sows farrowed during the period totaled 185,000 head, down 3% from last year. The average pigs saved per litter was 11.85 for the September - November period, compared to 11.50 last year.

Nebraska hog producers intend to farrow 180,000 sows during the December 2023 - February 2024 quarter, unchanged from the actual farrowings during the same period a year ago. Intended farrowings for March - May 2024 are 180,000 sows, unchanged from the actual farrowings during the same period a year ago.

Iowa:  On December 1, 2023, there were 24.9 million hogs and pigs on Iowa farms, according to the latest USDA, National Agricultural Statistics Service – Hogs and Pigs report. Inventory was up 1 percent from the previous quarter and up 3 percent from the previous year.

The September-November 2023 quarterly pig crop was 5.37 million head, down 3 percent from the previous quarter and down 13 percent from last year. A total of 455,000 sows farrowed during this quarter. The average pigs saved per litter was 11.80 for the quarter.

As of December 1, producers planned to farrow 470,000 sows and gilts in the December 2023 February 2024 quarter and 470,000 head during the March-May 2024 quarter.



AgCountry Farm Credit Services, Frontier Farm Credit, and Farm Credit Services of America Announce Collaboration  

The Boards of Directors for three Farm Credit Associations serving farmers, ranchers, and agribusinesses across eight states approved a collaboration agreement this week aimed at better serving their respective customers. AgCountry Farm Credit Services (AgCountry), Frontier Farm Credit, and Farm Credit Services of America (FCSAmerica) signed a collaboration contract to become effective no earlier than April 1, 2024.

The Directors have agreed to share key functions, such as leadership, strategic planning, and technology, while retaining local, independent Boards, offices, services, cash patronage programs, and more.

“Our three Boards are comprised mostly of farmers and ranchers. We were elected by our fellow member-owners to make decisions ensuring our Associations fulfill their mission to current and future producers,” said Lynn Pietig, chair of AgCountry’s Board of Directors. “Each Association enters this collaboration in a financially strong position. By working together, we can achieve benefits of scale that make us even stronger.”

The collaboration is expected to facilitate cost efficiencies, new market opportunities, and the ability to provide additional resources for specialized programs, industry insights, and technology to meet the diverse needs of all segments of agriculture.

“Continual improvement is vital to the long-term success of any farm or ranch,” said Shane Tiffany, chair of the Frontier Farm Credit Board. “Our financial cooperatives are no different. As agriculture gets more complicated and our risks and costs as producers increase, we need to know we can count on our lender. This collaboration better positions us for the future.”

Together, these three Farm Credit Associations serve more than 85,000 producers across Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming. At 2022 year-end, AgCountry reported  loan volume of $11.6 billion, Frontier Farm Credit, $2.6 billion, and FCSAmerica, $38.3 billion.

“There are many examples of successful collaborations in the Farm Credit System,” said Nick Jorgensen, chair of the FCSAmerica Board. “This one is unique in allowing each Association to share functions where it makes sense, yet retain the local experience we all have come to value from our individual cooperatives and financial teams.”

Shareholders of the three Associations will receive additional information regarding this collaboration.  

About the Collaborating Associations
As part of the Farm Credit network of cooperatives, the three Associations provide credit, risk management and/or financial services to their customers.

AgCountry is headquartered in Fargo, North Dakota, and serves 25,000 farmers, ranchers, and agribusinesses in portions of Minnesota, North Dakota, and Wisconsin.

Frontier Farm Credit serves 6,700 producers in eastern Kansas, where it has headquarters in Manhattan.

FCSAmerica, headquartered in Omaha, Nebraska, serves 55,000 producers in Iowa, Nebraska, South Dakota and Wyoming.

Combined, the collaborating Associations have nearly $60 billion in assets: AgCountry, $13 billion; Frontier Farm Credit, $2.8 billion; and FCSAmerica, $43.3 billion.



NEBRASKA REGIONAL SWINE PRODUCER MEETINGS

The Nebraska Pork Producers are hosting a series of producer meetings across eastern Nebraska in the months of January, February and March.... Here are the dates and locations:
JAN 16th – Hartington Golf Course, Hartington
FEB 13th – Nielson Event Center, West Point
FEB 27th – 1888 Tavern, Lindsey
MAR 12th – Valentino’s, Beatrice

Agenda:
6:00 pm – Arrival and Socialize
6:30 pm – Supper
6:45 Meeting

Topics
Danish Swine Industry Tour – Steve Hoefer
NE Livestock Modernization Updates and State Tax Advantages – Al Juhnke
Impact of NPPC and National Pork Board Efforts on your bottom line-Steve Hoefer
Updates on Swine Health – Area Swine Veterinarians
New Traceability Standards – How it will impact your business – Steve Hoefer
Swine Research – UNL

They have put together a solid evening of impactful information that pertains to your pork operation.  Please come and join for supper and an informative evening.  They really want to stress areas of interest that bring value to statewide producers.  

INTERESTED??  PLEASE EMAIL OR CALL STEVE HOEFER A WEEK PRIOR TO THE SPECIFIC MEETING LOCATION YOU PLAN TO ATTEND, SO I CAN HAVE A MEAL COUNT..... EMAIL Steve@nepork.org, or CALL 402-239-1749 (cell).  



Statement from CBP on Operational Changes and Resumption of Rail Operations in Eagle Pass and El Paso

“To meet the challenge we are currently seeing across the southwest border, U.S. Customs & Border Patrol is continuing to use all available resources to ensure the safety and security of our agents and officers, and the migrants who are often misled and victimized by transnational criminal organizations. After observing a recent shift in the trends of smuggling organizations moving migrants through Mexico, CBP took additional actions to surge personnel and address this concerning development, including in partnership with Mexican authorities. The Office of Field Operations has re-directed personnel and resources in order to support the U.S. Border Patrol as well as perform its critical functions including the security and facilitation of lawful trade and travel.

“Beginning December 22, 2023 at 2:00 pm Eastern, CBP’s Office of Field Operations will resume operations at the international railway crossing bridges in Eagle Pass and El Paso, Texas.

“CBP will continue to prioritize our border security mission as necessary in response to this evolving situation. We continue to assess security situations, adjust our operational plans, and deploy resources to maximize enforcement efforts against those noncitizens who do not use lawful pathways or processes such as CBP One™ and those without a legal basis to remain in the United States.



Gov. Pillen Commends Sec. Mayorkas for Swiftly Answering the Request to Resume Rail Operations at the Southern Border

Today, Governor Jim Pillen issued a statement following a personal phone call with the Secretary of Homeland Security Alejandro Mayorkas, in which the Secretary indicated that railway crossings and rail operations will resume at the southern border, effective immediately.

“I am grateful Sec. Mayorkas took the time to hear Nebraska’s concerns and issued a quick response, before we suffered the consequences of suspending rail operations,” said Gov. Pillen. “As a country, we must work together to solve the crisis at the southern border, however, we cannot solve it by suspending essential transportation operations. This action would have implications to trade agreements and cause negative impacts to our economy. I look forward to continuing to work with federal partners to ensure decisions made do not adversely affect Nebraska.”

Earlier this week, Gov. Pillen requested a call with Sec. Mayorkas to express concerns with the rail closure. The Governor stressed how this action would adversely impact Nebraska-based rail operations and the trade of agriculture products with Mexico. He is grateful for Sec. Mayorkas’s willingness to promptly meet and his quick response to the request to reopen U.S. – Mexico rail crossings.



Statement from Mark McHargue, President, Regarding Reopening of Rail Crossings at Southern Border

"Today's announced reopening of the rail border crossings at El Paso and Eagle Pass, Texas is certainly welcomed news. At the same time, the loss of millions of dollars in economic activity due to the crisis at our southern border should serve as a wake-up call to those currently in negotiations to address this longstanding problem. Our nation's border security, immigration, and labor policies are in desperate need of reform, and it is high time for leaders in both parties to address these critical issues. In the future, we call upon the Biden administration to allocate the resources necessary to secure our nation's southern border before costing our nation's agricultural and overall economy millions of dollars. We want to thank Nebraska's Congressional Delegation for their tireless work in reopening these vital crossings."



Ricketts on CBP Resuming Rail Operations at Southern Border

Today, U.S. Senator Pete Ricketts (R-NE) released the following statement on the news that Customs and Border Protection (CPB) would reopen rail crossings at Eagle Pass and El Paso, Texas:

“It’s good news that the rail border crossings are open, but they never would have been closed if President Biden would have taken our border crisis seriously. Joe Biden must change his policies to prevent the flood of illegal immigrants coming into our country. Mexico also needs to do its part by enforcing its immigration laws and preventing thousands of illegal immigrants from riding Ferromex trains to our border.”

“Americans understand that real policy changes are the only way to bring this unprecedented crisis under control. It’s past time for President Biden to get serious.”



Mike Steenhoek, Executive Director, Soy Transportation Coalition

We certainly welcome this development.  Agricultural and other stakeholders quickly responded to the announced closures by highlighting the severe consequences to our industry and the broader economy.  That message clearly appears to have resonated.  In addition to “quality,” one of the other components of U.S. agriculture’s brand is “reliability.”  In order to maintain that reputation, we need to have a supply chain, including railroad border crossings, that can effectively connect farmers with international customers.  We appreciate that the border closure was not extended any further as that would have only served to encourage our Mexican customers to explore other sources of supply while imposing further hardship on farmers and agricultural exporters.



NCGA Expresses Relief Over Rail Crossing Re-Opening, Emphasizes Need to Avoid Similar Situations in Future

The U.S. Customs and Border Protection announced today that it will reopen the Eagle Pass and El Paso rail crossings into Mexico. The announcement pleased leaders at the National Corn Growers Association (NCGA), who cautioned the agency against making similar decisions in the future.
 
“This is certainly a welcome relief,” said NCGA President Harold Wolle. “We are very appreciative that CBP was responsive to our calls to have the border crossings re-opened, but we hope this experience serves as a cautionary tale moving forward. Rail is a key mode of transportation for our exports into Mexico, so closing rail crossings can have devastating ramifications for farmers and the economy.”
 
The two rail crossings along the Texas border towns were closed on December 18 by the U.S. Customs and Border Protection as part of an effort to prevent migrants from entering the country illegally. Twenty-five percent of U.S. corn exports into Mexico go through El Paso and Eagle Pass.
 
On Thursday, the National Corn Growers Association joined other national ag groups in sending a letter to Homeland Security Secretary Alejandro Mayorkas calling for him to quickly reopen the rail crossings.



NGFA and NAEGA pleased with reopening of rail corridors at Eagle Pass and El Paso

The National Grain and Feed Association (NGFA) and the North America Export Grain Association (NAEGA) issued the following statement in response to the U.S. Customs and Border Patrol’s (CBP) reopening of international rail crossings at Eagle Pass and El Paso, Texas.

“The NGFA and NAEGA are pleased to see the reopening of the Eagle Pass and El Paso, Texas railroad crossings to allow for the immediate passage of trains between the United States and Mexico. The North American agricultural supply chain is deeply integrated. Any closure of crossings into Mexico is unacceptable and significantly impacts the flow of grain and oilseeds for both human and livestock feed to one of the United States’ most important export markets and trading partners.

“We call on the governments of the United States and Mexico to continue to dialogue and to put in place measures on both sides of the border to ensure this does not happen again. The free flow of trade across the border is critical to food security for our countries and the region at large. A plan must be in place to keep the border open to commerce between our nations.

“NGFA and NAEGA are particularly appreciative of USDA Secretary Tom Vilsack and members of Congress on both sides of the aisle for their unwavering support and tireless efforts to convince the Department of Homeland Security and CBP of the importance of reopening these crossings to agriculture trade between the United States and Mexico.”



Growth Energy Welcomes CBP Plan to Reopen Texas Rail Crossings

Growth Energy CEO Emily Skor issued the following statement after U.S. Customs and Border Protection (CBP) announced that it would reopen two rail crossings in Eagle Pass and El Paso, Texas:

“We’re grateful to CBP for listening to the chorus of industry voices calling for a better approach, and we’re grateful to our biofuels champions on the Hill who delivered our message and helped find a solution to this urgent issue. The bioethanol industry and its farm partners can rest easy knowing that their goods can again flow freely to one of our most important export markets.”



USDA Cold Storage November 2023 Highlights

Total red meat supplies in freezers on November 30, 2023 were down 2 percent from the previous month and down 11 percent from last year. Total pounds of beef in freezers were up 2 percent from the previous month but down 13 percent from last year. Frozen pork supplies were down 5 percent from the previous month and down 8 percent from last year. Stocks of pork bellies were up 67 percent from last month but down 14 percent from last year.

Total frozen poultry supplies on November 30, 2023 were down 8 percent from the previous month but up 3 percent from a year ago. Total stocks of chicken were up 3 percent from the previous month but down 3 percent from last year. Total pounds of turkey in freezers were down 37 percent from last month but up 44 percent from November 30, 2022.

Total natural cheese stocks in refrigerated warehouses on November 30, 2023 were down 2 percent from the previous month but up slightly from November 30, 2022. Butter stocks were down 10 percent from last month but up 8 percent from a year ago.

Total frozen fruit stocks on November 30, 2023 were down 6 percent from last month but up 7 percent from a year ago. Total frozen vegetable stocks were down 3 percent from last month but up 1 percent from a year ago.



College Students Eligible to Apply for 2024 ASA, Valent Ag Voices of the Future Program

The American Soybean Association is now accepting applications for the Valent Ag Voices of the Future program, which will be held July 15-18, 2024, in conjunction with the summer ASA board meeting and Soy Issues Forum in Washington, D.C. The Ag Voices of the Future program is for students interested in improving their understanding of major agricultural policy issues and the importance of advocacy, along with those who wish to improve their understanding of various agriculture policy career paths. Class size is limited, and students must be at least 18 years old on or by July 15 to apply.

Bonus Opportunity through Agriculture Future of America
Through an ASA and Valent partnership with collegiate organization Agriculture Future of America, two students from the 2024 Ag Voices of the Future program will be considered for a complimentary registration, hotel stay, and travel allowance for the AFA Leaders Conference, November 7-10, 2024.

To apply for the Ag Voices of the Future program and be considered for an AFA Leaders Conference scholarship, students should visit the Ag Voices of the Future section of the ASA website and follow the link to the AFA website to submit their application by March 6. To be considered for the Ag Voices of the Future program, applicants should check the box that reads “I have an interest in agriculture policy and would like to be considered for the ASA and Valent Ag Voices of the Future Program.”

Questions regarding the application process may be directed to Maria Brockamp, mbrockamp@soy.org. All other inquiries regarding the Ag Voices of the Future program may be directed to Michelle Hummel, mhummel@soy.org.



USDA Highlights 2023 Successes in Serving Farmers, Families and Communities

The U.S. Department of Agriculture (USDA) is marking the end of 2023 by highlighting on-the-ground projects and partnerships that are building economic prosperity for farmers, families, and communities nationwide. Thanks to President Biden’s Investing in America agenda – and its record investments in rural America – USDA has been able to help tens of thousands of farmers continue their operations and increase their revenue, connected rural communities to internet access, advanced efforts to mitigate climate change, made investments that give small businesses a leg up, lowered energy costs and costs for consumers, and more.

“For too long, America’s agricultural policies have encouraged farmers to get big or get out, and this in turn has weakened the communities whose local economies are tied to small and mid-sized farms. We’re starting to see the impact of a new way of approaching policies and programs that are better designed for the real needs of rural communities—and the results are promising,” said Agriculture Secretary Tom Vilsack. “Over the course of the Biden-Harris Administration, USDA has pushed forward with efforts to create revenue-expanding new markets for farmers, help them find opportunity while simultaneously addressing climate change, and build stronger infrastructure that leads to more prosperous farms and communities. In 2023, we saw these changes begin to take hold in tangible ways, which puts extra momentum behind the work we’ll carry out in 2024.”

In 2023, USDA has undertaken historic efforts to strengthen the agricultural economy and rural communities. Some of these initiatives and results include:

Support to Keep Farmers Farming
As of December 2023, USDA has helped more than 30,000 farmers and ranchers who were in financial distress stay on their farms and farming, thanks to resources provided through Section 22006 of the Inflation Reduction Act. The Inflation Reduction Act allocated $3.1 billion for USDA to provide relief for distressed borrowers with certain direct and guaranteed loans, and to expedite assistance for those whose agricultural operations are at financial risk due to factors outside their control, such as the COVID-19 pandemic. Since the law was signed in August 2022, USDA’s Farm Service Agency (FSA) has provided approximately $1.7 billion and counting in immediate assistance.

At the same time, USDA has greatly improved its loan application processes to better serve farmers, in part through lessons learned from Section 22006 implementation. For example, USDA has streamlined FSA loan applications from 29 pages to 13, dramatically reducing the amount of time it takes to apply for a loan and making the process less onerous. In addition, earlier this month USDA announced an online, interactive, guided application that can simplify the direct loan process for the more than 26,000 customers who apply each year and make it more accessible for those in remote areas or who may not have time to leave their operations and visit an FSA office.

In 2023, the Risk Management Agency (RMA) helped provide the largest farm safety net in history, a record $207 billion in protection for American agriculture. At the same time, the agency continued to introduce new programs to support specialty crops, livestock, controlled environment, and shellfish producers. Additionally, RMA invested over $6.5 million dollars in cooperative agreements and partnerships to help educate undeserved producers and to create workforce opportunities for underrepresented voices in the crop insurance sector.

Connecting Rural Communities
Through the ReConnect Program, USDA has made historic investments to close the digital divide in rural America, so that more Americans can take full advantage of the opportunities provided by internet access.

In 2023, USDA awarded more than $1.8 billion for 96 projects that will help more than 250,000 people in rural communities access affordable, high-speed internet. These projects will benefit over 11,000 farms, 7,300 rural businesses and nearly 500 educational facilities, helping them access the critical resources they need to thrive in the digital age.

The vast majority of these awards were thanks to President Biden’s Bipartisan Infrastructure Law (BIL), which provided funding for 89 projects totaling $1.73 billion. Through BIL funding , the ReConnect Program is helping to connect over 300,000 rural Americans in total.

Record Enrollment in Conservation and Clean Energy Programs
Through the Inflation Reduction Act, USDA has enrolled more farmers and more acres in voluntary conservation programs than at any point in history, following a backlog that has existed for years. In 2023, USDA enrolled nearly 5,300 additional producers in Natural Resources Conservation Service (NRCS) conservation programs across all 50 states. The Inflation Reduction Act provided $19.5 billion over 5 years for popular conservation programs, including the Agricultural Conservation Easement Program (ACEP), the Conservation Stewardship Program (CSP), the Environmental Quality Incentives Program (EQIP), and the Regional Conservation Partnership Program (RCPP).

Since 2021, USDA has seen a significant increase in enrollment and interest in its Conversation Reserve Program, which is a critical part of the Department’s efforts to support climate-smart agriculture and forestry on working lands. In October, USDA announced it issued more than $1.77 billion to 667,000 agricultural producers and landowners for 23 million acres of private land enrolled in CRP.

Through the Rural Energy for America Program (REAP), USDA in 2023 made 2,059 investments totaling over $362 million to help farmers and rural small businesses access renewable energy systems—like solar panels and anaerobic digesters—that lower energy costs, generate new income, and strengthen the resiliency of their operations. Since its creation, REAP has consistently received more interest than funding available. Thanks to the Inflation Reduction Act, which funded 1,950 of this year’s total REAP investments, USDA is helping more agricultural operations and rural small businesses access renewable energy systems and save money on energy costs.

Protecting Communities from Wildfire and Increasing Tree Canopy
In Fiscal Year 2023, USDA’s Forest Service met and exceeded key milestones in addressing the wildfire crisis, restoring national forests and supporting rural communities. These benchmarks included treating 4.3 million acres of national forest system lands to reduce wildfire risk and 1.9 million acres of national forest land with prescribed fire – both were agency records and were enabled through strong partnerships with Tribes, state and local governments, conservation groups, industry and other important stakeholders. Also, the first round of Community Wildfire Defense Grant Awards was announced – investing $197 million in 100 projects in 22 states and seven tribes that were impacted or threatened by wildfires. The Bipartisan Infrastructure Law provided $1 billion for this program over 5 years. The second round of awards will be announced in 2024.

In addition to their ongoing efforts to protect communities and natural resources from the devastating impacts of wildfire, the Forest Service has also invested in the well-being and climate resilience of urban communities. USDA in September announced more than $1 billion to plant and maintain trees, combat extreme heat and climate change, and improve access to nature in cities, towns, and suburbs. Located in all 50 states, the 385 selected projects increase equitable access to trees and nature, and the benefits they provide for cooling city streets, improving air quality, and promoting food security, public health and safety.

Increased Support for Small Businesses Through USDA Food Purchases
To support nutrition programs, including school meal programs and emergency food providers such as food banks and food pantries, USDA procures foods and products from vendors nationwide. In Fiscal Year 2023, 63 percent of USDA’s purchases for domestic nutrition programs came from small business, which the Small Business Administration defines as having fewer than 500 employees. This is an increase of 8 percent over Fiscal Year 2022 and shows that USDA’s efforts to diversify its procurement contracts is taking hold. With this increase, USDA is creating more opportunities to bolster rural communities, support small businesses, and connect small and mid-sized farmers to new markets.

Reducing Hunger and Promoting Health
Through its suite of federal nutrition assistance programs, USDA reached 1 in 4 Americans with healthy food, nutrition education, and other resources, from rural areas to cities and towns across the country. In 2023, USDA expanded access to school breakfast and lunch to students in an estimated 3,000 more school districts in high-need areas; provided greater convenience and access to healthy food options to tens of millions of Americans by expanding online purchasing in the Supplemental Nutrition Assistance Program (SNAP) to all 50 states and the District of Columbia; and partnered with states and territories to feed children over the summer through new summer meal service options in rural communities, such as grab-n-go or delivery. USDA also invested nearly $30 million to support school meal improvements in 264 small and rural communities—the largest targeted investment USDA has ever made for school meal programs in small and rural communities.

Leveling the Playing Field for Producers
Consistent with President Biden's Executive Order on Promoting Competition in America’s Economy, USDA in 2023 continued its comprehensive approach to increase competition in agricultural markets, create a fairer playing field for small- and mid-size farmers, and help increase choices and lower costs for consumers.

In 2023, USDA invested millions to increase capacity in the meat and poultry processing industry, which strengthens regional and local food systems and provides producers more options to market their products. In total, the Biden-Harris Administration has awarded nearly $500 million in loans and grants to help over 300 businesses expand their operations.

For example, USDA awarded $98 million in grants to 36 independent processors through the Meat and Poultry Processing Expansion Program (MPPEP) in 2023. USDA also partnered with 29 lenders in 2023 to invest another $190 million to help independent meat and poultry processors start and expand businesses under the Meat and Poultry Intermediary Lending Program (MPILP).

USDA also made headway on strengthening enforcement under the Packers and Stockyards Act, finalizing a rule in November to improve transparency for farmers who have contracts with major poultry processors. This rule helps contract broiler chicken growers compete more effectively and guard against deceptive practices in their relationships with major processing companies. This is the first in a series of rules under the Packers and Stockyards Act USDA that is working to finalize. Additionally, USDA advanced other efforts to enhance competition in agricultural markets, including by standing up a Cattle Contract Library pilot program, forming a new partnership with more than 30 bipartisan State Attorneys General to address anti-competitive practices raising prices and reducing choices in food and grocery markets, piloting a new Farmer Seed Liaison Initiative, and furthering its enforcement partnership with the U.S. Department of Justice. USDA also proposed a rule to help consumers know what they’re getting when they buy meat or poultry labeled “Product of USA” or “Made in the USA.”

Underpinning all of this, U.S. agricultural producers continued a three-year streak of record farm income and three years of record agricultural exports. The last three years of cumulative farm income are the best in 50 years. USDA and the Biden-Harris Administration continue to take on initiatives to grow and diversify U.S. export markets, for example through the recently created Regional Agricultural Promotion Program, to maintain this momentum as much as possible in the years to come.