BOONE, Iowa, Aug. 30, 2012-Agriculture Secretary Tom Vilsack today announced
more than $18 million in grants to organizations across 24 states that will
help beginning farmers and ranchers with the training and resources needed to
run productive, sustainable farms. Under the Secretary's leadership since 2009,
the U.S. Department of Agriculture (USDA) has driven a number of efforts meant
to spur interest in agriculture and provide the necessary support to young,
beginning and socially-disadvantaged producers. At the Farm Progress Show today
in Boone, Iowa, Vilsack said investing in beginning farmers, ranchers and
producers is not only a smart investment, but one that is vital to our nation's
national and economic security.
"In the past few decades, U.S. agriculture has become the second most
productive sector of the American economy thanks to farmers adopting
technology, reducing debt, and effectively managing risk," said Vilsack.
"Last year, America's farmers, ranchers and producers achieved record farm
income and record exports. To protect and sustain these
successes, we must continue to build an agriculture industry diverse and
successful enough to attract the smartest, hardest-working people in the
nation. These grants will help beginning farmers and ranchers overcome the
unique challenges they face and gain knowledge and skills that will help them
become profitable and sustainable."
USDA's National Institute of Food and Agriculture (NIFA) awarded the grants
through its Beginning Farmer and Rancher Development Program (BFRDP)
established through the 2008 Farm Bill. In his June 30, 2010 testimony before
the Senate Committee on Agriculture, Nutrition & Forestry, the Secretary
reminded Congress of the need to attract thousands of new producers in the
coming years as American farmers and ranchers continue to age. Vilsack urged
members of Congress to address this critical need when drafting a 2012 Food,
Farm and Jobs bill. That legislation remains unfinished, while the current Farm
Bill is set to expire on Sept. 30, 2012.
USDA makes BFRDP grants to organizations that implement education, training,
technical assistance and outreach programs to help beginning farmers and
ranchers, specifically those who have been farming or ranching for 10 years or
fewer. At least 25 percent of the program's funding supports the needs of
limited resource and socially disadvantaged farmers and ranchers, as well as
farm workers who want to get a start in farming and ranching.
In the first year of USDA's Beginning Farmer and Rancher Development
Program, three-year grants supported training for 5,000 beginning farmers and
ranchers. In 2011, grants supported training for more than 38,000. For example,
the Appalachian Sustainable Agricultural Project in Western North Carolina has
directly assisted 865 farmers across 20 rural counties. Of the total
participants, 46 percent were women. In addition, a group of seven
organizations is working in rural communities in Arkansas and Oklahoma to
educate, train, and foster mentorships for a variety of target groups,
including military veterans. In the first year, the project created 32
mentorship opportunities and completed 12 internships with experienced farmers.
BFRDP will provide $18 million in funding this year, the fourth year of the
program. Future funding is dependent on congressional reauthorization. For more
information on the BFRDP program, and for a list of fiscal year 2012 awards,
visit www.nifa.usda.gov.
Beginning farmers, by USDA definition, are individuals with 10 years or less
experience operating farms. Beginning farmers are in all age ranges, racial and
ethnic groups, and both male and female. Currently, 30 percent of principal
operators of farms are 65 years old or more, while the average age of U.S.
farmers has climbed from 54 in 1997 to 57 in 2007. Research by USDA's Economic
Research Service (ERS) finds that the two most common and important challenges
faced by beginning farmers are (1) having the market opportunity to buy or rent
suitable land and (2) having capital to acquire land of a large enough scale to
be profitable.
BFRDP is just one tool to address these challenges, along with greater
access to credit including a
new microloan program, a new land contract guarantee
program, risk management education for
beginning and socially disadvantaged producers, and new online resources such
as www.start2farm.gov and the Know
Your Farmer Compass.
Since 2009, USDA has provided 128,000 loans to family farmers totaling more
than $18 billion. Between 2009-2011, the number of loans to beginning farmers
and ranchers climbed from 11,000 to 15,000. More than 40 percent of USDA's farm
loans now go to beginning farmers, while over 50 percent of loans went to
beginning and socially disadvantaged farmers and ranchers during the same time.
With expanded access to credit, USDA is helping a new generation of farmers
sustain and build upon what is now the most productive period in history for
American agriculture. To that end, in May the Secretary proposed a new
microloan program to help small and family operations progress through their
start-up years with needed resources, while building capacity, increasing
equity, and eventually graduating to commercial credit. The microloan proposal
allows producers to apply for loans of less than $35,000 using simplified and
streamlined procedures. The goal of the microloan program is to better meet the
credit needs of small farm operations while making more effective use of FSA
resources.
The Land Contract Guarantee Program provides a valuable tool to transfer
farm real estate to the next generation of farmers. Guarantees will be offered
to the owner of a farm who wishes to sell real estate through a land contract
to a beginning farmer or a farmer who is a member of a socially disadvantaged
group. In January, the Secretary expanded the Land Contract Guarantee Program
from six states to all 50 states.
USDA's Risk Management Agency supports crop insurance education and outreach
in 47 states to beginning, small, and historically underserved farmers and
ranchers. From October 2010 through September 2011, a total of 77,000 farmers
and ranchers attended educational sessions or were reached by direct mailing
with educational information.
#30
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