Ag Industry Reacts to USDA’s New Rules for $3.1 Billion Climate-Smart Program
With a new set of regulations, USDA renamed the Partnerships for Climate-Smart Commodities (PCSC) program the Advancing Markets for Producers (AMP) initiative and announced its cancellation on April 14.
More than 130 projects were part of the $3.1 billion PCSC program, which was launched under the Biden administration and aimed to persuade farmers to use conservation techniques in order to produce climate-smart commodities. While the Trump administration examined PCSC, funding was suspended.
“After a detailed line-by-line analysis of each of these Biden era partnerships, it became evident that the majority of these projects had extremely high administration fees, which in many cases provided less than half of the federal funding directly to farmers,” the USDA stated in a press release. If it can be shown that farmers will receive a sizable portion of the federal funds granted, some projects might be allowed to continue.
Existing grant agreements will be reviewed based on these priorities, according to the USDA:
- > A minimum of 65% of federal funds must go to producers.
- > Grant recipients must have enrolled at least one producer as of Dec. 31, 2024.
- > Grant recipients must have made a payment to at least one producer as of Dec. 31, 2024.
A few projects have already received approval to proceed. In addition to leading the Advancing U.S. Pork Sustainability and Market Value Grant, the National Pork Board (NPB) is active in a number of PCSC initiatives. NPB will give more information in the days ahead, but they have confirmed that USDA has approved them to proceed with that project.
To get their response, Successful Farming contacted several organisations that were involved in PCSC projects. These are listed below, along with the American Farm Bureau Federation’s responses. At this time, a number of organisations chose not to comment.
National Pork Board (NPB)
The National Pork Board supports U.S. pig farmers through research, education, and promotion.
PCSC Projects
Lead on: Advancing U.S. Pork Sustainability and Market Value Grant
Partners in: Farmers for Soil Health Climate-Smart Commodities Partnership and Connected Ag Climate-Smart Commodities Pilot Project.
According to Jamie Burr, NPB’s chief sustainability officer, “The NPB recognises the AMP initiative because it prioritises farmers and ranchers by directly supplying financial resources and focussing on the adoption of on-farm practices.” The six We Care Ethical Principles that pig farmers have developed give them a foundation, and their alignment with USDA programming gives them more chances to act in ways that benefit pigs, people, and the environment. Being chosen to continue with AMP is an honour.
Iowa Soybean Association (ISA)
The ISA delivers increased soybean demand through market development and new uses, farmer-focused research, timely information, and know-how and policy initiatives.
PCSC Projects
Lead on: Midwest Climate-Smart Commodity Program
Partners in: Horizon II: A Climate-Smart Future for Corn, Soybean, Livestock, and Renewable Natural Gas Production
“We are still having fruitful discussions with the administration and elected officials regarding the significance of the Midwest Climate-Smart Commodity Program and meeting our five-year agreement commitments,” said Spencer farmer and ISA president Brent Swart. “One of the most successful and efficient public-private partnerships has been our program. Almost 120% of total funds, which is significantly more than the 65% threshold, go directly to farmers when our matching private-sector funding is taken into consideration. We are eager to amend the contract to include the new clauses that the administration has specified.
Illinois Corn Growers Association (ICGA)
Representing the interests of Illinois corn farmers, ICGA is a state-based organisation that keeps a close eye on issues in Springfield, Illinois, and Washington, D.C.
PCSC Projects
Partners in: The Climate-Smart Agriculture Innovative Finance Initiative
ICGA’s director of precision conservation management, Greg Goodwin, stated, “We’re approaching this change with cautious optimism.” “We think our farmer members are in a good position to fulfil the administration’s new requirements. We think our work qualifies and that we will continue to contribute to the solution going forward, even though the process now calls for us to reapply and align with updated priorities.
Maine Organic Farmers and Gardeners Association (MOFGA)
MOFGA is a diverse community that promotes an organic future, helps farmers, and gives people the tools they need to feed their communities.
PCSC Projects
Partners in: Climate-Smart Farming and Marketing: Engaging in Community-Science and Practice from Maine to South Carolina
Sarah Alexander, executive director of MOFGA, stated, “This program created new opportunities for farmers to employ cutting-edge technology and cultivation techniques and diversify their businesses.” “Maine farmers will lose more than $2 million in investments as a result of the program’s cuts, which will help them create more resilient operations in the face of growing storm and pest pressure and guarantee that their land and soil remain productive for future generations.
Over the past year, 27 farms have already been enrolled in the program by MOFGA and Maine Farmland Trust, and 37 more have applied. For these farms, which were investing heavily in their farm viability, the program’s cancellation is devastating.
“We implore the team led by Secretary Rollins and our congressional leaders to reinstate federal funding for agricultural enterprises throughout rural America. Maintaining a robust domestic food system that can support our economy and ensure that there is food on our tables during any future storms or market disruptions is in everyone’s best interests.
American Farm Bureau Federation (AFBF)
The national organisation for farmers, ranchers, and rural communities is called AFBF. Members of the Farm Bureau gather annually in over 2,800 counties to debate and vote on policies that impact their communities, farms, and ranches.
According to Sam Kieffer, AFBF’s vice president of public policy, “Farm Bureau has long supported the goals of voluntary, market-driven programs that support America’s farmers and ranchers while protecting the natural resources they’ve been entrusted with.” “We will evaluate how these changes will affect growers, as we have only recently learnt of USDA’s decision.
“We appreciate that the administration is committed to supporting farmers and ranchers and meeting their needs. Additionally, we urge USDA to uphold existing agreements in which farmers and farmer-led organisations may have already invested and paid for goods or services with the understanding that this grant program would reimburse them.
National Sustainable Agriculture Coalition (NSAC)
In order to support the long-term social, economic, and environmental sustainability of agriculture, natural resources, and rural communities, the NSAC promotes changes to federal policy. The NSAC is composed of more than 100 member organisations.
“Today’s announcement, especially for the farmers who have advocated for the program, is a significant and welcome step towards the clarity that farmers, ranchers, and the organisations that support them have sorely needed after months of self-inflicted uncertainty,” said Mike Lavender, NSAC Policy Director. “Unfortunately, USDA’s decision to change program requirements and cancel projects mid-stream will also cause needless hardship for farmer serving organisations and probably farmers across the country as a result of this clarity.”
“For many farmers and ranchers looking to implement new practices in their operations, a strong cost share can make all the difference, and direct producer payments are important,” said Richa Patel, NSAC Policy Specialist. The administration’s decision to forgo funding for other beneficial aspects of PCSC projects, such as technical assistance for producers creating, putting into place, and maintaining conservation systems, is disheartening, though. The administration must seize every chance moving forward to expand access to technical assistance and support the staffing levels required to deliver effective and reliable customer service for our farmers, both those working directly with USDA and those working with the farmer-serving organisations it partners with, in conjunction with this announcement and USDA’s reductions in force.
