29. United States
Support to agricultural producers in the United States declined in 2022 as temporary payment programmes connected to the COVID-19 pandemic wound down. Support has been below the OECD average for many years, and producer support averaged 9% of gross receipts in 2020-22, well below the 20% of the mid-1980s and early 2000s. Policy reforms beginning in the 1980s progressively reduced the level of support and the prominence of price-based supports in the policy mix. The share of potentially most-distorting transfers was 15% in 2020-22, also below the OECD average and well below peak values. Prices received by farmers in 2020-22 were on average only 1% higher than in world markets, compared to 11% in 2000-02. This gap is mainly due to market price support (MPS) from border protections (including tariff rate quotas) for sugar. Producer prices of most commodities align with border prices, and the value of budgetary transfers directed at specific commodities is usually less than 10% of their gross farm receipts.
While MPS has declined, budgetary support has increased, covering mainly risk-management, crop insurance, and more recently, emergency compensation payments. The counter-cyclical nature of budgetary support links it to market price developments such that periods of high commodity prices (as in 2012-13) see lower levels of support. Domestic commodity prices have risen again in recent years, lowering overall support despite additional spending on disaster-relief programmes related to drought and other exceptional events.
US domestic food-assistance programmes that support consumers account for nearly half of total U.S. support to agriculture. Expenditures for general services (General Service Support Estimate, GSSE) equalled 2.6% of the value of production in 2020-22, below the OECD average of 3.4%, with the largest component (30%) related to institutional infrastructure for crop insurance. Agricultural knowledge transfer and marketing and promotion are the next largest components. Total support to agriculture was 0.5% of Gross Domestic Product (GDP).
Two temporary programmes were launched in 2022 to compensate for losses incurred from natural disasters in 2020 and 2021. The Emergency Livestock Relief Program (ELRP) Phase One provided additional early relief payments to ranchers because of increases in feed costs in 2021. The Emergency Relief Program (ERP) covered losses due to qualifying natural disasters in 2020 and 2021.
The Partnerships for Climate-Smart Commodities initiative launched in 2022, providing USD 3.1 billion for 141 pilot projects to help producers implement climate-smart production practices, verify greenhouse-gas (GHG) reduction benefits, and expand markets for resulting climate-smart commodities.
Various US Department of Agriculture (USDA) conservation programmes – including the Environmental Quality Incentives Program (EQIP), Regional Conservation Partnership Program (RCPP), Conservation Stewardship Program (CSP), Agricultural Conservation Easement Program (ACEP), and the Conservation Technical Assistance (CTA) Program – received substantial funding infusions with the passage of the Inflation Reduction Act (IRA), which provided approximately USD 20 billion in new spending over ten years, designated to support adoption of specific practices with climate benefits in these programmes.
Additional measures were launched in 2022 to improve equity for underserved communities, including investments in Equity Conservation Cooperative Agreements, funding outreach and assistance programmes with money appropriated in the American Rescue Plan Act of 2021 (P.L. 117-2), and the release of the USDA Equity Action Plan.1
The Consolidated Appropriations Act (CAA) 2023 was signed into law in December 2022. It authorises funding for new ad hoc disaster-assistance and a programme to facilitate voluntary environmental markets, allowing more private funding for public-private partnerships to address specific climate or environmental priorities, and reauthorising the Pesticide Registration Improvement Act.
Climate-change adaptation policies are well-developed and comprehensive. They cover a spectrum of activities, including forecasting, preparedness, recovery, and changes in practices. Climate change adaptation is being integrated into research and development efforts, and activities are underway to translate that information for farmers and ranchers who need to deal with weather emergencies and a changing climate. Prioritisation of climate adaptation should continue to ensure mainstreaming of climate risk and adaptation in all USDA programmes.
USDA Climate Hubs are good examples of how decision-making and information tools can be tailored to the needs of the sector according to region and natural hazard. The hubs can integrate consideration of climate change impacts into farm programmes by raising stakeholders’ awareness and providing analytical support.
Several layers of risk-management programming are available to farmers – some general and some for specific commodities. Longstanding federal crop insurance exists alongside temporary disaster programmes that were deployed in response to the COVID-19 pandemic, value-chain disruptions, and drought. While risk-management is an important component of climate-adaptation policy and resilience, too-strong an emphasis on protecting farmers from revenue declines (the absorption capacity) can slow long-term adaptation and transformation of production practices. More attention should thus go to ensuring subsidy rates and other relevant programme parameters do not create a guaranteed return or income stream on the producer’s premium, and that insurance and disaster programmes provide appropriate incentives for preparedness and long-term adaptation.
Policies to improve services to historically underserved or vulnerable communities and improve equity in programme delivery have continued to expand since their introduction. Focussing on the needs of underserved or vulnerable communities can increase the resilience and diversity of the farming community and improve environmental justice. These efforts should be mainstreamed into agricultural policy by systematically evaluating and improving the way all agricultural programmes affect equity and diversity in the farm sector.
Sugar is the only US commodity in the Producer Support Estimate (PSE) that receives MPS. At about 43% of revenue, the amount is significant. Current in-quota tariff allocation of raw sugar to trading partners is based on a 1975-81 reference period. This allocation should be revised and gradually increased to provide improved opportunities for countries in development to trade with the United States.
Increased funding to conservation programmes provided under the IRA is an important step in orienting support towards environmental objectives, including for climate-change mitigation and adaptation. Given the high demand for participation in these programmes, future farm bills should maintain this funding level after the end of IRA spending. The increased funding should pay careful attention to ensuring environmental additionality, where actions by producers are relevant to local environmental concerns and deliver verifiable improvements. Reallocating spending currently directed at commodity programmes is a budget-neutral way to do this.
While aggregate environmental performance (measured by nitrogen and phosphorus balances) is in line with the OECD average, local hotspots of pollution remain problematic despite federal and state programmes to encourage best management practices. Solutions will require a willingness to experiment with new options and co-ordination between regions when the sources and impacts of pollution emissions cross political boundaries.
Overview of policy trends
The US Congress passes legislation that sets national agriculture, nutrition, conservation, and forestry policy, commonly referred to as the “Farm Bill”. The Farm Bill is an omnibus bill that is renewed on a regular basis, about every five years. Since 1933, the United States has passed 18 farm bills, the most recent being the Agricultural Improvement Act of 2018.
Historically, the commodity support component of Farm Bills focused on stabilising and boosting farm income to aid economic recovery and development during the Depression and post-war eras through price and income support for a specified set of commodities, including but not limited to corn, soybeans, wheat, cotton, rice, peanuts, dairy, and sugar (OECD, 2011[1]). Over time, Farm Bills expanded in scope: the 1973 Farm Bill first included a nutrition title while subsequent farm bills added titles on policy areas such as agricultural trade, farm credit, rural development and crop insurance. The 1985 Farm Bill added conservation provisions; the 1990 Farm Bill, organic agriculture; the 1996 Farm Bill, agricultural research; the 2002 Farm Bill, bioenergy; and the 2008 Farm Bill, horticulture and local food systems (Congressional Research Service, 2019[2]).
Agricultural policy reform in the United States has been characterised by a significant shift towards less production- and trade-distorting forms of support. Commodity programmes originally supported farm incomes through a combination of taxpayer-funded production payments and supply management in the form of acreage limits and commodity storage programmes. The Food Security Act of 1985 introduced changes that moved farmers towards more market orientation by reducing price supports in favour of direct payments, introducing greater planting flexibility and giving more attention to export opportunities for US farm products (OECD, 2011[1]).
Reforms continued with subsequent Farm Bills. The 1996 Farm Bill2 re-designed income support programmes by replacing target prices, price-based deficiency payments and acreage controls with historically based direct payments independent of current production. A series of ad hoc emergency top-up payments supplemented the historically based payments implemented under the 1996 Farm Bill to provide additional assistance in the face of low commodity prices. These ad hoc payments were institutionalised under the 2002 Farm Bill3 as counter-cyclical payments linked to the historically based direct payments, and continued under the 2008 Farm Bill4 (OECD, 2011[1]). The 2014 Farm Bill ended these direct and counter-cyclical payments but continued direct income support based on historical production with programmes triggering payments based on either reference prices or revenue benchmarks. It also ended the dairy price support programme, replacing it with a premium-based milk-to-feed margin protection programme. The 2018 Farm Bill continued these programmes with only small adjustments (Table 29.2).
The largest of the farm programmes in the Farm Bill, the Federal Crop Insurance Programme (FCIP), was established in the 1930s to cover yield losses from most natural causes.5 The programme’s current form was authorised by the Federal Crop Insurance Act of 1980 and modified by subsequent Farm Bills and other legislation. The 1980 Act introduced federal premium subsidies and brought in private insurance companies (Approved Insurance Providers, or AIPs) to deliver crop insurance policies. The catastrophic (CAT) coverage level was created in 1994, under which 100% of the premium is subsidised and producers pay a fee for coverage of yield loss greater than 50% at 55% of the base commodity price.6 The Agricultural Risk Protection Act of 2000 expanded the geographic availability of insurance, increased premium subsidy levels, and removed restrictions on livestock insurance products.
Average producer support has declined as the importance of emergency payments (related to COVID-19, drought, and supply chain issues) reduced in 2022. Support now approaches historical lows and the overall pattern and level of support is stable. In 2022, most budgetary support was based on payments that require production and were based on either area planted or animal numbers, including the Federal Crop Insurance Program and certain disaster programmes. Sugar is the only commodity with MPS (Figure 29.4).
Main policy instruments
The Agricultural Improvement Act of 2018 (the 2018 Farm Bill) provides the basic legislation governing farm programmes for 2019 to 2023. The twelve titles of the 2018 Farm Bill authorise policies for commodity programmes, conservation on agricultural land, agricultural trade promotion and international food aid, nutrition programmes, farm credit, rural development, agricultural research, forestry on private lands, energy, horticulture and organic agriculture, and crop insurance. Initial projections were that around 76% of budgetary spending under the 2018 Farm Bill would be for programmes in the Nutrition title – primarily the Supplemental Nutrition Assistance Programme (SNAP) – with farm programmes accounting for less than 25% of projected budgetary outlays. Of the farm programmes, crop insurance was projected to account for 9% of total expenditures, and Commodities and Conservation for 7% each. The remaining titles together accounted for 1% of projected spending.
The primary crop commodity programmes under the 2018 Farm Bill include programmes that make payments to producers with historical base acres7 of programme crops (wheat, feed grains, rice, oilseeds, peanuts, pulses and seed cotton) when prices fall below minimums set out in the legislation or when crop revenue is low relative to recent levels. Producers are not required to produce the covered commodity to receive payments on their historical base. Price Loss Coverage (PLC), a counter-cyclical price programme, makes a payment when market prices for covered crops fall below effective reference prices.8 Agriculture Risk Coverage (ARC), a revenue-based programme, makes a payment when actual revenue at the county level falls below rolling average benchmark revenues. For both programmes, payments are made on 85% of base acres. Participating producers were required to choose between the PLC and ARC programmes9 on a commodity-by-commodity basis for 2019 and 2020, then annually for each year for 2021-23.
The crop insurance programme offers coverage options for both yield and revenue losses. Traditional crop insurance offers subsidised crop insurance to producers who purchase a policy to protect against losses in yield, crop revenue, or whole farm revenue. In addition, the Supplementary Coverage Option (SCO) and Stacked Income Protection Plan (STAX) offer area-based insurance coverage, SCO in combination with traditional crop insurance policies and STAX for upland cotton producers.
Marketing assistance loans are available for wheat, feed grains, upland cotton, rice, oilseeds, pulses, wool, mohair and honey. These loans provide cash flow at harvest when prices are typically lower, allowing farmers to delay sales until market conditions improve. These are non-recourse loans that can be repaid at market prices when those fall below the loan rate, although market prices for most commodities have been above loan rates in recent years.
For dairy producers, the Dairy Margin Coverage (DMC) programme, insures a producer-elected margin-level between a nationally defined milk price and feed costs for a premium, with payments made on enrolled historical milk production. Producers may participate in both DMC and dairy livestock insurance programmes. Under the Milk Donation Reimbursement Programme (MDP) fluid milk producers with pre-approved plans may be reimbursed for costs incurred in donating fluid beverage milk to low-income groups. Sugar is supported by a tariff rate quota (TRQ), together with provisions for non-recourse loans (which are not eligible for the repayment provisions discussed above) and marketing allotments. TRQs are in place for dairy, beef and some other products. However, US agricultural tariffs are generally low, at 4.5% on average in 2021.
Federal agri-environmental programmes focus on land retirement, easements restricting land use options and measures to encourage crop and livestock producers to adopt practices that reduce environmental pressures on working land (cropland and grazing land in production). Working land programmes include the Environmental Quality Incentives Programme (EQIP) and the Conservation Stewardship Programme (CSP). Land retirement and easement programmes include the Agricultural Conservation Easement Programme (ACEP) and the Conservation Reserve Programme (CRP). The Regional Conservation Partnership Programme offers options for regional or watershed-based conservation efforts that may combine both land retirement, easements, and working lands programmes. Production of ethanol and other biofuels is supported mainly in the form of mandated blending for fuel use, and loan and grant programmes. Eligibility for most federal commodity programme payments, including crop insurance premium subsidies, is subject to recipients having established an individual farm-based conservation plan to protect highly erodible cropland and wetlands.
Other farm programmes include direct and guaranteed loans (including microloans) for farmland purchase and for operating credit, designed to assist producers who face difficulty obtaining credit in the private market, particularly beginning, military veteran and socially disadvantaged farmers. Farm Bill programmes also support public agricultural research and technical assistance, including programmes targeted to specialty crops; organic production; pest and disease prevention; the promotion of sustainable farming practices; and standing disaster programmes for livestock, forage, and trees, bushes and vines to help producers cope with production, financial and physical losses related to or caused by natural disasters.
Climate change adaptation policies in agriculture
The US Nationally Determined Contribution (NDC) under the Paris Agreement set an economy-wide target of reducing GHG emissions 50-52% below 2005 levels by 2030, covering all sectors (United States, 2020[7]). The NDC does not contain sector-specific targets but acknowledges that agriculture and land use will likely contribute to meeting overall GHG emissions targets. The NDC states that the United States will support scaling up climate-smart agricultural practices such as cover crops, reforestation, rotational grazing, and nutrient-management. The US is also party to the Global Methane Pledge, which commits countries to reducing methane emissions at least 30% from 2020 levels by 2030. While it focuses on fossil methane, the pledge covers all sources, including agricultural emissions.
Several programmes with broad conservation objectives offer climate-mitigation benefits, including CRP, CSP, EQIP, CTA, RCPP, and ACEP. These received substantial new funding in 2022 with the passage of the IRA.
USDA climate-adaptation efforts operate within US-government climate-change adaptation frameworks and statutory authorities. These include:
climate-change risk-assessment undertaken through the US Global Change Research Programme’s Fourth National Climate Assessment released in 2018, which includes specific attention on “Reducing Risks through Adaptation Actions”
the US’ 7th National Communication to the UNFCCC of October 2021 and the related Adaptation Communication of November 2021
Executive Order (EO) 14008 of 27 January 2021, “Tackling the Climate Crisis at Home and Abroad”
EO 14057 of 8 December 2021, “Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability”
The Global Climate Change Prevention Act of 1990 (Title XXIV of the Food, Agriculture, Conservation, and Trade Act of 1990 P.L. 101–624)
In response to the EO titled “Tackling the Climate Crisis at Home and Abroad”, the USDA revised its Policy Statement on Climate Adaptation in May 2021 to provide direction on the development of a USDA-wide Climate Change Adaptation Plan and development of Adaptation Plans by relevant USDA Mission Areas, agencies, and staff offices. The policy statement was followed by an Action Plan for Climate Adaptation and Resilience in October 2021. The plan highlighted climate vulnerabilities facing the sector and overarching adaptation actions to address these vulnerabilities, including:
building resilience across landscapes with investments in soil and forest health
increasing outreach and education to promote adoption and application of climate-smart adaptation strategies
broadening access to and availability of climate data at regional and local scales for USDA Mission Areas, producers, land managers, and other stakeholders
increasing support for research and development of climate-smart practices and technologies to inform the USDA and help producers and land-managers adapt to a changing climate
leveraging USDA Climate Hubs as a framework to support USDA Mission Areas in delivering adaptation science, technology, and tools
Agency-level action plans were developed by 16 sub-entities of the USDA to identify climate-change impacts and vulnerabilities to each entity’s mission, and prioritise actions to address these vulnerabilities and integrate climate-adaptation into their planning, programmes, operations, and management. Common themes in these plans are: increasing climate-literacy among employees; contingency-planning to maintain critical operations during extreme weather; addressing vulnerabilities of historically underserved farmers and ranchers; and making use of the USDA Climate Hubs.10
Efforts to assist farmers in buffering the impact from a shock in the short term
Weather-forecasting and increasing situational awareness are key short-term aids for farmers. Forecasting the availability of inputs such as water and forage can help farmers adapt their operations to a range of expected conditions. The US offers several platforms to provide farmers with information on weather and climate-related events:
The USDA World Agricultural Outlook Board (WAOB) Meteorology Unit offers daily weather highlights and weekly weather and crop bulletins, supporting real-time intelligence for domestic and global crop conditions in the context of the monthly World Agricultural Supply and Demand Estimates (WASDE) report.
The US Drought Monitor reports various indicators related to drought and provides forecasts and outlook products (for the coming month, upcoming season, and climate outlook for temperature and rainfall for the coming year). Time-series data, tables, graphs, and Geographic Information System (GIS) data are available for public download.
Grass-Cast provides seasonal forecast maps of how much grass is projected to grow through the Spring and Summer months on rangelands throughout the western US to inform livestock-management and stocking decisions. Grass-Cast takes historical grassland production data, historical weather data, and possible scenarios for future rainfall to estimate how rangeland grass production in the current year will compare to average historical conditions.
Natural Resources Conservation Service (NRCS) National Water and Climate Center (NWCC) produces and disseminates accurate and reliable water-supply forecasts and other climate data. NWCC supports various data-collection efforts related to snow, soil, and water conditions, including the Snow Survey and Water Supply Forecasting (SSWWF) Program, the Soil Climate Analysis Network (SCAN) Pilot Program, and the Tribal Soil Climate Analysis Network (Tribal SCAN). All data collected by NWCC are publicly available through the Water and Climate Information System (WCIS). Reports produced by the group include monthly snowpack, precipitation, reservoir, and streamflow data; hourly and daily SCAN soil condition reports for over 200 stations across the country; and water supply forecasts by river basin for 12 western states.
The Wildfire Outlook – the National Interagency Fire Center’s Predictive Services group produces a monthly National Significant Wildland Fire Potential Outlook, 7-day fire-potential outlook reports, and geographic area outlooks.
The USDA Animal and Plant Health Inspection Service (APHIS) monitors the spread of pests, diseases, and invasive species, including by incorporating modeling to inform surveillance, developing early-warning systems, and identifying options for pest and disease control. Predictive models to prepare for pest and disease incursions, and other changes driven by climate change are developed in collaboration with international partners.
Several policies in place help farmers prepare for extreme weather events before they occur:
Hurricane Preparation and Recovery Commodity Guides are produced by the USDA Southeast Climate Hub in conjunction with state extension services. These provide detailed instructions on activities to undertake before and after a hurricane to minimise damage and ensure that operations resume as soon as possible in the wake of a storm. The guides also include information on relevant resources available from the USDA, including agencies offering support in the wake of disasters.
Weather Ready Farms is a state-level agricultural education programme from the University of Nebraska Extension. Participants complete a self-assessment, attend educational programmes and events to learn how to implement new practices on the farm, undertake projects to improve their farm’s resilience, have their projects verified, and receive a “Weather Ready” designation. A public online resource book, Resilient Agriculture: Weather Ready Farms, was produced based on this model and published in 2022.
Several programmes support recovery by providing funding in the wake of adverse events. Crop insurance is a major element, but several disaster-assistance programmes either help producers recover from damages not covered by crop insurance or help producers who might be unable to obtain crop insurance coverage. Outside of these “standing” programmes, other ad hoc disaster policies respond to issues as they arise:
The Federal Crop Insurance Program (FCIP) is a longstanding programme that indemnifies producers against losses in yield, crop revenue, margin, and whole-farm revenue due to adverse events including drought, excess moisture, damaging freezes, hail, wind, disease, and price fluctuations. FCIP offers coverage for more than 100 commodities, and the government subsidises a portion of policy premium costs (the level of support varies based on the level of coverage).
The Environmental Quality Incentives Program (EQIP) is a flagship conservation programme in place since 1996 that helps farmers, ranchers, and forest landowners integrate conservation into working lands. EQIP provides financial assistance to prevent and repair excessive soil erosion. Assistance is also available for emergency animal mortality disposal from natural disasters and other causes.
The Livestock Forage Disaster Program (LFP) provides compensation to eligible livestock producers who suffered grazing losses due to drought or fire on land that is native or improved pastureland with permanent vegetative cover or planted specifically for grazing.
The Livestock Indemnity Program (LIP) provides benefits to livestock producers for livestock deaths in excess of normal mortality, caused by adverse weather or by attacks by animals reintroduced into the wild by the federal government.
Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP) compensates eligible producers for losses due to disease, adverse weather, or conditions (such as blizzards and wildfires) not covered by LFP or LIP.
The Emergency Loan Program provides loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine by animal-quarantine laws or laws imposed by the Secretary under the Plant Protection Act.
The Disaster Set-Aside Program allows producers who are unable to make scheduled payments on their direct loans from the Farm Service Agency (FSA) as a direct result of a disaster to postpone one full year’s payment to the end of the loan. Assistance is available in counties or contiguous counties designated as emergencies by the President, Secretary, or FSA Administrator.
The Emergency Conservation Program (ECP) helps farmers and ranchers repair damage to farmlands caused by natural disasters and helps put in place water-conservation methods during severe drought.
The Emergency Forest Restoration Program (EFRP) helps owners of non-industrial private forests restore forest health damaged by natural disasters.
The Noninsured Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops to protect against natural disasters that result in lower yields or crop losses, or prevent crop planting.
The Tree Assistance Program (TAP) provides financial assistance to qualifying orchardists and nursery tree-growers to replant or rehabilitate eligible trees, bushes, and vines damaged by natural disasters.
The Emergency Watershed Protection Program (EWP) helps communities recover from natural disasters such as floods, wildfires, earthquakes, windstorms, and other natural disasters. It funds activities that provide protection from flooding or soil erosion, reduce threats to life and property, or restore hydraulic capacity to the natural environment.
Efforts to support adaptation in the medium term
Medium-term measures include extension and outreach efforts, development of decision-support tools and information platforms, development of case studies, support for the adoption of climate-smart agricultural practices (including investments in soil health), and ensuring that programme design and delivery reflects evolving climate conditions.
Extension and outreach programmes train farmers to manage risk, adopt new technologies, and raise awareness of strategies to adapt to climate change. This is especially important for historically underserved producers:
USDA Climate Hubs host workshops and technical demonstrations to promote the adoption and application of climate-smart strategies. “Climate Conversations” with natural-resources professionals (including NRCS and partner staff) focus on the basics of climate change and topics including drought, irrigation, and wildfire. The Climate Hubs also offer numerous communication resources, including “Translating Climate Science into Action” videos for outreach and education.
Risk Management Education and Training programmes support historically underserved producers to understand how to manage risk in the face of volatile weather.
The NRCS conducts conservation outreach and engagement to help farmers implement practices to adapt to a changing climate. This includes increasing technical and financial assistance for communities disproportionately vulnerable to the effects of climate change. NRCS programmes offer special provisions for historically underserved applicants, including through the Wetland Reserve Enhancement Partnership, which earmarked USD 17 million for partnerships with historically underserved communities in 2022. Additionally, the NRCS has moved to better serve limited-English-proficiency customers through activities such as translation of critical contract and other programme documents.
Decision-support tools and information platforms help farmers prepare for changing climate conditions. This includes help assessing risks and potential effects of climate change, and developing responses to them:
The Adaptation Workbook details a structured process to consider the potential effects of climate change and design land-management and natural-resource-conservation actions that help prepare for changing conditions. The process is flexible, to accommodate a variety of geographic locations, ownership types, ecosystems and land uses, management goals, and project sizes. The Workbook contains a five-step process that asks users to define goals and objectives, assess climate impacts and vulnerabilities, evaluate objectives considering climate impacts, identify adaptation approaches and tactics for implementation, and monitor the effectiveness of implemented actions.
A series of ten Adaptation Case Studies was developed using the Adaptation Workbook framework and options outlined in Adaptation Resources for Agriculture, published by the Midwest, Northeast, and Northern Forests Climate Hubs. These case studies provide a flexible, structured, and self-guided process to identify and assess climate-change impacts, challenges, opportunities, and farm-level adaptation tactics to improve responses to extreme and uncertain conditions. Case studies cover a variety of commodity production systems across nine states and territories.
AgroClimate is a decision-support tool that uses Applied Climate Information System (ACIS) database sub-infrastructure to help producers in the southeastern US make real-time decisions and place meteorological conditions in historical context. The tool helps producers obtain data on trends in winter chill units and bloom dates specific to their location, which can inform longer-term planning decisions, like changing varietals in replanted areas to reflect current and anticipated climate conditions.
NRCS Information Platforms, Databases, and Decision Support Tools provide georeferenced soil, vegetation, and weather data and information needed to understand climate-change impacts and develop responses. These include the National Soils Information System (NASIS), Ecosystem Dynamics Interpretive Tool (EDIT), and Plant List of Acceptable Nomenclature, Taxonomy and Synonyms (PLANTS). NRCS also collaborates in the production of models and decision-support tools such as the Conservation Effects Assessment Program (CEAP) and the CarbOn Management Evaluation Tool (COMET). CEAP quantifies trends in conservation practices and outcomes to inform conservation programme development, while COMET assesses farm-level greenhouse-gas emissions and estimates emissions under alternative management scenarios.
An atlas of state- and county-level Climate Quick Reference Guides was developed using 2022 National Oceanic and Atmospheric Administration (NOAA) State Summaries, RMA data analysed through the Southwest Climate Hub’s AgRisk Viewer, and other published data. These guides allow producers to access hyper-local information on likely future conditions to inform their investments and business decisions.
APHIS pest suitability maps describe changes in pest prevalence in a changing climate (with several maps completed and the remainder scheduled for completion by FY 2023). These maps will guide pest survey efforts and increase the efficient use of resources for surveys by eliminating the need to survey areas for high-risk pests if suitable environmental conditions do not exist there.
Several measures support adoption of climate-smart agricultural practices by providing technical and financial assistance, collecting data on soil health, and supporting crop diversification:
NRCS Conservation Programmes help producers, soil- and water-conservation districts, and other partners protect and conserve natural resources on private lands. This is part of the Farm Bill, delivered through the Environmental Quality Incentives Programme (EQIP) and the Conservation Stewardship Programme (CSP), among others.
On-Farm Conservation Innovation Trials provide incentive payments to producers to offset the risk of implementing innovative approaches, practices, and systems on working lands. The Soil Health Demonstration (SHD) component focuses conservation practices and systems that improve soil health. SHD awardees follow consistent soil health assessment protocols to evaluate the impacts of practice and system implementation. Data collected from these projects provide the initial data for a national soil health database.
The Whole Farm Revenue Protection (WFRP) and Micro Farm policies are insurance products that support diversified farm operations to help producers adapt to a changing climate. WFRP offers revenue insurance up to USD 17 million of allowable revenue. Micro Farm is based on WFRP but limited to producers with less than USD 350 000 in allowable revenue. The product is tailored to very small farms that are typically highly diversified.
Ensuring programme design considers the changing climate is important for maintaining intended programme benefits and informing needed reforms. Federal Crop Insurance Program (FCIP) parameters are updated so that policy design reflects climate data with respect to changes in risk, yields, practices, and other parameters. Programmes are reviewed for continued relevance under changing climate needs. Conservation practice planning and standards are reviewed and updated to use the best available science.
Efforts to support transformations that create a fundamentally new system in the long term
Activities related to long-term change in the US agricultural sector focus on interdisciplinary research to increase awareness of likely future conditions, and develop tools, technologies and management strategies to respond to them. To ensure the usefulness and accessibility of climate-smart agricultural innovation, several programmes connect with or involve producers:
USDA Research & Development activities form the basis for validating existing climate-adaptation options and identifying and developing new ones while ensuring that actions are regionally relevant and economically viable. Research related to climate adaptation cuts across many programme areas within the USDA Agricultural Research Service (ARS). The Economic Research Service (ERS) is a federal statistical agency that provides economic information and analysis on a range of topics related to the agriculture sector, including understanding and assessing the effects of and adaptation to climate change. The National Institute of Food and Agriculture (NIFA), the USDA’s primary external research, education, and extension funding agency, funds climate-change-related activities through a combination of capacity funds and competitive grants (see below). The National Agricultural Statistics Service (NASS) supports climate-change research through scientifically designed surveys that help with estimates of agricultural production, supply, price, and other variables. NASS also conducts operational remote-sensing yield estimation and disaster-monitoring of extreme weather events.
The Agriculture and Food Research Initiative (AFRI) Program under the National Institute of Food and Agriculture (NIFA) disseminates scientific advances to producers through education and extension to facilitate adaptation to climate change. NIFA invests in sustainable agricultural research projects, including projects that support adaptation.
USDA Climate Hubs develop and deliver science-based, region-specific information and technologies to agricultural and natural-resource managers. This enables climate-informed decision-making and assistance to implement those decisions. Working with federal, state, tribal, university, extension, and private partners, the Hubs listen and learn to identify regionally-appropriate, and climate-adapted ways to address current and future climate risks.
The Long-Term Agroecosystem Research Network (LTAR) comprises 18 research sites dedicated to addressing national and local agricultural priorities and advancing the sustainable intensification of US agriculture. The research sites include croplands, grazing lands and integrated systems, and span a variety of geographies and climates. LTAR co-ordinates research sites, collects and manages long-term data, and develops new management techniques, technologies and agricultural-innovation partnerships.
The NRCS multi-disciplinary climate-change technical team evaluates climate-related requirements for the agency’s planning and delivery processes, to establish climate-change technical expertise and strategies to evaluate and determine requirements and guidance for conservation planning, implementation, research, demonstration, and assessment. This includes developing climate-smart research and demonstration strategies that identify knowledge gaps and on-farm research needs to guide investments, including through the RCPP and Conservation Innovation Grants (CIG) programme.
Agriculture Innovation Mission for Climate (AIM for Climate) is a joint, five-year initiative (2021-25) by the US and United Arab Emirates (UAE) to increase and accelerate investment in and support for agriculture- and food-system innovation for climate action, including adaptation.
Domestic policy developments in 2022-23
Two temporary disaster assistance programmes funded through the Extending Government Funding and Delivering Emergency Assistance Act of 2021 were launched in 2022 to help offset the costs of natural disaster impacts incurred in 2020 and 2021.11 The Emergency Livestock Relief Program (ELRP) Phase One provides additional early relief payments to ranchers for increases in supplemental feed costs in 2021. Ranchers who have approved applications through the 2021 Livestock Forage Disaster Program (LFP) for forage losses due to severe drought or wildfire in 2021 received an amount equal to their eligible LFP payment, multiplied by the applicable ELRP payment percentage.12
The second programme, the Emergency Relief Program (ERP), was launched in May 2022 and provides assistance to commodity and specialty crop producers to cover losses to crops, trees, bushes, and vines due to a qualifying natural disaster event13 in calendar years 2020 and 2021. All crops for which crop insurance or Non-insured Crop Disaster Assistance Program (NAP) coverage is available are eligible, except for crops intended for grazing. Payments for ERP are based on a producer’s individual coverage level under crop insurance or NAP. All producers who receive ERP Phase One payments are required to purchase crop insurance or NAP for the next two available crop years. A second phase of ERP was announced on 9 January 2023.
Several provisions in the Consolidated Appropriations Act, 2023 (signed into law December 2022) authorised temporary assistance for affected producers. These include:
USD 3.74 billion in assistance to producers for losses of revenue, quality or production of crops (including milk, on-farm stored commodities, crops prevented from planting in 2022, and harvested adulterated wine grapes), trees, bushes, and vines as a consequence of droughts, wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze, including a polar vortex, smoke exposure, and excessive moisture occurring in calendar year 2022. Of this amount, the Act requires that a portion of up to USD 494.5 million be designated for livestock producers.
Up to USD 100 million for pandemic-related assistance payments to cotton merchandisers.
Up to USD 250 million for domestic rice producers who planted a crop in 2022.
USD 5 million for testing of soil, water, or agricultural products for per- and polyfluoroalkyl substances (PFAS), assisting producers affected by PFAS contamination with costs related to mitigate the impacts to their operations, and indemnifying producers for the value of unmarketable crops, livestock, and other agricultural products related to PFAS contamination.14
The existing Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish Program (ELAP) was further revised in 2022 to cover the costs of transporting livestock to feed when the livestock are intended for grazing. Producers were eligible for assistance for feed or livestock transportation costs incurred for additional mileage above normal on or after 1 January 2021. The rule also amended the definition for “eligible drought” to allow counties with lower severity to qualify.15
Resources and environmental measures
Climate
The Inflation Reduction Act (IRA) was signed into law in August 2022. The IRA is not agriculture-specific, but includes approximately USD 20 billion in new spending over the next ten years designated for existing USDA conservation programmes to support practices with climate benefits, including enhancements to improve soil carbon, reduce nitrogen losses, or sequester carbon dioxide, methane, or nitrous oxide. This includes USD 8.45 billion in new funding for EQIP, USD 4.95 billion for RCPP, USD 3.25 billion for CSP, USD 1.4 billion to ACEP, and USD 1 billion for the Conservation Technical Assistance Program.16
A new Partnerships for Climate-Smart Commodities initiative was launched in 2022. This programme provided up to USD 3.1 billion in funding for 141 pilot projects to create or expand markets for agricultural commodities produced with climate-smart farming practices. The first pool of 70 selected projects will receive USD 2.8 billion through the Commodity Credit Corporation for pilot projects that:
provide technical and financial assistance to producers to implement climate-smart production practices on a voluntary basis on working lands
pilot innovative and cost-effective methods for quantification, monitoring, reporting and verification of greenhouse gas benefits
develop markets and promote the resulting climate-smart commodities.
Approved pilot projects will last one to five years. Large-scale projects from USD 5 million to USD 100 million were targeted in a first applicant pool. This awarded funds to 71 projects, totalling USD 325 million. A second pool for smaller projects requesting from USD 250 000 to USD 4 999 999 in funding targets small or underserved producers. This pool invests in measuring, monitoring, reporting and verification activities developed at minority-serving institutions. The projects are expected to involve more than 60 000 farmers and encompass more than 25 million acres of working lands, resulting in an estimated 60 million mtCO2-eq sequestered over the lives of the projects.
The Consolidated Appropriations Act (CAA) 2023 contains several provisions related to climate and agriculture. It establishes a voluntary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program. This allows for the creation of a voluntary programme to register covered entities (e.g. technical assistance providers or third-party verifiers) if doing so will facilitate the participation of farmers, ranchers, and private forest landowners in voluntary environmental credit markets. CAA also included a provision allowing USDA to accept and use private funding for public-private partnerships for the purposes of addressing climate change, sequestering carbon, improving wildlife habitat, protecting sources of drinking water, and addressing other natural resource priorities. The provision also authorises the Department to match private donations, subject to funding availability.
Conservation and environmental programmes
In January, NRCS announced several changes to existing programmes in 2022 focused on providing new opportunities for climate smart agriculture, including:
Expanding the five-year Conservation Incentive Contract option through the EQIP nationwide in 2022.17
Investing USD 38 million in a new targeted Cover Crop initiative through EQIP in 11 states, to encourage more widespread adoption of cover crops for climate change mitigation in states with demonstrated demand for additional support for the practice.18
Updating CSP rules to allow producers to re-enrol in the programme following an unfunded application to renew an existing contract.
Temporary flexibilities were introduced into certain conservation programmes. These included allowing producers in the final year of a CRP contract to voluntarily terminate their contract at the end of the primary nesting season for FY 2022 without having to repay rental payments.19 This can allow producers to plant a crop on that land for the 2022-23 crop year, or to open it for haying or grazing. In addition, producers with cover cropping in their existing EQIP or CSP contracts are allowed to either modify their cover crop plans to shift to a conservation crop rotation or to delay their planting of the cover crop by one year without requiring that the current contract be terminated.
The Bioproduct Pilot Program (BPP) – authorised under the Infrastructure Investment and Jobs Act of 2021 – is a competitive grant programme seeking to advance the development of cost-competitive bioproducts with environmental benefits compared to incumbent products. The programme funds projects that will study the benefits of using materials derived from covered agricultural commodities for production of construction materials (such as for roads, bridges or buildings) or consumer products. The programme will fund grants of USD 2 million to USD 5 million, with USD 5 million in total funding available in FY 2022 and an additional USD 5 million available in FY 2023.
Crop insurance and risk management
In June 2022, the Federal Crop Insurance Corporation amended its regulations to enhance production reporting terminology and assist producers with production reporting requirements. The new rules provide alternative reporting options to producers who are unable to provide disinterested third-party verifiable records to support their production report. The revision is intended to make it easier for specialty crop producers and others who sell through direct marketing channels to obtain insurance. The new rules also clarify the good farming practice appeal deadline and clarify and correct portions of the policy.
In July 2022, USDA’s Risk Management Agency announced that it would expand the availability of insurance for double cropping in order to reduce the economic risk of raising two crops on the same land in one year, making it easier for US farmers to help stabilise food prices and support food security. Under the initiative, RMA is making insurance coverage available for certain double-cropping rotations of soybeans or grain sorghum following another crop in more than 1 500 counties where double cropping is viable for crop year 2023.
Crop inputs
In September 2022, the new Fertilizer Production Expansion Program (FPEP) was announced to increase domestic fertiliser availability in response to rising prices. FPEP will provide grants to help eligible applicants increase or expand the manufacturing and processing of fertiliser and nutrient alternatives in the United States and its territories. The programme made available USD 500 million in funds through the CCC for 5-year grants varying from USD 1 to USD 100 million dollars. Funds can be used for, inter alia, expansion of manufacturing and processing of fertilisers and alternative nutrients, building new facilities, modernising existing facilities, increasing fertiliser use efficiency, purchasing new equipment, and installing climate-smart equipment to reduce GHG emissions.
In December 2022, the Pesticide Registration Improvement Act (PRIA) was reauthorised as part of the Consolidated Appropriations Act, 2023. Among other provisions, this version of PRIA requires manufacturers to include bilingual labels or a link to a translation on products within three to eight years (depending on the use classification and relative toxicity of the pesticide), increases pesticide registration and maintenance fees, and extends the deadline for the EPA to conclude its initial registration review of each covered pesticide to October 2026.
Processors and supply chains
Building on activities announced in 2021 such as the Food Supply Chain Guaranteed Loan Program (FSCGLP) and the Meat and Poultry Inspection Readiness Grants (MPIRG), several new programmes were launched in 2022 under the umbrella of the USDA Meat and Poultry Supply Chain initiative, including:
In February, the USDA Rural Development (RD) Rural Business-Cooperative Service (RBCS) opened applications for the Meat and Poultry Processing Expansion Program (MPPEP), which will provide USD 150 million in grants of up to USD 25 million to eligible meat and poultry processors to assist them in expanding their capacity.
In March, the USDA Agricultural Marketing Service (AMS) launched the Meat and Poultry Processing Capacity Technical Assistance Program (MPPTA), developed to support participants in the other programmes under the meat and poultry supply chain initiative by helping them to access needed technical assistance to expand and diversify processing capacity. Technical assistance offered through the initiative will focus on federal grant application management, business development and financial planning, meat and poultry processing technical and operational support, and supply chain development.
In May, RBCS opened applications for the Meat and Poultry Intermediary Lending Program (MPILP), which will provide up to USD 125 million in grants of up to USD 15 million to qualified intermediate lenders to facilitate financing for the start-up, expansion, and operation of entities engaged in primary processing or further processing of meat and poultry.
In May, the USDA National Institute of Food and Agriculture (NIFA) announced a USD 25 million investment in workforce training programmes, including through the new Meat and Poultry Processing - Agricultural Workforce Training grant programme.
In June 2022, the “Food Systems Transformation” framework was launched. The goals of the framework include:
Building a more resilient food supply chain that provides more and better market options for consumers and producers while reducing carbon pollution.
Creating a fairer food system that combats market dominance and helps producers and consumers gain more power in the marketplace by creating new, more and better local market options.
Making nutritious food more accessible and affordable for consumers.
USDA has included a variety of existing and proposed programmes under this initiative, spanning all stages of the supply chain – production, processing, aggregation, distribution, and consumers. This includes supporting investments in independent meat and poultry processing projects, financial assistance for supply chain infrastructure, workforce development and funding to create regional food business centres.
The Regional Food Business Centers programme was launched in September 2022 with up to USD 400 million in funding from the Consolidated Appropriations Act of 2021. It will expand and strengthen regional food systems networks and partnerships; increase food and farm business and finance acumen as well as market awareness and access; increase the number of new food and farm businesses and viability of existing businesses; and increase the revenue of food and farm businesses served. These Regional Food Centers will be launched through co-operative agreements with partners in the region, providing co-ordination, technical assistance and capacity-building for small and mid-sized producers, processors, and distributors to create new and rejuvenate current linkages throughout the supply chain. At least six centers are anticipated (including at least one in each of three high priority areas) through grant awards ranging from USD 15 to USD 50 million.
A new rule, Requirements for Additional Traceability Records for Certain Foods went into effect in January 2023. This rule establishes additional recordkeeping requirements for certain participants in supply chains of designated foods for traceability purposes. The requirements will help to identify recipients of food to prevent or mitigate foodborne illness outbreaks and address threats of health consequences resulting from foods being adulterated or misbranded.
Finance and farm credit
In March 2022, the USDA Farm Service Agency finalised changes to its Farm Loan Programs (FLP) regulations. FLP regulations were amended to:
allow additional flexibility for loan applicants to meet the required farming experience
provide higher guarantee rates for lenders providing credit to beginning farmers and socially disadvantaged farmers
allow borrowers who have received debt restructuring with a write down to receive Emergency loans (EM)
cover more issues under the agricultural Certified Mediation Program
change conditions for loan servicing relating to accepting cash payments and establishing a fee for dishonoured checks.
The result of these changes will increase loan limits or improve the various loan programmes to relieve some restrictions to participation or otherwise encourage participation. The new rules also revised the means through which FSA will establish the maximum interest rates in response to the discontinuing publication of the London Interbank Offered Rate (LIBOR) interest rates.
In October 2022, disbursement began of USD 3.1 billion in funding to provide relief for distressed borrowers with certain Farm Service Agency (FSA) direct or guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. As a first step toward implementing this relief, in late 2022, USDA provided nearly USD 800 million in assistance to distressed borrowers, including crediting nearly USD 600 million to the accounts of delinquent borrowers to make their loans current, and making over USD 200 million in payments to resolve the remaining debts for borrowers whose farms have already been foreclosed upon, such that they would no longer face debt collection or garnishment. Assistance for an additional set of borrowers with more complicated circumstances was made available on a case-by-case basis.
Organic agriculture
The Origin of Livestock (OOL) final rule for organic dairy animals was published in April 2022. The rule specifies that organic milk and milk products must be sourced from animals that have been under continuous organic management from the last third of gestation onward. However, transitioning herds fall under an exception to the rule. This rule also clarifies that a nonorganic dairy may transition to organic production on a one-time basis, with all animals ending their transition at the same time after a 12-month period of organic management. After the transition, the operation cannot transition additional animals or source transitioned animals. After transitioning, operations may only add animals that have been organically managed from the last third of gestation. The rule entered into effect on 6 June 2022, and all operations were required to comply with its provisions by 5 April 2023.
In August 2022, a new Organic Transition Initiative was launched. This USD 300 million multi-agency effort offers support for farmers transitioning to organic production, including increased technical assistance, market development, and financial support. Programmes were launched under the umbrella of this initiative:
The Transition to Organic Partnership Program (TOPP), which will provide technical assistance and wrap-around support for farmers transitioning to organic. The programme will provide up to USD 100 million over five years in co-operative agreements with non-profit organisations.
The Transitional and Organic Grower Assistance Program (TOGA), which will support the participation of transitioning and certified organic producers’ participation in crop insurance by covering a portion of their insurance premium. The programme will provide up to USD 25 million through the Risk Management Agency.
Additionally, USD 75 million will be provided through NRCS to offer financial and technical assistance to producers who implement a new Organic Management conservation practice standard, and USD 100 million will be made available through an AMS initiative to improve supply chains in pinpointed organic markets. This is also part of the “Food Systems Transformation” framework.
Equity
In January 2022, USDA announced that it was investing USD 50 million in partnerships to expand conservation assistance access under its new Equity Conservation Cooperative Agreements initiative. The effort will fund two-year projects targeting expanded conservation technical assistance for beginning, socially disadvantaged, low-income, or military veteran farmers.
The American Rescue Plan Technical Assistance Investment (ARPTAI) Competitive Grant Program was launched in March 2022 to provide technical assistance and other programmes to ensure improved understanding of USDA programmes and services. Using a minimum of USD 25 million in funding authorised under Section 1006 of the American Rescue Plan Act of 2021, ARPTAI will fund co-operator organisations that collaborate with USDA on the delivery of targeted technical assistance and related activities to achieve future outcomes of improved equitable participation of farmers, ranchers and forest landowners in USDA programmes and services. Grants ranging from USD 500 000 to USD 3.5 million will be available through ARPTAI.
In April 2022, USDA released the department’s Equity Action Plan, outlining actions that USDA will take to advance programme equity by improving access to programmes and services for underserved stakeholders and communities.20 Actions outlined in the plan include:
reduce barriers to USDA programmes and improve support to underserved farmers, ranchers and landowners
expand equitable access to USDA nutrition assistance programmes
increase USDA infrastructure investments that benefit underserved communities
uphold Federal Trust and Treaty Responsibilities to Indian Tribes
Several USDA programmes will be included as part of the Biden Administration’s Justice40 Initiative, which sets a goal to have 40% of the overall benefits of certain federal investments related to climate and the environment flow to disadvantaged, marginalised, or underserved populations.21 This includes farm safety net programmes such as ARC, DMC, and PLC; conservation programmes such as ACEP, CREP, CRP, CSP and EQIP; research and knowledge generation programmes such as the Bioproduct Research Program and the USDA Climate Hubs; and outreach and education programmes such as conservation technical assistance, risk management education, and extension programmes benefitting underserved communities.22 For each programme included in the initiative, agencies should establish a method to calculate benefits accruing to disadvantaged communities, develop a plan to maximise benefits to said groups, and consider programme modifications to the extent consistent with statutory and constitutional requirements to maximise benefits to disadvantaged communities.
Two new initiatives targeting underserved communities will be funded under the American Rescue Plan Act (ARPA). The first of these, “From Learning to Leading: Cultivating the Next Generation of Diverse Food and Agriculture Professionals” programme is intended to enable minority-serving educational institutions to educate and create career development opportunities for the next generation of scholars. Up to USD 250 million will be made available through the programme in the form of grants, with awards ranging from USD 500 000 to USD 20 million. The second programme, the “Increasing Land, Capital, and Market Access Program” will help underserved producers by increasing their access to land, capital and markets. The programme will fund projects through co-operative agreements and grants that focus on strengthening land access and at least one related area of concern. Up to USD 300 million will be made available through the programme, with awards ranging from USD 250 000 to USD 40 million.
Nutrition
The first phase of the “Healthy Meals Incentives Initiative” was launched in September 2022. The initiative targets improving the nutritional quality of school meals through food systems transformation, school food authority recognition and technical assistance, the generation and sharing of innovative ideas and tested practices, and grants. The first phase of the initiative includes providing grants of up to USD 150 000 to small or rural school meal programmes to help them meet or exceed school nutrition standards, establishing an awards programme to recognise school districts that are excelling in their meal quality, and supporting schools in bringing best practices into their lunchrooms. Subsequently in November, FNS launched phase 2 of the initiative – the “School Food System Transformation Challenge”, which will distribute USD 50 million in grant opportunities through up to four co-operative agreements, which will support collaboration with the food industry to develop nutritious, appetising school meals for students.
On 27 September 2022, the Biden-Harris National Strategy on Hunger, Nutrition and Health was released – in conjunction with the White House Conference on Hunger, Nutrition and Health – to achieve the Administration’s goal of “ending hunger and increasing healthy eating and physical activity by 2030 so fewer Americans experience diet-related diseases, while reducing related health disparities.” The strategy consists of five pillars: 1) improve food access and affordability; 2) integrate nutrition and health; 3) empower all consumers to make and have access to healthy choices; 4) support physical activity for all; and 5) enhance nutrition and food security research. In line with the strategy, a new programme providing assistance for school children during the summer months when schools are closed was authorised as part of the CAA (see next section).
In December 2022, USDA unveiled a new Agricultural Science Center of Excellence for Nutrition and Diet for Better Health (ASCEND for Better Health). This new virtual centre will bring together scientists, partner organisations, and communities to accelerate research on diet-related chronic disease, including cancer.
Domestic food assistance
Various policy measures were put in place in 2022 in response to reduced availability of infant formula resulting from recalls and the temporary closure of one of the country’s largest formula manufacturing facilities. Some of these measures are described in the section “Trade policy developments” below. These measures included:
Signing into Law the “Access to Baby Formula Act of 2022” in May, which authorises USDA to take certain actions (including allowing administrative or programme flexibilities, where applicable) to address emergencies, disasters, and supply chain disruptions affecting participants of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).
The President’s invoking of the Defense Production Act, requiring suppliers to direct needed resources to infant formula manufacturers before any other customer who may have ordered that good.
USDA offering WIC agencies programme flexibilities by allowing them to request waivers of certain WIC regulations:
USDA covering the additional costs of alternate formulas for state WIC agencies that contract with certain manufacturers through 28 February 2023, with the affected formula manufacturer covering the cost difference for states that contract with that manufacturer through 28 February 2023.
In February 2022, FNS finalised a rule establishing transitional standards for milk, whole grains, and sodium content in USDA school meals programmes beginning in the 2022-23 school year. Pandemic relief legislation had offered temporary flexibility from the nutritional standards established in 2012. As the pandemic flexibilities were set to expire in June 2022, the rule created a transition period which allowed some continued flexibility for schools as they recover from the pandemic. For example, the transitional rule requires that at least 80% of the weekly grains offered be whole grain-rich (i.e. contain at least 50% whole grains) rather than 100% as required by the 2012 standards. In early 2023, USDA released a proposed rule to update school meal nutrition standards that are similar to the transitional standards set forth in February 2022.
The Keep Kids Fed Act of 2022 extended flexibilities first introduced in 2020 under the Families First Coronavirus Response Act in response to disruptions caused by the pandemic. Among other provisions, the Act extended meal programme administrative and paperwork flexibilities through the 2022-23 school year, extended flexibilities for summer meals in 2022 (such as allowing meal delivery and grab-and-go options), and increased reimbursement rates for the 2022-23 school year by 15 cents per breakfast and 40 cents per lunch to help offset higher food costs and operating expenses related to the COVID-19 pandemic.
On 30 June 2022, USDA made available USD 943 million in funding from the Commodity Credit Corporation (CCC) for the purchase of domestically-grown foods for school meal programmes. The funds were distributed by state agencies to schools across the country to assist them in purchasing domestically grown-foods for school meal programmes, in response to challenges faced by child nutrition programme operators in 2022, such as elevated costs of food and supply chain disruptions.
Then in September 2022, USDA announced nearly USD 2 billion in additional funding from the CCC for both emergency food providers and school meal programmes for purchasing domestically-grown foods. Of the total announcement, USD 943 million was slated to procure USDA Foods for use by emergency food providers such as food banks (a portion of the assistance would also support incidental costs incurred by local agencies for food storage and transformation), USD 471.5 million was directed toward the Local Food Purchase Assistance Cooperative Agreement Program in November, and an investment of USD 471.5 million was made for the third round of Supply Chain Assistance funds to states to support the purchase of domestically-grown foods for school meal programmes.
Also in September, FNS published new regulations for the Summer Food Service Program (SFSP), which clarified, simplified, and streamlined programme administration. The new regulations include making permanent operational flexibilities that are demonstrated to work well in the SFSP while decreasing paperwork burdens; giving sponsors the ability to focus their programme oversight and technical assistance on sites that need it most; easing redundant requirements for high performing, experienced programme operators through a streamlined application process; providing local control of meal service times and allowing children to take one non-perishable item offsite to eat later; ending confusion around important standards and requirements by clarifying performance standards, programme definitions, and other programme requirements; and codifying FNS’ statutory waiver authority for all child nutrition programmes including the National School Lunch Program, School Breakfast Program, Child and Adult Care Food Program and SFSP.
One provision of the American Rescue Plan Act of 2021 (ARPA) (P.L. 117-2) allocated USD 390 million through FY 2024 to carry out outreach, innovation and programme modernisation efforts to increase participation and redemption of benefits in WIC. Through this authorisation, USDA’s Food and Nutrition Service launched three major grant programmes in 2022 to facilitate WIC modernisation, which focused on innovation and outreach, improving the WIC experience through technology, and improving the WIC shopping experience. Through October 2022, nearly USD 53 million in grants had been awarded.
In December 2022, a permanent Summer Electronic Benefits Transfer programme was authorised as part of the Consolidated Appropriations Act, 2023 (P.L. 117-328). This programme will provide benefits of USD 40 per month per child for eligible families on an electronic benefits transfer (EBT) card, which works like a debit card, allowing families who receive school meal benefits during the schoolyear to receive assistance for retail food purchases during the summer months. The authorisation of this permanent Summer EBT programme resolves a longstanding gap in programming by ensuring that low-income children have enough to eat during the summer months when school is not in session and school meals are unavailable.
CAA also codified certain temporary pandemic-era food delivery model flexibilities for summer feeding programmes, permanently allowing summer meal providers to use alternative delivery models such as “grab-and-go” meal availability. The Act also directs USDA to work with appropriate agencies to investigate and take steps to prevent EBT fraud carried out through card skimming or cloning.
Domestic policy responses to the COVID-19 pandemic
New programmes were launched in 2022 under the umbrella of the 2021 Pandemic Assistance for Producers initiative. Programmes under this initiative were intended to help impacted producers prevent, prepare for, and respond to the COVID-19 pandemic. Among the programmes developed or launched under this initiative in 2022 were:
The Pandemic Cover Crop Program (PCCP) was initially authorised in 2021 to provide crop insurance premium support to eligible producers for eligible insured acres on a spring crop insurance policy on which the producer planted a qualifying cover crop during the 2021 crop year. In February 2022, RMA announced that PCCP would be made available in 2022 as well, with coverage for the 2022 crop year extended to also cover eligible producers for eligible Whole Farm Revenue Protection (WFRP) acres.
The Food Safety Certification for Specialty Crops Program (FSCSC) will provide USD 200 million to assist specialty crop operations that incurred eligible on-farm food safety programme expenses to obtain or renew a food safety certification in 2022 or 2023.
The Commodity Container Assistance Program (CCAP) helps offset expenses of eligible agricultural companies and co-operatives incurred at certain ports with logistical issues caused by the COVID-19 pandemic (the Port of Oakland and the Northwest Seaport Alliance, NWSA, which is the operating partnership between the Ports of Seattle and Tacoma). CCAP helps to support improved use of empty containers and the prepositioning and temporary storage of filled containers near export terminals.
The Ocean Shipping Reform Act of 2022 was signed into law on 16 June 2022. Amongst its provisions, the act prohibits ocean carriers from unreasonably refusing cargo space when available or resorting to other unfair or unjustly discriminatory methods. The act was drafted partially in response to supply chain issues experienced during the pandemic, when ocean carriers left US products (including agricultural goods) behind at US ports and returned to Asia with empty containers, exacerbating supply issues and resulting in losses of agricultural goods that were not shipped.
Trade policy developments in 2022-23
In January 2022, the government of India agreed to allow imports of US pig meat and pig meat products into India for the first time after agreement on an export certificate to allow the importation of US pig meat and pig meat products. The agreement was reached subsequent to the November 2021 US-India Trade Policy Forum, which also saw the two partners agree on market access facilitation measures for mangoes, pomegranates, and pomegranate arils from India, and cherries and alfalfa hay for animal feed from the United States.
In March 2022, the United States and the United Kingdom reached a new agreement to allow historically-based volumes of UK steel and aluminium to enter the US market without the application of Section 232 tariffs. As a result of the deal, the United Kingdom agreed that from 1 June 2022, the country would suspend retaliatory tariffs that had been applied to certain US exports to the United Kingdom, including on distilled spirits, various agriculture products, and consumer goods.
In December 2022, amendments were agreed for the beef safeguard trigger level under the US-Japan Trade Agreement (USJTA) detailed in the 2 June 2022 Protocol Amending the Trade Agreement between Japan and the United States of America. These amendments entered into force on 1 January 2023, replacing the existing beef safeguard trigger level with a new criteria-based mechanism.
In January 2022, a panel ruled in favour of the United States in proceedings brought against Canada under the terms of the United States–Mexico–Canada Agreement (USMCA), agreeing that Canada breached its USMCA commitments by reserving most of the in-quota quantity in its dairy tariff-rate quotas (TRQs) for the exclusive use of Canadian processors. Canada published final changes in the dairy TRQ allocation on 16 May 2022. Subsequently, the United States requested new dispute settlement consultations, most recently on 20 December 2022, regarding several additional aspects of Canada’s measures, including the failure to fully allocate the annual dairy TRQ, which the United States views as inconsistent with Canada’s obligations under the USMCA.
To address temporary shortages of baby formula, the “Formula Act of 2022” was signed into law in July, which provided temporary duty-free treatment for certain infant formula products imported through 31 December 2022. In parallel, “Operation Fly Formula” was a co-ordinated effort between the Department of Health and Human Services, USDA, the General Services Administration, and the Department of Defense, which contracted commercial aircraft to speed up the import of infant formulas to the United States.
Trade policy responses to Russia’s war of aggression in Ukraine
Policy responses related to the Russian Federation’s unprovoked and unjustified war against Ukraine were largely directed toward addressing the global food security implications of the invasion. In April 2022 USDA announced that it would draw down the full balance of the Bill Emerson Humanitarian Trust (BEHT) – roughly USD 282 million – to procure US food commodities to bolster existing emergency food operations in six countries facing severe food insecurity exacerbated by the war.23 An additional USD 388 million in funds from the Commodity Credit Corporation (CCC) were also provided to cover freight transportation, shipping and handling, and other associated costs. The BEHT is a special authority that enables USAID’s Bureau for Humanitarian Assistance (BHA) to respond to unanticipated food crises abroad when other resources are not available. BEHT provides emergency food assistance when funds available for emergency needs under title II of the Food for Peace Act for a fiscal year are insufficient to meet emergency needs during the fiscal year. This is the first time since 2014 that the US Government has used this emergency funding authority.
A bilateral initiative, the Memorandum of Understanding (MOU) between USDA and the Ukrainian Ministry of Agrarian Policy and Food, entered into force on 10 August 2022 to enhance co-ordination between the US and Ukrainian agriculture and food sectors and build a strategic partnership to address food security. The MOU will be in place for three years, and specifically seeks co-operation in the areas of productivity data and expertise, shared expertise and guidance on new technologies, and enhanced co-operation on bilateral trade and post-conflict capacity building. To date, technical assistance and other initiatives have been launched in the areas of animal health, biosecurity, sanitary and phytosanitary (SPS) capacity building, agricultural and trade policy, wildfire control, water management, and preventing illegal deforestation.
The United States is the world’s second largest economy by GDP in PPPs and the third largest country by land area and population. US GDP per capita is among the highest in the world, more than three times the average of the countries included in this report (Table 29.3). Primary agriculture accounts for a small part of the economy – around 1% of GDP and 1.5% of employment – but agro-food accounts for almost 12% of total exports. The US agricultural sector benefits from a large domestic consumer market, as well as abundant arable and pasture land and diverse climatic conditions that support the production of a wide range of commodities. Crops represent 62% of the value of total agricultural production. Key industries include grains (maize and wheat), oilseeds (soybeans), cotton, cattle, dairy, poultry and fruits and vegetables.
Real GDP growth returned to the long-term average of around 2% in 2022 as the economy moves past the dip-and-spike effect of the COVID-19 pandemic in 2020 and 2021. However, higher food, energy and housing costs have kept inflation at record highs (Figure 29.5). The labour market has recovered nearly all the jobs lost since the onset of disruptions caused by COVID-19 pandemic, and the current unemployment rate is at historical lows.
The United States is the world’s second largest agricultural trader, after the European Union. Both US agricultural exports and imports have been growing steadily since 2000 and net trade is nearly balanced (Figure 29.6). Exports of high-value products such as dairy products, meats, fruit, and vegetables have been growing, driven by demand in emerging markets, though the majority of exports are still destined for further processing. Import demand on the other hand is concentrated on products for final consumption.
Growth in output has been driven by increases in the use of both primary factors and inputs (Figure 29.7). Total factor productivity (TFP) growth, which averaged 1.5% between 1991 and 2000, has been close to zero over the period 2011-20. Most environmental indicators are at or slightly below OECD averages. Nitrogen balances have been gradually improving, while phosphorus balance is slightly worsening (Table 29.4). Agriculture’s share in energy use and in total GHG emissions are increasing. Water stress in the United States is above the OECD average. While the water stress indicator has declined between 2000 and 2020, there are regional hotspots of water stress. In particular, the southwest United States region is facing drier and warmer conditions, groundwater depletion, as well as competition for water demand from rapid population growth (OECD, 2017[8]).
References
[2] Congressional Research Service (2019), What is the Farm Bill?, CRS Report RS22131, Congressional Research Service, https://crsreports.congress.gov/product/pdf/RS/RS22131.
[3] Congressional Research Service (2018), Federal Crop Insurance: Program Overview for the 115th Congress, CRS Report R45193, Congressional Research Service, https://crsreports.congress.gov/product/pdf/R/R45193/4.
[5] OECD (2019), “United States”, in Agricultural Policy Monitoring and Evaluation 2019, OECD Publishing, Paris, https://doi.org/10.1787/189dd9b6-en.
[8] OECD (2017), Water Risk Hotspots for Agriculture, OECD Studies on Water, OECD Publishing, Paris, https://doi.org/10.1787/9789264279551-en.
[4] OECD (2014), “United States”, in Agricultural Policy Monitoring and Evaluation 2014: OECD Countries, OECD Publishing, Paris, https://doi.org/10.1787/agr_pol-2014-19-en.
[1] OECD (2011), Evaluation of Agricultural Policy Reforms in the United States, OECD Publishing, Paris, https://doi.org/10.1787/9789264096721-en.
[7] United States (2020), The United States of America Nationally Determined Contribution--Reducing Greenhouse Gases in the United States: A 2030 Emissions Target, UNFCCC, https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/United%20States%20of%20America%20First/United%20States%20NDC%20April%2021%202021%20Final.pdf (accessed on 10 February 2022).
[6] USDA ERS (2020), Farm & Commodity Policy: Overview, https://www.ers.usda.gov/topics/farm-economy/farm-commodity-policy/.
Notes
← 1. The term “underserved communities” refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life (see note 20 for more details)
← 2. Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127).
← 3. Farm Security and Rural Investment Act of 2002 (P.L. 107-171).
← 4. Food, Conservation, and Energy Act of 2008 (P.L. 110-246).
← 5. Agricultural Adjustment Act of 1938 (7 U.S.C. 1281).
← 6. Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994. The Food, Conservation, and Energy Act of 2008 (“2008 Farm Bill”) continued the 100% premium subsidy for CAT but increased CAT fees from USD 50 to USD 300/crop/county.
← 7. Base acres are a farm’s crop-specific historical acreage of wheat, feed grains, seed cotton, rice, oilseeds, pulse crops or peanuts eligible to participate in the ARC and PLC commodity programmes. Base acres are not linked to current plantings.
← 8. The effective reference price is the lesser of 115% of the reference price specified in the law or an amount equal to the greater of the reference price or 85% of the average prices from the 5 preceding years, excluding the highest and lowest price. This method of calculating the payment rates allows the effective reference price to be greater than the statutory reference price if historic average prices are greater than the statutory reference price.
← 9. For ARC-IC, all base acres had to be enrolled in ARC-IC.
← 10. Ranching is the practice of raising herds of animals on large tracts of land. Ranchers commonly raise grazing animals such as cattle and sheep.
← 11. https://www.fsa.usda.gov/programs-and-services/emergency-relief/index.
← 12. Drought ratings range from D0 (moderately dry) to D4 (exceptional drought). D2 is considered a severe drought where crop or pasture losses are likely LFP covers losses due to droughts classified as D2 or D3, https://droughtmonitor.unl.edu/About/AbouttheData/DroughtClassification.aspx.
← 13. Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions.
← 14. PFAS are widely used, long lasting chemicals. They are commonly found in cleaning products, water-resistant fabrics, grease-resistant paper, non-stick cookware and personal care products.
← 15. The new rule includes counties with drought rated as D2 intensity (see note 13) for at least eight consecutive weeks or rated as D3 or D4 – consistent with the availability of drought assistance under the Livestock Forage Program (LFP). Previously, a drought rating of at least D3 was required to qualify as “eligible drought”.
← 16. https://www.farmers.gov/inflation-reduction-investments.
← 17. The 2021 pilot phase of this programme was available only in four states.
← 18. Arkansas, California, Colorado, Georgia, Iowa, Michigan, Mississippi, Ohio, Pennsylvania, South Carolina, and South Dakota
← 19. The Federal fiscal year (FY) runs from 1 October through 30 September of the following year.
← 20. OMB memorandum M-21-20, Promoting Public Trust in the Federal Government through Effective Implementation of the American Rescue Plan Act and Stewardship of the Taxpayer Resources, references Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government” (20 January 2021), which includes a definition of “underserved communities” in Section 2. The term “underserved communities” refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life, as exemplified by the list in the preceding definition of “equity.”
The term “equity” means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of colour; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.
← 21. Justice40 is a whole-of-government initiative stemming from 2021’s Executive Order 14008 on Tackling the Climate Crisis at Home and Abroad. Investments covered by the initiative include investments on climate change, clean energy and energy efficiency, clean transit, affordable and sustainable housing, training and workforce development, remediation and reduction of legacy pollution, and the development of critical clean water and wastewater infrastructure. Disadvantaged populations are often disproportionately affected by these issues. For more information on Justice40, see https://www.whitehouse.gov/environmentaljustice/justice40/.
← 22. For the full list, see https://www.usda.gov/sites/default/files/documents/usda-justice-40-programmes.pdf.
← 23. Biden Administration Announces Hundreds of Millions of Dollars in Global Food Aid to Respond to Putin’s Unprovoked Invasion of Ukraine | USDA.