USDA Launches Specialty Crop Support, Tying Payments to Commodity-Specific Rates

Key Takeaways

Specialty crop producers have until March 13 to apply for aid payments under the Assistance for Specialty Crop Farmers (ASCF) program.
Payment rates based on 2025 acreage will be announced at the end of March, aimed at alleviating market disruptions and inflation impacts.
The $1 billion allocated may be insufficient, prompting calls for increased aid and more comprehensive compensation measures.

USDA Announces Specialty Crop Aid Program

The U.S. Department of Agriculture (USDA) has announced a new initiative, the Assistance for Specialty Crop Farmers (ASCF) program. This program aims to provide much-needed financial support to specialty crop producers affected by various economic challenges. Producers are encouraged to apply by March 13, reporting their 2025 planted acres to the Farm Service Agency.

The ASCF program specifically targets crops not included in the $11 billion Farmer Bridge Assistance program. Payments will be determined by commodity-specific rates disclosed at the end of March. According to the USDA, these one-time payments are designed to address market disruptions, heightened production costs, and inflation, along with market losses attributed to unfair foreign trade practices. A comprehensive list of eligible crops is available in the USDA’s announcement.

However, some stakeholders, including specialty crop producers and certain members of Congress, have raised concerns regarding the adequacy of the $1 billion allocated for the initiative. This funding also has to cover payments for sugar growers. A coalition representing producers of vegetables, fruits, and tree nuts has expressed a preference for compensation based on overall farm revenue declines rather than commodity-specific impacts. The Specialty Crop Farm Bill Alliance has emphasized the complexities and costs of collecting accurate data for various specialty crops.

In an October letter to President Trump, the coalition proposed that the USDA consider modeling the new payment system after the second version of the Coronavirus Food Assistance Program (CFAP-2). This previous program compensated only those growers who could demonstrate a revenue decline within a specified timeframe, ensuring accountability similar to tax reporting.

In response to the ASCF announcement, the Specialty Crop Farm Bill Alliance stated it is reviewing the program details and will seek further clarification from the USDA. The alliance, co-chaired by leaders from various agricultural organizations, reaffirmed its preference for the CFAP-2 methodology. The coalition’s statement underscored the critical need for additional funding, urging Congress to allocate a minimum of $5 billion in dedicated aid for the specialty crop sector. They emphasized that such support is essential for sustaining American agriculture and the communities reliant on specialty crop producers.

Importantly, the USDA indicated that there will be no crop insurance requirement under the ASCF program. Nonetheless, producers are encouraged to utilize the new risk management tools available through the One Big Beautiful Bill Act (OBBBA) to mitigate price risks and volatility in future seasons.

The original announcement has been updated to include the Specialty Crop Farm Bill Alliance’s response, highlighting the ongoing dialogue between the producers and the USDA as they navigate these economic challenges.

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