New USDA policy targets small family farms

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A historic red barn is the centerpiece of this DeKalb County farmstead. USDA recently unveiled a new policy aimed at preserving small family farms. (Photo by Catrina Rawson)

By TAMMIE SLOUP
FarmWeek

USDA released a new policy agenda outlining actions aimed at ensuring the profitability and prosperity of small family farms.
Dubbing it the Make Agriculture Great Again initiative, Ag Secretary Brooke Rollins introduced the first set of proposals that address a number of issues for farmers, including reliable access to credit; access to farmland; transitioning farms to the next generation; access to markets and infrastructure; access to reliable agricultural labor; and access to appropriate risk management and business planning tools.
In 2023, based on the USDA Economic Research Service report titled “America’s Farms and Ranches at a Glance,” about 86% of all farms were small family farms. These farms, which have a gross cash farm income below $350,000, operated on 41% of U.S. agricultural land, while producing just 17% of the total value of agricultural production.
“To ensure small family farmers can start and stay in business for generations to come, USDA is placing specific emphasis on understanding the barriers to starting and keeping small family farms viable — especially for the next generation,” according to the policy.
As USDA implements its action plan, ongoing assessment of gaps in service and support will occur.
Some of the actions outlined in the agenda include:
■ Reforming the Farm Service Agency (FSA) and Rural Development (RD) loan programs to streamline delivery and increase program efficiencies, and disincentivize the use of federal funding for solar panels to be installed on productive farmland.
■ Calling on Congress to ensure most farms are protected from an increase in the death tax. The administration is also urging Congress to expand Section 179, which allows eligible small businesses to deduct the full purchase price of qualifying farm and business equipment upfront and restore 100% bonus depreciation expensing. USDA will also be engaging with agricultural tax and legal professionals across the country to identify ways the department can assist in developing tools that help to facilitate the orderly transition of agricultural operations from one generation to the next.
■ Leveraging USDA’s agricultural labor affairs coordinator in actively working with other federal agencies such as the Department of Labor and the Department of Homeland Security to address the critical issue of labor access for agricultural producers. USDA is aggressively exploring coordinated solutions with agencies and Congress to ensure a stable, reliable and legal workforce for agriculture.
■ Reviewing farm size definitions to ensure they adequately reflect modern-day realities while also helping to ensure resources are appropriately tailored to the needs and size of farms.
■ Evaluating new shared services platforms for the FSA and RD programs to streamline delivery and increase program efficiencies.
The policy rollout builds on the Farmers First Roundtable event recently held at the USDA headquarters in Washington, D.C., where the secretary met with more than 20 farmers and ranchers from 11 states who run smaller-scale, family-owned operations, as well as Nebraska Gov. Jim Pillen and the Board of Directors of the National Association of State Departments of Agriculture about challenges facing smaller-scale family farms across America.
“America’s family farms help feed, fuel and clothe the world, but they also face some of the greatest challenges in getting their farms started and keeping them running. Putting farmers first means addressing the issues farmers face head-on and fostering an economic environment that doesn’t put up roadblocks on business creation but removes them,” Rollins said.
Read the full policy at bit.ly/44MO1Oy.
This story was distributed through a cooperative project between Illinois Farm Bureau and the Illinois Press Association. For more food and farming news, visit FarmWeekNow.com.