USDA: What we have done so far

This past year, the U.S. Department of Agriculture (USDA) has been part of the daily lives of millions of Americans, supported our nation’s farmers and ranchers, provided nutrition assistance to 1 in 5 Americans, and created and saved countless jobs in rural communities.



Detailed below are a number of accomplishments from this past year under Agriculture Secretary Tom Vilsack’s leadership of the department. In this New Year, the USDA will continue to bring support and assistance to help people and communities throughout the country.




2009 USDA Accomplishments





Ensure Economic Opportunity for Family Farmers

· To provide a strong safety net for family farmers, USDA is working aggressively to meet the credit needs of farmers and ranchers across the country. In 2009, USDA responded to the tight credit market by increasing funding available under the FSA farm credit programs, particularly with respect to direct farm operating loans. The Recovery Act included $173 million for direct operating loans to help over 2,600 producers around the country. Approximately 49% of loans went to beginning farmers and nearly 23% to socially disadvantaged farmers.



· At the end of the year, USDA announced a Memorandum of Understanding with the Internal Revenue Service to establish an electronic information exchange process for verifying compliance with the adjusted gross income provisions for our farm assistance programs. This will enhance the overall integrity of the program. It will also provide more flexibility for family farm operations across the country.



· We have taken extensive steps to help the dairy and pork industries which were both particularly hard hit this year:



o USDA has made $807 million in payments to diary producers through the MILC program. And the increase in the amount paid for dairy products through the price support program improved dairy farmer revenue by $300 million since August. USDA worked quickly to develop the new Dairy Economic Loss Assistance Payment (DELAP) program which uses $290 million authorized by the 2010 Agricultural Appropriations Bill authorized to make a one-time direct payment to dairy producers.



o To help pork producers, USDA purchased approximately $215 million worth of pork products for federal food and nutrition assistance programs in fiscal year 2009. Recently, USTR Ambassador Kirk and Secretary Vilsack announced that the Chinese Government intends to reopen that market to U.S. pork and live swine, consistent with science-based, international standards.



· In response to President Obama’s “buy local” challenge to help revitalize rural America, USDA launched the ‘Know Your Farmer, Know Your Food’ initiative, an effort to use resources from across the Department of Agriculture to create new income opportunities for farm operators of all sizes by supporting local and regional food systems and strengthening the connection between farmers, consumers and local institutions. Using ideas and new programs authorized in the 2008 Farm Bill as well as other USDA authorities, Know Your Farmer investments and education efforts will help generate wealth that will stay in rural communities, promote a greater focus on sustainable agricultural practices, and give American families easier access to healthy, locally grown food.



· USDA has implemented the new Supplemental Revenue Assistance Payments program (SURE) to provide financial assistance to producers who have suffered crop losses due to natural disasters. SURE provides crop disaster assistance payments to eligible producers on farms that have incurred crop production or crop quality losses.



· To prevent anticompetitive behavior against family farms, we are working to fully enforce the Packers and Stockyards Act to crack down on unfair or deceptive practices and ensure a fair marketplace for livestock and poultry. USDA released the GIPSA chicken rule to level the playing field and provide poultry growers with more information for them to make basic decisions when entering into poultry growing arrangements.



· USDA has renewed its commitment to partnering with landowners to conserve private lands.



o Secretary Vilsack has established a new vision for forestry and water quality within USDA. We will emphasize a collaborative and cross-boundary forest management approach to include state and private lands with a heavy focus on restoration.



o USDA expedited implementation of the new Conservation Stewardship Program (CSP), announced in July, to encourage agricultural and forestry producers to maintain existing conservation activities and adopt additional ones on their operations. The program attracted applications from agriculture producers wishing to enroll twice the number of acres authorized by Congress annually.



o USDA created the Mississippi River Basin Healthy Watersheds Initiative, a $320 million effort in 41 selected watersheds in 12 states, where USDA will work with agricultural producers, partner organizations and State and local agencies to improve water quality and the overall health of the Mississippi River Basin.



Support Rural Economic Development

· USDA is focused on a number of emerging economic opportunities in rural communities that have the potential to revitalize rural America, including jobs made possible by new broadband infrastructure, renewable energy generation, recreation in rural areas, climate change mitigation and a comprehensive program to support the development of local and regional food systems we call ‘Know Your Farmer, Know Your Food.’



· With help from the Recovery Act, USDA worked to support small business development. The Recovery Act provided USDA additional funding for programs with proven track records of creating and saving jobs. USDA’s Rural Development's Business & Industry Guaranteed Loan Program has announced approximately $1.7 billion to improve, develop, or finance business, industry, and employment and improve the economic climate in rural communities. USDA has also selected $19 million in Rural Business Enterprise Grants (RBEG) to assist in financing and facilitating the creation of small and emerging private business enterprises in rural areas.



· USDA is building critical infrastructure to help rural America compete in a 21st century economy. USDA has announced the first NOFA for part of our $2.5 billion in Recovery Act funds to support the expansion of broadband service in rural America. In December we announced the first 8 projects selected for funding worth $53.8 million. This funding will provide access to high speed internet service in locations that currently lack sufficient access. A modernized communications infrastructure is essential to creating new business opportunities to rural communities and spurring rural economic development.



· USDA is working to promote rural leadership in developing and producing renewable energy.



o At President Obama’s direction, USDA has moved quickly to expedite Farm Bill provisions to develop renewable energy sources.



o To help build a green economy, USDA has provided funds to develop and build commercial and demonstration scale bio-refineries and the development of 2nd and 3rd generation biofuels.



o In 2009, we made more than $112 million in investments through the Rural Energy for America Program (REAP) to help more than 1,500 rural businesses invest in technology to become more energy efficient.



o The Biomass Crop Assistance Program – or BCAP – has already begun to provide matching payments to folks delivering biomass for the collection, harvest, storage, and transportation of biomass to eligible biomass conversion facilities. This program, authorized by the 2008 Farm Bill, will help encourage the development of biomass feedstocks for the production of advanced biofuels, renewable energy and biobased products. We are also developing the regulations for the full implementation of BCAP in Fiscal Year 2010.



o USDA is part of a Biofuels Interagency Working Group to help coordinate efforts across the federal government to advance biofuels research and commercialization



o Using Recovery Act funds, the Forest Service is supporting restoration projects that not only improve forest health, but use the bi-products to produce clean burning fuels. A total of 30 Recovery Act projects received funding of $56 million to support the development of biofuels from wood and help private sector businesses to establish renewable energy infrastructure and accelerate availability in the marketplace.



o USDA re-established the Office of Community and Economic Development Services to improve our ability to encourage and support communities and regions as they work to improve their quality of life by developing effective economic development strategies. The office is working with rural communities to think regionally so that they can better utilize their assets, collaborate with local and federal partners, to create a viable, sustainable future for rural families.



Improve Rural Quality Of Life

· USDA has provided historic resources to upgrade infrastructure in rural American communities so that they can take advantage of new opportunities, provide a better quality-of-life for their inhabitants, and address some of the acute hardship it faced in 2009.



o In FY 2009, USDA provided nearly $875 billion for building and repairing 1,828 community facilities including childcare centers, hospitals, medical clinics, fire and rescue stations, police stations, and community centers that will improve the quality of life for more than 19 million rural Americans. The Recovery Act funded 523 of these projects totaling $293 million in loans.



o In FY 2009, USDA provided grants and loans worth $16.6 billion to preserve rural housing in all 50 states and U.S. Territories to help nearly 140,000 rural Americans become homeowners. $10.3 billion to help 84,000 families was provided through the Recovery Act.



o In FY 2009, USDA issued more than $2.5 billion, $1.9 billion through ARRA funding, in grants and loans to bolster rural water and wastewater infrastructure in more than 1,200 rural communities, expected to benefit nearly 3.4 million users.


Other Accomplishments
Additional Support for American Agriculture and Struggling Industries

· In April 2009, USDA rescinded a portion of a final rule published by the prior Administration that terminated base acres on federally-owned land. As a result, farmers who lease federal land are again considered eligible to receive payments under the Direct and Counter-cyclical Program (DCP) on federal land with base acres. Terminating base acres on federally-owned cropland would have hurt farmers across the country and eroded the safety net for farmers and ranchers.



· USDA has proposed important, common sense changes in the agreement the department is currently renegotiating with the insurance industry. These changes are not expected to impact farmers or increase costs but ensure their continued access to important risk management tools, reduce volatility for crop insurance companies, expand access to underserved areas, and make the crop insurance program more responsive to taxpayer concerns.



· USDA strengthened support for the growing organic industry. We negotiated and announced a first-of-its-kind agreement between the United States and Canada that will expand opportunities for organic producers in both countries. We dedicated $50 million in EQIP funding to organic production and to maintain the quality of the organic standard, the National Organic Program was elevate to its own division and a peer review audit was conducted of the program.



· USDA has put a renewed emphasis on trade – with Secretary travel and meetings at all levels to promote trade opportunities that benefit American producers. Secretary Vilsack has traveled to Kenya, China and the Philippines to help expand agricultural exports.



o Earlier this year, technical discussions with Korea led that government to approve three recently commercialized biotech corn and soy varieties in time for the 2009 planting season.



o We continue to press at every opportunity to expand access for U.S. beef and beef products consistent with international standards. For example, January to October 2009 exports to Japan have risen 15 percent.



o Chile has agreed to align their beef and beef product import regulations with international standards, and we are now discussing the new export certificate.



o We have been able to maintain access for U.S. pork and poultry to the Philippines under that country’s existing market access commitments.



o After decades of litigation with the European Union (EU) over the use of hormones in cattle, the United States has concluded an agreement with the EU that has the potential to increase substantially our beef sales there.



o Recently, USTR Ambassador Kirk and Secretary Vilsack helped negotiate an agreement so that the Chinese Government intends to reopen that market to U.S. pork and live swine, consistent with science-based, international standards. This is an important development because, in 2008, China was the U.S. pork industry’s fastest growing market.


Civil Rights

· We have worked to transform USDA into a more productive and engaged organization. Secretary Vilsack has made civil rights a top priority, creating a comprehensive plan to improve the Department's record and to move USDA into a new era as a model employer and premier service provider. We temporarily suspended all foreclosures within the Farm Service Agency’s farm loan program, we began a review of program civil rights complaints to improve the complaint process, and we have ordered an external, independent analysis of program delivery to USDA constituents in the field. Additionally, we have made it clear to all employees that discrimination of any form will not be tolerated at USDA.


USDA Management and Cost Savings

· We have implemented reforms to avoid costs to the Department of more than $50 million since January 2009. These cost-avoidance measures have included eliminating unnecessary travel and conferences, increasing administrative efficiencies, and terminating contracts that are no longer needed.



· The Department will save millions though a new partnership with the IRS to identify potential fraud and improper payments in farm programs.


Food Safety

Secretary Vilsack has initiated a top-to-bottom review of the FSIS food safety system with the goal of ensuring the safety of the American food supply.



· Secretary Vilsack is co-chairing President Obama’s Food Safety Working Group which will build a food safety system that will meet the challenges posed by the global food supply of the 21st century.



· In 2009 FSIS began conducting routine sampling of bench trim for E. coli.



· FSIS worked on developing a quality public health infrastructure with data that is readily accessible to key decision-makers and front-line personnel.



· FSIS began conducting real time surveillance of high-risk shipments of meat, poultry, and egg products coming into the United States and vulnerability assessments focused on imports through partnerships with other federal agencies.



· In September we appointed the Department’s first Chief Medical Officer to strengthen the Department’s public health role.


Conservation of Forests and Natural Resources

· Secretary Vilsack announced a vision for the future of our nation's forests sets a new direction for the USDA and the U.S. Forest Service. We will emphasize a collaborative and cross-boundary forest management approach with a heavy focus on restoration. USDA will work to make our forests more resilient to climate change while protecting water resources, improving forest health and creating new jobs. The Forest Service initiated an open, collaborative process to create and implement a stable planning rule for the National Forest System.



· Adequate protection of roadless areas is a critical part of our vision to preserve the character of America’s forests, which is why in May USDA issued a temporary order so that Secretary Vilsack is currently personally review any new proposals for timber harvest or road construction in roadless areas.



· The Forest Service restored landscapes and protected communities by treating over 3.5 million acres of fuels across the country, over 60% of which were in the wildland urban interface. This was an integrated effort that included work by numerous programs across the agency - and across our boundaries - with almost 600,000 of these acres being treated on state and private lands by our non-federal partners.



· USDA has announced approximately $1.2 billion in funding for approximately 700 Forest Service projects, including hazardous fuel removal and forest health protection, with Recovery Act funding. Projects were targeted in economically distressed areas to create jobs. In addition, USDA has invested $50 million in Watershed Rehabilitation and $290 million in Watershed Operations and Flood Prevention with Recovery Act funding.



· In 2009, the Forest Service and its 13 southern state partners completed the 800,000th acre in the Southern Pine Beetle Prevention Program. This program provides financial assistance to federal, state and private landowners to help ameliorate future beetle outbreaks in the American south in the highest priority areas.



· The 12,000 employees of the Natural Resources Conservation Service provided over $3 billion in conservation technical and financial assistance to America’s working land owners, in support of Administration priorities and USDA strategic goals.



· In response to President Obama’s historic Executive order, USDA has taken on a leadership role in the conservation and restoration of the Chesapeake Bay Watershed. In collaboration with EPA, USDA developed a new strategic framework for agriculture conservation practices in the Bay watershed, including targeting programs to areas with nutrient and sediment challenges.



· The Natural Resources Conservation Service accelerated the Conservation Delivery Streamlining Initiative to begin implementation in 2010, with twin goals of reducing administrative and clerical workload on field staff by 80 percent and enabling them to spend 75 percent of their time in the field, directly serving farmers and ranchers. Funding for this important initiative was re-directed from other projects.


International Ag. Development and Food Assistance

An international consensus has developed that the past practice of relying on food aid has not solved the problem of international food insecurity. We need a comprehensive approach focused on sustainability. Our goals should be to increase the availability of food by helping people and countries produce what they need, to make food accessible to those who need it, and to teach people to use it properly so that they make the most of it.



· USDA has proposed doubling the appropriated funding for the McGovern-Dole school feeding program to nearly $200 million.



· As the agricultural part of the Obama Administrations efforts in Pakistan and Afghanistan, Secretary Vilsack and his counterparts in Afghanistan and Pakistan met in Washington DC and to outline a plan for agricultural cooperation and collaboration among the three countries. USDA is placing sixty-four agricultural experts throughout the country by February 2010



· In August, Secretary Vilsack attended the 8th meeting of the African Growth and Opportunities Act (AGOA) in Nairobi, Kenya to chart new ways forward in building closer economic ties between the U.S. and sub-Saharan Africa.


Nutrition

One of the first items that the President discussed with Secretary Vilsack when he was selected for this job was that his number one priority for USDA was to provide our children with healthier, more nutritious meals. The USDA will do everything it can to support the health of our children and the health of the school environment in thousands of schools across the country.



· President Obama has proposed a historic investment of $10 billion over 10 years to improve the Child Nutrition Programs.



· USDA engaged in a thorough review of a study by the Institute of Medicine (IOM) on improvements to the National School Lunch and School Breakfast Programs. USDA will develop a proposed rule to determine the best ways to improve the programs and better align them with the latest Dietary Guidelines for Americans based on IOM's final report.



· We are promoting the timely processing of applications, and encouraging states to use flexibility they have to provide benefits to as many qualified individuals as possible.



o We have offered waivers that would eliminate the need for an interview for recertification in our programs for households in which all adult members are elderly or disabled, with no earned income.



o And we are urging states to take is broad-based categorical eligibility, which allows SNAP eligibility workers to make many certification decisions based on determinations already made for other federal programs.



· FNS is coordinating with state and federal partners to streamline eligibility requirements, and reduce barriers to enrollment in our nutrition assistance programs.


Research

· We announced the National Institute of Food and Agriculture includes an increase of $70 million for research, education and extension activities.



o NIFA will be a kind of research “start-up” company. We’ll rebuild our competitive grants program from the ground up to generate real results for the American people. NIFA will focus our research funds on: nutrition and obesity; food safety; securing America’s energy future from new domestic sources; and improving crop, animal, and forest management in the face of climate change.



· Using a $10 million grant from NIFA, an international team of scientists completed the first draft of the genome of a domesticated pig. Agricultural Research Service scientists were part of the team at Cornell University that sequenced the maize genome. And using funding from NIFA, ARS and the National Institutes of Health (NIH), an international consortium of researchers published the genome of domestic cattle.



Climate Change

· USDA played a lead role in creating a Global Research Alliance on Agricultural Greenhouse Gases announced at the COP 15 climate talks in Copenhagen in conjunction with a host of nations. The Alliance will focus on research, development, and extension of technologies and practices to grow more food (and more climate-resilient food systems) without growing greenhouse gas emissions.



· In December, USDA signed an historic agreement with U.S. Dairy producers to promote greenhouse gas reductions and the production of energy from waste materials. The agreement contains strong commitments for assisting U.S. dairy farmers reach a goal of reducing greenhouse gas emissions by 25% by the year 2020.


Rural Tour

· Since May, Secretary Vilsack has held 22 listening sessions or ‘Rural Forums’ in small communities across the country as part of President Obama’s ‘Rural Tour.’ This tour was designed to highlight the Obama administration’s commitment to revitalizing and rebuilding rural America. It was also an opportunity for the Administration to listen to diverse voices in communities throughout rural America, and learn from citizens what the Administration can do to strengthen the communities.