As the premier provider of financial services to agriculture and agribusiness, American AgCredit has been an important partner for area farmers and ranchers, wineries, vineyards, dairies and others. With this in mind, the Santa Rosa-based Farm Credit Association carefully watched and monitored the passing of the Agricultural Act of 2014, which was o cially signed by Congress on February 7, 2014.

The 2014 Farm Bill makes major changes in commodity programs, adds new crop insurance options, streamlines conservation programs, and expands programs for specialty crops, organic farmers, bioenergy, rural development, and beginning farmers and ranchers. Here are some Farm Bill highlights:

Farm Safety Net:Eliminates direct payments and continues crop insurance. Producers choose between the Price Loss Coverage and Agricultural Risk Coverage. It establishes the Dairy Margin Protection program, restores livestock disaster assistance for losses dating back to 2011, and establishes a permanent livestock disaster program.

Rural Development: Continues USDA Rural Development programs, provides $15 million to support rural business development and growth, provides $150 million for water and waste water infrastructure, and reserves 10% of certain programs for regional, long-term investments.

Trade and Foreign Agriculture: The 2014 Farm Bill maintains $200 million annually for international market development, authorizes up to $80 million for longrange planning and increases exibility for assistance in emergency food aid situations.

Research: Endows $200 million for a foundation for agricultural research and doubles the funding for specialty crop research to $80 million annually.

Renewable Energy and Energy Efficiency: Reauthorizes and provides $880 million for energy programs, expands the Biore nery Assistance Program to include biobased product and renewable chemical manufacturing, and expands the Biopreferred program to include forestry products.

Forestry: Makes Stewardship Contracting Authority permanent, allowing the Forest Service to conduct restoration work and stimulate job growth, and makes the Good Neighbor Authority permanent and available nationwide.

Nutrition: Through its SNAP program, the 2014 Farm Bill provides $100 million to increase fruit and vegetable purchases, provides $250 million in additional funding for emergency food assistance, and authorizes $125 million for the Healthy Food Financing Initiative to make nutritious food more accessible.

Next Generation Farmers and Ranchers: Before the 2014 Farm Bill, the 2008 Farm Bill established the Beginning Farmers and Ranchers Development Program with $75 million for 2009 to 2012. e 2014 Farm Bill now provides $100 million for the Beginning Farmers and Ranchers Development Program, increases access to capital, and supports crop insurance along with other risk management tools including reducing crop insurance premiums during the rst 5 years of farming.

Local and Regional Food Systems: Before the 2014 Farm Bill, the Farmers Market Promotion Program (FMPP) was funded at $10 million annually. The 2014 Farm Bill provides $30 million annually for the “Farmers Market and Local Food Promotion Program”. Funds are also reserved for locallyand regionally focused businesses.

Specialty Crops and Organics: Before the 2014 Farm Bill, the 2008 Farm Bill funded the Specialty Crop Block Grant Program (SCBG) at $52 million annually to promote fruit and vegetable production. The 2008 Farm Bill also provided $55 million to strengthen the nation’s infrastructure for pest detection and threat mitigation, and to safeguard nursery production. The 2014 Farm Bill increases to $72.5 million annually for the specialty crop block grant program, provides new resources for organic farmers, and increases funding for pest and disease management and disaster prevention to $62.5 million per year.

These policy changes, along with the additional funding devoted to farming and ranching, secure agricultural programs into 2018, with many provisions extending beyond that. Future planning for your farm or ranch should take all these changes into consideration. American AgCredit is quali ed and focused on providing the appropriate nancial services and assistance that best bene t your business.

As part of the Farm Credit System, American AgCredit provides nancial services to agricultural and rural customers throughout California, Nevada, Kansas, Oklahoma, Colorado, and Northern New Mexico – as well as to capital markets customers in 30 states. Financial services include production and mortgage nancing, equipment and vehicle leasing, crop and life insurance, lines of credit, and the Young, Beginning and Small farmer program. In addition, the Association provides interest-free loans for qualifying 4-H and FFA Ag Youth programs, and college scholarships. Founded in 1916, the Association is the 7th largest Farm Credit lender in the U.S, and has given back more than $215 million since 2005 to member-borrowers through its cash dividend program. For more information, log on to the website at www.AgLoan.com.

By Mike Flesher & MariaSundeen. First published in the North Bay Business Journal