USDA Launches $2 Billion Initiative to Support Farmers and Expand Crop Storage Solutions

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WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) recently unveiled two significant programs aimed at assisting farmers who grow specialty crops such as fruits, vegetables, and nuts. Agriculture Secretary Tom Vilsack announced the initiatives, which are designed to expand market opportunities for specialty crop producers and provide increased access to storage facilities for agricultural commodities impacted by natural disasters.

The first program, the Marketing Assistance for Specialty Crops initiative, sets aside $2 billion in funding to help specialty crop growers overcome barriers related to transporting and marketing their products effectively. The second program, known as the Commodity Storage Assistance Program, allocates $140 million to assist producers nationwide in securing access to packinghouses, grain elevators, and other essential facilities required for the proper storage and distribution of agricultural products.

“These programs are coming at a critical time for our farmers, especially those in the Southeast, as they face the long and difficult recovery from this season’s devastating hurricanes,” said Agriculture Secretary Tom Vilsack. He added, “From providing high-quality, nutritious, American-grown fruits, vegetables, and nuts to serving as economic pillars of their communities, specialty crop producers play a critical role in the success of U.S. agriculture.”

Marketing Assistance for Specialty Crops

Specialty crops—which include perishable products such as fruits, vegetables, herbs, and floriculture—carry higher transportation, labor, and storage costs compared to other agricultural goods. The $2 billion allocated to the Marketing Assistance for Specialty Crops initiative will provide targeted financial support to cover these marketing challenges.

By supporting farmers in meeting the specialized handling demands for perishables, including temperature- and humidity-controlled equipment and advanced packaging solutions, this program is expected to improve the domestic availability of nutritious fresh produce and address critical challenges faced by specialty crop growers. Applications for the program are anticipated to open in December 2024.

This initiative also builds upon broader USDA efforts under the Biden-Harris Administration to bolster the specialty crop sector. Earlier in January, the USDA launched the Assisting Specialty Crop Exports (ASCE) initiative, under its Regional Agricultural Promotion Program, which has allocated $65 million to help producers expand internationally. Additionally, $72.9 million in Specialty Crop Block Grant Program (SCBGP) funds were made available in both 2022 and 2023 to drive innovation and competitiveness in the industry.

Specialty crops already account for a substantial share of U.S. agricultural exports, with a total of $24.6 billion in export revenues in FY2023, representing 13.8% of overall agricultural exports. These investments by the USDA aim to not only strengthen domestic production but also enhance the global market position of U.S. specialty crops.

Commodity Storage Assistance Program

The Commodity Storage Assistance Program addresses the growing need for commercial storage facilities such as grain elevators and packinghouses, especially in regions struck by natural disasters. Farmers from the southeastern United States are expected to benefit significantly from this $140 million initiative due to the severe damage caused by Hurricanes Debbie, Helene, and Milton earlier this year.

Producers applying for this program must demonstrate that natural disasters caused a loss of access to commercial storage, which disrupted their ability to market their crops effectively. The funds will assist in rebuilding critical infrastructure needed for the orderly marketing of commodities. Applications for this program are also scheduled to open in December 2024.

This new effort has roots in a prior USDA initiative, the Emergency Grain Storage Assistance Program, which supported farmers who experienced storage infrastructure losses due to disasters in 2021 and 2022. Similar to its predecessor, the Commodity Storage Assistance Program underscores USDA’s commitment to stabilizing agricultural markets and supporting disaster-impacted producers across the country.

Complementary Disaster Policy Initiatives

The USDA’s new programs align with a proposed disaster assistance package from the Biden-Harris Administration, which seeks Congressional approval for expanded resources for the Emergency Relief Program (ERP) and Emergency Livestock Relief Program (ELRP). These programs assist producers of row crops, specialty crops, and livestock affected by natural disasters, and are part of broader USDA-led efforts to address climate-induced challenges in agriculture.

While final details regarding eligibility and payment rates for the new programs are still pending, further information will be provided in upcoming Notices of Funding Availability.

By introducing these initiatives, the USDA aims to bolster the resilience and competitiveness of the agriculture sector, ensuring that specialty crop farmers and disaster-impacted producers can recover and continue to provide high-quality food to American consumers and international markets.

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