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USDA Boosts Nutrition Support, Reorganizes Services and Lending Rates for Farmers
The biggest headline from the USDA this week is Secretary Brooke Rollins’ announcement that the department will purchase up to $230 million in fresh seafood, fruits, and vegetables from American farmers to distribute to food banks and nutrition programs nationwide. This initiative, launched under Section 32 of the Agriculture Act, is a direct boost for smaller and local producers while helping address food insecurity across communities. According to Secretary Rollins, "This is yet another action by President Trump to improve the livelihoods of the American people. USDA is proud to play a role in not only connecting smaller, local farmers to families but also in making America healthy again." So far this fiscal year, USDA has already provided over $924 million in food purchases to support the national safety net for those in need.
But that’s not the only shake-up at USDA. In a move meant to boost efficiency and government responsiveness, the department opened a 30-day public comment period on its sweeping reorganization plan. Secretary Rollins is actively inviting input from farmers, congressional offices, and citizens, promising that “all stakeholders…are encouraged to share their input during the open comment period.” Deputy Secretary Stephen Vaden highlighted that relocating parts of USDA outside Washington, D.C., consolidating overlapping functions, and cutting unnecessary management layers will help USDA deliver services more effectively, especially to rural communities.
For producers, this week also brings new lending rates from the USDA’s Farm Service Agency. As of August 1, interest rates for Direct Farm Operating Loans sit at 5%, with Ownership Loans at 6%. Other options, like joint financing and down payment loans, are available at lower rates, some as low as 2%. These terms offer essential financial flexibility as producers head into the late summer and fall seasons. Producers can explore these options using the online Loan Assistance Tool via farmers.gov.
Policy changes are also coming down the pipe for school nutrition. The USDA’s latest update phases new nutrition standards in schools beginning fall 2025, with an initial, manageable step to lower sodium; limits added sugars for items like cereals and flavored milk start in 2025, and broader weekly limits by 2027. No new requirements hit school menus this school year, which gives districts and suppliers time to adapt.
What does this all mean for Americans? Families will see healthier choices and stronger food security. Businesses and producers gain new market opportunities and more accessible financing options. State and local governments will need to adapt to the new school meal standards and reorganization of USDA services, likely with more direct support. Internationally, these moves send a message that U.S. agriculture remains committed to both innovation and nutrition.
Listeners interested in shaping the future of USDA’s structure can participate in the public comment period on the reorganization plan, open now through the end of August. To find more details, check out usda.gov or contact your local USDA service center. If you’re a farmer or rancher planning your next season or expansion, the new lending rates and online tool are ready to help.
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Published on 1 month ago