Agricultural commodities affected by trade disputes, most notably with China, are once again being offered offset programs to achieve net revenue goals. For some, this is a direct payment check akin to existing Title I programs as outlined in the Farm Bill. For others, like citrus, there will again be two programs that our industry can participate in. Unfortunately, despite extensive input from Sunkist and CCM, there are no changes to the programs, however, there are more dollars available in this new package for the purchase of product and possibly promotion. In the previous program, approximately $80 million was made available for the purchase of fresh citrus and orange juice with oranges getting the bulk of the opportunity at $55 million. For the January 2020 program that gross number has increased to $104 million. The breakdown between fresh varieties and juice has not yet been released.
Beginning in October, USDA will announce purchase programs available for fruit delivery beginning in January 2020. The industry is presently awaiting decisions from USDA/AMS on purchase offers for citrus deliveries during September through December 2019.
USDA will host a webinar to address questions from potential bidders. CCM will communicate that schedule when it becomes available.
The Trade Promotion Program will be renewed as well. This past year the California citrus industry accessed less than $1 million as there are no growth opportunities sufficient enough to offset the dislocation of product that would have otherwise gone to China. Over $100 million was awarded to 48 organizations under the first program. In their press release, USDA cited some success stories from that program, however, none were from the fresh produce industry.
As more details become available CCM will distribute information to growers, shippers, and marketers.
