National Potato Council CEO Kam Quarles.

Industry representatives are happy with USDA’s expansion of a new marketing assistance program for specialty crops.

The department recently rolled out the $2 billion Marketing Assistance for Specialty Crops program to help producers maintain and expand markets and manage costs that are typically higher than those faced by producers of non-specialty crops.

USDA’s Farm Service Agency on Jan. 6 announced it is providing an additional $650 million, increasing the payment limit from $125,000 to $900,000.

Specialty crop producers “have been impacted by higher marketing and handling costs due to the perishability of fruits, vegetables, floriculture, nursery crops and herbs as well as increased costs to meet regulatory requirements,” FSA administrator Zach Ducheneaux said in a Jan. 6 news release.

In its recent year-end spending bill, Congress was unable to provide economic assistance to the specialty crop industry, which represents nearly half of U.S. farm gate value, so USDA took action by creating the program, Kam Quarles, National Potato Council CEO and one of four chairpersons of the Specialty Crop Farm Bill Alliance, told Capital Press.

USDA subsequently “realized changes would be necessary,” he said.

The new, higher limit provides specialty crop producers with meaningful access to more resources and is “more in line with the high costs of specialty production,” Quarles said.

Growers across the U.S. are facing “severe and unique challenges,” and the program is “an important step in helping growers recover from this economic battering,” according to a statement from the alliance. “We are grateful to the USDA for recognizing that even more was needed.”

The additional funding “will play a critical role in stabilizing farms, ensuring the strength of our industry and safeguarding the availability of domestically grown specialty crops,” according to the alliance.

By increasing payment limits and extending the application period, USDA is “providing growers with the much-needed resources and flexibility to navigate these difficult times,” according to the statement. Increasing the payment limit also “acknowledges the higher value of specialty crops when compared to other agricultural commodities.”