INSIGHT

$1.7 Billion in Federal Relief Now Available for Specialty Crop Farmers: What You Need to Know

James Elliott, Jamie Emerson-Heery • June 5, 2026

Industries: Agribusiness, Wineries and Vineyards

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If you grow almonds, grapes, strawberries, tomatoes, or any of the hundreds of other specialty crops that define California agriculture and feed the nation, you know how hard the past several years have been. Rising input costs, import competition, tightening labor markets, and volatile commodity prices have put sustained pressure on farm profitability across the board. For some producers, the financial strain hasn’t just been difficult. It has been existential.

That’s why the USDA’s recent announcement of nearly $1.7 billion in assistance for specialty crop farmers is significant news worth paying close attention to. Unveiled by USDA Secretary Brooke Rollins during a visit to California’s San Joaquin Valley, the new Assistance for Specialty Crop Farmers (ASCF) program represents one of the largest recent federal investments targeted specifically at specialty crop producers. Enrollment is now open, and the application deadline is August 7, 2026.

At BPM, we work closely with agribusiness clients across California and beyond, and we want to help you understand what this program means for your operation, and how to position your business to make the most of it.

What the ASCF Program Covers

The USDA’s Farm Service Agency (FSA) is providing $1.625 billion through a one-time bridge payment for specialty crops not covered through the previously announced Farm Bridge Assistance program. Payments are based on reported 2025 planted acres. Payment rates are tiered by crop type based on national average revenue:

• Tier 1 ($650 per acre): High-value crops including strawberries, cherries, garlic, grapes (fresh), figs, avocados, lemons, limes, mangos, peaches, and many others
• Tier 2 ($225 per acre): Almonds, apples, broccoli, cucumbers, oranges, potatoes, tomatoes, walnuts, pistachios, and more
• Tier 3 ($65 per acre): Sweet corn, pecans, hazelnuts, and select cherry varieties
• Beans and Peas ($25 per acre): A broad range of legume crops

The payment limit is $250,000 per producer. Producers with an average adjusted gross income exceeding $900,000 are not eligible to receive ASCF payments.

How to Apply

The FSA has made the application process as accessible as possible. USDA streamlined the application process by utilizing pre-filled applications and online enrollment through Login.gov as part of the agency’s “One Farmer, One File” approach. Here are the key dates and steps to keep in mind:

• June 1, 2026: Online applications available via Login.gov for producers with a secure account
• June 8, 2026: Applications available through local FSA county offices for producers without Login.gov access
• August 7, 2026: Final application deadline

Producers must have several standard forms on file with FSA for the 2025 crop year, including forms related to customer data, farm operating plans, average adjusted gross income certification, and direct deposit enrollment. Most producers who have previously participated in FSA programs will likely have these forms on file already. If you’re unsure about your status, contacting your local FSA county office now is the right move.

Why This Matters Beyond the Check

The ASCF payment itself provides meaningful relief, but the program’s real value for your business may lie in what comes next. A federal assistance payment is income, and like all income, it has tax implications. It also represents an opportunity to reassess your financial position, revisit your risk management strategy, and plan for volatility that isn’t going away.

USDA strongly urges producers to take advantage of new risk management tools provided in the Working Families Tax Cuts Act to protect against future price risk and volatility. That’s sound advice, and it points to a broader truth: federal programs like ASCF are valuable bridges, not permanent solutions. The producers who will benefit most are the ones who use this moment to shore up their financial foundation.

“A program like ASCF is welcome news for growers who have been absorbing losses for years, but it also creates real planning questions,” said James Elliott, Managing Partner for BPM’s North Valley Region. “How does this payment affect your adjusted gross income? Are you structured in a way that maximizes the benefit? Agribusiness clients who think through these questions now, before they file, tend to be in a much stronger position than those who address them after the fact.”

The Tax and Accounting Picture for Specialty Crop Producers

If you receive an ASCF payment, you should be thinking about more than just cashing the check. Federal farm assistance payments are generally taxable, and depending on your business structure, entity type, and overall income picture, the impact on your tax position can vary significantly.

For growers operating as sole proprietors, partnerships, S corporations, or family trusts, the interplay between ASCF payments, self-employment income, adjusted gross income limits, and estate planning considerations can get complex quickly. This is especially true for multi-generational farming operations where ownership structures may involve multiple entities or family members. BPM’s agribusiness professionals help specialty crop producers with:

• Tax planning and compliance for farm operations, including flow-through structures and high-net-worth individual considerations
• Business advisory services for owner-managed agribusinesses navigating a shifting landscape
• Estate planning and succession considerations for family farms
• Financial statement audits and reviews for operations that require lender or investor reporting
• Outsourced accounting and financial reporting to reduce administrative burden on farm management

“For winery and vineyard clients especially, the combination of federal assistance income, complex ownership structures, and multistate compliance requirements creates a picture that really demands a coordinated approach between tax, audit, and advisory,” said Jamie Emerson-Heery, BPM partner, Assurance and Advisory. “The good news is that producers who have strong financial reporting practices in place are far better positioned to access capital, navigate audits, and plan strategically for the next season and beyond.”

Looking at the Larger Landscape

The ASCF program doesn’t exist in a vacuum. It’s part of a broader effort by the federal government to support American agricultural competitiveness amid shifting global trade dynamics. Specialty crop exports have increased approximately 5% over the past year, with 24 new trade deals completed, helping create additional demand for American agricultural products worldwide. That’s a meaningful signal for producers thinking about where future revenue growth might come from.

At the same time, the pressures that necessitated this program haven’t disappeared. Rising input costs, labor expenses, import competition, and market pressures continue to create significant challenges for specialty crop growers. Long-term resilience requires more than relief payments. It requires financial discipline, strategic planning, and advisors who understand your industry from the ground up.

California Growers: The Stakes Are High

California is home to more than 63,000 farms spread across approximately 24 million acres, generating over $60 billion in annual agricultural sales. The state accounts for more than 10% of total U.S. agricultural sales. The sheer scale of California’s agricultural economy means that financial stress on specialty crop producers has ripple effects that extend well beyond individual farm gates. BPM professionals based throughout Northern and Southern California understand this landscape and work alongside agribusiness owners who are navigating precisely these challenges every day.

Take the Next Step

If you’re a specialty crop producer planning to apply for ASCF assistance, or if you simply want to understand how this program interacts with your broader financial picture, BPM is here to help. Our agribusiness professionals bring deep knowledge of the tax, accounting, and advisory issues that matter most to California farmers and growers.

Contact BPM today to speak with a member of our agribusiness team and start a conversation about how to make the most of this opportunity.