December 8, 2000

USDA will purchase large quantities of apples, black eyed peas, cherries, citrus, cranberries, onions, melons, peaches, and potatoes in coming months, using newly appropriated funds totaling $200 million, to bring relief to farmers burdened with critical surpluses and depressed market prices. The Agricultural Marketing Service also has identified figs, plums, dried plums, apricots, pears, beans, corn, tomatoes, sweet potatoes, certain mixed vegetables, and certain tree nuts as meeting the criteria specified in the law.

President Clinton signed the legislation on June 20, earmarking the funds for USDA to purchase commodities that experienced severely low prices during the 1998 or 1999 crop years. USDA based its selection on a comparison of prices over the previous five years. The purchases are in addition to USDA's normal annual purchases of fruit and vegetable products.

"Many of our nation's farmers have faced severe economic burdens as a result of superior weather and advances in agricultural efficiency that have combined to produce record yields and low prices," said Michael V. Dunn, under secretary for marketing and regulatory programs. "USDA can relieve much of the strain by buying commodities and redistributing them through our federal feeding programs, including the National School Lunch Program." AMS will make the purchases that are authorized in the act over two periods. The first half of fiscal year 2001, October 2000-March 2001, reflects those products that will soon be harvested or already exist in abundant inventories. The remaining commodities will be purchased in the second half of the year to coincide with the harvest period.

AMS will award its purchases through competitive bidding and post its announcements of intentions to buy and final purchases on its web site: http://www.ams.usda.gov/fv/fvcomm.htm. The site also offers guidelines for growers and handlers wishing to bid on USDA purchase offers.