USDA 472 Million Purchase Boosts Western Crops and Dairy

The U.S. Department of Agriculture has stepped into the commodities market with a $472.5 million infusion, a move designed to stabilize pricing for American farmers while bolstering the supply chain for federal nutrition programs. Announced on October 29, the initiative targets a wide range of goods—from dairy and pork to niche commodities like Pacific whiting and hazelnuts—aiming to address excess supply that has depressed market prices across the country.

Stabilizing the Pulse Market

For growers of pulses, the relief is both significant and timely. Tim McGreevy, CEO of USA Pulses, noted that the sector has faced a difficult stretch, with exports down 40% compared to the previous year and prices hovering at a decade-long low. The USDA’s commitment of $86 million for pulses—broken down into $37 million for split peas, $29 million for lentils, and $20 million for chickpeas—is intended to help move massive inventories, totaling roughly 69,000 metric tons combined, and push pricing back toward breakeven levels for producers.

Beyond the immediate financial injection, these purchases function as a market-building tool. By incorporating these products into nutrition assistance programs, the government is essentially introducing these protein-rich staples to a broader demographic. The hope, according to industry experts, is that temporary users of food banks will develop a preference for these items, potentially creating long-term demand once they return to standard retail shopping.

The Hazelnut Bridge

The intervention is particularly vital for Oregon’s hazelnut industry, which has struggled with a surplus of smaller-sized nuts. While these nuts are high-quality, they often fall below the 11-millimeter threshold preferred by commercial candy and snack manufacturers. Larry George, CEO of George Packing Company, described the USDA’s purchase of 10-12 mm nuts as a strategic “bridge” that will clear 2025 stocks while the industry works to cultivate new markets for smaller products.

The advocacy behind this specific purchase highlights the interplay between local industry and federal policy. Oregon’s congressional delegation, led by Jeff Merkley, worked alongside the Oregon Hazelnut Industry Office to secure the support of U.S. Secretary of Agriculture Brooke Rollins. This collaboration illustrates how regional commodity groups leverage federal safety nets to mitigate the impact of market fluctuations on local farm economies.

A Broad Commodity Footprint

While pulses and hazelnuts represent the tactical focus of this announcement, the $472.5 million package reflects a broader effort to support major domestic sectors. Dairy received the largest single allocation at $165.5 million, a critical move following a year where California and Idaho cemented their positions as top-tier producers. Other notable allocations include $41 million for pork, $30 million for almonds, and $25 million for raisins.

Commodity	Allocation (Millions)
Dairy	$165.5
Pork	$41.0
Split Peas	$37.0
Almonds	$30.0
Lentils	$29.0
Raisins	$25.0
Hazelnuts	$22.0

The Almond Board of California and the Almond Alliance have both signaled their support for the inclusion of almonds in the purchase list, framing the investment as a dual-purpose win: providing economic support to growers while ensuring high-quality nutrition for families relying on federal aid. Critics, however, often point to the inherent risks of government intervention in agricultural markets. By setting floors for prices, such programs can sometimes mask underlying shifts in global demand or discourage the necessary transition to more profitable crops, potentially delaying the very market corrections that growers need to remain competitive in the long run.

As these commodities begin to move through the USDA’s Agricultural Marketing Service channels, the focus will shift to how effectively this influx can clear the 2025 backlog. For farmers currently operating at the edge of profitability, the success of this program won’t just be measured in dollars, but in whether it effectively resets the market baseline before the next harvest cycle begins.