USDA bailout said to be worth over US$100mn in 2024, as more growers reportedly find it harder to sell their fruit
The US government is on reportedly on track to buy more apples in 2024 than it has ever done before, according to a report on All Things Considered, the flagship news programme broadcast by US network National Public Radio.
According to those featured in the programme, that’s because the country produces far too much fruit for market demand that has failed to grow.
As a result, they say, a larger volume of the fruit remains unsold – either unharvested on the trees, or in storage from the previous season.
“In a typical year, around 3 per cent of America apples go unsold,” explains reporter Alan Jinich. “That’s around 350mn pounds [159,000 tonnes] left to rot.”
But the problem appears to be getting worse, he says, with processing companies able to choose from an increasingly large stock of unwanted fruit as storage technologies have improved.
“Over the past year, the farmgate price has dropped more than 50 per cent on some varieties of apples,” says presenter Darian Woods.
The federal government’s effective bailout of overstocked growers – made by the USDA under what’s known as Section 32 of the US Farm Bill – is said to be worth more than US$100mn in 2024. And that’s more than it has ever spent on apples before.
