Emergency Hours-of-Service Relief Declared for Truck Drivers

March 16th, 2020

On Friday, March 13, 2020, the Federal Motor Carrier Safety Administration (FMCSA) published an emergency declaration that provides relief from its hours-of-service (HOS) rules to truck drivers engaged in emergency coronavirus, or COVID-19, relief efforts.

The declaration is in response to the ongoing COVID-19 outbreaks and the need for increased transportation to move immediate supplies, equipment, and persons to impacted communities. Per the declaration, immediate needs include ‘food for emergency restocking of stores’, although FMCSA has indicated thus far that it will not delve into creating specific lists or categories of approved foods eligible for HOS relief.

Other noteworthy information:

  • This declaration is not industry-wide, and inspections for HOS violations will not be suspended. FMCSA will continue to monitor for violations, especially if they do not fall under this emergency declaration umbrella.
  • Drivers are not required to carry declaration-related documentation. However, we have heard of some instances where some carriers may want more official confirmations from suppliers that their buyers need certain products for emergency efforts. During this uncertain time with rapidly changing circumstances, documentation should be considered as a good practice.
  • Shippers of eligible product may want to consider labeling bills of lading (BOLs) as ‘emergency supplies’ and monitor mixed loads, to ensure shipments remain under our current interpretation of emergency or essential supplies.
  • FMCSA is continuing to coordinate with state and local entities, to ensure minimal confusion and coordinate efforts surrounding trucking oversight. This includes addressing the burgeoning question of cities/counties taking measures to ‘shelter in place’ or limit travel entirely, as what was recently done in the Bay Area.
  • FMCSA is also actively working to address issues pertaining to the drivers themselves, such as how to deal with drivers showing symptoms, self-quarantine mandates, shuttering of areas like highway rest stops, delayed drug testing, and other matters.

This declaration is effective immediately and shall remain in effect until the termination of the emergency or until 11:59 PM EST on April 12, 2020, whichever occurs sooner. Until then, FMCSA has acknowledged that there may be modifications and expansions to the waiver, as changing circumstances warrant.

FMCSA has created an email through which to receive questions about this declaration: [email protected] 

Western Growers is actively monitoring the situation and working to obtain further guidance and clarification from FMCSA. Please contact Tracey Chow ([email protected], 202-704-7312) with any questions you may have.

 

Do Not Waive Your PACA Trust Rights

March 24th, 2020

Due to coronavirus-related market disruptions, many of our grower and shipper members have received requests from their buyers – largely in the foodservice sector – to extend payment terms beyond 30 days. Be advised that extending payment terms beyond 30 days BEFORE the initial 30-day payment period has expired will waive your PACA Trust rights. However, you may work out a separate arrangement with your buyer(s) AFTER the 30-day payment period has expired.

For the time being, our guidance is to maintain the terms of your current contract without amendment to ensure that you retain your PACA Trust protections and priority status in the event your buyer(s) file for bankruptcy.

Please note that WG and our industry allies are in urgent communication with USDA seeking flexibilities in the PACA prompt payment terms. We will inform you of any developments.  

For more information or guidance related to your specific situation, please contact Bryan Nickerson at [email protected] or 949-885-2392.

Click here for additional information from USDA AMS on preserving your PACA Trust rights during the COVID-19 pandemic.

Ensure Payment Term Consistency Across All Sales Documentation

March 11th, 2020

As a produce salesperson or manager in accounting for your company, I can appreciate the many daily challenges you face that tug and pull for your priority and attention. With that said, the very last thing you want to deal with is payment term inconsistencies within your sales documentation that may put your company in harm’s way while securing every dollar that is owed to you on successful sales transactions.

A best practice while reviewing your sales documentation (sales confirmation, passing, invoice) for consistency is to ensure that your payment terms are the same and universal across all documentation that is sent to your buyer. If you use PACA PROMPT, which is defined in the statute as NET 10 payment terms and due within 10 days of receipt of the goods at contract destination, make sure there is no ambiguity or conflicting terms anywhere else. For example, you may have “PACA PROMPT” on the top right-corner of your invoice with conflicting standard language on your sales confirmation stating “payment due within 30 days of receipt”. This would not only cause potential confusion with your buyer, thus causing potential payment delay, but it could also harmful if it was decided to move forward with a PACA reparation action and your documentation went under further scrutiny from an administrative hearing officer. Be clear and accurate on what your buyer’s payment terms are.

Also important to note that payment terms do not need to be printed on your Bill of Lading (BOL) and is advised not to do so. If you are working with a third party, have them omit the payment terms altogether, reducing your exposure, as some state and federal courts are interpreting bills of lading as a warranted billing document when disputes arise.

It is also prudent to make sure there is a mutual binding agreement between the seller and buyer when payment terms are extended beyond NET 10 terms. If you agree to NET 15, NET 21 or even NET 30 days, make sure you have a dually signed agreement in tact where those specific terms are the contractual obligation. Additionally along those lines, it is preached from the highest mountains to NEVER memorialize payment terms verbally or in writing beyond 30 days. Doing so may waive your PACA Trust Rights and leave your company behind as an unsecured creditor. After all, the sale is complete when the money is in the bank, not when the cooler is empty.

If you’re a Western Growers Regular member and have any questions, comments or concerns on your sales documentation that you would like reviewed for consistency or would you like guidance on any problem files or disputes, please feel free to contact Western Growers Trade Practices Department’s Bryan Nickerson at [email protected] or 949-885-2392.

A Message From Western Growers – Extended HR Comp Survey Deadline

March 24th, 2020

At Western Growers, we remain committed to providing our members with the resources needed to maintain your operations and growth forward. In light of the current COVID-19 situation, we are dedicated to ensuring that our 2020 HR Comp Survey participation remains open in an effort to help provide information and data that will help your companies move forward even in the face of adversity. Outside of our COVID-19 Employee Guidance and Resources page, we have decided to keep our participation link open for you to access and participate in the 2020 HR Comp Survey. Additionally, we will extend the previously stated participation deadline of March 31st to April 30th, 2020. While we remain focused on the current state of global health and safety, we want to remain dedicated to providing you access to the valuable resources and data that the HR Comp Survey provides.

Farms Exempt from County Shelter-In-Place Orders

March 17th, 2020

Yesterday, government officials issued a shelter-in-place order for six San Francisco Bay Area counties* –Alameda, Contra Costa, Marin, San Francisco, San Mateo and Santa Clara – in order to slow the spread of COVID-19.

To stay in effect until April 7th, the order directs the public to stay at home as much as possible, with certain exceptions, such as to get food at grocery stores, fill prescriptions at pharmacies and other essential activities. Additionally, essential government services will remain open, and essential businesses are urged to remain open.

Under the order, food cultivation, like farming, livestock and fishing are considered essential businesses and will not be subject to the shelter-in-place restrictions.

President Trump issued a set of COVID-19 guidelines that references food production as a critical function:

“If you work in a critical infrastructure industry, as defined by the Department of Homeland Security, such as healthcare services and pharmaceutical and food supply, you have a special responsibility to maintain your normal work schedule. You and your employers should follow CDC guidance to protect your health at work.”

Western Growers is working with the Newsom Administration to ensure that any future potential local shelter-in-place orders in the state follow the lead of the Bay Area counties in allowing farming operations to continue unabated.

Please notify Western Growers if you are experiencing any disruptions to your business as a result of this order or other measures being taken by local authorities. We will work with the Newsom Administration, Secretary Perdue and our contacts at USDA to ensure that your business and the broader food supply remains uninterrupted.

*Santa Cruz, San Benito and Monterey counties have now also issued similar shelter-in-place orders, also exempting agricultural activities.

WG, Industry Outlines Need for H-2A Flexibility

March 18th, 2020

As reported earlier this week, the U.S. Department of State suspended regular visa processing at the U.S. Embassy in Mexico City and all U.S. consulates in Mexico in response to COVID-19. While the Administration did announce they will be prioritizing interview waiver cases for returning H-2A workers, the number of eligible workers under this protocol will still be vastly insufficient to meet the pending demand.

In response, WG joined the Agriculture Workforce Coalition in issuing a letter calling on Secretary Pompeo to prioritize H-2A visa applications.

In part, the letter states that the food and agriculture sector has been designated a “Critical Infrastructure Sector” by the U.S. Department of Homeland Security, and that, “An interruption to the processing of agricultural worker visas will undoubtedly cause a significant disruption to the U.S. food supply.”

The letter then urges Secretary Pompeo to “recognize all H-2A, as well as any other non-immigrant visa petition involving an agricultural worker, visa consular processing functions as essential and direct the U.S. Consulates to treat all agricultural worker appointments as emergency visa services.”

Click here to read the full letter. WG will continue to keep you apprised of the latest H-2A visa processing developments.

WG, Ag Coalition Sends Letter to President Trump

March 19th, 2020

Yesterday, WG and a coalition of more than 40 organizations representing the spectrum of U.S. agriculture issued a letter to President Trump seeking his assistance in ensuring a continued steady supply of U.S.-produced food, fiber, feed and fuel amid the COVID-19 outbreak.

The letter notes the challenges American agriculture faced in 2019 – including severe weather and global trade issues – and suggests that heading into the 2020 spring planting season, the industry confronts additional uncertainties in light of government efforts to curb the spread of the outbreak.

As President Trump considers additional steps to restrict movement to protect our nation from COVID-19, the letter asks his Administration, “to be mindful of the food, feed, and agricultural supply chain and workforce impacts on the ability of U.S. agriculture to meet the needs of consumers.”

Click here to read the full letter.

Food and Agriculture Identified as Critical Infrastructure Workers During COVID-19 Response

March 19th, 2020

The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) included food and agriculture workers in its initial list of Essential Critical Infrastructure Workers, which is intended to ensure “continuity of functions critical to public health and safety, as well as economic and national security.”

Among the critical food and agriculture functions identified by CISA are farm workers and food manufacturer employees and their supplier employees.

CISA advises that the critical functions listed should continue normal operations unless modified to account for Centers for Disease Control workforce and customer protection guidelines.   

While advisory in nature, CISA is offering this list to assist state and local officials in “prioritizing activities related to continuity of operations and incident response, including the appropriate movement of critical infrastructure workers within and between jurisdictions.”

Click here to read the full CISA memorandum and complete list of Essential Critical Infrastructure Workers

Members of Congress Push State Department on H-2A Visa Processing

March 19th, 2020

Led by Representative Jimmy Panetta (CA-20), nine California Congressional representatives joined a group of more than 40 bipartisan, geographically-diverse Members of Congress in responding to the Department of State’s decision to suspend routine nonimmigrant visa processing in Mexico.

In a letter to Secretary Pompeo, the bipartisan group of lawmakers express deep concern that the suspension of visa processing will have a “disastrous effect on U.S. agriculture, further endangering our nation’s food supply in this time of national crisis.”

The letter urges Secretary Pompeo to immediately issue public guidance confirming that the State Department will:

  1. Continue processing visas for returning H-2A workers who are eligible for waivers of the in-person visa interview;
  2. Extend the availability of such waivers for returning H-2A workers who have been interviewed in the previous 2 to 3 years; and
  3. Allow new H-2A workers who are ineligible for waivers to request a visa interview under the emergency travel exception only during the duration of this crisis.

Due to the urgency of the situation, the letter asks Secretary Pompeo to respond no later than March 26th, 2020.

The nine California Members of Congress on the letter include: Jimmy Panetta (CA-20), TJ Cox (CA-21), Jim Costa (CA-16), Doug LaMalfa (CA-1), Salud Carbajal (CA-24), Juan Vargas (CA-51), Julia Brownley (CA-26), Ken Calvert (CA-42) and Ted Lieu (CA-33).

Click here to read the full letter.

Key Things WG Members Need to Know About COVID-19

March 19th, 2020

Dear WG Members,

There is a flood of information – and misinformation – pouring in related to SARS CoV 2 (the virus) and COV 19 (the disease). Western Growers has a full team of staff experts sifting and sorting through this information to find what is useful for our grower and handler members, but this is complicated by the rapidly-evolving nature of the outbreak and public response. In these challenging times, please know that our staff is available as a resource for you, and we pledge that if we don’t know the answer to your question or concern, we will work earnestly to find it on your behalf. You can find our staff contact information broken down by subject matter expertise listed below.

Dave Puglia
President & CEO
Western Growers
 

Here are a few key facts that we believe are foundational and important to understand as we all grapple with how to deal with this pandemic:

  • COV 19 is a respiratory disease and SARS CoV 2 is principally passed between people through airborne droplets (coughing, sneezing). This is why “social distancing” is so important.
  • A secondary route of transmission is touching contaminated surfaces (particularly hard non-porous surfaces) and then touching your eyes, nose or mouth. Hence increased cleaning, sanitation and handwashing.
  • This not a food safety issue as there is NO evidence SARS CoV 2 is a foodborne pathogen. There is NO scientific research to suggest food is a vehicle for transmission and food packaging (since it is mostly porous) is not thought to be a primary method of transmission. An ill worker within a food system will not prompt a recall of food according to FDA in a stakeholder call on 3/18. 
  • The food industry (including growing, harvesting, packing, processing, shipping, etc. of fresh produce) is deemed part of “critical infrastructure” under federal law.  Many states and counties have also declared agriculture a part of their critical infrastructure. This means healthy workers who perform “critical” work are exempt from “shelter in place,” “lockdown” or other restrictions on moving to and from their jobs. 

What should growers and handlers be doing?

  • Since the key risk is to the workforce and a disruption of business, WG members should be thinking about how to safeguard their workforce. This likely starts with education for each employee about how they can best protect themselves. WG recommends intensified tailgate sessions to continue to drive home the importance of social distancing, coughing and sneezing etiquette, vulnerable populations and handwashing amongst employees. When running tailgates, try to break employees into smaller groups and provide separation.
  • Social distancing is difficult or perhaps impossible in certain settings such as harvesting, transport (of workers) and housing, but it remains our best defense. Do what you can! Space employees on buses, clean and sanitize frequent touch points, close common areas or implement use by shifts in housing environments, etc.
  • Ensure employees understand the importance of coughing and sneezing etiquette.  A training/education issue, but also ensure there are plenty of single use tissues, alcohol-based hand wipes or solutions and other sanitary supplies available.
  • Monitor the health of your workforce. Where an employer has a reasonable belief that an employee has been exposed to SARS CoV 2 the employer can send the employee home. Employers may send home employees with visible symptoms (e.g., coughing). In doing so employers should consider what types of leave benefits might be available for employees who are sent home and that employees who report to work and are sent home may be entitled to reporting time pay.
  • The CDC is recommending that employers take daily temperatures in specified counties experiencing widespread community transmission, including Santa Clara County. Taking temperatures and asking questions about employees’ medical conditions may implicate the ADA and FEHA.
  • If a worker becomes ill: Do NOT let them return to work and house them separately from other workers. Closely monitor worker health. Immediately conduct cleaning and sanitation of frequent contact surfaces and common areas.
  • Because transfer from surfaces is a secondary route of transmission: Intensify cleaning and sanitizing of everything that workers may come into contact with pay particular attention to frequently touched surfaces like door handles. You may also wish to provide alcohol based hand wipes or solutions for employee personal use.

OF UTMOST IMPORTANCE

This is “transition” time, which has historically proven to be a time of system vulnerability to foodborne illness – click here to access a list of recommendations WG has developed for leafy green growers that apply to many other crops. While SARS CoV 2 is not a foodborne pathogen, the industry should remain keenly focused on food safety to ensure we don’t compound a pandemic with an outbreak of E. coli or other foodborne pathogen.

Check the Western Growers website often for additional and updated Coronavirus resources.

WG STAFF CONTACT INFO

Legal and HR

Karen Timmins, SVP, Human Resources – [email protected] / 949-885-2295

Jason Resnick, VP/General Counsel – [email protected] / 949-885-2253

Food Safety

Hank Giclas, SVP, Science & Technology – [email protected] / 949-885-2205

Sonia Salas, AVP, Science & Technology – [email protected] / 949-885-2251

Government Affairs

Dennis Nuxoll, VP, Federal Government Affairs – [email protected] / 202-296-0191 x7303

Matthew Allen, Director, State Government Affairs – [email protected] / 916-446-1435

Gail Delihant, Director, State Government Affairs – [email protected] / 916-446-1435

Health Benefits/Insurance Services

David Zanze, EVP, WGAT – [email protected] / 949-885-2209

Jeff Gullickson, SVP, WGIS – [email protected] / 949-885-2351

Trade Practices

Bryan Nickerson, Manager, Trade Practices – [email protected] / 949-885-2392

Media/PR

Cory Lunde, Director, Communications – [email protected] / 949-885-2264

WG Launches COVID-19 Resources Page

March 24th, 2020

It can be overwhelming trying to sift through all of the information related to COVID-19 and what it means for your business. Western Growers has created a COVID-19 Resources Page as a one-stop-shop for timely information and industry-specific guidance, tailored specifically to the needs of the grower and handler community. Additionally, you’ll find the best resource of all: the contact info for our staff. From HR and legal to food safety and insurance, WG staff is available to you, any time, to answer your questions and field your concerns. Be sure to bookmark this page and check back frequently for the latest information.  

Click here to access the WG COVID-19 Resources Page.

Government Announces Plan for Refundable Payroll Tax Credits

March 24th, 2020

Yesterday, the U.S. Treasury Department, Internal Revenue Service and the U.S. Department of Labor announced that small and midsize employers – defined as businesses with fewer than 500 employees – can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.

The act will give small and midsize employers funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The key takeaways from the legislation include:

  • Paid Sick Leave for Workers: For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
  • Complete Coverage: Employers receive 100% reimbursement for paid leave pursuant to the act.
  • Fast Funds: Reimbursement will be quick and easy to obtain; an immediate dollar-for-dollar tax offset against payroll taxes will be provided.
  • Small Business Protection: Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed or child care is unavailable in cases where the viability of the business is threatened.

UPDATE: Tuesday, March 24: Congress is currently negotiating another stimulus package to help during this crisis. Sick leave and FMLA coverage is one issue that appears to be under discussion, so there may be some changes to how this tax element works. If anything changes, WG will immediately update you with the latest information.

Click here for additional details and a very helpful example that demonstrates how the payroll tax credit would be applied.

Click here for additional information on the Families First Coronavirus Response Act, including common issues employers and employees face when responding to COVID-19, and its effects on wages and hours worked under the Fair Labor Standards Act and job-protected leave under the Family and Medical Leave Act.

WG Calls for Regulatory Pause for California Agriculture

March 24th, 2020

On March 20th, WG President and CEO Dave Puglia issued a letter to California Governor Gavin Newsom requesting a formal pause on new regulations impacting the state’s agriculture industry amid the COVID-19 pandemic.

In the letter, Puglia requests that Governor Newsom initiate a formal pause “for all open public comment periods concerning both active rulemakings and non-rulemaking (e.g., informal stakeholder) processes that affect agriculture.”

Puglia reasons that with California’s agriculture sector solely focused on providing food to the American people during the national crisis, the industry is unable to fully participate and provide meaningful input into the regulatory process.

The letter notes that state agencies like CARB and the regional water boards are “continuing to advance complex new regulatory processes unrelated to the national emergency,” concluding that this is “simply not the time to add to the intense burdens farmers are facing.”

WG is now engaged in discussions with key regulatory agencies on this matter. Additionally, many of our industry partners have helped create additional pressure on the Administration, and we joined them in issuing a follow-up letter today. Watch Spotlight for updates.

Click here to read the full letter.

Industry, Congressional Representatives Urge USDA to Purchase Commodities

March 24th, 2020

On Monday, March 23rd, Western Growers joined a coalition of more than 40 regional and national associations in urging USDA Secretary Sonny Perdue to quickly begin purchasing commodities sitting stagnant in the supply chain as a result of the COVID-19 outbreak.

The letter estimates that there is at least $1 billion worth of perishable commodities without a dedicated destination as a result of foodservice closures, such as restaurants, hotels, schools and universities. While many companies are already donating to food banks and others in need, without additional funding, much of this food will be left in the facilities to rot.

Signatories to the letter ask Secretary Perdue to utilize all purchasing authority options – including Section 32, DOD Fresh and the Food Purchase and Distribution Program – to procure existing foodservice inventory of fresh produce to be redirected to feeding programs for food insecure Americans.

Click here for the full industry letter to USDA.

Representatives Jimmy Panetta (CA-20) and Jim Costa (CA-16) followed suit, headlining a bipartisan letter from 27 Members of Congress to Secretary Perdue urging him to provide “both regulatory flexibility and direct support to the specialty crop industry.”

Specifically, the letter seeks a commitment from USDA to “purchase fresh fruits and vegetables for federal nutrition programs,” along with “direct support to specialty crop producers whose customers are now unable to fulfill their previous purchase commitments due to the current crisis.”

Click here to the full Congressional letter to USDA.

AZ Governor Ducey Issues Executive Order Prohibiting Closure of Essential Services

March 24th, 2020

On Monday, March 23rd, Arizona Governor Doug Ducey issued an Executive Order stating that no Arizona county or city “may make or issue any order, rule or regulation that restricts or prohibits any person from performing any function” designated as an essential function.

The order defines an essential function as one that “promotes the public health, safety and welfare of the state or assists other in fulfilling such functions.”

Food, beverage and agriculture are categorized in the order as essential functions: “Food and beverage manufacturing, production, processing, and cultivation, including farming…”

Additionally, transportation is categorized as an essential function, including: “…private, public and commercial transportation and logistics providers necessary for all categories of Essential Operations.”

Click here to read the full Executive Order.

WG, Industry Urge Consistency in State Response Plans

March 24th, 2020

Today, WG joined 44 allied associations from across the country in issuing a letter to the 50 state governors urging consistency in defining food and agriculture as “Essential Critical Infrastructure Workers” in all state COVID-19 response plans.

Referencing the guidance provided by the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the letter calls on each governor to ensure that workers, facilities and services be allowed to continue to operate regardless of any shelter-in-place or shut down orders.

The letter states: “With the spring planting season already upon us, the next six to eight weeks will be crucial to ensure that American agriculture can operate safely and without undue burdens that could inhibit our ability to do what we do best, feed the world.”

Click here to read the full letter.

Updated Employment Verification Letter

March 24th, 2020

In light of recent policy announcements and requests for a more general letter that can be adopted in different states, WG has updated its template employment verification letter that can be provided to your workforce verifying their employment in your company and clarifying the federal Critical Infrastructure Sector policy. This letter can be presented to local authorities in the event an employee is stopped on the way to or from work.

Click here to access the letter in both English and Spanish.

Senate Passes $2 Trillion Stimulus Plan: What’s in the Bill for Agriculture?

March 26th, 2020

Just before midnight on Wednesday, the U.S. Senate passed a $2 trillion plan aimed at rescuing the nation from the current economic and health crisis. The package is expected to pass the U.S. House of Representatives on Friday and be signed by President Trump.

Click here for a comprehensive summary* of the key elements most relevant to the grower and shipper community, which includes provisions related to agriculture and the food supply, business loans and business taxes. The highlights are detailed below:

Agricultural Provisions

  • $9.5 BILLION dedicated disaster fund to help farmers who are experiencing COVID-related financial losses including targeted support for specialty crop growers, as well as dairy and livestock farmers and local food producers (e.g. farmers markets).
  • $14 BILLION to partially replenish the Commodity Credit Corporation (CCC). Federally capped at $30 billion in spending authority, CCC currently has roughly $8 billion left following the latest round of trade mitigation. CCC money has been used over the last few years at the discretion of USDA to assist farmers, including fruit and tree nut producers, impacted by the China trade war.

Business Loan Provisions

  • Creates a new $350 BILLION business loan program administered by the Small Business Administration. This program provides 100% federally-backed loans to eligible businesses which will act as bridge loans to businesses during this crisis. The loans are subject to certain conditions and loan amounts are forgivable.
  • WG’s summary covers additional business loan provisions, including which businesses are eligible, what the loan terms are, what the loans can be used to pay for, and what the conditions are for the loans to be forgiven.

Business Tax Provisions

  • Employee Retention Credit: Provides for a one-year credit against the employer’s 6.2% portion of Social Security payroll taxes for any business that is forced to suspend or close operations due to the Coronavirus but that also continues to pay its employees during the shut-down.
  • Delay of Payment of Employer Payroll Taxes: An employer that incurs its 6.2% share of Social Security tax in 2020 may 1) defer payment of that tax until 2021 and 2022, but 2) receive an immediate credit against those yet-to-be paid payroll taxes via the sum of the emergency medical leave credit, sick leave credit, and new employee retention credit. This deferral is not available to any business that has a payroll protection loan forgiven.
  • WG’s summary covers additional business tax provisions, including changes to net operating loss, changes to business loss limitations, changes to business interest limitations and qualified improvement property.

*The intent of this summary document is to help you understand the changes to law as written by legislative text. For tax-related questions as they pertain to your business, please consult your tax professional.

State Department Increases Visa Waiver Capability

March 26th, 2020

The State Department announced today that it is taking additional steps to increase the processing of H-2A visa holders through consulates around the world. These modifications, including the expansion of interview waiver eligibility, will ensure that the majority of H-2A processing can continue. The specific steps are summarized below:

  • Secretary Pompeo, in consultation with the Department of Homeland Security, has authorized consular officers to expand the categories of H-2 visa applicants whose applications can be adjudicated without an in-person interview. 
  • Consular officers can, if they so choose, now waive the visa interview requirement for first-time and returning H-2 applicants who have no potential ineligibility.  
  • This expansion also increases the period in which returning workers may qualify for an interview waiver. Applicants whose previous visas expired in the last 48 months (increased from 12 months), and who did not require a waiver of ineligibility the last time they applied, do not need to be interviewed in-person if they are applying for the same visa classification as their previous visa.

We anticipate the vast majority of otherwise qualified H-2 applicants will now be adjudicated without an interview.

In response to the announcement, Western Growers President & CEO Dave Puglia stated: “Western Growers applauds Secretary Pompeo and the professionals of the U.S. State Department for taking a practical approach to meeting the critical workforce needs of American farmers while protecting the health and safety of State Department personnel.

“The steps taken by Secretary Pompeo ease the flow of guest workers at a time when our farmers are redoubling their efforts to provide our nation with safe, healthy, abundant and affordable food. We are grateful to Secretary Pompeo, Secretary Perdue and all those in the Administration who listened to the needs of the agriculture community in the midst of our present crisis, and acted swiftly to implement this common-sense solution.”

Click here for a helpful Q&A provided by USDA.

WG Addresses PACA Concerns with USDA

March 26th, 2020

On Wednesday, WG President & CEO Dave Puglia sent a letter to Secretary Sonny Perdue requesting that USDA take action to guarantee the payment of all legitimate PACA trust claims, to the extent these claims are not satisfied by the available PACA trust assets. In other words, USDA would cover the difference between what the buyer can pay and the seller is owed. 

Puglia notes that the COVID-19 pandemic has caused severe disruptions in the food and agriculture industry, in particular in the foodservice sector, and many of our members are already facing repeated requests from their buyers for payment extensions beyond the standard 30 days. (WG cautioned its members against waiving their PACA trust rights in Tuesday’s Spotlight edition.)

As our members know, the Perishable Agricultural Commodities Act (PACA) is one of the most important federal regulations protecting growers and shippers. The PACA trust provisions put sellers of fresh and frozen vegetables in a priority status in the event their buyers become insolvent or file for bankruptcy protection. However, the seller currently has little recourse for action if the buyer does not have the PACA trust assets to fully repay their contractual obligations.

The remedy provided in the letter states: “In the event a legitimate claim has gone through the process but remains unsatisfied, USDA would shore up any shortfall of PACA trust assets to meet 100% the amount of qualified receivables that are due to the claimant.”

We will keep our members informed of any USDA response.

Click here the full letter to Secretary Perdue.