Transportation Alert: 3 Updates to Know

May 14th, 2020

In these hectic times, there is a constant flood of information and updates. As you work to ensure your products are moving as smoothly as possible, here are three quick transportation alerts for your awareness:

FMCSA EXTENDS COVID-19 HOURS-OF-SERVICE EXEMPTIONS TO JUNE 14

On Wednesday, the Federal Motor Carriers Safety Administration (FMCSA) officially extended its HOS exemptions to Sunday, June 14, 2020, to ensure the nation’s truckers and the essential industries they move can continue to utilize these much-needed driving flexibilities. First enacted on March 13 in response to the unfolding COVID-19 pandemic, the FMCSA declaration grants ‘emergency relief from Parts 390 through 399 of Title 49 Code of Federal Regulations’.

As a reminder, the declaration only applies to the movement of essential products and does not exempt drivers from all FMCSA-related regulations, such as those related to speed limits or substance/alcohol testing requirements. We encourage members to review the full scope of what the HOS exemption declaration allows and ensure their carriers are keeping safety top of mind.

FMCSA FINALIZES HOS REGULATIONS THAT WILL IMPROVE DRIVER FLEXIBILITY

Today FMCSA finalized a rule that makes long-awaited changes to its HOS regulations. From the fresh produce industry perspective, the changes are welcomed, as they are expected to result in more driver flexibility and cost savings without compromising road safety.

Some of the noteworthy changes include: allowing drivers (under certain adverse driving conditions) to extend their driving window by up to two hours; changing the requirement drivers take a 30-minute rest period within the first 8 hours of coming on duty, to after 8 consecutive hours of driving time have elapsed, and allows the break to be taken as on-duty, not driving; and modifying the split sleeper berth provisions of the rule to allow greater flexibility for how a driver splits that time.

Western Growers previously joined a coalition letter to FMCSA supporting some of the changes that have now been finalized.

FMC APPROVES PORT DETENTION & DEMURRAGE CHANGES IN FAVOR OF SHIPPERS

Last month, the Federal Maritime Commission (FMC) finalized guidelines that dictate how it will now assess the reasonableness of detention and demurrage regulations and practices of ocean carriers and marine terminal operators.

In brief, the guidelines stipulate that carriers/terminals should not charge detention, demurrage or per diem when it is not possible for the shipper or trucker to pick up or return a container within the ‘free time’. Examples of such circumstances include when a terminal is shut, no appointments are available, terminal or carrier won’t take empty containers, a container is still on ship or in stacks, or when a container is held for inspection.

Unfair or unexpected detention and demurrage charges imposed on agricultural shippers has become more prevalent in recent months, given the significant impact COVID-19 has had on sea ports domestically and overseas. As these are guidelines, it will still be up to the exporter or importer to enforce, particularly during contract negotiations. Nevertheless, the FMC’s implicit opposition to such unfair charges has the potential to offer more weight in these circumstances moving forward.

Western Growers earlier joined a broad coalition letter supporting the adoption of this rule.

For questions on these or other transportation matters, please contact Tracey Chow ([email protected] or 202-704-7312)

Nominees Needed for the National Organic Standards Board

May 21st, 2020

USDA is seeking nominations to fill five open seats on the National Organic Standards Board (NOSB). The deadline is June 1, 2020.

First established in 2001, the NOSB considers and makes recommendations on a wide range of issues involving the production, handling, and processing of organic products. The NOSB also has special responsibilities related to the National List of Allowed and Prohibited Substances, which identifies the substances that may be used, or not used, in organic crop production and processed organic products.

The board consists of 15 USDA-appointed individuals, with each member serving a five-year term and representing a specific sector of the organic community. The positions open for appointment include: two individuals who own or are employed by an organic farming operation; two individuals who represent public or consumer interest groups; and one individual who is a USDA certifying agent. Click here to view the full list of current members.

Appointed individuals will be announced in fall 2020 and begin their term in January 2021. Members must attend two in-person meetings each year and participate in bi-monthly subcommittee conference calls. The USDA will reimburse members for approved travel and associated lodging expenses.

Interested parties must submit a resume and an AD-755 application form to [email protected] at the National Organic Program or mail it to:

USDA-AMS-NOP

1400 Independence Ave. S.W., Room 2642-S., Ag Stop 0268

Washington, DC 20250-0268

For additional questions contact Dennis Nuxoll ([email protected]) or Tracey Chow ([email protected]).

Good Delivery Guidelines: PACA v DRC

May 13th, 2020

It is more imperative than ever for the modern produce sales associate to build out their toolbox of resources, especially for when a problem arises and dispute objectivity is required, either domestically or in Canada. The two primary adjudication services to be aware of who handle fresh and frozen fruit and vegetable disputes are the Perishable Agricultural Commodities Act (PACA), which is managed by a division of the Agricultural Marketing Service (AMS) of the USDA, and The Fruit and Vegetable Dispute Resolution Corporation (DRC), a non-profit membership-based organization based in Ottawa, Canada.

The PACA was enacted into U.S. law in 1930 at the request of the fruit and vegetable industry to promote fair trade in the produce industry and protect businesses dealing in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair business practices and by helping companies resolve business disputes. While a dispute resolution system existed in the U.S. under PACA, the pre-NAFTA regulatory system that prevailed in Canada proved to be ineffective in resolving most disputes. On the other hand, no international dispute settlement mechanism existed in Mexico, meaning that disputes over Mexican imports left Canadian and U.S. trading firms little choice beyond the court system. Thus, the birth of the DRC.

The DRC was established in February 2000 pursuant to Article 707 of NAFTA, which provided for the creation of a private commercial dispute resolution body for trade in agricultural commodities. DRC provides harmonized standards, procedures and services to their members to help them avoid commercial disputes and has contributed to a harmonious produce trade environment in Canada.

The DRC Guidelines for Good Delivery are the same as the PACA 5-Day Good Delivery Guidelines except for 30 commodities for which there are minimum standards established under the Canadian Fresh Fruit and Vegetable Regulations. For these 30 specific commodities the last column of the DRC Guidelines delineates the Canadian Destination Tolerances and Suitable Shipping Condition Guidelines.

In the last column there are five reference numbers in the Canadian Destination Tolerances and Suitable Shipping Condition Guidelines (example 15-10-5-10-4):

  1. The first highlighted number (example 15-10-5-10-4) refers to the total of condition defects allowed in an FOB no grade contract.
  2. The second and third highlighted numbers (example 15-10-5-10-4) refers to quality defects. Under an FOB no grade contract those numbers are not utilized to calculate contract compliance.
  3. The fourth highlighted number (example 15-10-5-10-4) refers to the fact that no individual condition defect can exceed 10%.
  4. The fifth and final highlighted number (example 15-10-5-10-4) is the amount of maximum decay allowed in an FOB no grade contract.

Therefore, when shipping to Canada, under an FOB no grade contract, the condition defect guidelines are the same as the PACA 5-day transit, other than the 30 named commodities. The protocols to follow are the same as PACA Good Delivery Guidelines when shipping to Canada, except “that no individual defect can exceed 10%”.

Have any questions, comments or concerns on any domestic or international sales transactions? Please do not hesitate to reach out to Western Growers Trade Practices Department’s Bryan Nickerson at [email protected] or 949-885-2392.

WG COVID-19 #AgIsEssential Social Media Campaign Tops One Million Reached

May 14th, 2020

In an effort to highlight the extraordinary responses of Western Growers (WG) members to the COVID-19 crisis, WG launched an #AgIsEssential social media campaign in early April. To date, the campaign – which features selfie-style videos of WG members and compelling infographics – has reached nearly 1.2 million people on Facebook, Instagram and Twitter.

In an array of videos, WG members have shared positive messages about the role of agriculture in providing a safe, secure and healthy food supply in the midst of the coronavirus pandemic, and have detailed the countless measures being taken to protect an essential workforce. 

Using the #AgIsEssential hashtag, the videos and graphics are tied together across WG’s social media platforms, including FacebookTwitter and Instagram. Since early April, #AgIsEssential videos have been viewed more than 250,000 times, and more than 36,000 people have liked, commented or shared #AgIsEssential posts.

Because of its significant impact, WG plans to extend the campaign for the foreseeable future, and is encouraging all members to participate by recording selfie videos on their smart phones answering either or both of the following questions:

  1. If you could say one thing to the public about your farming operation or the agriculture industry during the COVID-19 pandemic, what would it be?
  2. What is your farming operation doing to ensure the health and safety of your workers during the COVID-19 pandemic?

We encourage you to record your video horizontally and in a field or where activity is occurring, being mindful of background noise and wind (use your body to shield the wind, if you can). Introduce yourself, where you are standing, and keep your comments brief, under a minute if you can. And remember, it is always easier to show rather than tell, so use visuals to help tell your story.

Please contact Cory Lunde at [email protected] if you have any questions, need further guidance, or would like to submit a video.

[VIDEO::https://www.youtube.com/playlist?list=PL5I54Vgc8X5WlxsX602l5nyhZnsMpFjNB::aVideoStyle]

EIDL Loan and Advance Now Open to Ag Producers

May 5th, 2020

The U.S. Small Business Administration (SBA) is now accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications from agricultural businesses.

Previously excluded from the EIDL, agricultural businesses were explicitly granted access to the loan program in the latest round of coronavirus relief funding. However, while additional funding had been provided to the EIDL, the application process remained closed to new applicants due to the unprecedented submission of applications already received.

At this time, only agricultural business applications will be accepted due to limitations in funding availability and unprecedented submission of applications already received. The application process will remain closed to other types of businesses.

Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the application portal prior to the legislative change, SBA will process these applications without the need for re-applying.

SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.

APPLY DIRECTLY TO SBA FOR THE EIDL LOAN AND EIDL ADVANCE PROGRAMS BY CLICKING HERE.

SBA has provided a slide show presentation providing additional details on the EIDL for agricultural producers.

FAQs and Other Important Information

What agricultural businesses are eligible for the EIDL Loan and EIDL Advance programs?

Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).

How much can a business borrow?

SBA will determine your loan amount based on working capital needs.

What are the terms of the loan?

  • Interest rates are 3.75 percent for small businesses
  • Terms are up to 30 years
  • Payments are deferred for one year

How can loan funds be used?

These are working capital loans, and can be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. These loans are not intended to replace lost sales/profits or for expansion.

What are the collateral requirements?

Economic Injury Disaster Loans over $25,000 require collateral, if available. General Security Interest (UCC) in business assets can be used to secure loans over $25,000. SBA will not decline a loan for lack of collateral.

How do I receive an advance?

You must check that you would like to be considered for an advance of up to $10,000 (towards end of application). You will need to provide bank account information where the funds will be deposited. The amount of the advance is determined by number of employees; $1,000 per employee up to a maximum of $10,000. The advance does not have to be paid back, and you do not have to qualify for loan to receive the advance. However, the advance will be subtracted from PPP forgiveness.

OTHER IMPORTANT INFORMATION

  • There is no cost to apply
  • There is no obligation to take the loan if offered
  • Borrowers with current SBA loans, including existing SBA Disaster Loans, are eligible for Economic Injury Disaster Loans if they meet the criteria but they cannot be consolidated
  • Example of information requested for application
    • Self-certify that business is an agricultural enterprise with not more than 500 employees
    • Business legal name, trade name, EIN or SSN for sole prop, organization type, business activity, number of employees
    • For the 12-month period prior to January 31, 2020:
      • Gross Revenues
      • Cost of Goods Sold
      • Cost of Operation, i.e. operating expenses
      • Compensation from other sources (reduces loan amount)

For more information on the EIDL Loan and EIDL Advance programs, visit the SBA Disaster Loan Applications webpage.

USDA Announces $470 Million in Section 32 Purchases

May 5th, 2020

Yesterday, USDA announced details of $470 million in Section 32 food purchases to occur in the third quarter of fiscal year 2020, in addition to purchases previously announced, which will enable USDA to purchase surplus food for distribution to communities nationwide.

These Section 32 purchases will provide additional support for producers and Americans in need, in response to changing market conditions caused by the COVID-19 national emergency.

The Agricultural Marketing Service (AMS) will purchase a wide variety of fruits, vegetables, meat, dairy and seafood products. Specific purchase amounts for specialty crop commodities include:

  • Asparagus: $5 million
  • Pears: $5 million
  • Potatoes: $50 million
  • Prunes: $5 million
  • Raisins: $15 million
  • Strawberries: $35 million
  • Sweet Potatoes: $10 million
  • Tart Cherries: $20 million

Purchases are determined by industry requests, market analysis and food bank needs. AMS will begin issuing solicitations in June and intends to begin deliveries in July.

Details on how vendors may participate are available on the Selling Food to USDA page on the AMS website. 

Solicitations will be posted to the AMS Open Purchases Request website once available.

Industry requests for future purchases using Section 32 funds, including potential plans for the fourth quarter of fiscal year 2020, will be assessed on an ongoing basis.

CARES Act Webinar Recording Now Available

May 5th, 2020

Last Friday, WG, in partnership with alliantgroup Washington insiders, presented a webinar on The CARES Act featuring Mike Johanns, former Secretary of Agriculture; Rick Lazio, former Congressman; and Dean Zerbe, former Senior Counsel to the Senate Finance Committee.

The panel of presenters covered updates to the CARES Act, including the replenishment of PPP, and its impact on the agriculture industry. In addition, the presentation provided a review of the existing tax relief incentives that growers and processors are eligible to benefit from as agricultural businesses.

Click here to view a recording of the webinar.

Click here to view and/or download the presentation slide deck.

WG, Coalition Seek Federal Liability Protections for Essential Businesses

May 5th, 2020

Over the weekend, WG joined a national coalition of nearly 300 business groups in sending a letter to congressional leadership calling on federal policymakers to provide targeted liability protections to protect essential businesses that have stayed open during the COVID-19 pandemic.

The letter notes that because of remarkable legal uncertainty, essential businesses risk becoming the targets of coronavirus-related lawsuits as federal and state rules and guidance on how to operate have evolved rapidly and at times have created legitimate confusion over even ordinarily simple tasks like cleaning a work site.

“In the face of such uncertainty, our members consistently strive to do the right thing, continually implementing new safety protocols to reduce the risk of transmission among employees and the public in response to updated guidance from the CDC, OSHA and state authorities,” the signatories state.

The letter continues: “Companies doing their best to control the spread of this disease with the limited guidance available deserve legal protection. Congress should not allow good actors to be held liable for events beyond their control. By providing limited and rational safe harbors for good actors, Congress can help ensure that the critical needs of the American people are met during this time of crisis and enable the continued operation of critical infrastructure.”

Click here to read the full text of the letter. 

WG, Coalition Presses Calif. Governor Newsom on Water Rules

May 5th, 2020

Last Friday, a coalition of more than 75 California agricultural organizations pressed on Governor Gavin Newsom to recognize the significance of the food supply in light of the ongoing COVID-19 pandemic, and to consider the importance of a reliable water supply in growing the food that our communities require.

“Making sure farmers have the water to grow next year’s food supply is as important as making sure grocery store shelves are stocked today,” the group noted in the letter.

The coalition called on Governor Newsom to, “find creative and balanced means to maximize water supplies for farmers,” and to suspend, modify for postpone rules that limit farm water supplies.

Furthermore, the group urged Newsom’s administration to work cooperatively with the federal administration on water management in critical watersheds where the federal government has made significant investments, including the Klamath River, Bay-Delta and Colorado River.

The group included the following recommendations for state and federal stimulus efforts:

  • Repair and modernize existing water supply and conveyance infrastructure, including subsidence along the state’s major water delivery canals (California Aqueduct, Delta-Mendota Canal, Friant-Kern Canal)
  • Reconsider the state’s lawsuit over the federal biological opinions that protect endangered fish.
  • Provide funding to build water projects capable of replacing groundwater supplies lost to SGMA
  • Reconsider the scientific foundation of the California Department of Fish and Wildlife’s recently-issued Incidental Take Permit for the State Water Project (SWP).
  • Provide funding that incentivizes farmers to further employ state-of-the-art on-farm water conservation technology that would otherwise be unaffordable
  • Expand current water supply infrastructure, including enlargement of Shasta Dam and new storage facilities such as Sites and Temperance Flat.

Click here to read the full text of the letter.

WG, Coalition Highlight COVID-19 Worker Protection Efforts

May 5th, 2020

A national coalition of 64 organizations representing specialty crop producers sent a letter to congressional leadership yesterday highlighting the extraordinary measures agricultural employers are taking to protect their workforce during the COVID-19 pandemic. 

The letter details the collaboration between the agriculture industry, public health experts and regulatory agency officials to develop best safety practices in the field and in packing, processing and cooling facilities.

Around the country, agricultural organizations have worked with farmers and ranchers to develop industry-specific training materials and programs to educate both the employer and the employee on critical guidance related to hygiene and sanitation, social distancing and other recommendations to protect essential workers and slow the spread of COVID-19.

As future rounds of COVID-19 pandemic legislation are debated, the coalition letter urges congressional leaders to acknowledge the widespread employee protection protocols already in place on American farms and ranches, and to provide additional support to help agricultural employers meet the needs of their employees.

“Farmers and ranchers are striving daily to ensure the welfare of their employees, in order to safeguard our food supply and bolster or nation’s response to COVID-19,” said Western Growers President and CEO Dave Puglia. “We are calling on Congress to extend current relief efforts for agriculture, and to include additional funding for personal protective equipment and other measures to offset the costs of maintaining an essential workforce during the pandemic,” Puglia continued.

Click here to read the full letter.

Calif. Governor Issues COVID-19 Workers’ Compensation Executive Order

May 7th, 2020

Yesterday, Calif. Governor Gavin Newsom issued an Executive Order (EO) that extends temporary workers’ compensation benefits to essential workers who claim to contract COVID-19 at their place of employment (away from home).

The EO is retroactive to March 19, the day the statewide stay at home order was issued, and will be in place through July 5, 60 days from the date the EO was issued.

According to the EO, any COVID-19-related illness of an employee shall be presumed to arise out of and in the course of the employment for purposes of awarding workers’ compensation benefits if all of the following requirements are satisfied:

  • The employee tested positive for or was diagnosed with COVID19 within 14 days after a day that the employee worked at the employee’s place of employment at the employer’s direction;
  • The employee worked at the employee’s place of employment at the employer’s direction on or after March 19, 2020; and
  • The employee’s place of employment was not the employee’s home or residence.
  • In the case of a diagnosis, the diagnosis was made by a physician who holds a physician and surgeon license issued by the California Medical Board and is confirmed by further testing within 30 days of the date of the diagnosis.

Other key provisions of the EO include:

  • The presumption is rebuttable (disputable) and may be controverted by other evidence. Employers have 30 days to accept or reject the claim, and may object to the claim by demonstrating that the employee did not contract COVID-19 at the workplace.
  • An accepted claim shall be eligible for all benefits applicable under the workers’ compensation laws of California, including full hospital, surgical, medical treatment, disability indemnity, and death benefits.
  • Where an employee has paid sick leave benefits specifically available in response to COVID-19, those benefits shall be used and exhausted before any temporary disability benefits are due and payable. Where an employee does not have such sick leave benefits, the employee shall be provided temporary disability benefits from the date of disability. In no event shall there be a waiting period for temporary disability benefits.
  • If the employee tests positive or is diagnosed, the employee must be recertified for temporary disability every 15 days for the first 45 days following diagnosis.

Click here to view the full Executive Order.

In response to the EO, WG and allied California agricultural organizations issued the following joint statement:

“As a critical infrastructure industry, agricultural businesses have been asked to continue providing our communities with safe and nutritious food during the COVID-19 crisis, and their employees – deemed essential by every level of government – have been asked to continue their critically important work. Agricultural employers have responded by enacting extraordinary measures to protect their employees and the public, all while struggling with major supply chain disruptions.

“This executive order will add more financial weight at a very difficult time. Instead, if the goal is to restart California’s economy, then the added economic burden of medical claims related to COVID-19 should be borne by the government, not the essential industries providing a public good during a global pandemic.

“Amid tremendous uncertainty, the agricultural community is working to protect the health and safety of our essential workforce while we continue a vital mission to grow, harvest, pack, process and ship hundreds of nutritious California commodities for families in our state and across the country.”

U.S. Specialty Crop Industry Touts COVID-19 Employee Safety Protocols

May 7th, 2020

A national coalition of 64 organizations representing specialty crop producers sent a letter to congressional leadership earlier this week highlighting the extraordinary measures agricultural employers are taking to protect their workforce during the COVID-19 pandemic. 

The letter details the collaboration between the agriculture industry, public health experts and regulatory agency officials to develop best safety practices in the field and in packing, processing and cooling facilities.

Around the country, agricultural organizations have worked with farmers and ranchers to develop industry-specific training materials and programs to educate both the employer and the employee on critical guidance related to hygiene and sanitation, social distancing and other recommendations to protect essential workers and slow the spread of COVID-19.

As future rounds of COVID-19 pandemic legislation are debated, the coalition letter urges congressional leaders to acknowledge the widespread employee protection protocols already in place on American farms and ranches, and to provide additional support to help agricultural employers meet the needs of their employees.

“Farmers and ranchers are striving daily to ensure the welfare of their employees, in order to safeguard our food supply and bolster or nation’s response to COVID-19,” said Western Growers President and CEO Dave Puglia. “We are calling on Congress to extend current relief efforts for agriculture, and to include additional funding for personal protective equipment and other measures to offset the costs of maintaining an essential workforce during the pandemic,” Puglia continued.

Click here to read the full letter.

Farm to Family Program Webinar – Help Meet the Growing Demands of California Food Banks

May 12th, 2020

Tomorrow, Wednesday, May 13th, at 10:00 a.m. (PT), CDFA and the California Association of Food Banks (CAFB) will join Western Growers for a webinar discussing California’s recent expansion of the Farm to Family Program, which will provide additional resources and funding to support farm donations to food banks during this critical time.

Statewide food banks are facing significant demand and farm operations may have supply availability, as foodservice and other retail outlets are impacted by COVID-19. 

The CAFB’s Farm to Family Program works with farmers, ranchers and food processors to take surplus food products and distribute them to families in need. Funding is potentially available to offset some of the costs related to harvesting, packing and transporting the products.

Grimmway Farms President, Jeff Huckaby, and CAFB Farm to Family Director, Steve Linkhart, will be the guest speakers. WG Sr. Director, Membership, Kim Sherman, will moderate the webinar.

Click here to register.

FEMA Guidance on Acquiring PPE During Shortages

May 12th, 2020

In its fact sheet, Addressing PPE Needs in Non-Healthcare Setting, FEMA provides guidance on acquiring Personal Protective Equipment (PPE) during the current national shortage.

According to the guidance, if after minimizing the need for PPE through preservation strategies described in the fact sheet, PPE is still required by essential critical infrastructure workers to perform their duties, organizations should:

  1. Continue working with normal and alternate private sector suppliers to obtain PPE. It may be necessary to identify multiple options for suppliers and prioritize near-term versus long-term needs.
  2. If suppliers are unable to provide for your needs, and the PPE is urgently required, submit a request for assistance to your local or state emergency management agencies. If local emergency management is unable to address the PPE shortfall, they can relay it to the state. If the state is unable to address it, they can submit a request for support to their FEMA Regional Response Coordination Center.

Any requests to local, state or federal agencies for urgent resupply of PPE for essential critical infrastructure workers should accurately describe:

  • Specific types, quantities (include 30, 60 and 90-day demand), and locations where PPE is needed;
  • Estimated time until shortage impacts operations based on PPE burn rate; and,
  • Consequence of the shortage and duration of its impact.

Click here to view a PDF of the Addressing PPE Needs in Non-Healthcare Setting fact sheet.

USDA Announces Approved Contractors for Farmers to Families Food Box Program

May 12th, 2020

Last Friday, May 8th, USDA announced the contract awards for the Farmers to Families Food Box Program. The contracted suppliers are listed by region and dollars awarded.

The $1.2 billion program, which will provide $461 million in fresh fruits and vegetables, $317 million in dairy products, $258 million in meat products and $175 million for combination boxes, may eventually be expanded to up to $3 billion.

This program is part of the $19 billion agricultural relief packaged announced by USDA last month.

Click here to view the full list of contract awards.

House Democrats Introduce Latest COVID-19 Relief Package

May 12th, 2020

Today, House Democrats introduced The Heroes Act, the latest COVID-19 relief package worth more than $3 trillion. The House Rules Committee is scheduled to consider the bill on Thursday, with a full House vote expected on Friday.

According to Senate Finance Committee Chairman Chuck Grassley (R-Iowa), the Senate is not expected to take up their version of a bill for two or three weeks because they want to see if the previous aid packages are working.

Among its many provisions, The Heroes Act would provide the following:

  • $1 TRILLION: For state, local, territorial and tribal governments to pay vital workers like first responders, health workers, and teachers
  • $200 BILLION: To ensure that essential workers receive hazard pay
  • ADDITIONAL DIRECT PAYMENTS: Payments of $1,200 per family member, up to $6,000 per household
  • EMPLOYEE RETENTION TAX CREDIT: Enhances the new employee retention tax credit that encourages employers to keep employees on payroll
  • INFECTION CONTROL PLANS: Requires OSHA to issue a strong, enforceable standard within seven days to require all workplaces to develop and implement infection control plans
  • SMALL BUSINESS LOANS: Strengthens the Paycheck Protection Program and Economic Injury Disaster Loan Program
  • SNAP: Provides 15% increase to the maximum SNAP benefit and additional funding for nutrition programs
    • $10 BILLION for SNAP (Supplemental Nutrition Assistance Program)
    • $3 BILLION for school meal providers and USDA’s Child and Adult Care Food Program
    • $1.1 BILLION for WIC (Women Infants and Children)
    • $150 MILLION for TEFAP (The Emergency Food Assistance Program) to help local food banks

Click here to access the text of The Heroes Act (H.R. 6800).

Click here to access a one pager on the legislation.

Click here to access a section-by-section summary.

Be on the lookout for a more detailed analysis of the provisions most relevant to WG members and the fresh produce industry.  

USDA to Host Webinar for Producers Interested in Applying for CFAP Direct Payments

May 12th, 2020

On Thursday, May 14th, at 10:00 a.m. (PT), USDA Agricultural Marketing Service (AMS) and Farm Service Agency (FSA) will host a webinar for farmers, ranchers and other producers interested in applying for direct payments through the Coronavirus Food Assistance Program (CFAP).

The rule is not out, and the application period has not opened up. However, this webinar is an opportunity for producers to learn about the general application process and required documentation prior to the official beginning of signup. Producers interested in participating may register in advance for webinar by clicking here.

After registering, you will receive a confirmation email containing information about joining the webinar. USDA encourages participants to submit questions through the Q&A box or by emailing [email protected]. While questions will not be answered live during the webinar, answers will be posted at farmers.gov/CFAP.

USDA is hosting this webinar to share what information is needed to apply for direct payments through CFAP, once the application period begins. Producers who are new to participating in FSA programs are especially encouraged to join the webinar. More details about CFAP direct payments will be announced soon.

As part of the $19 billion Coronavirus Farm Assistance Program, USDA will provide $16 billion in direct support based on losses for agricultural producers where prices and market supply chains have been impacted. Also, USDA will assist eligible producers facing additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.

USDA Provides Initial CFAP Direct Payment Guidance; CFAP Application Process Not Yet Started

May 14th, 2020

As part of the Coronavirus Food Assistance Program (CFAP), USDA will provide $16 billion in direct support to agricultural producers impacted by the coronavirus pandemic. NOTE: USDA is not yet taking applications.

CFAP will provide direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted. Additionally, CFAP will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19. 

USDA evaluated commodity specific losses occurring during the January to April time frame for immediate assistance. In addition, near-term adjustment costs and supply disruptions over the next few months were also evaluated to the extent possible for sectors where prices have declined significantly for additional assistance. 

CFAP is available to farmers regardless of size and market outlet, if they suffered an eligible loss. USDA cautions that the disruption to markets and demand is significant and these payments will only cover a portion of the impacts on farmers and ranchers. 

How to Apply

USDA will soon begin taking applications for CFAP. As part of applying for the program, you’ll need to contact the Farm Service Agency county office at your local USDA Service Center to schedule an appointment.

Click here to find your local service center.

What You Can Do Now

While the application process has not started, you can start gathering/understanding your farm’s recent sales and inventory. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.

Click here to review the information you’ll need and the forms you’ll be asked to complete. NOTE: Your local FSA staff will work with you to apply for the program.

How USDA Will Accept Applications

USDA Service Centers are open for business by phone appointment only. Once the application period opens, please call your FSA county office to schedule an appointment.

FSA staff will be working with agricultural producers by phone and using email, fax, mail, and online tools like Box to accept applications.

Click here to access USDA’s recently-updated FAQ on the CFAP.

Click here to access USDA’s CFAP webpage for additional information.

USDA Direct Payment Applications to Open May 26

May 19th, 2020

As part of USDA’s Coronavirus Food Assistance Program (CFAP), farmers will be able to apply for direct payments starting next week.

Beginning on May 26, 2020, producers of all eligible commodities may apply for assistance through their local USDA Farm Service Agency Service Center. Specialty crop producers are encouraged to complete the application forms ahead of the application date. Producers can locate their service center and find application forms and additional information at farmers.gov/cfap.

Additional guidance from USDA is detailed below:

Specialty Crops

Producers that fall into one of the following categories may be eligible to receive a direct payment:

  • Sales with a price loss of 5% or more between January 15 and April 15, 2020. Almonds, artichokes, beans, broccoli, cabbage, carrots, cauliflower, sweet corn, cucumbers, eggplant, lemons, iceberg and Romaine lettuce, dry onions, peaches, pears, pecans, bell and other types of peppers, rhubarb, spinach, squash, strawberries and tomatoes are eligible. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.
  • Shipments that left the farm by April 15 and spoiled due to no market or for which no payment was received. All specialty crops are eligible.
  • Shipments that have not left farm or mature crops that remained unharvested by April 15. All specialty crops are eligible.

Eligibility

  • There is a payment limitation of $250,000 per person or entity for all commodities combined.
  • Applicants that are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation, defined as performing 400 hours of labor or management on the farm. In these cases, the corporation limit can be up to $750,000.
  • Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming-related activities.
  • Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

Applying for Assistance

  • Producers can apply for assistance beginning on May 26, 2020. Applications will be accepted through August 28, 2020.
  • Additional information and application forms can be found at farmers.gov/cfap.
  • Producers of all eligible commodities will apply through their local FSA office.
  • Documentation to support the producer’s application and certification may be requested.
  • FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.

Payment Structure

  • To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application.
  • The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available.

USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment.

More information can be found at farmers.gov/coronavirus.

Reclamation Updates CVP Water Allocations

May 19th, 2020

Following April precipitation showing a sizeable water supply improvement for the American River watershed, the Bureau of Reclamation has announced updated allocations for Central Valley Project contractors:

  • The allocation for south-of-Delta agricultural water service contractors increased from 15% to 20%.
  • The allocation for south-of-Delta municipal and industrial water service contractors increased from 65% to 70% (or health and safety needs, whichever is greater).

These allocation adjustments address releases from Folsom Dam during the summer and have no effect on Reclamation’s ability to comply with the court order dated May 11, 2020 in PCFFA v. Ross and CNRA v. Ross.

Additionally, based on improved hydrologic conditions and the forecasted snowmelt runoff in the Upper San Joaquin River Basin, Friant Division:

  • Class 1 allocations (the first 800,000 acre-feet of available water supply) increased from 55% to 60%
  • Class 2 allocations (the next amount of available water supply up to 1.4 million acre-feet) remains at 0%.

According to Reclamation, as the water year progresses, changes in hydrology and opportunities to deliver additional water will influence future allocations.

Water supply updates are posted at http://www.usbr.gov/mp/cvp-water/index.html.