Farmers will be able to apply for USDA’s Coronavirus Food Assistance Program (CFAP) direct payments beginning 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.

To further assist our members, WG has prepared a handy set of Frequently Asked Questions, which can be found below and on the WG COVID-19 Resources Page. 

USDA Coronavirus Food Assistance Program (CFAP) Direct Payments

Frequently Asked Questions

Updated August 20, 2020

Q:        What is the timeframe for eligible losses?

A:         Losses must have occurred between January 15, 2020 and April 15, 2020.

Q:        Who can apply?

A:         Producers (person or legal entity) of specified crops who have suffered a 5% or greater price decline as a result of the COVID-19 pandemic, and/or who face substantial marketing costs for inventories. Packers, processors or shippers without a growing operation are not eligible.

Q:        Is there an adjusted gross income (AGI) limit?

A:         YES. Any person or legal entity with an AGI of more than $900,000 is ineligible UNLESS 75% of the income comes from farming, ranching, or forestry.

Q:        What crops are eligible?

A:         An eligible crop must have been produced in the United States or its territories and suffered a 5% or greater sales price loss due to COVID-19 between January 15, 2020 and April 15, 2020. Click here for the full list of eligible specialty crops.

It is important to note that USDA has continued to add crops to the eligibility list since the program’s initial rollout in May. We recommend reviewing the list to see whether previously ineligible crops are now eligible, should an already submitted or approved application need to be updated to include more crops your operation produces but suffered losses on.

Q:        What types of losses are covered?

A:         There are three types of January 15-April 15 losses that are covered:

• Crops that left the farm and were sold, but experienced a 5%-or-greater price decline;
• Crops that left the farm but were unsold and spoiled due to loss of markets; and
• Crops that did not leave the farm or were unharvested due to loss of markets.

Q:         Is there a payment limit?

A:         YES. The maximum payment is $250,000 per person. For corporations, LLCs, and limited partnerships, a maximum of three shareholders can apply and receive a payment, thus imposing a maximum limit of $750,000 on such operations.

Q:        My operation is a corporation/LLC/limited partnership. Are there eligibility requirements for corporate shareholders?

A        YES. Each shareholder must have actively participated in the farm, which entails at least 400 hours of active personal labor or management with respect to the operation of the corporate entity.

Q:       My operation is structured as an S-corporation, with shareholders receiving wages or dividends as a form of profit. Do these qualify as sources of income for AGI calculations?

A:         YES. Historically, wages and dividends do not count as income for the purpose of determining AGI for USDA assistance programs. As such, S-corps have not been eligible for CFAP at all to date. Western Growers recognized the problem and pressed USDA to make necessary changes to allow for more farmers to qualify.

As a result of these efforts, FSA recently published a notice that will allow for both wages and dividends to count, provided that an authorized representative (either a certified public accountant or attorney) certifies that the operation is affirmatively a farming operation.

Please review the FSA notice for full details.

Q:        What other requirements should I be aware of?

A:         By accepting the funds your operation must comply with USDA conservation compliance requirements. Click here for more details.

Q:        How do I start applying?

A:         The application period is from May 26 to September 11, 2020. You must contact your local Farm Service Agency (FSA) office to start and work through the process. Click here to locate your local FSA office, and please note that you must schedule by phone appointment only.

Q:        I’ve been approved for a CFAP payment. When can I expect it to arrive?

A:         Payments are tentatively expected to be issued within 7-10 days of when the application is received.

It is important to note that producers who newly apply for CFAP going forward will receive 100% of their total calculated payment (not to exceed the payment limit) when their applications are approved. For already-approved applicants that received, or will soon receive, their initial 80% payment (as per earlier USDA rules), FSA will automatically approve and issue the remaining 20% that was withheld.

For additional questions regarding the application process and necessary documentation, please contact your local FSA office.

For questions about the USDA announcement, other USDA programs, or other WG COVID-19 resources, please contact Dennis Nuxoll ([email protected]) or Tracey Chow ([email protected]).

Cal/OSHA has provided new guidance, including a video and checklists, on COVID-19 infection prevention in the agriculture industry. The video and checklists are intended to help agricultural employers implement their plan to prevent the spread of COVID-19 in the workplace.

This guidance does not introduce any new legal obligations, but because COVID-19 is widespread in the community, employers operating agricultural worksites in California must consider the disease a workplace hazard and employers must take steps to update their safety procedures to include preventing the spread of COVID-19.

Cal/OSHA recommends employers review this guidance along with their existing procedures to ensure that their plans are effectively protecting workers.

Employers with questions can call (800) 963-9424 for assistance from Cal/OSHA Consultation Services. Employees with work-related questions or complaints may contact DIR’s Call Center in English or Spanish at 844-LABOR-DIR (844-522-6734).

Resources:

• YouTube video: Cal/OSHA COVID-19 Infection Prevention Guidance for Agricultural Workers
• COVID-19 Daily Checklist for Agricultural Employers English | Español
• COVID-19 General Checklist for Agricultural Employers English | Español

Click here to visit Cal/OSHA’s homepage for coronavirus-related information.

The Federal Reserve announced a series of upcoming webinars and drop-in sessions for potential Main Street Lending Program (MSLP) borrowers. The sessions will be on May 29 and June 3. 

This webinar is an opportunity for potential borrowers to learn more about the program and ask questions to senior officials from the Federal Reserve. To allow as many potential borrowers to participate as possible, each business is asked to register no more than two representatives for the live session. A recording of the session will be available shortly after the call.

Interested participants are encouraged to review the program term sheets and frequently asked questions prior to the session.

You may sign up for email alerts about the MSLP by visiting the program’s operations website and scrolling down to the middle of the page.

About MSLP

The MSLP supports small and medium-sized U.S. businesses and their employees during this period of financial strain by giving these businesses access to additional credit. The program is intended to help companies that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain operations and payroll until conditions normalize.

U.S. businesses may be eligible for loans if they meet either of the following conditions: (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans issued under the MSLP would have a four-year maturity, and principal and interest payments on the loans will be deferred for one year

Last Thursday, May 21^st, WG President and CEO Dave Puglia joined KCBS (San Francisco) Radio’s Stan Bunger to field coronavirus-related questions from the Bay Area audience. During the popular Ask an Expert segment, Puglia covered concerns ranging from supply chain disruptions to food bank donations to worker protections.

Click here to listen to the full interview on-demand.

With heavy hearts, we share the sad news of the passing of Tom Oliveri, who passed away in his home Thursday morning, May 28, at the age of 67.

Affectionately known as “Tommy O” by Western Growers (WG) members and many others throughout the industry, Oliveri retired from the association in January 2018, several months shy of his 40^th anniversary of service. Over four decades, Oliveri demonstrated uncommon dedication to the WG membership, establishing himself as a foremost authority in the Perishable Agricultural Commodities Act (PACA).

Upon news of Oliveri’s passing, WG President and CEO Dave Puglia issued the following statement: “Tommy was a rare breed, an expert in his craft who brought a fierce determination to protect our members when disputes arose between parties in commerce. Among the WG membership, Tommy probably had the highest name identification of any WG employee; at some point, just about every WG member turned to him for help and he always jumped to their aid. He absolutely loved going to bat for our members and his tireless work boosted many bottom lines. His passing comes as a shock to us all. We join with so many in our industry today in offering our deepest condolences to Tommy’s family.”

Oliveri got his start in agriculture at a young age, when he worked summer jobs in high school and college as an inspector for the California Department of Food and Agriculture’s Standardization Program. After earning his degree in agricultural biology from Cal Poly Pomona in 1977, Oliveri serendipitously answered an advertisement to be a grower field representative for WG, earning the position over stiff competition in March 1978.

After several years as a Southern California field rep acquainting himself with the membership, Oliveri joined the marketing services department under the head of another recently-retired, longtime WG staffer, Matt McInerney. As the Director of what is now known as the Trade Practices and Commodity Services Department, Oliveri filed countless PACA claims and helped recover millions of dollars for WG members, and became an invaluable resource on issues related to inspections, arrival issues, trade disputes and unpaid claims. Over the years, Oliveri also provided seminars for WG members educating the industry on their rights and remedies under PACA law.

Even though he retired from WG in January 2018, Oliveri couldn’t stay away from the fresh produce industry for long, and joined the law firm of Rynn & Janowsky as a PACA consultant, where he remained engaged up to his passing.

As dedicated as he was to WG and its membership, Oliveri was equally devoted to his children, and is survived by his son, Matt, and his daughter, Marci. He enjoyed boating and fishing in his recreational time, and it has been noted that he was quite the baseball player in his younger days.

The passing of Oliveri will leave a Tommy O-shaped hole in the hearts of everyone who knew him, admired him, and considered him a friend. His quick wit and sense of humor will be missed. The entire Western Growers family extends our deepest condolences to his family and loved ones.

Join over 160 farmers in donating to the California Association of Food Banks’ (CAFB) Farm to Family program to support those who may be in need of fresh California-grown fruits and vegetables.

The Farm to Family program helps move excess California-grown products from the field to food banks up and down the state. Over 160 growers currently donate more than 50 varieties of produce to the Farm and Family program, including many Western Growers members.

As a result of these generous donations, the program has aided in the distribution of over 160
million pounds of California produce to its vast network of schools, churches, senior centers and
other destinations. Click here to learn more about donating surplus crops.

Calif. Governor Newsom recently announced a partnership with the CAFB to increase deliveries of fresh produce and other California-grown foods in which Western Growers President and CEO Dave Puglia issued the following statement:

“California food banks have experienced a huge spike in demand, and it makes sense to redirect as much of the food orphaned by the economic shutdown as possible to food banks. Our growers recognize this and have more than doubled their donations of berries, baby carrots, grapes and other fresh fruits and vegetables to food banks up and down the state in March and April. Given the massive economic harm to farmers in our state, much more relief is needed, but this is a good step forward.”

Click here to read Puglia’s full statement.

For more information regarding the Farm to Family program, contact Steve Linkhart, the director of Farm to Family, at (510) 350-9916.

Following a 2015 fatal gas explosion in Bakersfield, California, lawmakers made a one-year Area of Continual Excavation (ACE) ticket accessible to farmers and certain flood control operators. ACE tickets were designed to create a safe and less burdensome option to comply with the “call before you dig” law. This process will be available on July 1,2020.

The year-long ACE ticket can be requested at the farmer or flood control agent’s convenience and is valid for one year from the date of issue. Renewal is required within one year if work continues.

Click here for more information on the “Call Before You Dig” process.

For questions or additional information about ACE tickets, please contact Gail Delihant at (916) 446-1435.

The California Department of Food and Agriculture is announcing four vacancies on the Fertilizer Inspection Advisory Board (FIAB) Technical Advisory Subcommittee (TASC). This subcommittee serves as an expert scientific panel on matters concerning plant nutrition and environmental effects related to fertilizing materials use. It reviews all research and education proposals for the annual Fertilizer Research and Education Program (FREP) grant program and recommends to FIAB which projects should receive funding.

Applicants must demonstrate technical, applied and scientific expertise in the fields of agronomy, soil science, plant physiology, production agriculture and/or environmental issues related to fertilizer use.

The term of office is three years. Members receive no compensation, but are entitled to payment of necessary travel expenses. Individuals interested in being considered for appointment should send a resume and a Prospective Member Appointment Questionnaire to [email protected]. The application deadline is June 30, 2020.

For more information, visit the FREP blog.