On Tuesday, August 11, the U.S. Department of Agriculture (USDA) announced the inclusion of additional eligible crops in the Coronavirus Food Assistance Program (CFAP). USDA is also extending the deadline to apply for the program to Friday, September 11. The timeframe for eligible losses continues to be January 15 – April 15, 2020. The full announcement and details can be viewed here.

The newly eligible crops are: aloe leaves, bananas, batatas, bok choy, carambola (star fruit), cherimoya, chervil (french parsley), citron, curry leaves, cut flowers, daikon, dates, dill, donqua (winter melon), dragon fruit (red pitaya), endive, escarole, filberts, frisee, horseradish, kohlrabi, kumquats, leeks, mamey sapote, maple sap (for maple syrup), mesculin mix, microgreens, nectarines, nursery crops, parsley, persimmons, plantains, pomegranates, pummelos, pumpkins, rutabagas, shallots, tangelos, turnips/celeriac, turmeric, upland/winter cress, water cress, yautia/malanga, and yuca/cassava.

The following changes to CFAP have also been made:

• Green onions, pistachios, peppermint, spearmint, walnuts and watermelons are now eligible for ‘Category 1’ payments for sales losses. Originally, these commodities were only eligible for Categories 2 and 3 payments for marketing adjustments. The respective payment rates for these crops have been adjusted accordingly.
• Producers who newly apply for CFAP going forward will receive 100% of their total 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, the Farm Service Agency (FSA) will automatically approve and issue the remaining 20%.

Interested producers, especially those who have not worked with FSA previously, are recommended to call 877-508-8364 to begin the application process. An FSA staff member can help producers start their application during the phone call. They are also encouraged to visit farmers.gov/cfap for additional resources and form templates.

As of August 10, specialty crop growers nationwide have received just over $305 million in CFAP payments – only 4% of all approved payouts from the $16 billion program. Among Western Growers’ home states of California, Arizona, New Mexico and Colorado, roughly $127 million has been paid out to fresh fruit, vegetable, and tree nut growers. Western Growers members are encouraged to explore the USDA direct payment program to determine eligibility.

Please contact Dennis Nuxoll ([email protected]) or Tracey Chow ([email protected]) with questions.

The CARES Act provides for the forgiveness of Paycheck Protection Program (PPP) loans that are used for certain payroll-related costs, or covered expenses, and makes clear that forgiven loans are to be excluded from gross income.

However, the CARES Act does not address the deductibility of covered expenses, which has prompted the IRS to issue a notice (2020-32) stating that any forgiven PPP loans used for covered expenses will not be deductible, which appears to undercut Congressional intent in designing the relief program.

Efforts are under way to secure a Congressional fix. Until such legislative clarification is realized, Western Growers members are encouraged to speak with their tax advisor prior to applying for PPP loan forgiveness, as doing so may preclude the applicant from any potential retroactive correction.

Western Growers has joined a national coalition of business and agricultural groups in calling on Congress to include a technical correction ensuring tax-free PPP loan forgiveness in the next round of COVID-19 relief.

“Denying the correct tax treatment of these loans will result in hardship for many struggling businesses,” the coalition states in a letter to Congressional leadership.

The letter concludes: “As part of the next round of COVID-19 relief, we request that Congress reaffirm its intent and restore the tax benefits it intended to give distressed Main Street businesses as part of the CARES Act.”

Click here to read the full text of the coalition letter.

We will keep our members updated on further developments on the topic of PPP loan forgiveness.

Next Thursday, August 20, the WG Women Program is offering the first of a two-part virtual social media workshop aimed at empowering women to use social media as a tool of industry advocacy. You will learn how to tell the right stories, at the right time, to the right people, in the right way. Space is limited, be sure to register now. WG Women must attend both sessions to earn credit for the workshop.

Workshop 1.1: Social Media Archetypes

You will learn about the seven archetypes of social media – and discover your own social media archetype! Understanding your personal social media archetype will allow you to position your content in a manner most relevant to your audience. You will also learn how to effectively listen to conversations in your social media network.

The training will be provided by digital-first communications experts from Unearth.

Click here to register for Workshop 1.1: Social Media Archetypes.

Date: Thursday, August 20

Time: 1:00 p.m. – 3:00 p.m.

On September 9^th, Western Growers (WG) is sponsoring the virtual Agri-Pulse Food & Ag Policy Summit West, which will feature an intriguing slate of experts from leading food companies discussing food waste, sustainability and even alternative forms of plant-based and cell-based proteins. In addition, WG will host a special late afternoon “Happy Hour” session on the lessons learned by Agri-Pulse journalists in nearly two years of covering California agriculture, the legislature and administration.

Registration is FREE for all WG members. Click here to see the full lineup of speakers and to register using the “WGA” discount code. You can also text WESTSUMMIT to 22454.

The U.S. Department of Agriculture (USDA) will host a webinar on August 19 at 3 p.m. ET to discuss recently added commodities eligible for the Coronavirus Food Assistance Program (CFAP). 

Join the USDA Farm Service Agency (FSA) for detailed examples on specialty crops, nursery crops, cut flowers, eligible aquaculture and more.

Click here to register.

USDA is extending the deadline to apply for the program to September 11, 2020, and producers with approved applications will receive their final payment. The CFAP program helps offset price declines and additional marketing costs because of the coronavirus pandemic.