California Fruit and Vegetable

Tag: COVID-19

  • USDA COVID-19 Food Assistance Program to Support Farmers

    Summary

    By Schramm, Williams & Associates, Inc. — The U.S. Department of Agriculture (USDA) announced the $19 billion Coronavirus Food Assistance Program (CFAP) to support farmers and ranchers during the COVID-19 pandemic. This program is comprised of two major elements: direct payments to farmers and ranchers and commodity purchase and distribution.

    • Direct Payments Program – Provides $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and 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.
    • Purchase and Distribution Program – $3 billion of agricultural products, including meat, dairy, and produce will be purchased to support producers and provided food to those in need. USDA will work with local food and regional distributors to deliver food to food banks, as well as community and faith-based organization to provide food to those in need.

    CFAP uses funding authorities provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Families First Coronavirus Response Act (FFCRA), USDA’s existing CCC funding, and Section 32 authority.

    Direct Assistance Program

    Source of Funds

    This program is funded using the $9.5 billion emergency program secured in the CARES Act and $6.5 billion in Credit Commodity Corporation (CCC) funding.

    Payment Allocations

    USDA will provide $16 billion in direct payments to farmers and ranchers including:

    • $2.1 billion for specialty crops producers
    • $500 million for others crops

    Payment Calculations

    Producers will receive a single payment determined using two calculations:

    1. Price losses that occurred January 1 – April 15, 2020.
    2. Producers will be compensated for 85% of price loss during that period.
    3. The expected losses from April 15 through the next two quarters.
    4. Will cover 30% of expected losses.

    Limitations

    • The payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity.
    • Qualified commodities must have experienced a 5% price decrease between January and April.

    Expected Timeframe

    Program Sign-up: Beginning in Early May

    Payment Distribution: End of May or early June

    Food Purchase and Distribution Program

    Commodity Procurement

    It will begin with the procurement of an estimated:

    • $100 million per month in fresh fruits and vegetables;
    • $100 million per month in a variety of dairy products;
    • $100 million per month in meat products.

    Distribution

    The distributors and wholesalers will provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith-based organizations, and other non-profits serving Americans in need.

    Additional Food Purchasing

    In addition to the two targeted programs, USDA will utilize other available funding sources to purchase and distribute food to those in need.

    • USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis, and food bank needs.
    • The FFCRA and CARES Act provided an at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.

     

    Further details regarding eligibility, rates, and other implementation will be released at a later date.

  • USDA Announces Feeding Program Partnership in Response to COVID-19

    U.S. Secretary of Agriculture Sonny Perdue today announced a collaboration with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver nearly 1,000,000 meals to students in a limited number of rural schools closed due to COVID-19: 
     
    “Feeding children who are affected by school closures is a top priority for President Trump and this Administration. USDA is working with private sector partners to deliver boxes of food to children in rural America who are affected by school closures,” said Secretary Perdue. “Right now, USDA and local providers are utilizing a range of innovative feeding programs to ensure children are practicing social distancing but are still receiving healthy and nutritious food. This whole of America approach to tackling the coronavirus leverages private sector ingenuity with the exact same federal financing as the Summer Food Service Program. USDA has already taken swift action to ensure children are fed in the event of school closures, and we continue to waive restrictions and expand flexibilities across our programs.” 
     
    “We are grateful to come alongside USDA, PepsiCo, and McLane Global to ensure that children impacted by school closures get access to nutritious food regardless of where they live. We know from first-hand experience that families with children who live in rural communities across the U.S. are often unable to access the existing food sites. Meal delivery is critical for children in rural America to have consistent access to food when school is out. This is one way we, as citizens of this great nation, can respond to our neighbors in need,” said Jeremy Everett, Executive Director, Baylor University Collaborative on Hunger and Poverty. 
     
    “McLane Global was proud to take part in the success of the summer Meals-2-You home delivery pilot program in 2019. It was a great opportunity to bring private industry best practices together with the USDA to combat rural hunger. Given the rapid disruptions driven by COVID-19, we can work together to swiftly take this model nationwide. McLane Global is ready to do its part to support the fight against hunger through this crisis,” said Denton McLane, Chairman, McLane Global. 
     
    “As schools around the country close, millions of schoolchildren now don’t know where their next meal is coming from. In the face of this unprecedented crisis, it’s critical that the private sector help ensure these students have access to nutritious meals,” said Jon Banner, Executive Vice President, PepsiCo Global Communications and President, PepsiCo Foundation. “PepsiCo is committing $1 million to help Baylor create a solution with USDA to identify children most in need and then we will help reach them with at least 200,000 meals per week—one way we are deploying our food and beverage resources to help those most vulnerable.” 
     
    Background:

    USDA will utilize best practices learned through a summer pilot program in 2019 to deliver food boxes to children affected by school closures due to COVID-19 in rural America. Baylor will coordinate with the appropriate state officials to prioritize students who do not currently have access to a Summer Food Service Program (SFSP) site and have an active outbreak of COVID-19. Initial capacity is limited, and additional vendors are requested and encouraged to ensure we can provide food to more rural children as additional schools close. USDA has created a single contact for those who have suggestions, ideas, or want to help feed kids across the country. Email FeedingKids@usda.gov.  
     
    The Baylor Collaborative on Hunger and Poverty, McLane Global, and PepsiCo will begin distributing next week and will quickly increase capacity of nearly 1,000,000 nutritious meals per week. In addition to distribution, PepsiCo will generously provide $1 million in funding to the Baylor Collaborative on Hunger and Poverty to facilitate nationwide distribution in the coming weeks. These boxes will contain five days worth of shelf-stable, nutritious, individually packaged foods that meet USDA’s summer food requirements. The use of this innovative delivery system will ensure rural children receive nutritious food while limiting exposure to COVID-19. USDA will reimburse private sector partners for the same rate as an SFSP site.
     
    Last week, Secretary Perdue announced proactive flexibilities to allow meal service during school closures to minimize potential exposure to the coronavirus. During an unexpected school closure, schools can leverage their participation in one of USDA’s summer meal programs to provide meals at no cost to students. Under normal circumstances, those meals must be served in a group setting. However, in a public health emergency, the law allows USDA the authority to waive the group setting meal requirement, which is vital during a social distancing situation. 
     
    USDA intends to use all available program flexibilities and contingencies to serve our program participants across our 15 nutrition programs. We have already begun to issue waivers to ease program operations and protect the health of participants. USDA is receiving requests for waivers on an ongoing basis. As of today, USDA has been asked to waive congregate feeding requirements in in all 50 states, the District of Columbia, and Puerto Rico and USDA has granted those requests.

  • USDA Announces Feeding Program Partnership in Response to COVID-19

    U.S. Secretary of Agriculture Sonny Perdue today announced a collaboration with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver nearly 1,000,000 meals to students in a limited number of rural schools closed due to COVID-19: 
     
    “Feeding children who are affected by school closures is a top priority for President Trump and this Administration. USDA is working with private sector partners to deliver boxes of food to children in rural America who are affected by school closures,” said Secretary Perdue. “Right now, USDA and local providers are utilizing a range of innovative feeding programs to ensure children are practicing social distancing but are still receiving healthy and nutritious food. This whole of America approach to tackling the coronavirus leverages private sector ingenuity with the exact same federal financing as the Summer Food Service Program. USDA has already taken swift action to ensure children are fed in the event of school closures, and we continue to waive restrictions and expand flexibilities across our programs.” 
     
    “We are grateful to come alongside USDA, PepsiCo, and McLane Global to ensure that children impacted by school closures get access to nutritious food regardless of where they live. We know from first-hand experience that families with children who live in rural communities across the U.S. are often unable to access the existing food sites. Meal delivery is critical for children in rural America to have consistent access to food when school is out. This is one way we, as citizens of this great nation, can respond to our neighbors in need,” said Jeremy Everett, Executive Director, Baylor University Collaborative on Hunger and Poverty. 
     
    “McLane Global was proud to take part in the success of the summer Meals-2-You home delivery pilot program in 2019. It was a great opportunity to bring private industry best practices together with the USDA to combat rural hunger. Given the rapid disruptions driven by COVID-19, we can work together to swiftly take this model nationwide. McLane Global is ready to do its part to support the fight against hunger through this crisis,” said Denton McLane, Chairman, McLane Global. 
     
    “As schools around the country close, millions of schoolchildren now don’t know where their next meal is coming from. In the face of this unprecedented crisis, it’s critical that the private sector help ensure these students have access to nutritious meals,” said Jon Banner, Executive Vice President, PepsiCo Global Communications and President, PepsiCo Foundation. “PepsiCo is committing $1 million to help Baylor create a solution with USDA to identify children most in need and then we will help reach them with at least 200,000 meals per week—one way we are deploying our food and beverage resources to help those most vulnerable.” 
     
    Background:
    USDA will utilize best practices learned through a summer pilot program in 2019 to deliver food boxes to children affected by school closures due to COVID-19 in rural America. Baylor will coordinate with the appropriate state officials to prioritize students who do not currently have access to a Summer Food Service Program (SFSP) site and have an active outbreak of COVID-19. Initial capacity is limited, and additional vendors are requested and encouraged to ensure we can provide food to more rural children as additional schools close. USDA has created a single contact for those who have suggestions, ideas, or want to help feed kids across the country. Email FeedingKids@usda.gov.  
     
    The Baylor Collaborative on Hunger and Poverty, McLane Global, and PepsiCo will begin distributing next week and will quickly increase capacity of nearly 1,000,000 nutritious meals per week. In addition to distribution, PepsiCo will generously provide $1 million in funding to the Baylor Collaborative on Hunger and Poverty to facilitate nationwide distribution in the coming weeks. These boxes will contain five days worth of shelf-stable, nutritious, individually packaged foods that meet USDA’s summer food requirements. The use of this innovative delivery system will ensure rural children receive nutritious food while limiting exposure to COVID-19. USDA will reimburse private sector partners for the same rate as an SFSP site.
     
    Last week, Secretary Perdue announced proactive flexibilities to allow meal service during school closures to minimize potential exposure to the coronavirus. During an unexpected school closure, schools can leverage their participation in one of USDA’s summer meal programs to provide meals at no cost to students. Under normal circumstances, those meals must be served in a group setting. However, in a public health emergency, the law allows USDA the authority to waive the group setting meal requirement, which is vital during a social distancing situation. 
     
    USDA intends to use all available program flexibilities and contingencies to serve our program participants across our 15 nutrition programs. We have already begun to issue waivers to ease program operations and protect the health of participants. USDA is receiving requests for waivers on an ongoing basis. As of today, USDA has been asked to waive congregate feeding requirements in in all 50 states, the District of Columbia, and Puerto Rico and USDA has granted those requests.