WASHINGTON, D.C. — In an April 7 bipartisan letter to USDA Secretary Sonny Perdue, 108 members of the U.S. House Representatives asked the Trump Administration to provide direct support to specialty crop producers as the Coronavirus Aid, Relief, and Economic Security (CARES) Act is implemented.

“As you work to implement provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, we respectfully request that you provide direct support to the specialty crop producers across our nation that are facing immediate and substantial financial challenges,” the members told Perdue. 

Representatives Jimmy Panetta, D-California; Fred Upton, R-Michigan; Jim Costa, D-California; and Doug LaMalfa, R-California, spearheaded the congressional support in the letter.

“Such relief will not only assist producers who are struggling to make ends meet during this unprecedented time but also help ensure our most vulnerable communities continue to have access to fresh produce,” the members added.

Under the CARES Act, $14 billion would be provided for the replenishment of the Commodity Credit Corp., and an additional $9.5 billion for agricultural producers impacted by COVID-19, including specialty crop producers, producers that supply local food systems, and livestock producers.

“We are very pleased that specialty crop producers have been specifically included in this relief package,” the members continued. “These producers are experiencing significant losses, with more losses expected in the coming days, weeks, and potentially months. 

“Now, as you make decisions regarding how best to allocate CARES Act funding, we request that you reserve funding to develop and execute a recovery and relief plan for the specialty crop industry,” they added. 

The members are asking this plan include the following three key components:

1. Fresh Produce Purchases: We ask that this plan include funding and guidance for USDA purchases of fresh fruits and vegetables, including purchases for federal nutrition programs. We are aware the USDA is working with schools across the country to ensure the continuity of school meal service during school closures. Nevertheless, large volumes of product previously contracted to schools are being left unsold. We ask the USDA take over these contracts in the short-term to provide much-needed certainty to specialty crop producers and children who rely on school meals. With a steep decline in purchases in the food service sector, we also ask the USDA to swiftly develop a purchase program, in addition to the existing purchase programs, that would quickly provide stability to all impacted fresh produce growers through the duration of the COVID-19 public health emergency.

2. Direct Payments to Specialty Crop Producers: We request the USDA provide direct payments to specialty crop producers impacted by lost sales or other financial losses due to the COVID-19 emergency. In 2019, the USDA provided direct payments through the Market Facilitation Program to farmers impacted by market losses due to trade volatility. Today, specialty crop producers who rely on the food service industry are experiencing similar challenges with respect to lost markets. Any USDA effort to provide direct payments to farmers as part of its pandemic relief programming should therefore include the fruit and vegetable sector; and

3. Perishable Agricultural Commodities Act: We request that the USDA’s plan consider the reality that, throughout this pandemic, growers and shippers may struggle to meet contractual obligations under the Perishable Agricultural Commodities Act (PACA). We ask that the USDA provide assistance and flexibility in light of the unprecedented consequences of COVID-19.

“As this global crisis continues to evolve, we recognize that additional programs and flexibilities may need to be considered and implemented to keep fresh produce moving through the food supply chain,” the members wrote.

“We hope that you will use all resources at the USDA’s discretion, including funding from the CARES Act and carryover funding from the previous fiscal year, to address the immediate needs of the specialty crop industry,” they concluded.

In a March 25 letter to Perdue, Dave Puglia, president and CEO of the Western Growers Assoc. (WGA), in Irvine. Calif., called on the USDA to guarantee the payment of all PACA trust claims.

“The COVID-19 pandemic has already caused severe disruptions in our industry, from foodservice market evaporations and workforce strains, to transportation challenges and sanitary equipment shortages,” he told Perdue. 

“In this crisis, an issue that is of a growing concern is that, given the extremely volatile environment currently in the food supply chain, the likelihood of delayed payments or non-payments and the drain on cash flow will be much greater than could have ever been forecasted,” he added.

Puglia said many WGA members are already facing repeated requests from their buyers for payment extensions beyond the standard 30 days, a concern, he added, “is especially acute within the foodservice sector.”

“While PACA has for decades served our members well in safeguarding them from credit risks and lost inventory, we fear the existing process may not be enough to withstand the unprecedented financial losses our growers stand to experience,” he wrote. 

“As such, we request that the 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,” he added.

On April 8, the United Fresh Produce Assoc. (UFPA), and a number of industry partners presented a comprehensive Produce Market Stabilization Program to the USDA to immediately support critical financial needs in the produce supply chain.

“Since the beginning of this crisis, our association has worked to help our industry keep produce moving to consumers,” said Michael Muzyk, president of Baldor Specialty Foods in the Bronx, N.Y., who chairs the UFPA.  

“And, we’ve worked to help our members actually survive following the devastating financial impact of this crisis,” he added. “Today is an important day on a path toward some stability for our industry to be able to serve consumers when we’re finally past this terrible time.”

Tom Stenzel, UFPA president and CEO, said, “There is a long road still ahead.”

“But this is a critical step – our industry has come together to support a consensus proposal to the USDA, and Congress has come together to let our national decision-makers know how important this is across the country and every sector of our business,” he said.

“Most organizations represent specific sectors and members who are suffering, but we’ve set aside competitive interests to support a common approach that gets us the best chance of securing real relief for our industry.”