Governor Gavin Newsom submitted a revised 2020-2021 budget proposal to the State Legislature today.

Because of COVID-19, California and economies across the country are confronting a steep and unprecedented economic crisis — facing massive job losses and revenue shortfalls.

The Governor’s budget reflects that emergency. The administration is proposing a budget to fund our most essential priorities, and to support workers and small businesses as we restart our economy.

Because of the size of the hole, there is no responsible way to avoid cuts. The budget document shows that the most painful cuts will be triggered if the federal government does not pass a package that helps states.

Here are some of items of note for CDFA.

Farm to School: This proposal requesting $10,000,000 in 2020-21, and $1,504,000 GF in 2021-22 and ongoing is sustained as it was in the Governor’s January budget. The funding would establish six positions to provide baseline and expansion support to the Office of Farm to Fork’s (CDFA-F2F) California Farm to School Network. This request includes $8,496,000 to be made available for grants to qualifying Local Educational Agencies participating in the farm to school incubator pilot, and it would allow CDFA-F2F to create a roadmap to transformational change in the school food system that supports California farmers, expands food access, and helps achieve the state vision of a California for All.

CalCannabis:  The May Revision includes $64,302,000 and 165 positions to continue the implementation of cannabis cultivation licensing and enforcement under the Medical and Adult Use Cannabis Regulation and Safety Act.  This will enable CalCannabis to continue planning for consolidation with the three cannabis licensing agencies and work with the State Legislature in the coming year with the goal of establishing the new Department of Cannabis Control in July 2021.

Proposition 12: The May Revision includes $1,443,000 and 6 positions in 2020-21, and $2,818,000 and 15 positions in 2021-22 and ongoing to fund this program. The people of California overwhelmingly voted in favor of Proposition 12; in favor of poultry, swine and veal calves raised with strict enforced requirements regarding confinement practices in the production of the products that will be sold in California.

Fairgrounds: The Network of California Fairs has historically supported its own operations through revenue-generating activities with limited supplemental state support. As a result of COVID-19 impacts, fairs are canceling revenue-generating activities and are projected to lose approximately $98 million in revenue between March and June 2020, and revenue loss is expected to continue. Many fairs have little to no reserves and must initiate the layoff process immediately as they may become insolvent. The May Revision includes $40.3 million to support state-affiliated fairs that are projected to have insufficient reserves to pay legally mandated costs that may be incurred during the state civil service layoff process, including staff salary, payout of leave balances, and insurance. 

The May Revision eliminates $2,250,000 that was proposed for Cal Expo in the Governor’s Budget in January, as that is factored into the $40.3 million proposed in the May Revision.

Fresno-Merced Future of Food (F3) Innovation Initiative:  The May Revise reduces funding from $33 million to $2 million.  The Fresno-Merced Future of Food (F3) Innovation Initiative seeks to develop world-recognized, Climate-Smart Food and Agriculture Systems that provide solutions to chronic economic and environmental challenges within the Central Valley that have been exasperated by the COVID outbreak. The Administration sees this proposal as a unique opportunity to spur new technologies appropriate for all scales of agriculture and job growth within the food and agriculture system that is inclusive and sustainable.

The May Revision eliminates $2,250,000 that was proposed for Cal Expo in the Governor’s Budget in January, as that is factored into the $40.3 million proposed in the May Revision.

Cap and Trade: Historically, CDFA’s Climate Smart Agriculture programs have been funded by auction proceeds from the cap-and-trade program: the Greenhouse Gas Reduction Fund. The May Revision maintains the Governor’s Budget program allocations but adds a “pay-as-you-go” mechanism and certain priority programs, such as the FARMER program. After fulfilling the allocations to these programs, any remaining auction proceeds would be allocated to other programs, including methane reduction and healthy soils, on a proportional basis.

State Water Efficiency and Enhancement Program (SWEEP): The May Revision eliminates $20 million that was included in the Governor’s Budget in January for SWEEP grants. Although the new fiscal reality prevents SWEEP from being included in this proposed revised budget, the fact is that there are a total of 725 projects funded with past investment of $72 million. That has resulted in significant work to improve resiliency. CDFA will continue to partner with NRCS and other grant programs to promote this kind of on-farm water use efficiency.

Biodiversity: The May Revision eliminates $3,901,000 from CDFA’s budget that was authorized in the Budget Act of 2019. 

The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) and Farm Service Agency (FSA) will host a webinar on Thursday, May 14, 2020, at 1 p.m. ET, for farmers, ranchers and other producers interested in applying for direct payments through the Coronavirus Food Assistance Program (CFAP).

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 at https://www.zoomgov.com/webinar/register/WN_SPWI7yOFSqaGG1JKzhEbjA.

After registering, you will receive a confirmation email containing information about joining the webinar. We encourage participants to submit questions through the Q&A box or by emailing CFAP.webinars@usda.gov. 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 President Trump and Secretary Perdue’s April 17 announcement of a $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. A recording of the webinar, the answers to its questions, and other CFAP information can be found at farmers.gov/CFAP.  

How delightful would it be to see the smile in your loved ones’ eyes this Mother’s Day weekend as you deliver freshly picked flowers or strawberries from a farm stand or Certified Farmers’ Market?

To help us all continue to enjoy the healthy foods of California Grown and support our farmers, CDFA is offering guidelines during the COVID-19 pandemic.

On the CDFA Coronavirus (COVID-19) Resources for Food and Agriculture web page there is a page with Guidance for Operating Certified Farmers’ Markets, and a page with Guidance for Farmer Direct Sales and Pick-Your-Own Operations.

With the weather warming and farms blooming, now is the prime time for fresh fruits, nuts, vegetables and flowers, as well as eggs, dairy and meat! Please be sure to follow local and state COVID-19 health guidelines. Be healthy – eat healthy – California Grown! And be sure to thank a farmer for the bounty they provide to us!

USDA News Release

The U.S. Department of Agriculture (USDA) has announced the availability of $3 million for grants through its new Office of Urban Agriculture and Innovative Production. The competitive grants will support the development of urban agriculture and innovative production projects through two categories, Planning Projects and Implementation Projects. USDA will accept applications on Grants.gov until midnight July 6, 2020.

“These grant opportunities underscore USDA’s commitment to all segments of agriculture, including swiftly expanding areas of urban agriculture,” Under Secretary for Farm Production and Conservation Bill Northey said. “Such projects have the potential to address important issues such as food access and education and to support innovative ways to increase local food production in urban environments.”

“We are proud to be able to offer support though this cross-agency effort,” said Under Secretary for Marketing and Regulatory Programs Greg Ibach. “In creating this grant opportunity, USDA will build upon its years of experience providing technical support, grant funding and research to help farmers and local and urban food businesses grow.”

Planning Projects

USDA is making available $1 million for Planning Projects that initiate or expand efforts of farmers, gardeners, citizens, government officials, schools and other stakeholders in urban areas and suburbs. Projects may target areas of food access, education, business and start-up costs for new farmers and development of policies related to zoning and other needs of urban production.

Implementation Projects

USDA is making available $2 million for Implementation Projects that accelerate existing and emerging models of urban, indoor and other agricultural practices that serve multiple farmers. Projects will improve local food access and collaborate with partner organizations and may support infrastructure needs, emerging technologies, educational endeavors and urban farming policy implementation.

Webinar

A webinar, which will be held on June 3, 2020, from 2 to 4 p.m. Eastern Daylight Time, will provide an overview of the grants’ purpose, project types, eligibility and basic requirements for submitting an application. Information on how to register and participate in the webinar,      or listen to the recording, will be posted at farmers.gov/urban.     

More Information

The Office of Urban Agriculture and Innovative Production was established through the 2018 Farm Bill. It includes representatives from many USDA agencies, including Farm Service Agency and Agricultural Marketing Service, and is led by the Natural Resources Conservation Service. More information is available at farmers.gov/urban.     

Additional resources that may be of interest to urban agriculture entities include AMS grants to improve domestic and international opportunities for U.S. growers and producers and FSA loans.

Link to news release on USDA web site.

By Dave Kranz

Lost markets and lost off-farm income related to the COVID-19 pandemic have proven doubly difficult for many California farmers and ranchers, according to a survey by the California Farm Bureau Federation.

More than half of the farmers responding to the voluntary survey said they had lost customers or sales due to COVID-19, and nearly half said they or someone in their immediate family had lost off-farm income.

“Just as in the rest of society, the effects of the pandemic have reverberated throughout rural California,” CFBF President Jamie Johansson said. “There’s no aspect of farming, ranching or agricultural business that has been spared.”

CFBF and the Farm Employers Labor Service, a Farm Bureau affiliate, asked farmers and ranchers to respond to an online survey form between April 7 and April 21. More than 500 participated.

Nearly 57% of respondents said they had lost customers or sales during the pandemic. Of those farmers, more than half cited stay-at-home orders that had closed restaurants, company cafeterias and other customers’ businesses. Farmers also pointed to reasons for lost sales including declines in exports, transportation difficulties, reduced packinghouse capacity, farmers market closures and customer concerns about the safety of direct sales.

Forty-two percent of responding farmers said they or a family member had lost off-farm income.

“Most farm and ranch households count on off-farm income to supplement what they earn from agriculture,” Johansson said, “and have seen those jobs reduced at the same time as prices farmers and ranchers earn for many crops and commodities have fallen.”

Of survey respondents who reported a drop in off-farm income, nearly 60% said jobs had become unavailable due to stay-at-home orders. Farmers said they or family members also saw off-farm income decline due to the need to care for children due to school and child-care closures.

About three-quarters of the responding farmers said they had been able to maintain operations so far, and had been able to avoid furloughing or laying off employees.

About one-third of respondents reported being unable to undertake routine planting, cultivation or crop-care activities due to lack of personal protective equipment.

“Most frequently, farmers mentioned difficulty in being able to acquire respiratory protection, such as N95 respirators,” said Bryan Little, CFBF director of employment policy and FELS chief operating officer. “To a lesser degree, farmers said they had not been able to buy gloves, protective outerwear or eye protection required for certain on-farm operations.”

Farmers responding to the survey who reported reducing operations or staff were asked to provide one or more reasons for doing so. More than 70% pointed to reduced business revenue or customer orders. Another one-quarter of those farmers cited unavailability of employees due to quarantine or shelter-at-home protocols.

Only 20% of participating farmers reported employees unable to work due to the stay-at-home orders. Among farmers who said one or more of their employees was unable to work, the top reason was because the employees were considered in a high-risk group for the novel coronavirus.

Employee absences related directly to the pandemic had interfered with typical, seasonal activities for 16% of the farmers responding to the survey. Forgone activities included harvest, pruning, weed control, farm maintenance and shipment of orders.

Reflecting chronic difficulty in hiring farm employees, only 21% of participating farmers whose workforce had decreased due to the pandemic said they had been able to recruit replacement employees—relying mainly on word of mouth in looking for additional help.

More than half of farmers responding to the survey said they had applied or would apply for COVID-19 aid through the U.S. Department of Agriculture, Small Business Administration or tax credits under the Families First Coronavirus Response Act.

“Farmers and ranchers are doing all they can to maintain essential activities and provide plentiful, safe food,” Johansson said, “but there’s no question the pandemic has put a strain on rural California. At local, state and federal levels, Farm Bureau will advocate for policies that ease that strain while assuring the health and safety of farmers, ranchers, their employees, families and customers.”

To review the survey results, visit www.cfbf.com/impactsurvey.

Link to article on Ag Alert web site.

From a Small Business Administration news release

U.S. Small Business Administration Administrator Jovita Carranza announced today that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by the President one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the Coronavirus (COVID-19) pandemic.

“For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” said Administrator Carranza. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains.”

Agricultural businesses include businesses engaged in the legal 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)). Eligible agricultural businesses must have 500 or fewer employees.

The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.

For more information, please visit: www.sba.gov/Disaster.

CDFA has recently added three guidance documents pertaining to meat and poultry guidance to its COVID-19 web page.

The U.S. Centers for Disease Control (CDC) and U.S. Occupational Safety and Health Administration (OSHA) has issued interim Guidance for Meat and Poultry Processing Facilities. These measures are primarily for large plants regulated by the USDA.

CDFA has issued two additional guidance documents for small establishments it regulates. The first, for livestock and poultry, is for custom and/or mobile slaughter operations. The second, for retail processors, is for small businesses not regulated by the USDA.

CDFA offers a variety of COVID-19 resources on its web page.

By CDFA Secretary Karen Ross

Thank you to California’s farmers, ranchers and farm workers for feeding us and supporting our food banks as they provide nourishment to the people who depend on them.

Almost overnight, California farmers and ranchers have watched their market decrease by 50 percent.  At a time when agriculture is suffering from market disruption, California families are struggling to put healthy food on the table and food banks have seen a 73 percent increase in demand over last year. Yesterday’s announcement from Governor Newsom aims to address that mismatch and connect California’s producers with our food banks.

We are pleased to announce that we are further scaling up our partnership with Farm to Family, a program through the California Association of Food Banks (CAFB) that works with farmers, ranchers, packers and shippers to get California farm products from the field to 41 food banks throughout the state. To date, more than 128 companies have stepped up to the challenge and have donated more than 20 million pounds in April (a two-fold increase over March). Thank you to those who are feeding the need. And I am inspired by the outpouring of interest since yesterday’s announcement.

What was announced?

We have secured $2 million in USDA Specialty Crop Block Grant funding for CAFB to support harvesting, packing  and shipping of donated specialty crop products. In addition, the state Department of Social Services has more than $860,000 in USDA Farm to Food Bank dollars to the CAFB to further support the Farm to Family Program. Philanthropy has stepped up and committed $775,000, and is also launching a $15 million campaign to feed the need and support our farmers, farm workers, and food banks.

What can you do?

There are three options:

*Donate product directly to a local food bank.

*Contact the Farm to Family Program for more information about assistance with harvesting, packing and shipping. The funding we announced will support financial assistance of up-to 15 cents per pound on eligible California grown specialty crop products. You may also qualify for a 15 percent tax credit on donations. Entities wishing to donate should register with the Farm to Family Program. Donations to the program are limited to larger volumes (1/2 to full truckloads).

For non-specialty crop items, the CAFB will work with producers on the best options. Depending on the type of donated products – totes, bins, cases and consumer packs (nuts/dried fruit) are the needed packaging for food bank distribution. 

*If you don’t have product but want to support this crucial program, please consider joining the philanthropic campaign by donating to CAFB at https://donatenow.networkforgood.org/1407080.

And when you donate food or cash, please join our social media campaign by sharing online with #FarmersFeedtheNeed.

This effort is a prime example of farmers and ranchers, farm workers, and philanthropists coming together to support and nourish our communities in need. My deep gratitude to all of you.

Governor Gavin Newsom today announced new initiatives to help Californians put healthy food on the table while also supporting the farm industry, which has been devastated by COVID-19. The Governor unveiled $3.64 million in new funding to expand the state’s Farm to Family program, including $2.86 million from the USDA and $775,000 committed by philanthropy to jumpstart a $15 million campaign to further support the program through the end of the year. The Governor also highlighted critical expansions of CalFresh and EBT programs to combat food insecurity for low-income Californians, including a new Pandemic-EBT program for children who receive free or reduced lunch and EBT for online purchasing.

“Putting food on the table during this pandemic is hard for families on the brink,” said Governor Newsom. “It’s in that spirit that we’re expanding our Farm to Family program while also working to connect low-income families with vital resources and financial support. We thank our farmers for stepping up to donate fresh produce to our food banks. And we want families struggling to access food to know we have your backs.”

Expanding California’s Farm to Family Program
The COVID-19 pandemic has created an unprecedented level of demand at California food banks—seeing a year-over-year increase in demand of approximately 73 percent. The first three weeks of April, CalFresh saw a 140 percent increase in the number of applications over the same time last year and almost overnight, California farmers and ranchers simultaneously saw their market decrease by 50 percent. The fresh produce industry supply chain has been especially hard hit because of the perishability of the products that must be harvested, shipped and consumed in a short period of time. Nationally, the specialty crop producers estimate losses thus far at $5 billion in cancelled or reduced contracts. California accounts for at least one-half of that estimate.

California’s Farm to Family program is a partnership between the California Department of Food and Agriculture (CDFA) and the California Association of Food Banks to facilitate food donations from farmers and ranchers by supporting food production, processing and distribution of the food supply chain. CDFA received approval from the USDA to redirect $2 million in unused Specialty Crop Block Grant funds to the California Association of Food Banks to offset the costs of picking, packing and transporting donated produce. An additional $861,854 from the USDA Farm to Food Bank program was awarded to the California Department of Social Services (CDSS) to support the program. Farm to Family partners with 41 food banks serving all 58 counties, and handles the logistics of packaging the food and communicating with food banks.

Roughly 128 farmers and ranchers are donating to the California Association of Food Banks and another 200 farmers have expressed interest in participating. In March, Farm to Family distributed 14.5 million pounds of fresh fruits and vegetables, and in the first three weeks of April distributed 18 million pounds of food. These funds will support the donation of 21 million pounds of fresh crops for the month of May.

Additionally, $775,000 in private funds have been secured for the California Association of Food Banks to help provide a bridge to local food banks to be able to meet the increased demand through the end of May. This funding comes from three donors: Kat Taylor, Farm Credit/CoBank and an anonymous donor – and will be leveraged to launch the $15 million campaign to support the Farm to Family program through the end of the year.

Combating Food Insecurity through Expanded EBT Programs
The Governor also announced today that CalFresh recipients will receive the maximum benefits for the month of May. The continued expansion of benefits was secured through a USDA waiver that allows all households to receive the maximum allowable benefit amounts, and is a continuation of the same level of benefit received in March and April. On April 12, just over 1.3 million households received a total of nearly $223 million in additional CalFresh benefits with an average increase of $169 per household.

Families with children eligible for free or reduced price meals are eligible to receive additional support thanks to the Pandemic Emergency Benefits Transfer Program (P-EBT). The California Department of Social Services has identified roughly 3.8 million children who could qualify, and each eligible child could receive up to a total of $365 in P-EBT benefits. P-EBT eligible children that receive CalFresh, Medi-Cal, or Foster Care benefits do not need to apply for P-EBT benefits and will receive a P-EBT card in the mail in early May. Other families receiving free or reduced lunches but not in CalFresh will need to complete a short online application, which will open in late May. The state estimates that it will issue up to $1.4 billion to these kids for school closures extending from March 16, 2020 through June 12, 2020.

Finally, the Governor announced the launch of the EBT for online purchasing. California expedited implementation of this program in response to COVID-19. Participants can now use their EBT card to make purchases online at Amazon.com and Walmart.com – and California is urging supermarkets to also join. Purchases can be completed online with CalFresh food benefits and P-EBT benefits.

Link to Governor’s Newsom’s news release.