Covid-19 Updates for Ag Businesses

Updated 5/13/20

This page is being updated regularly with resources for agricultural businesses owners operating through the current health crisis.

Vermont Policy Updates

(4/24/20) Governor Scott releases new policy to open today for nurseries, greenhouses, and garden centers, effective Monday April 27th, 2020. See Addendum 11. This announcement, effective April 27th, 2020, allows for in-person customer purchase of seeds, annuals, vegetable seedlings, perennials, herbs, shrubs, trees, and other landscaping and gardening materials from an outdoor retail operation in adherence to the guidelines outlined in Addendum 11.

(4/24/20) Vermont Farmers Markets will be allowed to reopen under the new Farmers Market Guidance released by Vermont Agency of Agriculture, Food and Markets (VAAFM)

(4/22/20) Pandemic Unemployment Assistance (PUA). The Vermont Department of Labor is now set-up to accept unemployment claims for “self employed” business owners under PUA. PUA website for Self Employed and online application page

Micro Loan and Grant Programs: Rural VT Farmers Market Grant ($500), American Farmland Trust Grants ($1k max); VT Farm Fund (up to $10k Emergency Loans), FACT Mini-Grant ($500 for livestock and poultry)

US Small Business Administration Emergency Programs

5/4/20 : As of today (5/4) EIDL application webpage opened up today! New PPP applications are being processed. Prepare your PPP applications directly with your local bank/lender.

SBA Paycheck Protection Program (PPP) webpage: Updated fact sheets and applications are posted below. Contact your local bank or lender for information on how to submit an application. Farms, Forest and Maple businesses are eligible for PPP.

PPP for Self Employed (sole proprietor) seeking benefit for themselves. See this article on how to calculate your previous year Schedule F “Net Earnings” from prior year.

(4/15/20) Updated Eligibility Guidelines for PPP, See page 6 for how business owners with no employees will calculate amounts. Where is says “Schedule C Line 31”, farm owners will use “Schedule F Line 34” Click Link Below

What is an Economic Injury Disaster Loan (EIDL) Emergency Advance? 4/22/20 “Farms” will be eligible for the EIDL program in the second relief package. We expect the SBA online application eligibility section to reflect that chance once the program re-opens.

A borrower applying for EIDL can request an advance on the loan of up to $10,000 from the Small Business Administration (SBA). See the SBA EIDL Website. Applications are made online with the SBA directly. EIDL “advance” amounts are based on $1,000 per employee, thus a business with 10 or more employees can apply for the $10k max. The actual EIDL Loan can be for up to $2M and has an interest rate of 3.75%

SBA Economic Injury Disaster Application

Small Business Owners Guide US CARES Act: See document download below (includes Paycheck Protection Program and Economic Injury Disaster Loan/Grants) Note: As of 4/24/20, We have confirmation that farm businesses are eligible for the PPP SBA programs. “Farms” (ie. 100% farm production) are also eligible for Economic Injury Disaster Loans (EIDL). Food processors, value-added, maple syrup producers, nursery and aquaculture are eligble for EIDL. Both these programs feauture “forgivable” portions for certain uses and do not require 100% repayment. See the CARES Act Summary below.

VT Agency of Agriculture Covid-19 Response Page: Submission form to submit your emerging business issues, newsletter sign up and resource links.

VT Agency of Commerce and Community Development Covid Updates: Covid Newsletter Sign Up, Emergency Declaration Guidance, Economic Injury Disaster Loans, Submit data on your business losses to inform agencies where support is needed

VT Emergency Management: This site contains the Essential Persons List (subject to change) and it’s relation to Emergency Child Care

Sugarbush Rental Rates

The number of maple taps in Vermont has doubled in the last 10 years. Many producers are expanding and securing a lease on a maple sugarbush can be a viable alternative to purchasing the land.

Photo Credit: Mark Isselhardt

Maple stand quality, accessibility, access to power and other factors will impact the rental price. Cash rental rates are common for maple forests. A typical rate in recent years has been about $1.00 per tap. In competitive maple regions in Vermont rental rates are $1.50 or more per tap. In regions with less demand or less desirable forest parcels $0.50-$0.99 is observed.

Setting flexible terms is an option for parties that want to share profits or risk between tenants and landowners. A flexible cash rate can be written so that the annual rate adjusts for the market price of syrup. Rental rates could also be adjusted for a variable crop yield.

UVM Extension is working on rental resources and maple lease templates this fall. New resources will be presented at Vermont Maple Conferences in January and made available online. Register now for the 2020 Vermont Maple Conferences in Middlebury (January 11th), Brattleboro (January 18th), and Hyde Park (January 28th).

Northeast Maple Producer Survey

Maple producers can complete the survey here: Maple Producer Survey

Photo Credit: Mark Isselhardt

The University of Vermont is conducting the Northeast Maple Producer Survey to understand the recent development in the maple sector and to inform how education and research can support maple producers. The survey will ask you about your maple production history, forestry practices, business goals and educational interests. Current projects focus on the Northeast but producers in any US state are welcome to complete the survey!

Participants will be asked to complete the online version or print survey. The survey will take approximately 20 minutes to complete. If you would like to complete a paper version you can contact Christi Sherlock at 802-476-2003 or Christi.Sherlock@uvm.edu to have a copy mailed to you.

The results of this survey will be published by University of Vermont Extension, shared in industry publications and discussed at maple conferences beginning in Fall 2019.

Maple producers can complete the survey here: Maple Producer Survey

Maple Planning Tools are Now Available Online

University of Vermont has created a suite of short-form business planning tools for maple operations. The Maple Business website provides web-based modules that include a yield calculator, a pricing tool with a sales forecast report, and a budget tool with a cost analysis report. A self-guided business plan is also available for users to draft and print sections of a written business plan. The modules offer an optional log-in feature that enables users to save their progress and return to work on their plan at another time.

Are you developing a new marketing plan? Using the Gross Sales Forecast a maple producer can take their entire maple crop and assign it to different container sizes and prices. Here is a sample report for 6,000 tap enterprise selling 80% of the crop as bulk syrup and 20% in retail containers.

More Maple Business Coming in 2019

Northeast Maple Producer Survey: In late August UVM Extension will be sending a survey across the Northeastern United States inquiring about business practices, business outlook and forestry practices.

Maple Leasing Resources: In Fall 2019 UVM Extension will begin publishing a series of maple leasing templates and legal resources to guide the development of business partnerships and other business-to-business relationships.

Are you looking for a new resource or business calculator to move your decision-making forward? Contact Mark Cannella at UVM Extension Maple Business today and share your ideas!

Crop Insurance Resources and Winter Webinars


From Jake Jacobs, UVM Crop Insurance Education Coordinator

A series of webinars on various crop insurance topics is being presented this winter through a combined effort between Penn State Extension and National Crop Insurance Services (NCIS).  These are designed to familiarize farmers with the various insurance options and to help producers make decisions about how crop insurance might fit in with their farm’s risk management plan.  For each crop, participants will learn:

  • What crop insurance products are available
  • What risks are covered
  • How different types of insurance work
  • What options within each policy are available
  • The application process
  • Where to go for additional information and help

Here are the webinars scheduled in the 2nd half of February:

2/26/19              Green Peas

2/28/19              Oats

For a complete list of all remaining topics in the webinar series, go to the NCIS webinar link:

For resources on agricultural risk management for Vermont producers, visit the UVM Ag Risk website

https://go.uvm.edu/ag-risk

USDA and the University of Vermont are equal opportunity providers and employers. This material is funded in partnership by USDA, Risk Management Agency, under award number RM18RMETS524C022.

2019 Maple Production, Markets and Programs

It’s “all systems go” across the US maple regions in February. Producers have begun to tap trees and troubleshoot tubing systems. With only a few rumors of early sap collection in January most Vermont producers have begun or are about to begin setting taps for the 2019 crop. Drop line and spout sanitation practices paired with high vacuum tubing systems enable longer tap hole longevity to catch early runs and maintain production later in the season. UVM Proctor Maple Research Center leads the nation in maple production research and Vermont producer yields continue to lead the nation (see USDA NASS reports on the Extension Maple Pages).

The UVM Extension Maple Program, Addison County Maple Sugarmakers and the statewide VMSMA organized three maple conferences in January. Workshop topics included production, forest health, and food safety. Attendees and presenters put a large emphasis on market conditions. Industry leaders felt the expansion of maple taps continues but it has slowed in the past two years. Representatives from Quebec indicated that roughly 60% of the recent FPAQ 5 Million tap expansion allowance is currently hitting markets. The remaining taps are still being set up over the next few years. The general outlook is that US bulk maple syrup prices will hover near $2.00-$2.10 plus premiums for 2019. No one was willing to predict prices would increase but there was general agreement that nothing significant has prompted the price to drop below $2.00 per pound. Local maple marketers shared insights that wholesale and retail competition has grown dramatically in the northeast. Many marketers are setting their sights on consumers outside the northern maple belt region. Maple businesses are also working to differentiate themselves with unique products, packaging and branding to maintain sales. Large packers reminded attendees that Canadian syrup imports remain competitive due to the current US-Canadian currency exchange rates. Meanwhile, pure maple syrup is well positioned for consumer demand for natural sweeteners in the United States.

A new Maple Cheerios hit stores recently!!!

Three new projects began this fall in Vermont to support maple syrup production and marketing through 2021. National USDA Acer Access and Development Projects.

Farm, Forest and Maple Business Clinics

UVM Extension Business Specialists Mark Cannella, Tony Kitsos, Chris Lindgren and Betsy Miller are available to work one-on-one with farm, forest and maple businesses on their finances. Reserve a 1½ hour appointment to prepare documents that will help manage the business. Use the time to develop a balance sheet, update financial statements, review a business plan, consider changes to the business and more. Bring your financial statements, recent records and questions!

➥ 1½ hour, private meetings
➥ Nearly 100 appointments available from February – April 2019
➥ Held at UVM Extension Offices in 10 locations
➥ only $25.00
Online Registration Here!

Business Clinics Information Sheet

2018 Farm Bill Becomes Law

(Betsy Miller, Farm Viability Coordinator)

After months of negotiating the 2018 Farm bill was passed by congress and signed into law by President Trump on December 20, 2018.

The bill has many components relevant to agriculture in Vermont including:

  • Legalization of hemp
  • Changes to the Margin Protection Program (MPP)  for dairy
    • Increased margin up to $9.50
    • Lower premiums for first 5 million pounds of milk from farm
    • Allows for overlap with LGM
    • Refund of portion of premiums paid from 2015 – 2017
  • Changes to NRCS EQIP Programs

For more information regarding specifics of the farm bill follow these links:

https://www.agweb.com/article/the-2018-farm-bill-what-you-need-to-know/

This agweb article includes a table with MPP premium rates.

Senator Leahy has issued a press release on the subject:

https://www.leahy.senate.gov/press/leahy-hails-senate-passage-of-five-year-farm-bill

Policy Options for Maple Marketing into the Future

New maple products like sap beverages and infused syrups now join the classic pure maple syrup products on store shelves and online platforms. Will US maple market policy and collective marketing entities  innovate in new ways too? What options are available for collective marketing efforts here in the United States?

Two possible options for the maple sector are producer cooperatives and federal market orders. Both options require strong leadership from industry representatives, committed support from members and ongoing management to sustain the effort.

Market Orders:

Vidalia onions, “Got Milk”, Florida Oranges…sound familiar? Producers in these industries approved collective efforts funded by small assessments (often pennies per pound) through a Federal Market Order (FMO). FMOs provide a way for producers and handlers to work together to accomplish things they could not achieve on their own. Orders do this by (1) maintaining the high quality of product that is on the market; (2) standardizing packages and containers; (3) regulating the flow of product to market; (4) establishing reserve programs; and (5) authorizing production research and marketing efforts.    Read more about current Specialty Crop Market Orders on the USDA Agricultural Marketing Service website.

Producer Cooperatives

Producer cooperatives can be formed in many different ways with different goals. Cooperatives could range in size from only a few producer members to thousands. A new Cooperative establishes a legal business entity that is owned and overseen by members. Here is a list of co-op activities that may be relevant for a group of maple producers/members.

  • Collective ownership of processing facilities to store, process, and package bulk syrup into a marketable format.
  • Collective ownership of pooled market-ready product and/or active marketing efforts to sell the products.
  • Supply Cooperative: pooling member demand to access production inputs and supplies at reduced costs to its members.
  • Establishment of farm gate prices/contracts that eliminate the year to year volatility and uncertainty of final crop sales prices after the production season.
  • Establishment of verified product standards or unique features that enhance the distinction of coop products from other similar products available to consumers
  • Coordinating large numbers of participants into a unified and powerful voice for political organizing and communications campaigns that promote the interests of the membership.

Examples of specialty crop  farmer coops in the US that are relevant to maple producers:  Hazelnut Growers of Oregon, Organic Valley (CROPP), Deep Root Organic Coop.

 

Free Lunch, A Punch in the Face, and Continual Improvement

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“In preparing for battle I have always found that plans are useless, but planning is indispensable.” Dwight D. Eisenhower

“Everybody has a plan until they get punched in the mouth.” Mike Tyson

I’m not sure if Tyson and Eisenhower are saying the same thing, but they are saying similar things; plans are important, but they go awry.  This insight applies to logging businesses particularly. Logging is not boxing or battle, but logging is a risk heavy business significantly influenced by external factors. Improvisation is an essential skill and planning helps you succeed in the heat of the moment.

There is a workshop next week offering  free lunch, industry discussion, business skills and technical knowledge to logging businesses. No disrespect to Tyson, but I have found in my work that not everybody has a plan. This workshop is a great place to get one started and to learn how to adjust when you feel the knuckles on your jaw. Offered by University of Vermont Extension, Forest Business, the class is worth 5.5 CFE (Consulting Forester Education) credits and 8 LEAP (Logger Education to Advance Professionalism) credits. This is a great opportunity for professional development. This class will help loggers and foresters understand the shifting economic landscape and stay current on the regulatory and policy front. It is a time to network with peers in the forest products sector and to pick the brains of industry leaders and educators. It is also time to learn business management and finance skills to help your company identify what’s important and where to focus effort.

While preparing for the workshops I have been reading Continuous Improvement in Logging, (CIL) by Steve Bick and Jeff Benjamin. An adept application of Theory of Constraints (TOC) to logging, CIL distills the ideas of CI (Continuous Improvement) providing examples of the productivity of logging operations. With detailed information on productivity and a thorough discussion of common bottlenecks for timber harvesting systems, the book dispenses management wisdom along with rigorous focus on identification of bottlenecks in logging operations. CIL introduces readers to The Goal, a business novel worth a read. The goal is defined as, “making money now and in the future.” This goal focuses all productive effort. Steve will be speaking at the workshop bringing productivity enhancing tools and techniques to those in attendance. These tools will help you continually improve your game, preparing you to avoid the knuckles and spend more time “making money that sticks.”

Punches and lunches lead to continual improvement!

Tell a logger or forester you know to join us or contact cplindgr@uvm.edu for more information.