Category Archives: Risk Management

New Report: The Impact of Covid-19 on Farm and Food Businesses in Vermont

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A new report has been published by University of Vermont that documents how Covid-19 has impacted food system businesses in Vermont.  The report, authored by Meredeth Niles and several other researchers, is available online here: “COVID-19 Impacts on Vermont Farms and Food Businesses: Pivots, Needs and Opportunities for the Future”

Here is a summary below:

This report highlights results from a survey of Vermont farm and food businesses conducted during August and September 2020, with a total of 223 respondents. The survey was distributed via a number of non-profit, business, and state agencies in Vermont. Respondents included farms, food and farm product retail, agritourism operators, on-farm food processors, food and beverage manufacturers, nurseries/greenhouses/garden centers, and food hubs/aggregators. Overall, we find the majority of respondents experienced a COVID-19 business impact, especially in market and financial ways. We also find that the majority of respondents had business changes they wanted to make, but couldn’t because of a lack of financial resources, inadequate equipment, or personal challenges. While the majority of respondents didn’t apply for COVID-19 grants and programs, those that did were significantly more likely to agree they had the financial resources to make necessary business changes. We also identify help recovery strategies including the need for market assistance to shift to online platforms. Finally, we identify that the majority of respondents indicated perceived stress at the time of the survey, further highlighting the need for mental health resources related to COVID-19. We discuss future opportunities for recovery efforts and resilience in the Vermont food system.

UVM Extension Agricultural Business To Host Weekly Web Forum

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For the remainder of April UVM Extension Agricultural Business will host a 30-minute web forum every Thursday at 12:30pm to keep pace with emerging COVID-19 issues faced by farm and forest businesses. Each session will include an update on market situations for our farming sectors and information on hot topics, as well as time for questions and discussion.

 Weekly Focus Topics:

  • April 16th:  SBA Emergency Loan Programs
  • April 23rd:  Cash Flow Triage for Small Business
  • April 30th: Digital Entrepreneurship and Online Marketing

Please register in advance for this web meeting.

Contact Mark.Cannella@uvm.edu to register.

Watch for updates about this series on our blog.

UVM Extension Agricultural Business Educators are available for consultation

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If your farm, forest or maple business is under pressure to plan for COVID-19 disruption, our educators are available for business coaching and can assist with locating resources. We can help with critical business decision-making, assessing changes to markets, financial planning and other issues facing your enterprises.

Contact one of our educators by email or leaving a voicemail to make an appointment:

Covid-19 Updates for Ag Businesses

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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.

Paycheck-Protection-Program-4-26-20_FAQsDownload
PPP-How-to-Calculate-Loan-Amounts-4-24-20Download
PPP-Fact-Sheet 4-10-20Download
PPP-Frequently Asked Questions-4.10.20Download
PPP-Lender-Application-Form-US treasury 4-6-20Download
PPP-Lender-Application-Form-Fillable PDF_US Treas 4-6Download

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

PPP Interim-Final-Rule-Additional-Eligibility-Criteria-and-RequirementsDownload

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.

Small-Business-Owners-Guide-to-the-CARES-Act-final Download

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


Download

Farm, Forest and Maple Business Clinics

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UVM Extension Business Specialists Mark Cannella, Tony Kitsos, Chris Lindgren, Betsy Miller and Zac Smith 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 2020
➥ Held at UVM Extension Offices in 9 locations (Online or phone meetings are also available)
➥ FREE!

Business Clinics Information Sheet (PDF)

Contact Christi Sherlock at Christi.Sherlock@uvm.edu or 802.476.2003 to register for one of the appointments listed below.

To ensure adequate preparation, reservations must be made by the Thursday of the week before your appointment. If you require a disability-related accommodation to participate, please call at least three weeks in advance of your scheduled session.

Crop Insurance Resources and Winter Webinars

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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

https://cropinsuranceinamerica.org/pennsylvania-crop-insurance-webinars/

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.

Farm, Forest and Maple Business Clinics

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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

Maple Markets: International Trade Snap-Shot

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US-Canada

Update: On October 1st 2018 the new United States-Mexico-Canada Agreement (USMCA) was announced…details are still emerging (10/4/18) Original post written on 9/30/18. Canada placed a 10% tariff on US maple syrup exported into Canada in 2018. While some US syrup or US finished maple syrup goods do get sent to Canada the volume is small. This trade dispute retaliation from Canada is not expected to have huge impact on US maple syrup distribution. Canada exports far more syrup into the United States. The overall US-Canada trade situation that include steel, aluminum and other products  will have a more pronounced impact on maple equipment and manufactured goods crossing the US-Canada border.

Roughly 62% of Canadian export syrup reaches the United States. The result is that over half of maple syrup consumption in the United States is Canadian syrup. The UVM Extension Maple Business team ran a rough calculation on the 2017 value of Canadian syrup imported into the United States. The Canadian imports represent roughly 18 million maple taps at the prevailing US maple yield per tap.

A look at recent and defunct trade agreements…..

European Union

Comprehensive Economic and Trade Agreement (CETA) was approved in 2017. CETA includes Canada and the European Union.  The agreement removes tariffs on Canadian syrup imported into the European Union. The US is not part of this agreement and US syrup is subject to an ~8% tariff when imported into the EU.

Trans Pacific Partnership (TPP) Trade Agreement

This agreement between many nations was set to eliminate the 17.5% tariff on US (and Canadian) maple syrup entering Japan. Japan represents a significant existing export market for Canadian maple syrup and a possible growth area for US exports in the future. The United States pulled out of this trade agreement in 2017 and the tariffs on US maple remain in place.

The New Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) This agreement was made by the remaining TPP nations without the United States. Under that deal the tariffs on Canadian syrup imported into Pacific nations will be phased out in the next few years.

 

Dairy Summit and Industry Proposals

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Posted by Betsy Miller, UVM Extension Farm Viability Coordinator

On August 13, 2018 Agri-Mark hosted a Dairy Summit in Albany, NY.  This was an opportunity for farmers and dairy industry representatives to discuss the current state of dairy pricing and to offer proposals for a new structure.

Proposals posted on the website share a common theme of supply management and price stabilization.  Many suggest a pro-active approach lead by co-ops.  Expansion of current farms and entry of new farms into the business are both areas that offer challenges to the idea of a quota system.   All seem to agree that this is a complex problem that doesn’t have an easy solution.

Proposals are available to read and comment on at this site:  https://dairyproposals2018.com

The UVM Extension Farm Viability program provides one on one business planning to farm owners in Vermont. For more information see the program summary page.

 

Trade wars, price uncertainty and agricultural branding

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Photo Credit: Mark Isselhardt

Escalating trade disputes are reverberating through US farm sectors and our US specialty products. Farming sectors could become minor bargaining chips or worse, collateral damage, as high impact manufacturing interests drive the policies. In Vermont the two primary ag drivers of dairy and maple may get caught up in the fuss. Ironically, our suffering US dairy economy and dairy families have been pitted against Canadian farm owners and a supply management system that has facilitated viable milk prices for smaller farm operations. The liquid gold of maple flows freely across the US/Canadian border. At least it did. In 2017, 62% of Canadian syrup exports came to the United States ( US Maple Statistics)

Have Canadian imports been flooding US markets with cheap syrup? Until recently most US bulk syrup was purchased on parity with Canadian market price after currency exchange adjustments. Again, Canada has a market management strategy to stabilize prices (for better or worse) and US producers received the benefits of price predictability.

Branding could be equally important in future trade policy. In Vermont we have enjoyed an explosion of artisan cheese in the past 20 years. Vermont makes darn good cheese. But we fall prey to a cultural delay on developing the necessary protections to promote or protect our regional foods. For years many award winning Vermont cheeses have been “cheddars” “tomme” “french alpine”. Now we are seeing regionally named products like Rupert . Will US producers organize themselves to adopt the legal process verification that European food-rich regions have mastered with Champagne (the legal process)  and Cheddar (the verb!)?