California Walnut News June 2020

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WALNUT NEWS WALNUTS & CORONAVIRUS FOOD ASSISTANCE PROGRAM (CFAP) BACKGROUND:

On May 19, 2020, USDA announced the details of direct assistance to farmers through the Coronavirus Food Assistance Program (CFAP). USDA’s Farm Service Agency (FSA) began accepting applications from agricultural producers who have suffered losses.

ELIGIBILITY:

Producers of specialty crops are eligible for CFAP payments in the following three categories: 1. Had crops that suffered a five percent-or-greater price decline between mid-January and mid-April as a result of the COVID-19 pandemic, 2. Had produce shipped but subsequently spoiled due to loss of marketing channel, and 3. Had shipments that did not leave the farm or mature crops that remained unharvested.

IMPACT ON WALNUTS:

Walnuts are currently included in two of the three categories (2 & 3). Walnuts were excluded from category # 1. USDA, using their own market price analysis, determined that walnuts, along with several other commodities that were excluded, had not suffered a greater than 5% price decline between January and April 2020. However, the CWC has challenged this decision via USDA’s process which includes

JUNE 2020

IN THIS ISSUE Export Marketing Credit Back Domestic Marketing Complete Protein Health Research Upcoming Events

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a Notice of Funds Availability (NOFA) process. The NOFA is currently open and will close on June 22nd, 2020. USDA is reviewing comments as they come in however; a decision is not anticipated until the NOFA closes. If walnuts are included into the program for category #1, the CWC will work with FSA for a walnut specific webinar for walnut growers and handlers. In regard to Category #2, FSA confirmed on June 9th that product in inventory that will be sold after 4/15/20 is not eligible for the CFAP program. Product that was destroyed, rotted or otherwise unsaleable remains eligible. This will limit the use of the program. The CWC has expressed its frustration with the program implementation to The Secretary and the USDA divisions AMS & FSA, the California Congressional delegation and have asked for clarification from USDA as to why walnuts were included in program categories we were not eligible for and excluded from a category where we should have been. Applications submitted now will only be considered for available opportunities which are now limited. Waiting to complete an application until we have a decision on category #1 is recommended.

REVISIONS TO DIRECT GROWER PAYMENTS UNDER MARKET FACILITATION PROGRAM (MFP) The USDA Farm Service Agency (FSA) has revised its policy by allowing dividends earned from Interest Charge Domestic International Sales Corporations (IC-DISC) to count towards applicant Annual Gross Income (AGI) when calculating if

at least 75 percent of the applicant’s AGI is derived from farming, ranching, or forestry operations. Dividends earned through an IC-DISC may now be considered farm income for 2019 MFP, and consequently, some producers, who may


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California Walnut News June 2020 by California Walnuts - Issuu