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The U.S. fresh produce industry needs the federal government’s immediate assistance to recover from economic distress caused by the ongoing coronavirus COVID-19 outbreak, industry groups told the U.S. Department of Agriculture in a March 30 letter.

More than 70 fresh produce groups urged the USDA to take swift action in developing a market stabilization plan for the industry “to meet the legislative intent” of the Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress and signed into law by President Trump.

The letter was signed by Tom Stenzel, president and CEO of the United Fresh Produce Association; Kam Quarles, CEO of the National Potato Council; Dave Puglia, president and CEO of Western Growers; and Michael Joyner, president of the Florida Fresh Fruit & Vegetable Association, and endorsed by the Produce Marketing Association and dozens of other industry organizations. 

The letter, to Agriculture Secretary Sonny Perdue, asks the USDA to work with the industry on priorities that include: 

  • Compile data on losses by Perishable Agricultural Commodity Act licensees because of the pandemic;
  • Immediately act to develop a disbursement plan to pay grower-shippers for debts identified from PACA licensees and customers along with other unmet contractual obligations due to the collapse of the foodservice sector;
  • Develop a plan for USDA to purchase fresh fruits and vegetables for federal feeding programs;
  • Be prepared to create a program that assists producers with lost international markets; and 
  • Use all resources, including carryover funds from the previous fiscal year budget, as part of the solution to address the immediate needs of the specialty crop industry.

“These are our industry’s initial needs and ideas to help reduce the financial devastation from this crisis,” according to the letter.

“While this crisis continues to evolve, so might solutions that are warranted for consideration. The fresh produce industry stands ready to work with you and the USDA team to implement an effective and aggressive stabilization program.

“We thank you for your swift attention on these matters to ensure that our businesses can remain open to keep Americans fed during, and after, this national emergency.”

 

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Comments
Submitted by Bill produce on Tue, 03/31/2020 - 15:26

Translation. Money for the big growers and nothing for the wholesalers, rePackers, and regional receivers who were stuck with overpriced product sent by said growers just prior to the meltdown.

Submitted by Patrick on Sun, 04/05/2020 - 14:51

If a grower charges a certain price and a broker is caught not making a profit in their transactions doesn't that make the Broker equal to the grower for a change? Brokers, or middlemen, sometimes do not represent the grower to the consumer and care little about more than their profit, which causes an abuse of the grower, unrealistic demands on the land producers farm and results in the big farms spoken of. Its not all that drastic, of course, but you get the picture. Good, honest people are what make up healthy food, supply and demand. The better the consumer is connected to the grower the healthier the consumer and farmer will be.

In reply to by Bill produce (not verified)