Farm Relief Bill, S.351 – Detailed Summary
The Farm Relief Bill, S.351 was signed by the Governor on July 2nd and is now called Act 138. The law appropriates $35,692,000 to farm and forest business for their COVID-19 related losses and/or expenses. Applicants must be in good standing with VAAFM, will be only eligible for one state program, and all funds will be provided as direct assistance grants on a first come first serve basis.
VAAFM will administer the Dairy Assistance Program and the Vermont Economic Development Authority (VEDA) will administer the non-dairy as well as the forestry assistance program. VEDA may use not less than five percent and up to eight percent of each program’s funds to cover administrative costs.
The agencies must report back to the legislature on July 31st and September 1st regarding distribution of these grant funds to date. VAAFM announced the launch of the Non-Dairy Assistance Program for early August.
DAIRY ASSISTANCE PROGRAM
Section 6 appropriates $25M to VAAFM to provide financial assistance to milk producers ($21.2M) and dairy processors ($3.8M) that have suffered economic harm caused by COVID-19. Grants amounts are capped as follows: $18,300 for small farms; $34,300 for certified small farms; $56,000 for medium farms; and $100,000 for large farms.
Processors are grouped in production levels and can receive: up to $31,000 for processing up to 500# of milk per day; $40,000 for up to 9,999#/day; $50,000 for up to 49,999#/day; and up to $60,000 for those who process 50,000#/day or more.
NON-DAIRY AGRICULTURAL PRODUCER AND PROCESSOR ASSISTANCE PROGRAM
Section 7 appropriates $5M to stabilize agricultural producers, commercial processors, commercial slaughterhouses, and farmers’ markets based on their lost revenues and expenses due to COVID-19. VEDA will administer the program and develop guidelines for eligible expenses. Applicants must not have a net business profit between March 1 - August 1 to be eligible. Rural Vermont and NOFA-VT fear the requirement could further delay the program’s short implementation timeline which could result in the reversion of the funds to the Dairy Assistance Program.
EDUCATION; OUTREACH; REPORTING; AND REVERSION PROVISION
Section 8 - VAAFM must conduct outreach and education regarding the availability of financial assistance, as well as prepare a survey to help identify farmers and processors that are interested in technical assistance, succession planning, or similar services. Unspent funds from the non-dairy program (as of September 15th) may be reallocated to the dairy program, so-called “reversion.”
FOREST ECONOMY STABILIZATION GRANT PROGRAM
Section 9 appropriates $5M to ANR to stabilize forest products businesses that have suffered economic harm. ANR will enter a Memorandum of Understanding with VEDA about the administration of the program. Maximum grant amount is $100K per business. Any unappropriated funds from the forest economy program (as of September 15th) may be reallocated to the economic recovery grant program. Find more information here: https://fpr.vermont.gov/FESGrantProgram
AGRICULTURAL FAIRS RELIEF ASSISTANCE
Section 9a appropriates $500K to agricultural fairs in the State that have suffered verifiable lost revenues or expenses caused by COVID-19 that occured or accrued between March 1 - September 1, 2020. Any remaining amount (also as of September 15th) will be reallocated to the economic recovery program.
FARM WORKER HEALTH AND SAFETY
Section 10 charges VAAFM to post educational materials available from VOSHA related to farm worker health and safety on their website in English and Spanish.
COVID-19 RELATED CONSULTING SERVICES
Section 11 appropriates $192K to VHCB to provide business, financial, and mental health assistance to farm and food businesses that suffered losses or expenses due to business interruptions.