Legislature Supports COVID Relief $$ for ALL Farms...sort of
Vermont’s Legislature, operating in its “new normal” of virtual Zoom sessions which are then livestreamed on YouTube, has been working furiously in the past week to pass essential bills before recessing until August 25th.
Since mid-March, when the COVID-19 state of emergency closed the State House, the legislative leadership mandated that all committees focus solely on COVID related bills.
Consequently, Rural Vermont’s Policy Team has been limited to working on just a couple of pieces of legislation. Below is a brief update on what we know currently. There are more details available on the Rural Vermont website and we will be providing a full report on the 2020 Legislative Session - to date - in a few weeks. If you have questions in the meantime, please reach out to us.
Rural Vermont has worked intensely over the past few weeks, in close collaboration with NOFA-VT, in a strong and ultimately successful effort to ensure that the crucial non-dairy sector of our agricultural community would have equitable access to the significant COVID-19 Federal financial assistance ($1.25 Billion) that came to Vermont through the CARES Act. The original relief proposal presented by the Governor, through the Agency of Agriculture, to the Legislature, did not include ANY provision for economic relief except to dairy farms and dairy processors.
S.351 - An Act relating to providing financial relief assistance to the agricultural community due to the COVID-19 public health emergency
WHAT THIS BILL DOES:
S.351 appropriates $25 million to the Agency of Agriculture, Food and Markets (AAFM) for The Dairy Assistance Program with $21.2M available for dairy producers (including goat & sheep dairies) and $3.8M for dairy processors to provide direct relief grant payments to eligible applicants that suffered economic harm due to COVID-19. The range of grants available is from $18,300 for small non-certified dairy farms up to $100,000 for registered large farms. Grants to processors range from $31,000 to $60,000 depending on their production volume.
The bill also appropriates $5 million to AAFM to establish a Non-Dairy Agricultural Producer and Processor Assistance Program (which includes entities such as slaughterhouses and farmers’ markets) to provide direct relief grant payments to eligible applicants that suffered economic harm due to COVID-19. Applicants will be eligible to receive between $2,500 and $20,000 depending on their annual gross sales.
S.351 also includes an appropriation of $5 million to ANR to establish a Forest Economy Stabilization Grant Program providing grant payments to forest product businesses that suffered economic harm from COVID-19. This program will be administered by the Vermont Economic Development Authority (VEDA) under an existing Memorandum of Understanding (MOU) between ANR and VEDA.
S.351 also appropriates $500K for agricultural fairs for lost revenues or expenses that occurred or accrued on or after March 1, 2020 and before September 1, 2020 due to the COVID-19 public health emergency.
Finally, S.351 makes an appropriation of $192,000 to the Vermont Housing and Conservation Board to further support the technical assistance and counseling services, in response to the COVID-19 emergency, provided by the Farm Viability program.
Because this is an unprecedented piece of legislation geared to respond to the challenges of the times we are living in, the “devil” will be in the details and Rural Vermont will follow closely how this law is implemented.
ADDITIONAL DETAILS ABOUT S.351 YOU SHOULD KNOW:
VAAFM will directly administer the Dairy Assistance Program - details on how eligible farms and processors can apply for grants through this program will be coming soon.
VAAFM is directed to enter an MOU with VEDA to have them administer and implement the Non-Dairy Producer & Processor Program - again, details on how the process will work will be forthcoming.
VAAFM will administer the Agricultural Fairs Relief program with a mandate to ensure that funds are equitably distributed among all fairs that can document losses/expenses due to COVID-19.
VAAFM is further directed to conduct communication and outreach to the agricultural community about these programs and provide, to the legislature, monthly reports on the implementation of these funding programs beginning on August 1, 2020
There are additional provisions in S.351 requiring that funds in these programs that are not allocated by Sept. 15th be re-allocated as follows:
Dairy Assistance Program funds will be allocated to amended applications from dairy producers and processors who have not received the maximum amount for which they are eligible
Non-Dairy Agricultural Producer/Processor Funds will be re-allocated to the Dairy Assistance Program
The Forestry program and Agricultural Fairs funds will be re-allocated to the Agency of Commerce and Community Development for disbursement through other COVID relief programs
NOTE: One critical requirement attached to the CARES Act money is that all funds must be spent by Dec 30, 2020 on eligible economic harm caused by the COVID-19 pandemic.
The other bill that Rural Vermont has been following closely is the annual “must pass” Misc. Ag or “Ag Housekeeping Bill” - H.656. This bill has a reputation for becoming a “Christmas tree” and this year, because of COVID, is no exception. It is a long and complex bill with many disparate parts. We will be analyzing it more thoroughly once we are able to get access to the final text of the bill after it is signed by the Governor.
H. 656 - An act relating to miscellaneous agricultural subjects
DETAILS ABOUT H.656 YOU SHOULD KNOW:
Last year, the legislature passed several requirements on the transportation of bees or used equipment into the state to protect Vermont beehives. These provisions have been adjusted to require a certificate of inspection 10 days prior to the transportation of VT colonies or equipment into the state (instead of 72 hours); importation of colonies or equipment from out of state will need a certificate 45 day old certificate of inspection (instead of 60 days)
Transportation of bees’ certificate of inspection within last 45 days prior of bringing them into the state rather than 65 days
Creates additional recordkeeping requirements for those who transport livestock
Inspection of rabbit meat is made voluntary
The Payment for Ecosystems Services Working Group has been extended to 2022 to continue its work, with a new name and additional members
VAAFM is authorized to continue overseeing hemp farms under the 2014 pilot project law as the federal rules for the 2018 Hemp Law have not been finalized.
Provides greater protection for hemp farmers through stricter requirements for labeling of hemp seed regarding genetics and productivity
Repeals the 2020 sunset on the highly successful VHCB Rural Economic Development Initiative (REDI) grant program
Establishes a Task Force overseen by the Dept of Financial Regulation to investigate the feasibility and long-term sustainability of VT developing its own milk pricing system.
> Both S.351 and H.656 are slated to go into effect as soon as they are signed by the Governor.
The latest information we have indicates that the Legislature will be reconvening on August 25th. It is likely that some committees in both chambers will begin meeting again “virtually” before then - as permitted by leadership. The Administration expects to have updated information on state revenues and on any additional federal relief funds or changes in the rules for the CARES Act by August 15th.
Stay tuned for additional information as it becomes available!
If you have questions or would like more information, please contact Caroline Gordon, Rural Vermont’s Legislative Director