National All-Jersey Inc. Shares Covid-19 Dairy Resources
UPDATED INFORMATION: APRIL 7, 2020
National All-Jersey Shares Joint Proposal by NMPF and IDFA
As noted in yesterday’s story (below), the National Milk Producers Federation (NMPF) and International Dairy Foods Association (IDFA) have been working jointly on a set of recommendations for USDA to swiftly provide relief to the U.S. dairy industry impacted by the COVID-19 crisis. Their recommendations were sent to USDA this morning, April 7. The document, for your consideration, can be found by clicking here.
National All-Jersey Inc. is very encouraged the trade associations representing the producers and processors agreed on a unified set of recommendations.
As you review this document, please remember two things: First, this is a proposal. It reflects discussions between NMPF and IDFA. It is not yet known what USDA will do with these ideas. Second, and most importantly, at some point soon your engagement with USDA, the White House, members of Congress, and state ag officials will be needed to help build grassroots support for this measure. USDA is facing many different demands from various commodities. The best chance the dairy industry has to achieve these goals is with a vocal, coordinated and concerted effort across the dairy community.
More will be communicated later on this effort.
If you have questions, please do not hesitate to contact Erick Metzger or Drew Duncan at naj@usjersey.com or by phone.
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April 6, 2020
National All-Jersey Inc. Shares Covid-19 Dairy Resources
The new decade started off as a year with much promise for dairy farmers. The promising outlook has shifted in recent weeks with the Covid-19 pandemic wreaking havoc on an already volatile industry.
National All-Jersey Inc. (NAJ) staff has been following various news feeds and talking with contacts in Washington DC to pass along viable information to the Jersey membership. With this email you will find a comprehensive website through National Milk Producers Federation on ways to keep your family and employees safe and healthy. There are several financial assistance programs available to the dairy industry and more are anticipated soon. We have also included a link to a story on AgWeb that explains what is happening with dairy markets due to the Covid-19 crisis.
If you have questions, please do not hesitate to contact Erick Metzger or Drew Duncan at naj@usjersey.com or by phone.
Coronavirus Resource Website for Dairies
First and foremost is the health and safety of your families and employees. The National Milk Producers Federation has created a Coronavirus Resource website for the dairy industry that is updated nearly daily. The website has particular emphasis on dairy producers and dairy farm employees.
Key new documents on the site include:
- An NMPF/FARM Program-created guidance for farmers if an employee tests positive for COVID-19;
- NMPF’s two-page “What Farm Employers Need to Know about Sick Leave Requirements” document;
- Temporary guidance for veterinarians and producers regarding telemedicine and the Veterinarian-Client-Patient Relationship, created by the American Association of Bovine Practitioners, the National Milk Producers Federation, the National Dairy Farmers Assuring Responsible Management (FARM) Program and the National Cattlemen’s Beef Association; and
- And a guide for Wisconsin farmers on the emergency disposal of milk.
Financial Assistance Available Through the Small Business Association (SBA) Paycheck Protection Program
The Small Business Administration has been provided additional funding through the CARES Act to help small businesses during the COVID-19 pandemic. The Paycheck Protection Program (PPP), which authorized up to $349 billion towards job retention and other expenses, is available to farms. The loaned amounts through PPP are forgiven if they are used to cover payroll costs, mortgage interest, rent, and utility costs over the 8-week period after the loan is made.
Essentially the PPP is a grant program. Due to high subscription, 75% of the forgiven amount must be used for payroll and all employees must be kept on payroll for 8 weeks.
More information on the Paycheck Protection Program can be found here: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.
Economic Injury Disaster Loans (EIDL)
A more conventional loan available through the SBA is the Economic Injury Disaster Loan. These loans usually are not available to farms, but the CARES Act was intended to expand their availability to include farms. More information about the EIDL program can be found here.
https://www.govloans.gov/loans/loan-details/1504 The first $10,000 of the loan will not need to be repaid.
IMPORTANT: If your primary lender does not work with SBA loans, consider working with another lender who does for PPP and EIDL. While the initial programs will be oversubscribed, expectations are that additional funds will be made available later. Applicants will want to have their applications submitted as early as possible.
Economic Relief for Agriculture Through the CARES Act
The CARES Act provided $9.5 billion in economic relief targeted specifically for agriculture. The National Milk Producers Federation and International Dairy Foods Association are working on a joint proposal for how Secretary Perdue should allocate funds to the dairy industry. Expectations are for their proposal to be released early this week. NAJ will provide analysis and comment when the proposal is available.
News Story from AgWeb on Milk Supply
With news of dairy farmers dumping milk flooding news sources across the country last week, many questions were raised as to why when stores didn’t have the product on the shelf. This story through AgWeb is a good explanation of what is happening with dairy markets.
https://www.agweb.com/article/dairies-dump-milk-frustration-mounts-over-retail-buying-limits
