Supporting Organic Farms and Businesses Through the COVID-19 Crisis

Market Research / Consumer Data

The unprecedented COVID-19 pandemic this year -- and its enormous impact on our everyday lives – has already had dramatic consequences for the organic sector in 2020. As shoppers search for healthy, clean food to feed their at-home families, organic food is proving to be the food of choice for home. Read our press release and watch the State of Organic video from our CEO/Executive Director, Laura Batcha.

All Organic Trade Association members are eligible to receive an exclusive Data Package including a digital copy of our 2020 Organic Industry Survey and our COVID-19 Supplement Report. Please contact Angela Jagiello to learn more.

Poll shows consumers value organic more than ever in pandemic

As the initial pantry-loading phase of the COVID-19 pandemic subsides, households of all sizes have begun to settle into longer-term routines and shopping patterns. For those shoppers who prioritize organic, their commitment to the label remains strong, even as so much has changed within their daily lives. 
 
To help organic businesses understand how demand for their products may evolve in the near term, the Organic Trade Association conducted an online consumer poll of 3,188 “likely organic” shoppers from Tuesday, April 28, to Wednesday, May 6, 2020. READ MORE

Financial Relief

If you are having a difficult time understanding or accessing any of these programs, please reach out to the Organic Trade Association for direct member support. Our staff is available to set up one-on-one support so we can better understand the details of your situation.

USDA Announces Two New Pandemic Response Grant Programs  

In October 2021, USDA announced an additional $1 billion+ in pandemic response aid for the food and farming sector through two new grant programs.   
  
Pandemic Response and Safety (PRS) Grant Program  
The Pandemic Response and Safety (PRS) Grant Program will provide $650 million in grant funding to food processors, distributors, farmers' markets, and producers to help cover pandemic costs. Eligible pandemic-related safety costs include measures to protect workers from COVID-19, such as personal protective equipment, sanitation, and facility upgrades, as well as worker housing and medical expenses. The application period is open from October 6 – November 22, 2021. The program is not a first-come, first-serve program; all applications will be reviewed after the application period closes. Apply here.   

Farm and Food Worker Relief Grant Program  
The Farm and Food Worker Relief Grant Program will provide $700 million in assistance directly to farm and meatpacking workers. The funds will be allocated through grants provided to State agencies, Tribal entities, and 501(c)(3) nonprofit organizations. Relief payments will be distributed directly to frontline farmworkers and meatpacking workers by grantees to cover costs associated with preparing for and preventing exposure to COVID-19, as well as quarantine costs and medical expenses. This is the first time in history the agency will be providing funds directly to workers. USDA will release more information regarding the application process and timeline in the coming months of fall 2021.   

USDA Pandemic Assistance for Producers

U.S. Secretary of Agriculture Tom Vilsack announced the USDA Pandemic Assistance for Producers initiative on March 24, 2021. The initiative will reach a broader set of producers than in previous COVID-19 aid programs. USDA is dedicating at least $6 billion toward the new programs and will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, and support for the food supply chain and producers of renewable energy, among others.

LEARN MORE

UPDATE | DECEMBER 2021: Congress Passes Year-End Omnibus Spending Bill with COVID Aid, Organic Fares Well

In the last days of the 116th Congress, a bipartisan deal on Fiscal Year 2021 federal spending including roughly $900 billion in funding for COVID relief was passed and sent to the President’s desk for signature.  The bill included top priorities advocated by the Organic Trade Association such as increased funding for the National Organic Program, assistance for businesses and farmers to protect their workforce, additional funding and flexibility for the Paycheck Protection Program, and direct payments to farmers impacted by COVID that incorporate the increased price premiums associated with organic certification. Since the beginning of the pandemic OTA has consistently communicated with USDA and Congress the needs and priorities for organic farmers and businesses. OTA testified at two House Agriculture Committee roundtable forums on the impacts of COVID and expressed the need for more direct support for organic producers. Below is a summary of the key provisions.

Assistance for Agriculture

• $13 billion in additional direct assistance to farmers and food processors impacted by COVID related expenses and market losses. This includes:
  • Incorporating organic price calculations in the Coronavirus Food Assistance Program (CFAP)
  • Enhancements to CFAP by expanding eligibility to processors and distributors, including support for expenses related to workforce protection, and providing supplemental assistance to producers whose payments were reduced in CFAP 1 and 2 due to arbitrary payment limitations.
  • $5 billion for row crops including an additional payment of $20 per acre, $3 billion for livestock and dairy, and $225 million for specialty crops.
  • $1.5 billion in food purchases for donation and for farmers, processors and distributors to purchase personal protective equipment for their workforces.
  • $100 million for specialty crop block grants to states and $100 million for the local agriculture market program to assist diverse and regional food systems.
  • $400 million for a dairy donation program for processors that partner with local food assistance non-profits to cover the cost of donated product. Additionally dairy processors will be eligible for recourse loans.
  • $60 million in grants to assist small and medium-sized meat processors as well as supplemental payments for small dairies enrolled in the Dairy Margin Coverage program.

Assistance for Employers and Small Businesses

• $284 billion in additional funding for Paycheck Protection Program (PPP) loans and extension of the program through March 2021. Enhancements to the current PPP by allowing a second round of loans for eligible small businesses, letting businesses deduct expenses for costs paid by PPP on their taxes, expanding eligible expenses for the loan to include technology upgrades, worker protection measures and other costs associated with COVID disruptions.
• Automatic forgiveness of PPP loans under $150,000 and a simplified application form.
• Extension of tax credits for employers that offer paid sick leave and employee retention tax credits. 

 Fiscal Year 2021 Appropriations 

• $18 million for the National Organic Program, a $2 million increase in funding.
• $500,000 for organic price reporting and data collection.
• $7 million for the organic transition research program, a $1 million increase in funding.

Coronavirus Food Assistance Program

The Coronavirus Food Assistance Program (CFAP), implemented through final rulemaking on May 21, 2020, is an important program to provide financial relief to farmers who have been negatively impacted by the effects of the coronavirus pandemic. USDA is accepting applications for the program until August 28. CFAP provides direct payments to producers of eligible commodities who faced price declines and additional marketing costs due to COVID-19. To be eligible, producers must produce or own one of the eligible commodities that have experienced a five percent-or-greater price decline over a specific time as a result of Covid-19 or had substantial additional marketing costs. All farmers including organic farmers, urban farmers and farmers who run CSAs are eligible for CFAP if they market the commodities outlined on the CFAP website. Producers can apply through their local Farm Service Agency. They are encouraged to call the FSA call Center (877-508-8364) to discuss their situation. Payments do not have to be repaid, and there is no fee to apply.

However, the CFAP payment calculation does not take into account the full value of organic products. The Organic Trade Association filed a comment on June 22 to urge USDA to take into account the increased cost of production for organic farmers, and cover market losses outside of commodity price declines when calculating direct payments as part of CFAP. The trade association also encourages USDA to explore alternative payment calculations that can accommodate the increased diversity of crop and livestock products on organic farms, and to extend the timeframe during which the price declines are calculated so that longer-terms impacts of the pandemic can be eligible for financial relief.

USDA has extended application deadline for all applicants to the Coronavirus Food Assistance Program (CFAP) until September 11. The CFAP program provides direct payments to producers of eligible commodities who faced price declines and additional marketing costs due to COVID-19. For more information on the program and instructions for submitting applications, see the CFAP website. Producers are encouraged to call the FSA call Center (877-508-8364) for help preparing applications. USDA has also announced that more specialty crops, nursery crops, and cut flowers are eligible for payments.

For more information, contact our Farm Policy Director Johanna Mirenda.

Paycheck Protection Program

Paycheck Protection Program: Provides forgivable loans for small businesses to cover expenses for payroll, rent, utilities, etc. for up to 24 weeks. In order for the loan to be forgiven, 60% of the loan must be used for payroll. If businesses do not qualify for loan forgiveness, they have five years to repay the loan.

• Loan Calculation FAQ for the Small Business Administration’s Paycheck Protection Program

Economic Injury Disaster Loan Program

Economic Injury Disaster Loan  Provides up to $10,000 in emergency grants for small businesses, including farmers, that do not need to be repaid. APPLY HERE

Farmers to Family Food Box Program

Farmers to Families Food Box Program: USDA will purchase up to $3 billion in fresh produce, dairy and meat for emergency food boxes distributed to non-profits and hunger relief organizations.

USDA Surplus Commodity Purchases

USDA has announced an additional $470 million in commodity purchases. USDA will issue solicitations in June and products will be delivered to food banks by July.

USDA Organic Inspections

The organic regulations require certifying agents to conduct annual on-site inspection of each production unit, facility, and site that produces and handles organic products. This includes an initial on-site inspection. The on-site requirement obviously brings about challenges given the rapidly changing status of the COVID-19 pandemic and the national, state and local directives to help slow the spread of the virus and keep everyone safe.

If you are a certified organic operation, you may have already received a COVID-19 communication from your certifier outlining the steps they are taking to ensure safety, along with updates on inspection scheduling and cancellations. If you have not heard from your certifier, please contact them immediately with any questions or concerns you may have.

The Accredited Certifiers Association (ACA) and the International Organic Inspectors Association (IOIA) have developed Best Practices for Contingency plans for Verifying Organic Compliance When On-site Inspections are not Possible.

• Press Release

General recommendations include:

• Certifiers should use a risk-based assessment to determine what combination of remote inspection and records audit should be used to verify compliance for each existing (already certified) operation. When on-site inspections are possible, certifiers should also use a risk-based approach to prioritize.
• For existing operations who are seeking the addition of new products, land, or facilities, certifiers should evaluate whether a remote inspection can be sufficient to assess compliance.
• New applications for certification should be prioritized for on-site inspections once they become possible, as new operations cannot obtain initial certification without an onsite inspection.
• Accredited certifiers are urged to communicate regularly with their clients, including sharing directly the contingency plan for inspections.
• Certifiers, inspectors, and operations should continue to remain inspection-ready and maintain good documentation of their procedures.

Organic-Approved Cleaners, Sanitizers and Disinfectants

Currently, there is no evidence of food or food packaging being associated with the transmission of COVID-19. The Environmental Protection Agency has listed the registered disinfectants for COVID-19. 

• COVID-19: FDA Best Practices for Retail Food Stores, Restaurants, and Food Pick-Up/Delivery Services 
• COVID-19: FDA Best Practices for Retail Food Stores, Restaurants, and Food Pick-Up/Delivery Services - Infographic

Organic-approved active ingredients for use on food contact surfaces include:

• Hydrogen peroxide
• Peroxyacetic acid
• Isopropanol
• Ethanol
• Sodium hypochlorite
• Hypochlorous acid
• Check with your certifier for approval of any brand-name products

International

The Organic Trade Association is monitoring how organic inspections are being conducted under international and private organic standards.

• The European Union has authorized temporary, exceptional measures for Member States, Competent Authorities and Control Bodies to continue to operate under the restrictions imposed by Member States during the COVID-19 crisis. These measures, in effect until June 1, are intended to minimize serious disruptions to control systems while complying with restrictions on travel, in-person inspections, and anticipating overloads on certain systems including TRACES. Concurrently, the EU issued other amendments to the 2018 EU organic regulations which will have implications for EU-certified organic production and processing. More information will be shared with our EU Task Force as we complete the analysis. Contact Alexis Carey to join the EU Task Force.
• The CFIA has postponed all planned audits under the Canada Organic Regime (COR) until restrictions on non-essential travel are over. They have developed criteria for remote audits to provide flexibility & reduce the need for on-site audits. More details can be found here.
• The Global Organic Textile Standard has developed guidelines and is taking a risk-based approach to conducting virtual audits based on certifier assessment. Virtual audits are possible for recertification of existing entities & initial certification of operations that do not include wet processing. Extensive GUIDANCE was provided by GOTS. More information can be found here.
• Statement on US-Mexico Initiative to Combat the COVID-19 Pandemic