The huddles this week focused on more guidance for the USDA Corona Food Assistance Program, updates on SBA loan programs such as PPP and EIDL, and recent trends in food processing facilities and the agricultural sector.

Talking Points

• Loans and Programs Updates
  • Corona Food Assistance Program (CFAP) | More Information
    • Farm to Box program – $873M for distribution to food banks
    • Farmers have to be GAP certified
    • Wallace Center is working on resources for Food Hubs to get involved with this USDA program. View a recording of their call from 04.17.20 here, review the notes here.
  • SNAP Online Purchasing Pilot: Now able to purchase food online in these states: AZ, CA, ID, DC, NC, AL, NE, NY, IA, FL, OR, WA
  • FSA: Extensions on operating loan terms
  • Rural Development: Deferrals on rural energy loan, community facility loans, water and wastewater loans. New funding for the ReConnect program funding to increase broadband into rural communities.
  • PPP: New appropriation passed, application for PPP opened up again 4/27. Funds likely to run out within a few days to those waiting in queue. 
    • Can apply through more than one-way: community banks, large banks, and nonbank and Fintech lenders (PayPal, Inuit, etc.).
    • Inconsistencies across the nation with larger banks responding to those they have relationships with. Seeing mid-size to larger banks not interested if your app is less than $150K.
  • Disaster Loans (EIDL): New round of funding expected to open up Friday 5/1
  • CDFI: Some of these might actually still be taking applications after PPP and EIDL funds run outs
  • B & I: Loan deferments (processing related)
• Reopening Businesses
  • National Restaurant Association – Coronavirus Opening Guide for the Industry
    • Good starting point but needs work… discusses using disposable utensils, dishes, and menus, sneeze guards for self-serve, etc.
    • Restaurants are likely going to take longer to open and many may not return at all
    • Liability for businesses is a real concern, what happens if employees start getting sick? Can employees sue?
    • Employees may not come back right away because they’re making more from unemployment (which goes through July)

Trends

• Processed Food Plant Facilities
  • Closures: Multiple meat packing facilities, Frito Lay (plant in CA), Kraft (mac and cheese plant), ConAgra (frozen meal plant), Flower Foods (wonder bread, tasty cakes plant), Pepperidge Farms (plant in PA)
  • Proactive Measures: Dannon, General Mills, Kraft – instituted testing of employee temperatures coming into work and slowed down production lines to increase distancing
• Innovative Business Adaptations
  • Proactive Distribution: Sparkling water company went to retail stores and told them if they’re having trouble with distributors, they would come direct distribute. Sure enough, their product wasn’t considered essential so they’re now self-distributing.
  • Farm to [insert here]: Selling ingredients and then holding virtual master classes to create an experience. Activate engagement with web tasting sessions. Farm to cocktail. Chocolate making.
  • Grocery: Adding groceries to current businesses such as wine retail stores or as pantry items for food/restaurant delivery.
  • Agricultural
    • No dairy plant or cheese shutdowns due to COVID that we know of Sartori Cheese and goat cheese brands seeing decline due to retailers shutting down their specialty cheese sections and redeploying employees to other departments
    • Industry relies heavily on migrant workers – will they return to work?
    • Organic produce sales were up 25% in March, all produce sales were up 20% in March, particularly foods high in vitamin C (broccoli, citrus)
    • Food packing sheds are starting to see issues in WA

Tips

• Employee Safety
  • Employees (and customers) afraid to come back to work Taking temperatures, social distancing, requiring facemasks can help make people feel more at ease

Resources and Immediate Next Steps

• Watch and Share! New FREE On-Demand Course – Getting Your Products Online
  • Edible-Alpha® has created a short course introducing three key ways to sell online: your own direct to consumer site, Amazon, and other online sites. We discuss forming your online strategy, logistics and operational considerations, keywords, advertising and promotion, and metrics collection. Our hope is that this overview helps you start or grow your online sales.
  • Encourage investment in CDFI and NBI to create more loan opportunities
    • Anyone can invest in CDFIs via mycnote.com
    • Investment is set by the government at 1%, but is a much more stable place to invest at the moment
  • Check Out These Resources:
    • Recycling Packaging used by our friends at Honest Bison
      • Green Cell Foam Packaging: Insert can be washed down the drain, great for refrigerated, awesome for glass, not awesome for frozen. It’s not obvious how to recycle, so consumer education is a component. 
      • TemperPack.com: Insert is curbside recyclable, so presents less of an education need. can buy via ULINE. Purchasing direct require high minimum purchases (15+ pallets).
    • Some food carts and trucks are staying open- new resource for WI Licensed Food Carts & Trucks – More info available in English/Spanish
    • Insurance Claims: Foa & Son insures small and large food processors among other business entities and are providing some good insights at this time.
      • More info.
      • Recent Webinar Recording
    • Mobile Abattoirs can do USDA slaughter 
      • http://www.mobileslaughter.com/
      • https://friesla.com/equipment/mobile-slaughter-unit/
    • Wallace Center recently launched a new national listserv – Food Systems Leadership Network COVID-19 Response Group