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:

1. 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.

2. 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.

3. 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.

4. 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

5. 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:

   1. 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

   2. Non-Dairy Agricultural Producer/Processor Funds will be re-allocated to the Dairy Assistance Program

   3. 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:

1. 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)

2. Transportation of bees’ certificate of inspection within last 45 days prior of bringing them into the state rather than 65 days

3. Creates additional recordkeeping requirements for those who transport livestock

4. Inspection of rabbit meat is made voluntary 

5. The Payment for Ecosystems Services Working Group has been extended to 2022 to continue its work, with a new name and additional members

6. 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.

7. Provides greater protection for hemp farmers through stricter requirements for labeling of hemp seed regarding genetics and productivity

8. Repeals the 2020 sunset on the highly successful VHCB Rural Economic Development Initiative (REDI) grant program

9. 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

In early June, the legislature began to consider Governor Scott’s proposed Restart Vermont Economic Recovery Package that included $50million in direct payments to dairy farmers and dairy processors. The proposal did not include funds for other farms and food processors and Rural Vermont criticized the proposal for not allowing all farms and food processors to apply and show their COVID-19 related losses and expenses. The Senate Committee on Agriculture was already working on its own farm relief bill which tried to look at long-term incentives for resilience in our food system as well as immediate relief. They passed a Farm Relief Bill that includes $19M funds to support dairy, $3.8M for dairy processors, and $7M for non-dairy farms, as well as $192K in funding for VHCB to provide technical assistance to farmers. Rural Vermont provided testimony on the bill and added joint recommendations with NOFA-VT. Meanwhile, the House Committee on Agriculture and Forestry decided against the inclusion of non-dairy farmers in their relief bill. It is challenging to participate and influence the rapid and still “virtual” legislative process which is supposed to come to an end on June 18th. With the current disparities among the two ag committees – there might be a committee of conference to negotiate the final Farm Relief Bill. 

The last dairy farmer in the legislature, Rodney Graham, spoke up in the House Ag Committee on June 9th 2020 and said “…we really need to be thinking about agriculture as a whole and not just dairy farms” he elaborated further: “The beef prices have crashed because of the slaughterhouses have shut down, the big ones, because of COVID. Produce prices are up because they couldn’t find people to pick their products because of COVID or they delayed some of the vegetable planting this year because they couldn’t get people here, etc. You know, all forms of agriculture are hurting and again, I don’t think we can do it in this bill, but I think that at some point we got to realize that agriculture is more than dairy. I understand the fact dairy farmers can make the point of hurting more than other commodities but I don’t know. The local beef markets- if you have one beef cow in your backyard that you take to slaughter and advertise it online you might be alright, but people that are actually in the beef business are taking a hit because they can’t move their product. The vegetable people as well and I’m sure other commodities, even maple syrup - we supplied a big restaurant but haven’t been able to sell any since restaurants stopped, that’s a chunk of money that we usually received. Every product across the board in some way or another has been affected by this - I just want everyone to know that.”

This week the legislature began to look at draft legislation to implement Governor Scott’s proposed $400M Restart Vermont Economic Recovery Package. This proposal includes $40M for direct payments to dairy farms and $10M for direct payments to dairy processors to be administered by the VT Agency of Agriculture. There are no funds allocated specifically for non-dairy farms and food producers - they are expected to compete with all other small businesses and non-profit organizations for various loans and grants to be administered by the Vermont Economic Development Authority (VEDA) and the Agency of Commerce and Community Development. (ACCD). Rural Vermont strongly believes the survival of ALL Vermont farms is critical to creating food security and food sovereignty for all Vermonters as well as preserving our agricultural heritage of working lands for future resilience. 

Rural Vermont’s Policy Team has also been following efforts by the Senate Agriculture Committee to develop a bill that would provide substantive economic support to all Vermont farms as they struggle with the effects of the COVID-19 pandemic. Their draft bill includes specific assistance to dairy farms as well as assistance to non-dairy farms. It also includes some support for migrant workers on dairy farms who have been excluded from all federal pandemic assistance. We are hopeful the Senate Ag Committee members will work to have their ideas incorporated into the Administration’s proposed Economic Recovery Package.

The Committee has also been discussing how they might leverage the large amount of money Vermont is receiving through the Federal CARES Act ($1.25 Billion) to help make Vermont’s agricultural economy more stable and resilient for the future. It has been painfully clear that the economic impact of COVID-19 has greatly increased the number of Vermonters struggling with hunger and a lack of food security. Vermont’s diversified farms are stepping up and contributing to that security. 

At the same time, all farms are also struggling to adapt to the loss of their usual markets (restaurants, schools, institutions) and make critical changes in their operations to protect themselves, their families, employees, and customers. Although some diversified farms have experienced an increase in demand for their products, as Vermonters seek more reliable and local sources of food, meeting that demand has required long hours, significant investments in technology as well as specialized equipment and supplies and the stress of constantly adjusting to a changing landscape of threat and opportunity. 

Rural Vermont is deeply concerned that although there is a substantial amount of money ($50M) in the Governor’s Recovery package earmarked for the severely struggling dairy industry, all other farms and food producers must compete with the entire universe of other small businesses and non-profit organizations in the state - for a proportionally smaller pot of money. This is not fair, and it is not a wise course of action given how much of Vermont’s economy is tied to agriculture. To ask farmers, at their busiest time of year, to become familiar with a state agency that is likely new to them and navigate what appears to be a complex and highly competitive process to access even the loans being proposed is patently inequitable.

The Governor’s proposal is new and complex with very few details available, so far, regarding how all of this money will be distributed. Everyone engaged in the legislative process is challenged to understand the proposal and there is extraordinarily little time left in the current phase of the legislative session to work out myriad details. Rural Vermont has testified (read 5/28 testimony here) on how non-dairy farms can be treated more equitably and will be continuously communicating with all the legislators who will be asked to shape this legislation. To do this we need your help so please read on!

ACTION ALERT: Contact your House and Senate Legislators THIS WEEK and demand fair treatment for Vermont’s non-dairy farms and food producers in the Governor’s $400M Restart Vermont Recovery Funding Package.
TESTIMONIALS NEEDED: Non-Dairy Farmers & Food Producers: We need your stories of how COVID-19 has affected your farm/food business. Contact Caroline if you would be willing to share your story.

…CLICK HERE to view older legislative updates.