COVID-19 Aid for Aquaculture: Top 5 Things Fish Farmers Need to Know

 
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The recent COVID-19 pandemic has changed the way just about everybody does business - and fish farmers are no exception.

Restaurant shutdowns, a shift towards non-perishable foods, and restrictions of farming/processing labor have dramatically affected prices and prospects for the US aquaculture sector.

Like many, you may be feeling the pressure of this crisis as it hits a little too close to home. Take comfort in knowing that federal and state assistance is available - it’s all a matter of knowing where to look. 

To help, we’ve compiled resources and information on relevant public and private programs to support the fish farming community.

1. The 2020 Federal Agriculture Stimulus Bill

Passed in March, the 2020 Federal Agriculture Stimulus Bill allocated nearly $23.5 billion in funding to farmers, giving quite a bit of leeway to Agriculture Secretary Sonny Perdue. 

The bill was pressed into existence by major corporate farming groups, particularly those in hard-hit areas like corn and meat producers. However, much of the funding is also meant to assist farmers in other sectors, like aquaculture, too.

The goal of this stimulus bill is to help offset some of the declines in prices paid to farmers as a result of disruptions in the supply chain. The agricultural components of the stimulus bill have two main benefits for fish farmers. 

The first is that it offers up to $9.5 billion in stipends to producers – aquaculture included. These funds can be used to offset feed costs (which tend to be amount to roughly 50% of a producer’s costs) and alleviate some pressures caused by competition for Asian fish imports.

The bill also urges the USDA to purchase food for national and statewide nutrition assistance programs. This can help improve the price structure that is hurting many fish farmers today. 

Increasing the USDA’s involvement will likely improve domestic catfish sales as a result. Because sales were already down this year prior to the COVID-19 crisis, this move can only help to increase sales.

2. The CARES Act General Programs

The Coronavirus Aid, Relief, and Economic Security Act was passed into law on March 27, 2020 and applies to fish farmers as it does other members of the population.

The bill has three major provisions to pay attention to:

  1. Household stipend

  2. Paycheck Protection Program

  3. EIDL Disaster Relief Program

  4. Special Aquaculture/Fisheries Relief Program

Household Stipend
In general, each household can receive $1,200 per eligible adult along with $500 per child. You may have to meet income eligibility requirements.

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Paycheck Protection Program
Under this program, banks and other lenders, like the Farm Credit System, can guarantee loans by the federal government to small businesses. Maintain your payroll during this crisis, and you might be eligible for funding up to 2.5 times your average monthly payroll. As long as the business continues to employ workers, large portions of these loans can be forgiven. This is an option for all small businesses and not just fish farmers or farmers in general.

Applications for these loans opened on April 2, 2020, with a deadline of June 30, 2020. A second wave of funding has recently been approved to meet the strong demand. You can apply for the loan as a small business, sole proprietorship, independent contract, or self-employed individual.

EIDL Disaster Relief
The Emergency EIDL Grants Program (“EIDL”) offers business loans to businesses whose operations have been materially impacted by COVID shutdowns. If you apply for an EIDL program loan, you may also be eligible to receive an advance of up to $10,000 - this is an advance that you will not need to repay.

You’re eligible as long as you have fewer than 500 employees. The maximum loan amount is two million dollars. The advance can be used to cover a variety of expenses, including to make rent or mortgage payments, pay existing debts, or maintain payroll. 

Special Aquaculture/Fisheries Relief Program
A recent aquaculture expansion measure to the CARES Act was passed in late April 2020, offering up to $300 million in additional funding. Under these new provisions, any fisheries impacted by COVID-19 that experienced a greater than 35% economic revenue loss when compared to its prior five-year average will be eligible for special assistance. Both administration loans will be available (the first $10,000 will become grants) along with additional forgiveness funds to cover mortgage and other facilities expenses – if you don’t lay off workers.

This program is designed for farms that would not qualify under the USDA Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (which covers losses related to disasters such as adverse weather and other conditions).

Additional Employer Benefits for Fish Farmers

The CARES Act has other provisions which are relevant for fish farmers. If you have employees who are unable to work for coronavirus-related reasons, like mandatory quarantine or voluntary self-quarantine, you, as the employer, may be eligible for a refundable sick leave credit. This credit is payable at the regular rate of the employee’s pay, or up to $511 per day for a total of 10 days.

You can also reimburse your employees for time they missed because they were caring for someone with coronavirus, or caring for a child out of school or daycare. The federal government will provide you with a credit for up to two-thirds of the employee’s regular rate of pay. You may be eligible to receive tax credits based on your costs to maintain health insurance coverage for these employees, too.

You can find more information on the tax credits here, along with the applicable form here.

3. Regular Assistance is Still Available, Too

Luckily, many of the programs that were in place prior to COVID-19 are still in effect. Many of them have loosened restrictions and made it easier than ever for fish farmers to get help. If you hesitated to apply for federal or state grants and loans in the past, you might want to reconsider doing so now, especially if you find that you have more time on your hands due to the COVID-19 crisis.

For example, the Farm Service Agency is keeping its county offices open by phone appointment. You can still apply for a loan, but some changes have been made to the process. For instance, the farm loan application deadlines have been extended and lenders may now self-certify in order to reduce some of the red tape involved in applying for a Farm Service Agency loan.

If you’re looking for a one-stop destination to find all federal programs that can assist fish farmers, visit this website. The database includes all programming for aquaculture-related applications. For example, the Farm Storage Facility Loan is one such aquaculture-specific grant that provides funding at regular intervals.

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You can find additional information about loans and grants from the federal government by visiting Grants.gov. This website includes information about loans, grants, and other federal application procedures as well as research, education, and extension proposals. It’s managed by the U.S. Department of Health and Human Services and is a good resource during times of crisis as well as normal years, too.

Another funding option is the Small Business Innovation Research program. Although this is not the first time this grant has been offered, there’s no better time to consider ways to explore your technological potential as a fish farm, particularly if you’re looking for new outlets for your business during the crisis.

4. ...and So is Disaster Assistance at the State and Federal Level

In addition to the federal disaster relief programs, there are many offered at the state level, too.

A particularly important one is The Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish program. This program is still available for farms that have suffered losses due to disease or adverse weather conditions.

While this program isn’t linked directly to COVID-19, it’s important to be aware of the program so you don’t leave money on the table if your farm suffers a secondary loss during the pandemic. 

You’ll also find a number of resources designed to help certain populations of farmers, including those that are offered at a regional level.

Here are some resources to consider: 

  • AFT Farmer Relief Fund: Awards up to $1000 to producers with annual growth revenue between $10,000 and $1 million (applications are now closed but expected to reopen soon)

  • The Bricmont Hardship Assistance Fund: For organic producers that experienced hardship in the 2020 calendar year

  • CAFF Family Farm Emergency Fund: 50% of this grant funds will be awarded to immigrant farmers, undocumented farmers, and farmers of color, with applications accepted and award decisions made every other week.

  • CISA Emergency Farm Fund: The initial deadline for the first wave of funding for this program has now passed, but applications will reopen in the print of 2020. This zero-interest loan program is for farmers who have been directly impacted due to COVID-19 and is for residents of Franklin, Hampshire, and Hampden counties in Massachusetts.

  • COVID-19 Working Capital Access (CWCA) Program: The Pennsylvania Industrial Development Authority provides financing for working capital to farm businesses in Pennsylvania.

  • Livestock and Seed Program: This program is responsible for purchasing fish and meat products to stabilize market conditions. Under certain food supply conditions, aquaculture products may qualify.

5.  Get Help Marketing Your Products

If you aren’t already, now is an excellent time to consider the ways in which you are marketing your farm products. 

Not only have the changing times necessitated a change in the way you market, but they’ve made it imperative for farmers to turn to digital resources to sell their goods. If you aren’t sure how to do this, consider some of the following resources offered by federal, state, and nongovernmental authorities:

Get Help in 2020

You’re an essential part of the economy. If we can help in any ways, please let us know. Together, we’ll overcome this challenge.

 
Ben Ackerman