Cattlemen and beef consumers went on a roller-coaster ride in 2020, but the outlook for beef cattle production and consumption is looking brighter this year.

Industry experts at a Jan. 12 workshop during the 2021 American Farm Bureau Federation Virtual Convention discussed how the COVID-19 pandemic sent consumer prices skyrocketing last spring as farm prices plummeted. But both prices returned to near previous-year levels quicker than expected.

By the end of 2020, “we were able adjust and get back over” the pace set the year before for processing cattle and hogs, shared Michael Nepveux, an AFBF economist. He noted that in early May, American beef production dropped 34% below the same time in 2019 due to panic food buying in supermarkets and health concerns in processing plants. In November 2020, away-from-home food sales totaled $50 billion, a 20% decline from 2019. Grocery store sales totaled $63 billion in the same period, well above pre-pandemic levels.

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Phil Satolli, a first grade teacher at Lacey Spring Elementary School in Rockingham County, has been named Virginia Agriculture in the Classroom 2021 Teacher of the Year.

The award recognizes a Virginia educator for incorporating agriculture into his or her core curriculum. 

Satolli integrates agricultural topics into his teaching, and his passion for gardening has led him to create real-life learning opportunities for his students. He established a school-wide composting project and raised-bed garden, which help teach his students about amending garden soil, cultivating their own food, and harvesting and cooking the foods they grow.

Satolli’s first graders help educate other students and staff on the benefits of composting, and the project has converted nearly 2 tons of the school cafeteria’s food waste into usable compost. Students in all grades have opportunities to work in the school garden, planting a variety of vegetables, herbs and flowers.

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Governor Ralph Northam has announced that Virginians living and working in 11 localities will gain access high-speed internet thanks to more than $29.6 million in grants awarded through the Virginia Telecommunication Initiative (VATI). The funding will support five projects, connecting more than 11,700 households, businesses, and anchor institutions to broadband service, and leveraging over $34 million in private and local investments.

Administered by the Department of Housing and Community Development (DHCD), VATI provides targeted financial assistance to extend broadband service to areas that are currently unserved by a provider. In his 2020 budget, Governor Northam made an historic investment of nearly $50 million in VATI funding. His proposed budget invests an additional $15 million in fiscal year 2022 to maintain this significant level of funding.

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Week 2 of the Virginia General Assembly is in the books! Get an update on the bills the GR Team worked on this week from Stefanie and Andrew below.

Check out this week’s Merchandiser Minute.

USDA has announced additional assistance for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP2) – Additional Assistance began January 19 and will run through February 26, 2021.

The additional assistance will be used to update payments to accurately compensate producers who already applied for earlier assistance and to expand CFAP eligibility to producers and commodities. Details are located at https://www.farmers.gov/cfap. Producers can modify applications or apply for CFAP2 at USDA’s Farm Service Agency (FSA) county offices.  For details on how to modify or submit a new CFAP2 applications, visit www.farmers.gov/cfap/apply.

Updated Payment Calculations

CFAP additional assistance includes changes to more accurately compensate producers who already applied for the program. Producers of certain commodities may be eligible for higher payments.

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The Paycheck Protection Program (PPP) is a guaranteed loan program for small businesses to keep their employees on the payroll. Eligible businesses include nonprofits, veterans, organizations, tribal business concerns, sole proprietorships, self-employed individuals and independent contractors with 500 or fewer employees. It is our understanding that this help does not apply to foreign workers under the visa programs like H-2A.

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. New borrowers to the program may also be eligible.

This second round of PPP loans includes improvements that can benefit farmers:

• Allowable expenses that had been paid for with forgiven PPP loans may be taken as a business deduction for income tax purposes without limitation.
• The qualifying reduction in gross revenue was reduced from 50% to 25% between comparable quarters in 2019 and 2020. This much-needed change for producers who suffered multiple years of losses expands the number of farms that can qualify to participate.
• Gross income, instead of net farm income, will now be used for the loan requirement calculation for farmers who file as sole proprietors will allow many more producers to participate.

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Governor Ralph Northam has commended President-elect Joe Biden for appointing Dr. Jewel H. Bronaugh to serve as Deputy Secretary of the United States Department of Agriculture (USDA). Dr. Bronaugh has served as Commissioner of the Virginia Department of Agriculture and Consumer Services (VDACS) since May 2018. Pending confirmation by the United States Senate, Commissioner Bronaugh will become the first African American Deputy Secretary of Agriculture.

“As Commissioner of VDACS, Dr. Bronaugh has been a true leader—promoting the agency’s core mission while taking on new challenges, including our COVID-19 pandemic response and farmer mental health, focusing economic development to improve food access in underserved communities, and engaging youth in the field of agriculture,” said Governor Northam. “I am proud that she will be representing the both the Commonwealth and all Americans in such a critical role at USDA and in this new Administration.”

USDA consists of 29 agencies and offices with nearly 100,000 employees who serve at more than 4,500 locations across the country and abroad. The Department promotes agriculture production that helps feed Americans and others throughout the word, supports rural economic development, and conserves the nation’s natural resources through conservation, forest restoration, improved watersheds, and healthy private working lands.

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General Assembly updates are back! The GR team hit the ground running this week! Watch Andrew and Stefanie break down Week 1 and pay tribute to Sen. Ben Chafin, whose hard work and dedication to farmers and Southwest Virginia will be greatly missed.

Check out this week’s Merchandiser Minute.