Specialty Crops Newsletter

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Specialty Crops

Specialty Crops Newsletter

October 2018

Jimenez

Sonia Jimenez, Deputy Administrator, Specialty Crops Program

October is always an exciting time here with the Specialty Crops Program (SCP) - the ending of the 2018 fiscal year and the great successes we’ve experienced, coupled with the start of the 2019 fiscal year and the challenges yet to come. I’m extremely proud of SCP’s numerous accomplishments in FY2018; four are listed below:

  • Alignment of the USDA Harmonized GAP audit with the technical requirements of the FSMA Produce Safety Rule (PSR)! The alignment streamlines complex regulatory requirements and positions us to support our customers as they work to be compliant with the PSR.
  • Advancing the use of technology helped modernize the voting process of Research & Promotion and Marketing Order programs by amending the Rules of Practice to allow for e-balloting. Also, using technology with MyMarketNews expanded the commodity list from 411 to 675 specialty crops commodities.
  • Attaining recognition of Harmonized Good Agricultural Practices (GAP) Plus+ audit program as technically equivalent by the GFSI, making the USDA audit a single tool to meet U.S. and international regulatory and market requirements!
  • Outreach efforts led to international acceptance of defects in fresh fruits and vegetables standards (CODEX and UNECE) as partner countries align their standards and inspection methods with those of the United States.

This edition of our SCP newsletter highlights program areas of keen interest to the industry. We start with the appointment of members to the Fruit and Vegetable Industry Advisory Committee. What a way to start a fiscal year! Do you need help identifying the right GAP service USDA may provide for your business? We’ve got the answer for you! Learn more about the AMS Trade Mitigation efforts to expand your business outreach. Read about $102 million in grants the USDA’s Transportation and Marketing program distributed for local food production and specialty crops. Finally, get more information about the great benefits of licensing with the PACA division.

I want you to know that everyone with the AMS Specialty Crops Program appreciate your commitment to the agriculture industry. I can't wait to see what we accomplish together in 2019.

USDA Appoints Members to Fruit and Vegetable Advisory Committee

Agriculture Secretary Sonny Perdue today announced the appointment of the members of the recently reestablished Fruit and Vegetable Industry Advisory Committee (FVIAC). The newly appointed members will serve up to two-year  beginning immediately and ending March 26, 2020. The appointees were selected from nominations received in May 2018 resulting from the April 23, 2018 announcement of the re-establishment of the committee and request for nominations.

 Newly appointed members are:  

  • David K. Bell, Cherryfield Foods, Inc. Farm/Maine Wild Blueberry Company, Cherryfield and Machias, ME
  • Richard E. Bowman, JJ Family of Farms, Loxahatchee, FL
  • Chalmers R. Carr III, Titan Farms, LLC, Ridge Spring, SC
  • John Chandler, Chandler Farms L.P., Selma, CA
  • Kristine (Tina) Ellor, Phillips Mushroom Farms, L.P., Kennett Square, PA
  • Kelly Carl (KC) Ely, FreshPoint, Oklahoma City, OK
  • Bret Erickson, J&D Produce, Edinburg, TX
  • Molly Gleason, Illinois Stewardship Alliance, Springfield, IL
  • Julie L. Gordon, Cherry Marketing Institute, Dewitt, MI
  • Kiley Harper-Larsen, NK Lago Farms, LLC, Pahokee, FL
  • Jeffrey Huckaby, Grimmway Enterprises, Inc., Bakersfield, CA
  • Michael Janis, San Francisco Wholesale Produce Market, San Francisco, CA
  • Brian Kirschenmann, Kirschenmann Farms, Inc., Bakersfield, CA
  • Tom Lipetzky, Colorado Department of Agriculture, Broomfield, CO
  • Paul Palmby, Seneca Foods Corporation, Janesville, WI
  • Kelly Powell-McIver, North Carolina Sweet Potato Commission, Benson, NC
  • Reade Sievert, Associated Wholesale Grocers, Kansas City, KS
  • Steve Smith, Red Gold, Inc., Elwood, IN
  • Harry (Bruce) Talbott, Talbott's Mountain Gold, LLLP, Palisade, CO
  • Lawrence (Greg) Tison, Jacksonville Farmers Market, Jacksonville, Florida
  • Derrin Wheeler, MBG Marketing, Alma, GA
  • Tommy Wilkins, Grow Farms Texas, Donna, TX
  • Charles A. Wingard, Walter P. Rawl & Sons, Pelion, SC
  • Donn Zea, California Dried Plum Board/Prune Marketing Committee, Roseville, CA

Originally chartered in 2001, the FVIAC advises the Secretary of Agriculture on issues affecting the fruit and vegetable industry. Committee members represent organic and non-organic growers, shippers, wholesalers, retailers, industry trade associations, importers, processors, foodservice suppliers, food brokers, state departments of agriculture and farmers markets; and represent local, regional and national levels. USDA’s Agricultural Marketing Service (AMS) ensures the committee is administered according to the Federal Advisory Committee Act. 

More information about the committee is available on the Fruit and Vegetable Industry Advisory Committee page on the AMS website. You may also contact Marlene Betts at marlene.betts@ams.usda.gov

Pick the GAP for You!

Ken Petersen, Chief, Audit Services Branch, Specialty Crops Division                                         

In the past year, the Specialty Crops Program has modernized the USDA Good Agricultural Practices (GAP) program to make our food safety verification audits a single tool that growers of all sizes can use to meet multiple and complex regulatory and market-access requirements. In the August issue of this newsletter, we talked in detail about how we aligned USDA Harmonized GAP audits with the requirements of the Food Safety Modernization Act’s (FSMA) Produce Safety Rule and attained technical equivalence of the USDA Harmonized GAP Plus+ audits with the Global Food Safety Initiative (GFSI).

We’ve been receiving some specific questions about our audit offerings and the changes we made. Here are some frequently asked questions and answers that may answer any questions you have:

What is the best USDA GAP audit for me?

We offer a variety of voluntary GAP audit services, from the updated Harmonized GAP and Harmonized GAP Plus+ audits to commodity-specific audits for mushrooms, tomatoes, leafy greens and cantaloupes. You can choose the USDA GAP audit service that best meets your and your buyers' needs.  

GAP audit

To make all of our services accessible to producers of all sizes, we also offer GroupGAP, a service option that allows producers and others to pool resources to undergo USDA GAP certification.

What is a USDA Harmonized GAP audit?

The USDA Harmonized GAP audit was developed as part of the Produce GAP Harmonization Initiative, an industry-driven effort to create food safety GAP standards and audit checklists for pre-harvest and post-harvest operations. The Initiative is a collaborative effort on the part of growers, shippers, produce buyers, audit organizations, and government agencies, including USDA. The USDA Harmonized GAP audit, is a single audit that is applicable to all fresh produce commodities, all sizes of on-farm operations, and all regions in the United States.

How does the USDA Harmonized GAP Plus+ service relate to other USDA GAP programs?

USDA offers several types of GAP audit services. USDA GAP audits are our basic service. These audits are aligned with industry best practices and Food and Drug Administration (FDA) recommendations. USDA Harmonized GAP audits meet industry best practices, FDA best practices AND are aligned with the Produce GAP Harmonization Initiative and the Food Safety Modernization Act’s (FSMA) Produce Safety Rule. The new USDA Harmonized GAP Plus+ audits include all USDA GAP and Harmonized GAP alignments AND are recognized by GFSI.

How does the alignment of the USDA Harmonized GAP Audit with the FSMA Produce Safety Rule help the specialty crop industry?

The alignment of USDA’s Harmonized GAP program for specialty crops with the requirements of the Food and Drug Administration’s (FDA) FSMA Produce Safety Rule provides growers with an opportunity to better understand how their operations align with FDA’s regulatory requirements for the specialty crops sector. This voluntary, user-fee funded audit program provides a tool that verifies food safety practices have been implemented to help keep our nation’s food supply safe.

Why did USDA undertake GFSI technical equivalence?

We undertook the GFSI benchmarking process at the request of many grower groups, commodity boards, trade associations, and others in the specialty crops sectors, who asked us to align the USDA GAP Program with GFSI to reduce audit fatigue and the costs of multiple food safety audits. Now that the USDA Harmonized GAP Plus+ program is GFSI technically equivalent, the more than 4,000 growers, packers, and handlers who are our customers can use a USDA GAP audit to also meet the requirements of the many retail, food service, and institutional buyers that require their suppliers to undergo a GFSI-benchmarked food safety audit. With GFSI technical equivalence, USDA is helping increase marketing opportunities for specialty crops producers and expand purchasing options for buyers.  

We hope that these questions and answers provide the information you need to put the USDA GAP program to work for you. If you’d like to learn more, please check out the Good Agricultural Practices (GAP) & Good Handling Practices (GHP) page of the AMS website or contact USDA’s Specialty Crops Inspection Division, Audit Services Branch at (202) 720-5021 or SCAudits@ams.usda.gov.    

 

USDA Needs New Specialty Crops Suppliers

Andrea Lang, New Vendor Coordinator, Commodity Procurement Program

With Secretary Perdue’s announcement on August 27, 2018, the Commodity Procurement Program (CPP), is in the process of purchasing up to $1.2 billion in commodities to support Trade Mitigation efforts.  Several of the larger purchases will be for apples, grapes and oranges, various nuts and a variety of frozen, dried and juice products among others.  The dollar amounts for these purchases are substantial and CPP encourages as many vendors as possible to participate in the upcoming bids.  Follow this link for more information about the purchase program and a complete list of products covered: https://origin-edit.ams.usda.gov/selling-food-to-usda/trade-mitigation-programs

There are six steps for becoming a USDA approved vendor. Potential vendors can visit our website: https://www.ams.usda.gov/selling-food/becoming-approved where they can find more information on CPP’s qualification process. We also encourage vendors to watch a brief webinar found on our website that lays out the steps of how to become approved. If you have any questions about the process, email our New Vendor email box at NewVendor@ams.usda.gov.  To automatically receive solicitation notices for products AMS plans to purchase, subscribe via GovDelivery at https://public.govdelivery.com/accounts/USDAAMS/subscriber/new?category_id=USDAAMS_C28 . Once you have subscribed, from the Main Menu scroll down to the “Solicitations” and choose the commodities you would like to hear about.

Please do not hesitate to contact AMS CPP with any of your questions or concerns.  CPP looks forward to hearing from you and the opportunity to work with your company on these new purchases.

 

Over $102 million in Grants Supports Agriculture from A to Z

Annie Ceccarini, Specialty Crops Block Grant Program, Transportation & Marketing Program

The U.S. Department of Agriculture (USDA) recently awarded over $102 million in grants to states, municipalities, universities, and private entities across the 50 States, five U.S. Territories, and the District of Columbia. The 164 grant agreements, awarded under five grant programs, support the agriculture industry covering a wide range of topics intended to expand markets for local food production and specialty crops.

These projects range from apple production to zero food waste. Specifically, projects included researching and conducting fieldwork to recover extinct apple varieties in Georgia’s Piedmont region, while separately helping local entrepreneurs in Mineral Point, Wisconsin create new local food products to reduce food waste.

If you are a potential grant applicant, information about the three largest grant programs administered by USDA’s Agricultural Marketing Service (AMS), including 2018 award amounts, is highlighted below to give you a sense of the rigor, objectives and subject matter of each program.

Farmers Market and Local Food Promotion Program

The Farmers Market and Local Food Promotion Program grants are available annually to support local and regional food systems through two competitive review programs: The Farmers Market Promotion Program (FMPP) and the Local Food Promotion Program (LFPP). These programs help farmers, ranchers and local food businesses acquire marketing tools to attract new customers, increase local and regionally-produced food consumption, and boost local economies.

 

  • $13.35 million is directed to 49 projects supporting direct producer-to-consumer marketing projects such as farmers markets, community-supported agriculture programs, roadside stands, and agri-tourism through FMPP.
  • $13.45 million is directed to 44 projects to support the development and expansion of local and regional food businesses to increase domestic consumption of, and access to, locally and regionally produced agricultural products, and to develop new market opportunities for farm and ranch operations serving local markets through LFPP.

Specialty Crop Block Grant Program

The Specialty Crop Block Grant Program (SCBGP) focuses on projects that enhance the competitiveness of specialty crops, including fruits, tree nuts, vegetables, culinary herbs and spices, medicinal plants, nursery, floriculture, and horticulture crops. Applications are submitted through the applicant’s state departments of agriculture. States are encouraged to partner with specialty crop stakeholders to focus on and fulfill specialty crop priorities for their state or region.

  • $72.15 million is directed to state departments of agriculture in 50 states, the District of Columbia and five U.S. territories to support farmers growing specialty crops through SCBGP. States use the SCBGP to fund research, agricultural extension activities and programs to increase demand for agricultural goods of value to farmers in the state or territory.

USDA’s AMS, through the Transportation and Marketing Program, currently implements six grant programs – all of them distinct yet united in their purpose to increase opportunities for farmers, ranchers and other growers. More information about all six grant programs is available at www.ams.usda.gov/services/grants.  

 

Protect Your Produce Business with Perishable Agricultural Commodities Act (PACA) Division

Travis Hubbs,  Director, Investigative Enforcement Branch, PACA Division, Fair Trade Practices Program

Since its foundation in 1930, the Perishable Agricultural Commodities Act (PACA) has been promoting fair trade practices in the fresh and frozen fruit and vegetable industry. The PACA Division provides education, licensing, dispute resolution assistance and investigative enforcement. It also provides financial protection for industry members through the PACA Trust.

Education

Our free online course covers the basic information you need to operate within the PACA. While learning about your rights and responsibilities, you’ll increase your understanding of trade terms, payment requirements, interpretation of federal inspection certificates and more. The course is divided into 10 units that each can be completed in less than one hour.

Our recorded webinars cover these basics in English and Korean. Additional webinars address the Complaint Process, How to Make Good Delivery, What to Do if You Breach a Contract and more.

To maintain our interaction with the produce industry, we also offer seminars. Your group may be as small as the sales staff of your own company or as large as an industry trade show. Contact your nearest Regional Office to set up a seminar.

PACA experts are ready and willing to answer questions and assist with problems unique to the industry, such as interpretation of inspection certificates, advice on contract disputes and bankruptcy issues. During FY2015 – FY2017, PACA staff assisted more than 8,500 callers with issues valued at approximately $151 million. Call the PACA customer service line (800) 495-7222, option 2, Monday through Friday from 7 a.m.to 7 p.m. ET.

Licensing

PACA requires shippers, wholesalers, brokers, retailers, processors, many e-commerce firms and other businesses that buy or sell wholesale quantities (i.e. 2,000 lbs.) of fresh or frozen fruits and vegetables to have a license. Farmers are not required to have a PACA license unless they purchase wholesale quantities of produce from another grower or company. However, growers often obtain a PACA license to benefit from the financial protection afforded to licensees under the PACA Trust.

Dispute Resolution Services

The PACA Dispute Resolution Service provides industry members a forum to settle commercial disputes. These creative options serve as an alternative to traditional legal proceedings, which are often time consuming and expensive. Industry members are provided with alternatives such as filing informal complaints or participating in mediation facilitated by PACA staff. In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Enforcement

The PACA Division provides investigative enforcement to promote compliance through administrative actions against firms or individuals who are not trading fairly. It also stimulates payment of past-due produce debt back to the industry when circumstances permit. Licensees who violate the PACA may have their license suspended or revoked. Individuals determined to be responsibly connected to such licensees are restricted from being employed or operating in the produce industry for a set period.

PACA Trust

The PACA Trust affords sellers with financial protection if a customer declares bankruptcy or insolvency. Trust provisions place sellers of fresh and frozen fruits and vegetables into priority status when their buyers experience business failure or file for bankruptcy protection. When a supplier sells produce to a buyer, the supplier, whether licensed or not, becomes eligible to participate in the Trust. In the case of a business failure or bankruptcy, the debtor’s trust assets are not available for general distribution to other creditors until all valid trust claims have been satisfied. Since its inception, hundreds of millions of dollars have been paid to qualified produce creditors under the Trust provision. In case of a buyer’s insolvency, the PACA Trust protects growers and farmers as secured creditors by providing legal protection in a suit and a means for recovery for damages.

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