Coronavirus Crush Piles up for Florida Growers
So, how bad is coronavirus (COVID-19) impacting Florida’s specialty crop growers? The Florida Department of Agriculture and Consumer Services (FDACS) has released the Florida Seasonal Crop COVID-19 Impact Assessment, a new report providing data on crop losses facing Florida farmers. Based on figures reported by those of you in the field, total crop losses across the state through mid-April 2020 may exceed $522.5 million!
“With high-volume buyers like theme parks and cruise lines closed, as well as continued unfair foreign trade practices, Florida’s growers are facing over half a billion dollars in losses,” said state Agriculture Commissioner Nikki Fried in response to the sobering numbers.
“These crop loss figures reported by growers are the tip of the iceberg – without quick access to meaningful federal assistance, many of Florida’s multigeneration agriculture businesses could be sunk.”
While the report mainly focuses on causes of the collapse, it also highlights some possible solutions in the meantime.
Fried has been in communication with Congress, USDA Secretary Sonny Perdue, and other federal agencies to advocate for fast economic relief, and with major retailers and state agencies to seek additional purchases of Florida-grown products, including produce and dairy. She also has advocated for increased focus on Florida’s food supply and communicated directly with farmers and ranchers to provide resources, support, and connections directly to buyers, consumers, and food banks.
An aggressive ad campaign also has kept the vital nature of Florida agriculture in front of consumers during this time.
This past week, USDA announced $19 billion in aid for agriculture, but concerns remain about the aid’s timeliness and effectiveness due to payment limitations.
The Numbers
According to FDACS, the Florida Seasonal Crop COVID-19 Impact Assessment was assembled utilizing phone interviews with growers on April 15, 2020. FDACS notes that markets, as well as selling and purchase strategies, change rapidly for most crop sectors with the current conditions of the market. Fluctuations for these projected figures should be expected.
Below is information on six of the 11 seasonal vegetable crops surveyed to collect value loss data for the Florida Seasonal Crop COVID-19 Impact Assessment:
- Lettuce: Circumstances have driven sales down by at least 60% for the season, with estimates of 75% or more of the crop being plowed under. A conservative value loss estimate for the Florida lettuce industry is $5 million to $7 million. Some growers in this industry still have one month of harvest left to complete, and report that a more precise estimate will be available once the season ends in mid-May.
- Green Beans: Estimated crop losses of green beans in Florida ranges from 50% to 75% and prices have fallen from $16 to $18 per box to $6 to $8 per box in one week. This crop loss cumulatively could range from 75% to 100% in Central and North Florida where harvest season has just begun. Industry estimates may approach $40 million to $50 million in overall losses. This crop is approaching heavy scheduled volumes and peak production in coming weeks.
- Cabbage: Overall demand for Florida cabbage has decreased by almost 100% following the closure of processed product markets for foodservice. Estimates of crop losses approach $24 million for the Florida cabbage industry.
- Zucchini/Squash: Growers of zucchini and squash are harvesting the crop only where pre-existing contracts are in place or for the purpose of preserving plants. With 25% of the product still remaining in fields, prices have dropped from $28 per box to as low as $3 per box. Estimated losses on Florida zucchini and squash are $17 million for each crop. These crops are approaching heavy scheduled volumes and peak production in coming weeks.
- Peppers: It is estimated that up to at least 25% of the overall Florida pepper crop has yet to be picked, as growers are harvesting only to cover pre-existing contracts, and then are shutting down production quickly to minimize further losses. Each crop is typically only seeing one to two picks, resulting in approximately 20% of the total pepper business being plowed under this season. Estimated losses are at least $10 million on Florida peppers.
- Cucumbers: Many South Florida companies grow cucumbers for the spring market, and 100% of that spring market crop may now be plowed under. Industry estimates approach up to $38 million in overall losses. This crop is approaching heavy scheduled volumes and peak production in coming weeks.
To learn more, click here for a download of the full report.