What the American Rescue Plan Means for the Agriculture Industry

Posted by Growing Produce Staff|March 12, 2021

The Joe Biden Administration has officially made its mark with the signing of the nearly $2 trillion COVID-19 relief bill known as the American Rescue Plan Act. The legislation provides much-needed aid for millions of families and businesses still struggling amid the pandemic. The agriculture industry stands to benefit as well.

The Act includes provisions for produce growers, marketers and consumers, including continuing nutrition assistance, USDA purchase programs, and tax considerations.

Produce Marketing Association (PMA) CEO Cathy Burns applauds the enactment of the American Rescue Plan Act and provided the following statement on the matter: “The Act provides essential funding that continues to support our growers, marketers, and consumers. We are especially gratified to see the inclusion of $28.6 billion for grants to restaurants – a key sector for the produce industry and the overall economy. We urge the prompt implementation by the Small Business Administration.”

Below are the highlights relevant to the produce and floral industries. These details are compiled from Committee summary documents, USDA Fact Sheets, and other publicly available documents to provide clarification of the American Rescue Plan Act.

Producers:

Increases food donations: Purchases more food from farmers for distribution through food banks, nonprofits, or restaurants, helping to feed families in need and support farmers’ bottom lines.
Helps to protect food workers: Provides grants and loans to purchase personal protective equipment, test kits, and other measures to keep essential food workers safe.
Improves infrastructure: Provides infrastructure investments and retooling support for food processors, farmers markets, food banks, and producers to build resiliency in the food supply for the long term.
Supports a diverse and inclusive food supply: The Act is expected to grant around $5 billion to socially disadvantaged farmers and ranchers to support debt relief, assessment of current USDA practices, and other measures.
Supports livestock and animal health: Provides funding to monitor COVID-19 in animals and reduces overtime inspection fees paid by small meat and poultry processors.

PMA will continue to provide updates for the industry to clarify how the act will impact the global supply chain.