COVID-19 Impacts & Adaptations Among Washington State Farm Businesses
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WA FARM COVID-19 SURVEY WA Farm COVID-19 Survey, Research Brief 1 COVID-19 Impacts & Adaptations Among Washington State Farm Businesses Research Brief 1 ABOUT THE SURVEY The Washington State (WA) Farm COVID-19 Impacts & Adaptations Survey was deployed from December 1st, 2020 to January 31st, 2021 to capture an end-of-season snapshot of farmer experiences during the COVID-19 pandemic. A total of 265 responses from farmers and ranchers in 33 of 39 WA counties were received. This brief provides an overview of survey respondent characteristics, impacts on farm businesses, challenges encountered, changes made, and utilization of aid. We also provide a synthesis of anticipated future challenges and needs. Figure 1. Geographic distribution of survey responses KEY FINDINGS Diverse Farm Products 1. Different farms and ranches had different • Over three quarters (76%) of farms surveyed experiences depending on size, marketing scale, produced more than one type of product. type of production, and other features. 2. Operation costs increased for nearly 2/3 of farms. • The highest percentage of respondents produced 3. Customer relationships were strengthened for vegetables other than potatoes or onions (45%), many farms marketing locally and regionally. followed by apples (28%), berries (22%), and 4. Many farms expanded their networks. culinary herbs and spices (20%, Fig. 2). 5. There are many concerns for the future, mixed • Overall, nearly half of respondents (48%) produced with cautious optimism. at least one type of vegetable, 42% produced at least 6. Many farmers reported high levels of stress. one type of fruit, 36% produced at least one type of animal product (including aquaculture), and 23% produced at least one type of field crop. RESPONDENT CHARACTERISTICS A Mix of Farm Sizes and Types Statewide Coverage • About two-thirds of respondents (68%) farmed less • Responses were received from farmers and ranchers than 50 acres, and the remainder farmed at a variety in 33 of 39 counties across the state (Fig. 1). of scales including those actively farming 2,000 • Approximately 60% of respondents farmed in acres or more (Fig. 3). Western Washington and approximately 40% of • Of the 254 farms that were in business the year respondents farmed in Eastern Washington. before the pandemic, more than half grossed less • The highest density of responses came from King than $50,000 that year, and 70% grossed less than County and other Puget Sound counties as well as $250,000. About one-fifth reported gross annual Franklin, Spokane, and Yakima Counties. revenue of $250,000 or more (Fig. 4). 1 March 2021
WA Farm COVID-19 Survey, Research Brief 1 • In 2019, 59% of respondents acquired at least one Shellfish 2% quarter of their total annual income from farming, Aquaculture (other) 1% while 35% of respondents relied on off-farm sources for three quarters or more of their total Poultry 16% annual income. Dairy 3% • While 43% of farm businesses had been in operation for 10 years or less, another 40% had Beef 15% been in operation for 20 years or more (Fig. 5). 2000+ acres, 6% Pork 12% 1000 - 1999 acres, 3% Meat (other) 11% 500 - 999 acres, 3% Hay/silage 14% 1 - 9 acres Grains 10% 50 - 499 acres 45% 18% Pulses 8% Oilseeds 2% 10 - 49 acres 23% Potatoes 18% Onions 19% Figure 3. Acres actively farmed Vegetables (other) 45% Apples 28% > $1M < $10K 9% 24% Cherries 15% $250K-$1M Tree fruit (other) 19% 12% Berries 22% $10K-$50K $200K-$250K, 5% 22% Wine grapes 3% $150K-$200K, 3% $50K-$100K $100K-$150K, 6% 11% Hops 2% Figure 4. Gross annual revenue, 2019 Mushrooms 1% < 1 year Honey 6% 4% Herbs/spices 20% Cut flowers 18% 2-5 years 21% >20 years Nursery 9% 40% Seeds 7% 6-10 years Fiber 3% 18% Value-added 15% Other 15-19 years 10-15 years 11% 5% 10% Figure 2. Types of product grown/raised (respondents Figure 5. Years in operation at time of survey could select more than one category) 2 March 2021
WA Farm COVID-19 Survey, Research Brief 1 Employment “We disked under 250 acres of potatoes • The majority of farms (77%) had four or fewer due to processors cutting contracts.” year-round full-time equivalent employees (FTE) the year before the pandemic and just 19% of farms “Our local butcher has been so busy that had five or more year-round FTE (Fig. 6) we can hardly get in which has been our • At peak season, 58% of farms had four or fewer biggest difficulty.” FTE and 33% had five or more FTE. “Just decided to do less this year because it couldn’t all happen.” 8% 12% “Receiving the designation of critical, 3% essential infrastructure boosted the 13% urgency and value of local farms and 8% farmers.” 8% 8% Closure of direct marketing 35% 20% 43% outlets Closure or reduced capacity of 22% 24% 48% 13% indirect marketing channels 64% 50% Disruption of distribution systems 19% 29% 48% Difficulty retaining or finding 17% 24% 55% workers Employee Type Number of Employees Year-round Lack of access to working capital 17% 14% 63% 0 1-4 5-9 10-29 >30 Peak Season Figure 6. Year-round and peak-season employees, 2019 Product going to waste 15% 23% 58% Low prices 15% 20% 60% IMPACTS ON FARM BUSINESSES Closure and/or decreased access 15% 13% 66% to processing facilities Areas of Impact • Respondents reported the most significant COVID- International trade issues 14% 11% 68% 19 impacts related to closure of direct marketing Lack of storage capacity 13% 12% 71% outlets, closure or reduced capacity of indirect marketing channels, and disruption of distribution Reduced availability of farm 11% 29% 56% inputs systems (Fig. 7). Limited availability of • When those who reported minor impacts are also transportation 7% 15% 74% considered, other frequent sources of disruption included difficulty retaining or finding workers, Significant impact Minor impact No impact Prefer not to answer reduced availability of farm inputs, and product going to waste. Figure 7. Impact of COVID-19-related issues in 2020 • While overall fewer respondents reported being affected by international trade issues, lack of access Many Farms Saw Revenue Decreases, to working capital, or limited access to processing Some Saw Increases facilities, the proportion of respondents who were • Thirty-nine percent of respondents indicated a affected by those issues tended to report impacts decrease in revenue of up to $50,000 in 2020 that were significant rather than minor (56%, 55%, compared to 2019. An additional 9% indicated and 54% significant vs. minor, respectively). losses of more than $50,000. • Sixty percent of respondents said their business had • Overall, nearly half of respondents (48%) been negatively impacted overall by COVID-19, experienced revenue loss in 2020 compared to and 30% said the overall impact had been positive. 2019, while 39% saw revenue increases (Fig. 8) 3 March 2021
WA Farm COVID-19 Survey, Research Brief 1 • Revenue changes for smaller farms (those grossing Increased Costs for Producers and less than $250,000 annually) were about evenly Consumers mixed with 45% experiencing revenue decreases • Nearly 2 in 3 producers (65%) experienced and 43% experiencing revenue increases in 2020 increased operation costs as a result of COVID-19, compared to 2019 (Fig. 9). and the same percentage said they increased the • The majority (58%) of larger farms (those grossing sales price of their products as a result of the more than $250,000 annually) experienced revenue pandemic. decreases, with just 32% experiencing revenue • Enhanced safety and sanitation measures were a increases in 2020 compared to 2019 (Fig. 10). leading cause of increased operation costs. Those • Almost one third (31%) of respondents experienced with the most significant impacts were increasing a loss of off-farm income in 2020 compared to cleaning, increasing availability of sanitation centers 2019. and cleaning supplies, and providing PPE (Fig. 11). Increased >50%, 4% • Major sources of increased production cost not related to safety and sanitation included increased cost of inputs (feed, seed, etc.) and processing, additional labor expenses, increased packaging, and increased marketing and distribution costs. Increased Decreased 10%-24% “Fear to go to work… enormous costs 25-50% 14% associated with temping employees and 20% cleaning to make everyone and everything Increased
WA Farm COVID-19 Survey, Research Brief 1 CHANGES AND ADAPTATIONS “[Boosting] production now that food shortages were becoming an issue. Different Farms Made Different Changes Focusing on high demand vegetables.” to Production, Many Encountered Obstacles to Change “Growing longer storage veggies and • Forty-four percent of farms increased production getting more freezer space for fruit.” and 29% of farms decreased production in 2020 compared to 2019 (Fig. 12). • More than half of farms (58%) made at least one Sales Shifted Towards Direct to Consumer change in type, amount, or timing of production in and Food Hubs, Away from Farmers response to COVID-19 in 2020. Markets, Direct to Restaurant, and Direct • The most frequent changes made were increases in to International production volume (22%), decreases in production • Over one quarter of respondents (29%) reported volume (16%), increasing the diversity of products having started at least one new marketing channel in produced (14%), and decreasing the diversity of 2020 compared to 2019 (Fig. 13). products produced (14%). • Marketing channels most frequently started in 2020 • More than one in three farms (35%) said there were were direct to consumer and food hub sales, production changes they wanted to but were unable followed by direct to grocery and on-farm sales. to make. Financial and labor issues were among the • Marketing channels most frequently stopped in most frequently cited obstacles to making changes. 2020 were direct to restaurant and farmers market. • In examining the proportion of farm businesses’ Increased > 50%, 4% total annual revenue coming from various marketing channels in 2020 compared to 2019, the greatest decreases were seen in direct to international, farmers market, and direct to restaurant channels, while the greatest increases Increased were seen in direct to consumer and food hub 10%-24% channels (Fig. 14). 13% Direct to Consumer 8% 1% Food Hub 8% Increased < 10% 3% 17% Direct to Grocery 4% No change 3% 24% On-farm 4% 4% Distributor 3% 2% Figure 12. Change in production volume, 2020 CSA 3% 3% compared to 2019 2% Direct to Instutution 1% Processor 2% 1% 2% “Because we have a lot of experience, 40+ Direct to Restaurant 6% years and extensive infrastructure, we Farmers Markets 2% 8% added several months of sales by adding 0% Direct to International new products normally not sold. Learned 2% Start Stop new packaging methods and negotiating Figure 13. New marketing channels started and existing skills.” channels stopped in 2020, compared to 2019 (percent of total respondents) 5 March 2021
WA Farm COVID-19 Survey, Research Brief 1 Direct to Consumer 9% “Just didn't have the people when I needed Food Hub 6% them to get stuff done on time.” On-Farm 4% Direct to Grocery 4% “Lacking sales, employees were redirected 4% Direct to Institution to maintenance tasks for 2 months. CSA 4% Reduced hours has also helped during Distributor 0% some particularly slow times.” -3% Processor -8% Direct to Restaurant “We became lean, worked longer hours -15% Farmers Markets with fewer people.” -26% Direct to International Figure 14. Change in gross annual revenue attributable Reduced number of employees 17% to specific marketing channels for those farm businesses utilizing a channel in 2019 and/or 2020 Reduced hours of existing 17% employees Delayed hiring of new employees 14% “We have started selling in three different Hired fewer employees than online marketplaces. This required planned 13% significant time to learn and implement.” Increased hours of existing 8% employees Hired more employees than 7% Some Farms Reduced Workforce, Some planned Couldn’t Find Workers Furloughed existing employees 7% • Of the 196 farms who had employees, 42% made reductions in employee numbers, hours, or hiring Figure 15. Workforce changes made due to COVID-19 plans, while 10% increased employee numbers or (percent of total respondents) hours due to COVID-19. • The most common types of labor reductions were Many Locally and Regionally Marketing letting go employees and reducing the number of Farms Increased Customer Connections hours worked by existing employees (Fig. 15). • Overall, roughly equal numbers of farms saw • Of those who let go or furloughed employees, increases (39%) and decreases (32%) in the size of leading reasons were “reduced demand for their customer base (Fig. 16). products” (40%), “lack of payroll funds” (30%), • Of farms marketing predominantly (>75%) locally “inability to support social distancing and/or safe and regionally,* more than half increased the size of handling practices” (30%), and “lack of available their customer base, whereas the majority of farms workers” (28%). marketing predominantly (>75%) nationally or • While just over half (53%) of farms with employees internationally either experienced no change or reported no days of work lost due to COVID-19 could not tell if there was a change. cases, suspected cases, or self-quarantine, another • Customer relationships were weakened for some 43% did report days of work lost for these reasons. farms (23%) but were strengthened for more (36%). • More than one out of every three farms with • Of farms marketing predominantly locally and employees (34%) reported at least some days of regionally, 44% reported strengthened relationships work lost from employee reluctance to work due to with customers, whereas the majority of farms health concerns related to COVID-19. marketing predominantly nationally or internationally either experienced no change or “Wanted to increase our produce but could not tell if there was a change the strength of couldn't find helpers.” their customer relationships. * Locally = within a geographic area e.g., Olympic Peninsula, regionally = WA/OR/ID 6 March 2021
WA Farm COVID-19 Survey, Research Brief 1 Customer Base Customer Relationships Many New Working Relationships and Networks Were Formed 13% 19% 13% • More than one out of every three respondents 20% (37%) said they had formed new working relationships as a result of COVID-19 (see Box 1). 21% 23% 20% 11% • Eighteen percent had formed working relationships with other farms, 18% with collaborative networks 11% 12% 14% 18% such as co-ops and food hubs, and 11% with other agribusinesses. All Respondents UTILIZATION OF AID PROGRAMS 9% 17% 15% 13% 25% Many Farmers Applied for Aid, Some 10% Encountered Obstacles 13% 29% • More than half (54%) of respondents applied for at 28% 14% least one COVID-19 relief program. Overall, 31% 13% 14% of respondents applied for the Coronavirus Food Assistance Program (CFAP), 25% applied for the >75% Local/Regional Marketing Payroll Protection Program (PPP), 11% applied for 3% Economic Injury Disaster Loans (EIDL), 3% 6%3% 5% applied for Pandemic Unemployment Assistance 27% (PUA), and 1% applied for Federal Pandemic 33% Unemployment Compensation (FPUC). 39% • Forty three percent of respondents did not apply 8% 46% for a relief program. Among those not applying for 9% 9% 11% aid, top-cited reasons included choosing not to apply (19% of all respondents), not being eligible >75% National/International Marketing (19%), not having enough information about available programs (9%), confusion about the Significantly increased / strengthened Slightly increased / strengthened application process (9%), and the amount of No change documentation required (5%). Some respondents Slightly decreased / weakened cited more than one reason for not applying. Significantly decreased / weakened Can’t tell or don’t know • Among those who did apply for aid, 36% had no challenges with the application process. However, Figure 16. Change in size of customer base and strength more than half of applicants reported having of customer relationships due to COVID-19 encountered challenges. Top challenges included confusion about the application process (43% of “Zooming at night brought folks together not just to talk shop but to talk … generated sharing ideas.” those applying for relief programs), the amount of documentation required (21%), not enough “Worked with [a] group of local farmers to create a information about programs (16%), and poor cooperative food hub.” internet access (7%). • Many respondents noted the importance of relief “[Started] food processing with local restaurants.” programs for their businesses in 2020, but many also expressed frustration with lack of clear “Switched to online market and opened up sales with other producers. Very challenging and a lot of information, burdensome application processes, and work to pivot but ended up being very successful.” programs advantaging larger farms (Box 2). Box 1. Respondent comments on network relationships 7 March 2021
WA Farm COVID-19 Survey, Research Brief 1 The Majority of Aid Applications Were IMPACT / SUCCESS Approved, Larger Farms Were More Successful Than Smaller Farms “These programs have been really helpful to our business this year!” • Overall, 70% of aid applications were approved, with decisions still pending for another 17% at the “Every little bit helps!!” time the survey was conducted. • Nearly one in six aid applications by farms grossing “CFAP made the difference between profitable and less than $250,000 annually was denied, while not.” applications from farms grossing more than “Received help from my HR office from off farm $250,000 annually were denied much less frequently work, and … from a local nonprofit for CFAP2 or I (Fig. 17). would not have identified these relief options.” 79% 65% Annual Revenue > $250K ELIGIBILITY / APPLICABILITY Annual Revenue < $250K “I looked into funding...way too complicated for a 7% 16% farm of my size and the type of farming.” Approved Denied “Additional funding to conservation districts would Figure 17. Aid application status by farm revenue be helpful since they have the ability to direct those funds to small and mid-size farms instead of large agri-business for whom the majority of relief LOOKING TO THE FUTURE programs were scaled. As a family farm there's no point in us trying to access those funds because it's Many Changes Planned for 2021, not scaled for us at all.” Especially in Production & Marketing “I was never eligible for any of the assistance • More than two thirds of respondents anticipated programs being too small of a farm.” making significant changes in 2021 in relation to COVID-19. FRUSTRATIONS / SUGGESTIONS • Leading areas of anticipated change were production volume, production/planting schedule, “Lack of information on PPP forgiveness very and marketing channels (Fig. 18). frustrating.” Production volume 38% “Would have really helped to be able to apply for the low interest loans, but the time period to apply was Production/planting schedule 32% too short and it was unclear that we would qualify Marketing channels 27% before the program was gone.” Processing and value added 19% “Government agencies not provided with additional Workforce 18% staff corresponding to increase in paperwork for COVID assistance programs, leading to significant Automation 11% delays in application review.” Suppliers 10% “Owner-operators of very small farms were having Technological infrastructure 9% to compete for grants and loans with large commercial operations. We lost out. Other grant Figure 18. Areas in which respondents anticipated and loan programs were either not open to farmers making significant changes in relation to COVID-19 in or we were competing with national chains, 2021. restaurants, and all other types of businesses.” “We hope to double production and automate as much as possible so as to not Box 2. Respondent comments on aid programs, need to bring in hired help.” eligibility, and application process 8 March 2021
WA Farm COVID-19 Survey, Research Brief 1 “We expect to produce more and to hire Grant Funding, Help with Distribution more employees. We hope to incorporate Channels, and Help Building Networks software and app technology to more are Top Needs for 2021 efficiently keep records.” • More than half of respondents said that increased grant funding would be beneficial to maintaining Unforeseen Expenses, Processor smooth operations in 2021 (Fig. 20). Capacity, and Supply Chain Disruptions • Approximately one third of respondents said that Are Top Concerns for 2021 programs to facilitate new distribution channels and • More than 80% of respondents were concerned collaborative farm networks would be helpful in about unforeseen expenses in 2021, and 70% were 2021. concerned about their ability to adapt to market • Between one fifth and one quarter of respondents uncertainty (Fig. 19). also said that increased extension support, cost • Nearly three quarters of respondents (72%) were share programs, COVID-19 compliance guidance, concerned about disruptions to their input supply and programs promoting infrastructure flexibility chains in 2021, and 59% were “very concerned” would be helpful. about the capacity of processors. Increased grant funding 55% • More than one third of respondents also said that Programs that facilitate new they were either very or moderately concerned 33% distribution channels about their ability to offer competitive wages, the Programs that facilitate 31% availability of labor, the availability of government collaborative farm networks aid, disruptions to distribution channels, their ability Increased extension support 25% to adapt to changing consumer preferences, access Increased cost-share programs 24% to medical care, and ability to follow safety guidelines. Guidance for COVID-19 22% compliance Programs promoting Capacity of processors 59% 20% 17% 20% infrastructure flexibility Unforeseen expenses 35% 47% 15% Increased business loans 15% Ability to adapt to market 25% 45% 28% Figure 20. What would be most beneficial for uncertainty maintaining smooth operations in 2021 Ability offer competitive wages 23% 26% 48% Availability of government aid 23% 23% 50% “We have reduced or eliminated all planned capital investments into Disruptions in input supply chain 23% 49% 25% infrastructure upgrades on our farm.” Access to medical care 22% 21% 55% Disruptions in distribution “We need to plant additional crops, but 21% 37% 38% channels the reduction in net income during 2020 Ability to adapt to changing consumer preferences 20% 38% 39% will limit what we can afford to do in 2021 (both materials and wages).” Availability of labor 18% 33% 46% Availability of off-farm 14% 21% 62% Preparedness to Adapt to Future employment Ability follow safety guidelines 14% 24% Challenges 59% • When asked about business support networks and Very concerned Moderately concerned personal and workforce resilience, 83% of Not concerned Prefer not to answer respondents said they were at least somewhat Figure 19. Concerns for 2021 confident they could find ways to adapt to challenges that may arise related to COVID-19 in “I don't have a clue where my market is...” 2021 (Fig. 21). 9 March 2021
WA Farm COVID-19 Survey, Research Brief 1 • When asked about farm business financial health “We need to scale back to be sustainable and confidence in being able to afford to make any for ourselves. Avoiding burnout is now a changes that might be necessary in 2021 related to major focus and concern.” ongoing COVID-19 impacts, 69% of respondents said that they were very or somewhat confident. More than a quarter of respondents were not 43% confident they could afford to make such changes 7% (Fig. 22). 31% 38% 17% “Had to spend a lot of time increasing and 18% expanding online presence. Hoping this 31% will help into next year.” Normal Mild Stressed Anxious Depressed Moderate Severe “Stoicism helped the most.” PHQ-4 sub-scales No response Figure 23. Stress, anxiety, Figure 24. PHQ-4 anxiety 3% and depression and depression scale 10% 9% 15% 26% 19% ACKNOWLEDGEMENTS The research team is grateful to the many farmers 54% and ranchers who took time to share their 57% experiences, and to the individuals and organizations who provided input and helped with Very confident Not very confident survey dissemination. We also wish to thank the UW Somewhat confident Not at all confident Nutritional Sciences Program for their support. Figure 21. Confidence in Figure 22. Confidence in adaptability: personal / adaptability: financial ABOUT THE RESEARCH TEAM social / network capacity capacity The WA Farm COVID-19 Survey was a joint effort between the UW, WSU, and WSDA. Sarah Collier is an Assistant Professor in the Nutritional Sciences STRESS AND MENTAL HEALTH Program (NSP) and Department of Environmental Health Sciences (DEOHS) at UW. Anna Fogel is a graduate student in NSP at UW. Madison Moore is Stress is High Among Farmers and an Agricultural Economist at WSDA. Yona Sipos is an Ranchers Assistant Teaching Professor in NSP and DEOHS at UW. Laura Lewis is the Director of the Food Systems • Forty-three percent of respondents reported feeling Program and an Associate Professor in Community stressed all or most of the time in the past 30 days and Economic Development at WSU. Laura (Fig. 23). Raymond is the Regional Markets Program Manager • Based on the past 30 days, nearly one quarter of at WSDA. respondents experienced moderate to severe anxiety Further Information and depression as determined using the validated URL: https://nutr.uw.edu/cphn/wafarm Patient Health Questionnaire 4-item (PHQ-4) Email: foodsystems@uw.edu assessment tool (Fig. 24). Suggested Citation “Stress of keeping the crew healthy.” Collier, S.M., Fogel, A., Moore, M., Sipos, Y., Lewis, L., and Raymond, L. “COVID-19 Impacts & Adaptations Among Washington State Farm Businesses, Research Brief 1” (March 2021). WA Farm COVID-19 Survey. “Biggest issue is worry.” https://nutr.uw.edu/cphn/wafarm/brief-1 10 March 2021
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