Letter to the Hon. Sonny Perdue, Secretary of the Dept. of Agriculture - Governor Mills urges USDA to add maple syrup to the Coronavirus Food Assistance Program

Letter

Dear Sir/Madam:

The COVID-19 pandemic has been especially difficult for Maines approximately 557 maple syrup producers. 1 Maine is the third-largest producer of maple syrup in America, with 580,000 gallons produced in 2019 and an overall production value of $21.6 million. 2 Maines growing maple industry has an annual statewide economic contribution, including multiplier effects, of an estimated $48.7 million in output, 805 full- and part-time jobs, and $25.1 million in labor income. 3 I write to request that USDAs Farm Service Administration (FSA) include maple syrup as a specialty crop eligible for economic support through the Coronavirus Food Assistance Program (CFAP).

The CFAP program offers support to specialty crops that suffered a five-percent-or-greater price decline or who had losses due to market supply chain disruptions due to COVID-19 and face additional significant market costs. Maine maple syrup producers fit within this definition.

The coronavirus pandemic struck just as the Maine maple syrup production season was beginning. The Maine season typically starts at the end of February/early March and finishes mid-April. Maine maple syrup producers rely on this season for the majority of their sales, which consists of direct-to-consumer, wholesale and bulk sales.

The emergence of Covid-19 effectively canceled the annual Maine Maple Sunday event scheduled for March 21-22, 2020, which typically drives robust direct-to-consumer sales for maple producers. 4 Thousands of Mainers and tourists, who normally visit sugar shacks to enjoy tours and demonstrations, and support producers through on-site purchases, remained home. The loss of this popular and profitable event has been devastating, especially for smaller producers who tend to make the bulk of their sales at that time. Significant losses that cannot be recovered by producers include advertising costs and expenditures associated with non-shelf stable inventory such as value-added maple products.

Similar market disruptions occurred between January-April due to the evaporation of wholesale accounts to institutions or restaurants, which also significantly decreased due to the pandemic. At a May 8, 2020 meeting of the Board of Directors of the International Maple Syrup Institute, in a round table discussion of the industry, large maple syrup packers from both the US and Canada stated that the crop appeared to be large and of high quality in 2020. 5 Sales have only been steady in grocery stores across the North American region. 6 With maple festivals, fairs, and events canceled due to health concerns, restaurants closed, and tourism curtailed both nationally and internationally, many producers have been unable to sell their current production from 2020.

In addition, due to the increase of production and strategic reserve inventory in Canada, the largest maple producing market in the world, bulk syrup prices are falling from $2.26 in 2017 to a reported average bulk price of $2.06 being paid by bulk packers in New England in 2020 7. Due to the decrease in the value of the Canadian dollar and the large supply they hold in their strategic reserve, Canadian syrup is much cheaper on the world market, which forces US prices down. Coupled with falling bulk prices, canceled orders, and decreased demand, both Canada and the US report a record-breaking volume in store for 2020. 8

I strongly urge USDA/FSA to include maple syrup within the CFAP program. Maine producers will be able to document to the FSA the negative price impacts and other evidence of market disruption between January-April 2020. CFAP program coverage will allow these producers to salvage the 2020 season and stay in business. Without such critical support, we fear that some producers will have to cease operations a blow for this otherwise robust and growing industry.

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