You are All Amazing
Vermont Agency of Agriculture As we hit the one-year mark of COVID-19's devastating shock to our community and nation, we'd like to express our awe at the resilience, hope, and inspiration that we have witnessed across Vermont's farming and food community. In those early months, when we all felt paralyzed in disbelief - like our world was crumbling, we saw businesses and individuals conjure the strength, motivation and courage to step outside of the familiar, take risks, form alliances and build new iterations of that true Vermonter grit.
So this week, it feels only right to share a project we have undertaken with University of Vermont and UVM Extension to capture those farm and food business stories. The COVID-19 Impacts on Vermont Farms and Food Businesses: Pivots, Needs and Opportunities report details the experiences of 223 farm and food businesses during the first six months of the pandemic. The report identifies multiple challenges faced by the businesses during the COVID-19 pandemic, and demonstrates that the majority faced economic and market impacts.
Perhaps more importantly, the report highlights opportunities to transition Vermont’s farm and food businesses in a post-COVID-19 context, and outlines strategies to make this possible. Key findings and recommendations are included at the beginning for ease of reading. We hope that this report can provide important information for Vermont farm and food businesses as you look toward the future. Thank you all for your inspiring resilience.
COVID-19 Impacts on Vermont Farms and Food Businesses: Pivots, Needs and Opportunities for the Future
Meredith T. Niles1, Farryl Bertmann1, Emily H. Belarmino1, Mark Cannella2, David Conner3
1 Department of Nutrition and Food Sciences & Food Systems Program, University of Vermont
2 UVM Extension
3 Department of Community Development and Applied Economics & Food Systems Program, University of Vermont
Overview
This report highlights results from a survey of Vermont farm and food businesses conducted during August and September 2020, with a total of 223 respondents. The survey was distributed via a number of non-profit, business, and state agencies in Vermont. Respondents included farms, food and farm product retail, agritourism operators, on-farm food processors, food and beverage manufacturers, nurseries/greenhouses/garden centers, and food hubs/aggregators.
Key Findings
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The majority of respondents experienced a COVID-19 business impact, especially market (58%) and financial impacts (54%).
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The most common market impacts included a change in demand, change in market channels or closure of markets, and the majority of all business types and gross sales categories experienced market impacts.
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The primary financial impacts were a loss of sales, and the majority of all business types and gross sales categories experienced financial impacts.
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There was a significant shift from businesses identifying as financially “vulnerable” before COVID-19 (4.6%) to after COVID-19 (21.2%).
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Among the minority of businesses that reported an increase in sales, this was most common on farms, especially those that produced animal products. Sales gains were most common in either small or large businesses (18% of businesses grossing less than $10K and 24% of businesses grossing over $250K).
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More than 1 in 4 respondent businesses faced a health impact from COVID-19, and more than 1 in 5 faced a human resource impact.
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2/3 of respondents made either a significant (23%) or moderate (44%) business change as a result of COVID-19, the most common being market, safety and distribution changes.
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The majority of respondents implementing new product, market or distribution changes intended to continue these changes for the next 1-2 years.
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While 96% of respondents agreed it was necessary to change their business as a response to COVID-19, more than 40% of respondents did not see opportunity for changes in the future, were not excited about the changes, and did not believe their business had the appropriate labor, finance or equipment to implement changes.
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Smaller grossing businesses and those classified as “financially vulnerable” were more likely to believe they didn’t have the appropriate equipment, infrastructure, technical assistance, finance, labor and skill sets to implement changes.
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Source: Vermont Agency of Agriculture, Food and Markets https://agriculture.vermont.gov