Good morning. I call this hearing to order. The chair is authorized to declare recess at any time. I want to thank everyone especially the witnesses for joining us today for the committees. I want to make sure to note some important requirements. Let me begin by saying that the rules and practice will continue to apply during the proceedings. All members are reminded that they are expected to appear to the rules including the quorum. The d and the guidance from the rules committee in a manner that respects the rise for all members to participate. It requires the members to have connections so please keep your cameras on. Also if you have to participate in another proceeding, please exit this one and log back in later. On the technical issues, recognized in the questioning i will move to the next available member of the same party and recognize that member at the next appropriate time slot provided the of returned. If a witness loses connectivity during testimony were questioning, i will reserve the time. I may need to recess to provide time for the witness to reconnect and finally remember to remain over the last few months, the outbreak has led to an unprecedented Public Health crisis and creating a dire economic crisis. Three out of the four businesses are experiencing a decrease in revenue since march and over half of the Small Businesses are concerned about being forced to close. Small businesses across this supply chain system have been impacted. Social distancing and staying at home orders became commonplace, the closing of restaurants and workers at the front lines of the pandemic and the effects heard across the production processing and retail chains. Companies that process and deliver food to the commercial businesses have cancellations across their entire customer base. The professors were backlogged. Grocery stores struggled to maintain inventory for the food at home consumption. Many of the issues facing the society existed before the pandemic now because of the inability to control the spread of the virus, they remain worse. They were already under pressure but now have millions of unemployed americans turn to their families. Sweeping consolidation has led us with distributors and retailers. The multinational corporations have received millions while Small Business continue to struggle to survive. On the front lines many of whom are immigrants and people of color feel like this by experiencing high rates of the coronavirus. Congress, especially members of this committee has worked to secure funds to help american Small Businesses provide this crisis. The paycheck Protection Programs have helped millions of Small Businesses to stay afloat. Along the way, weve tried to wo improve the programs and ensure that minority Business Owners and world Business Owners who often do not have relationships with National Banks being served on the program and amending so the businesses could access the program. But more needs to be done and that is why we are here today. Yes the program greatly assisted 5 million businesses but there are approximately 30 million Small Businesses in the u. S. And they continue to face an uncertain future. In fact, reports in may 2020 employment in the hospitality and food service was down 41 compared to may. We are still hearing reports of more facing bankruptcy. This pandemic is further highlighting an economy that wasnt working for everyone. Prior to the pandemic, 40 of americans didnt have 400 in the bank. More than 20 of households experienced in security. In the past six months, as millions of americans are unemployed, amazon, facebook, target prices are near alltime highs. This is the tale of two economies. One that is working for wall street while the businesses were left behind. Many Small Businesses are closed and the systems are still in a difficult decision of figuring out how to pay rent while many have shut down forever. As we work to help to assist the American People in american Small Businesses, i look forward to hearing from you or panelists today about how congress can address the ongoing challenges facing the system and how we can further assist in the recovery. Again i want to thank the panelists for joining us here today, and i will now yield back to the Ranking Member for his opening statement. Thank you, madam chair. Since march, the nations way of life has been disrupted. Americas food system has been hit particularly hard. Restaurants were closed todays hearing will provide muchneeded context to these experiences, because we better understand why, we can better prepare for the future. The nations food system is typically geared to the commercial demand. Restaurants and cafeterias, for example, more than Retail Finance and Grocery Stores. When our food demand slipped from eating out to cooking at home, businesses on the supply chain had to pivot to provide. But it wasnt quick enough to repackage and distribute the fresh produce, milk and originally prepared for commercial use. We have all made dramatic changes to our everyday lives. Producers among the supply chain quickly adopted new Customer Business models. The strategies and services such as Online Retail or local delivery require significant investments of time and money. Recently, i had the opportunity to spend some time in waynesville back home in my district to meet with Small Business owners impacted by the covid19 pandemic. One business owner, of village family restaurant, spoke with me about how she utilized the paycheck Protection Program, the ppe program to keep her 25 workers and employed. Most importantly, those folks that worked to continue to support their families. To accommodate pickup, delivery and Indoor Dining. At this committee, we understand the power of the nations innovative spirit. Now the rest of the country can see it firsthand. Investments being made by Small Businesses across the supply chain are creating a more resilient system for all of us. I want to thank the witnesses were sharing their experience and for being a part of our national recovery. Thanks for holding this hearing. And i yield back. Thank you. I would like to take a moment to explain how the hearing will proceed. Each witness will have five minutes to provide a statement and each Committee Member will have five minutes for questions. Please ensure that your microphone is on when you begin speaking and that you return to mute when finished. Id like to thank the witnesses for taking time out of their busy schedules to join us. The first witness is kimberly gordon, president and ceo, Third Generation manufacturer and primary distributor. The second witness the independent Grocery Store that has been innovated in online and mobile. The third witness the National Farmers union which represents family farmers and ranchers across the country. Finally, i would like to turn over to the Ranking Member to introduce the last witness. Thank you, madam chair. Cofounder of seventh son brewing which opened in april of 2013 and its sister brewery that opened up in november of 2018. He developed a passion for American Craft beer especially ohio craft beer working in restaurants and bars across columbus. The past six years, he served as the president of the Ohio Craft Brewery Association that represents more than 300 across the state. I had the pleasure of meeting him during the Brewery Association virtual hill time in july. I want to thank him for taking time away from his business to be with us here in dc today. Its nice to see him and we definitely appreciate especially being here in person, so thank you. Id like to begin by recognizing ms. Gordon for five minutes. You might need to unmute. [inaudible] apparently having some technical difficulties, we are going to recognize mr. Wright for five minutes. Good morning, chair man valazquez and Committee Members. Im the owner of the market and independent Grocery Store located in alabama. It is an honor to share my experience serving on the front lines of the pandemic. Im testifying on behalf of the National Association representing the supermarket industry. A familyowned business that started as a Small Convenience store in 1973 involved in 22,000 squarefoot Grocery Store, independent grocers like me are deeply rooted in the communities we serve. Our mayor allowed me the opportunity to join virtually from city hall in testament to the strong support we received from the community leaders. 202 2020 has been a challenging year. Since midmarch, theyve sustained historic levels for grocery and household products. Weve had to adapt to large volumes of customers stocking up on weeks worth of food, categories like paper, cleaning supplies and shelfstable products. Seven months into the pandemic the supply chain continues to cope with major product shortages. Throughout the pandemic wave dealt with significant operational challenges to keep up with the demand and working to provide the best environment for the customers, and employees including adapting enhanced cleaning measures and using protective equipment. It hasnt been easy. I would like to say independent grocers are flying a plane and building it at the same time. I want to say thank you to all of the dedicated employees. We call them our supermarket heroes. Although resilient in overcoming the challenges, we have seen the Playing Field. First is due to economic discrimination. Inconsistent with the shortages of the high demand products its not just a symptom of the Current Crisis. Its the direct result of a lack of antitrust enforcement and the dominance of the power buyers in the marketplace. Dominant size and scale with manufacturers and suppliers in a way that disadvantages smaller independents which meets the ability to compete. For decades independent grocers had access to pricing and packaging deals provided to larger firms. Ive got access to the promotional pricings and ive watched them continue to sell. This has made us much less attractive to seeking onestop shopping in the pandemic. De facto power isnt only filled by small but it harms consumers that live in the areas served by independents. It allows customers to benefit. The technical barriers make it difficult for small retailers. The store remains the only corroborate or to launch and meanwhile amazon have been spending their program almost nationwide. Independents need a quick approval process, less technical barriers to the lower implementation cost. Leveling the Playing Field you need to unmute. Thank you, chairwoman and distinguished members of the committee. President and ceo im pleased to have the opportunity to appear before the committee today to discuss the pandemic. A Third GenerationFamily Business based in boston. We are one of americas distributors and we are proud of our record of supplying hundreds of millions of healthy meals to American Families for over 90 years. Half a million work in the middle of a supply chain and Many Companies like mine. We are the vital link from the oceans to your table. Over two thirds of the industrys 150 billion in annual sales comes from restaurants and other Food Service Establishments such as University Dining hall and cruise ships. This capacity limits many restaurants and other venues across the supply chain are at risk of failing. This is unchartered waters. Also with the job losses that go with a downturn. My company lost over 70 of its business in the weeks following the shutdown. Many struggling companies rushed into some began selling directly to consumers. Millions of dollars had to be destroyed and when restaurants moved to curbside pickup, they didnt get their fair share. Even with partial reopenings and they were faced with increased cost at the time many are operating at below capacity. Its only through ingenuity, resilience, determination Companies Like slade gorton have beegordon havebeen able to prov. One of the biggest issues currently affecting the seaFood Supply Chain is related to the large debt owed to distributors for food restaurants couldnt sell during the mandated shutdown. Now that the establishments are open and working to reopen, they need to rely on suppliers to continue to provide credit to restock their kitchens. We are faced with choosing to extend further credit with risk or abandoning what are in many cases decadelong customer relationships. My company chose to stick by because without them, we have no future. We estimate that the industry has about 2. 2 billion outstanding debt in addition to the 10 billion of debt to the larger foodservice community. This isnt something that can be fixed by Small Business. We need help to fix this. While my company is fortunate to receive a ppe loan that certainly helped us to rehire furloughed employees and keep them on board, we are afraid it will not be enough to sustain Small Businesses at a much longer economic recovery than we imagined early on. If we are going to help the economy get back on track, we need help in this pandemic. Adjusted to 25 of all restaurants in the United States have closed forever. Its imperative Congress Pass another stimulus bill to include expanding the scope of expenditure that qualifies for forgiveness. Allowing restaurants to pay off their current debt and rehire staff will go a long way to prevent additional business barriers. Additionally, the increased cost associated with sanitizing, employee regimens, retrofitting lines and restaurant dining rooms and providing ppe for employees. Increasing these costs are prohibited as we struggle to adapt. I urge congress to consider the federal grants to help pay for these critical Safety Measures and ultimately jumpstarting the economy for the businesses that drive 80 of our gdp Small Businesses. The supply chain is complex, but one that has two ensure every american has sustainable protein. We need the government to recognize the community as a broad and diverse the system we are. I in for you to act now. We are a Small Business, seafood business and Industries Like restaurants. Food is the foundation of health and wellbeing and is at the center of happiness, connection and a vibrant nation. We work to ensure that their respective values with Economic Prosperity and social justice. And the challenges that farmers and the food system faces with health and the economy those that have inputs to farmers and companies who purchased the farmers produce and it has been compounded and frequent Severe Weather events. Since 2012 annual net returns and are downwards from one due to rising production costs and declining prices for commodities. The pandemic to cold it shifted dramatically but the closure of facilities in the meat sector was shut down and at least 370 meatpacking plants or one third of the National Total experience to covid19 outbreak as of last week there were 43000 cases in the meatpacking sector alone. Us department of agriculture showed a 6 percent decrease of april july 2020 farmers losses have not pentup gone to consumers who instead of being more food so far in 2020 that is 3 percent higher than the 19 and adjusted to new consumer demand patterns that facilities largely reopened in the lingered for the system the price of corn has been severely affected by falling demand for ethanol which is 40 percent of corn grown in the us is used for biofuel production. Stayathome orders kept americans off the road and fuel consumption dropped sharply costing 10 million in sales and the allowance of small refinery exemptions the higher blend of ethanol you booted corn prices while unprecedented many of the problems are nothing new with the fragility and the foreign system and to urge policymakers to apply those and then to be more resilient and what that infrastructure and this the stronger antitrust enforcement for federal agencies like the with Us Department of agriculture farmers and ranchers need more choices to market the livestock and to do this we need midsize processing plants and then to ramp up of the recently revised he was act. Earlier this committee hope to gain access a barrier is a requirement to show positive net income because more than half farms have negative income and to support hr 7175 the paycheck protection act allows farmers with net negative income in 2019 to qualify using gross income instead. Lastly pandemic aid efforts help farmers span the Current Crisis efforts should focus on policy changes on the cause rather than the symptom of her book and farm economy one way to do this is a balance production with consumer demand