Coronavirus impact on the nations Food Industry, Small Business can be heard from representatives of the industry on supply chain issues, loss of customers, perishable food than facility cleaning and maintenance, this is just over 90 minutes. I call this hearing to order. Without objection the chair is authorized to declare recess at any time. I think everyone especially our witnesses for joining us today for our committees private hearing. I want to note some important requirement. Let me begin by saying the Committee Rules and practice continue to fly during hybrid proceedings. Members are reminded they are expected to adhere to these rules including decorum. During the period designated by the speaker the committee will operate in accordance with House Resolution 965 under subsequent guidance from the rules committee in a manner that respects the rights of all members to participate. House regulation requires members to be visible through video connection throughout the proceedings so please keep your cameras on. Also, if you participate in another proceeding please exit this one and walk back in later. In the event a member encounters technical issues that prevent him from being recognized i will move to the next available member of the same party and will recognize the member, provided they return to the proceeding. In the event a witness loses connectivity during testimony or questioning i will reserve their time for technical issues. We need to reassess the proceedings to provide time for the witness to reconnect. Finally, remember to remain muted, you are recognized to minimize background noise. Over the last few months the outbreak of covid19 have led to an unprecedented Public Health crisis and created a dire economic crisis for small firms. Three or four businesses are experiencing a decrease since march and over half of Small Businesses are concerned about being forced to close. Small businesses across the Food Supply Chain system have been impacted. Social distancing and stayathome orders became commonplace the closing of commercial kitchens with restaurants and workers at the front lines of the pandemic and harmful effects heard small firms across the Food Production processing and retail chains. Companies that deliver foods to commercial businesses face abrupt order across the entire customer base, farmers who plant crops, attend livestock for months based on prepandemic demands of markets where they are unable to find processors for their products. Processors were backlogged and stopping materials. And inventory as consumers to buy food for small consumption. Many issues facing our food system and society exists in prepandemic, because of the inability to control the spread of the virus they make worse. And the banks were under pressure plus millions of unemployed americans turn to with their families. Consolidation has led us with far fewer small farms, professors, distributors and retainers, large multinational corporations received millions in support while Small Businesses continue to struggle to survive, essential farm and food system workers on the front line many of whom are immigrants and people of color, feel like basic Worker Protections by experiencing high rates of coronavirus. Congress, especially members of this Committee Reports to secure funds to help americas Small Business survivors crisis. The economic injury, the Disaster Loan Program and Paycheck Protection Program has helped millions of Small Businesses and farmers to stay afloat. Along the way we tried to improve those programs ensuring that minority Business Owners and Business Owners who often do not have relationships with National Banks inside the ppp program and amending either program so small American Farm businesses have access to programs but more needs to be done and that is why we are here today. The ppp program greatly assisted 5 million businesses but there are approximately 30 million Small Businesses in the us and they continue to face an uncertain future. The fda reports in may of 2020, employment and leisure, hospitality and foot service were down 31 , we are hearing reports of more farmers facing bankruptcy. This pandemic has further highlighted an economy that is not working for everyone, prior to the pandemic 40 of americans, 400 in the bank for an emergency and more than 20 of households experience Food Insecurity. In the past 6 months, as millions of americans are unemployed, on facebook, target and others, prices are near alltime highs, this is a tale of two economies, one that is working for wall street while main street businesses are left behind, many Small Businesses are still in a difficult position of figuring out how to pay rent and provide while many have shutdown forever as we work to help assist the American People and american Small Businesses, i look forward to hearing from our panelists today about how congress can address the ongoing challenges, how we can further assist in the recovery. I want to thank the panelists for joining us today and i yield to Ranking Member mister chabot for his opening statement. Thank you, madam chair. Since march our nations way of life has been disrupted due to covid19. Americas food system has been hit particularly hard. Our favorite restaurants were closed, meat options were low at Grocery Stores and many essentials were sold out. Todays hearing will provide muchneeded context to these experiences because if we better understand why, we can better prepare for the future. The food system is geared to commercial demanding cafeterias, more than retail demand Grocery Stores. Flipped for eating out to cooking at home businesses along the supply chain had to pivot to survive. The system didnt adjust quickly enough to repackage fresh produce, milk and meat originally prepared for commercial use. We made dramatic changes to our everyday lives. Produces on the Food Supply Chain quickly adopted new direct Customer Business models, new strategies, services such as online retail, require significant investments, 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, lacey sims, spoke with me about how she utilized protection program, the ppp program to keep her 25 workers employed, she continued to serve the community, and support their families. And accommodate pickup, delivery and Indoor Dining. We understand the nations innovative spirit. The rest of the country can see it, investment being made by Small Businesses across the supply chain are creating a more resilient food system for all of us. I want to thank each of our witnesses sharing their experiences for being part of the national recovery. Thanks for holding this hearing, i would like to explain how this hearing was received. Each witness will have 5 minutes to provide a statement of each Committee Member for questions. Please ensure your microphone is on when you begin speaking and he returned to mute. I would like to thank our witnesses for taking time out of their busy schedule to join us. Our first witness is kimberly gordon, president and ceo, the thirdgeneration manufacturer and primary distributor of fresh and frozen seafood products. Mister jimmy wright, an independent Grocery Store it has been innovated for mobile shopping. Our third witness is rob rob larew representing ranchers across the country. Finally, i would like to turn it over to Ranking Member mister chabot to introduce our last witness. Thank you, madam chair. Mister Collin Castore is cofounder of seventh son brewing which opened in april of 2013, in 2018, he developed a passion for American Craft beer especially ohio craft beer working in restaurants and bars across columbus. The past 6 years, Collin Castore has served as president of the ohio craft Brewers Association, and i had the pleasure of meeting him during the Brewers Association virtual hill climb in july. I thank him for taking time away from his business in dc, it is nice, appreciate being here in person. I yield back. Thank you all for being here. I would like to begin by recognizing miss gordon for five minutes. Miss gordon, you may need to unmute. Miss gordon is having technical difficulties so we will recognize jimmy wright for five minutes. Good morning, Ranking Member chabot and Committee Members. Im jimmy wright, owner of rights market in alabama. It is an honor to share my experience as a food retailer serving on the front lines of the covid19 pandemic. I am testifying on behalf of national Grocery Store associations, trade association, rights market is a familyowned business that started, in 1973. Independent grocers like me are deeply rooted in communities we serve. Our mayor allowed me the opportunity to communicate virtually from city hall. A testament to the strong support we received from community leaders. To say 2020 has been a challenging year would be an understatement. Since midmarch independent grocers of experienced sustained historic levels demand for grocery and household products. We had to adapt large volumes of customers stocking up weeks worth of food, straining supply categories like paper, supplies, 7 months into the pandemic the supply chain copes with major product shortages. Throughout the pandemic we do with significant operational challenges to keep up the demand while working to provide the best environment including adapting enhanced cleaning measures and using protective equipment. It hasnt been easy. Independent grocers are flying a plane at the same time but i want to pause and say thank you to dedicated employees who know the importance of our work to the community. We call them supermarket superheroes. Independent are resilient in overcoming operational challenges, weve seen the competitive field tinted toward our largest competitors in the pandemic in several ways. The first is the economic discrimination. Inconsistent distribution, how demands products, not just a symptom of the Current Crisis but a direct result of lack of antitrust enforcement and the dominance of power buyers in the market. Dominant retailers of size and scale impose manufacturers and suppliers and away the advantage of smaller independents, our ability to compete. For decades independent grocers havent had access to pricing, promotion or packaging deals. Provided to larger firms. Since march these problems have worsened as power buyers use their market power demanding prioritization and distribution of how to demands products. It blocks access to other product and promotional pricing. I watched from my bigbox competitors who continue to sell all products that are available. This made us much less attractive to customers seeking 1stop shopping in the pandemic. The effect of buyer power not only slowly fall small grosses that harms consumers in rural areas, strong enforcement of us antitrust laws to ensure ability to compete for the benefit of all americans. The second issue is limited ability to sell products and snap customers online. Endemic is accelerated, a trend we saw coming. The market lost our ecommerce circus in 2016, we were fortunate to have been selected for usda snap online purchasing power which allows customers to use their benefits online since march, days before National Emergency declaration. It makes it difficult for small retailers to work with the investing process. This is the way the operator will launch. Amazon and walmart expanded their snap Online Program almost nationwide. It there needs to be a quick approval process, less technical barriers to lower implementation cost. The level Playing Field is critical, appreciate your attention, thank you for the privilege to testify today. Recognize miss gordon for five minutes. Miss gordon, you need to unmute. Thank you for that. The president and ceo, i am pleased to have the opportunity to appear before the committee to discuss how the supply chain has been impacted by the covid19 pandemic, the thirdgeneration Family Business in boston, one of americas largest distributors and proud of flying to American Families for 90 years. More than 1. 7 million americans work in the us seaFood Industry, half 1 million in the middle of the supply chain many for small family run Companies Like mine. Without this we would never make it off the dock. We are the vital link that gets food from our oceans to your table. Over 2 thirds, 150 billion in annual sales come from restaurants and other Food Service EstablishmentsLike University dining, and the closure of many venues across the supply chain at risk of failing. They had to deal not only with billions on sale but also with job losses that go in such an unexpected downturn was the company lost 70 of its business in the weeks following the nations many struggling companies rush to free store products, some began selling directly to consumers. Even with that effort millions of dollars in Fresh Products could not be sold or stored or had to be destroyed. When restaurants, it did not get its fair share. The Restaurant Operators face increased cost at a time when many are operating at lawbreaking capacity. It is only through ingenuity, resilience that Companies Like clay gordon have survived thus far. One of the biggest issues on the supply chain, oh distributors for food that restaurants could not sell during the mandated shutdown. Now that Food Service Establishments are open and working to reopen they will need to rely on supplies to provide credit so they can restock their kitchen. We are faced to extend further credit at some risk or abandoning decades long customer relationship. Without them we have no future. The estimates the seaFood Industry has 2. 2 billion in outstanding bad debt in addition to estimated 10 billion of bad debt in the community. This is not something that can be absorbed by Small Business, we need that. The company was fortunate enough to receive a ppp loan helps to rehire and keep them on board, we are afraid these funds will not be enough to sustain Small Businesses, much longer economic recovery than we imagined early on. If we are going to help the economy get back on track we need to help Small Businesses survive this pandemic. Figures suggest 25 of all restaurants in the United States are closed forever. Another stimulus bill to include extending expenditures the qualify for forgiveness allowing restaurants to use funds to pay off their current debt so they can afford to purchase new food and supplies and rehire staff will go a long way towards preventing additional business failures. Additionally restaurants, retailers seek value chains associated with frequent sanitizing, retail spaces and restaurant dining rooms and ppe for employees, these necessary operational opportunities as we struggle to adapt and urge congress to consider federal grants and tax credits to pay for these medical safety measures. And continue support for those businesses driving the gdp Small Businesses. The supply chain is a complex one but one that helps to be the sustainable protein. For the broad and diverse system we are, with a Small Business and industry restaurants. Food is the foundation of health and wellbeing at the center of human connection. Our families now need you. Thank you for allowing me to discuss the impact. Now we recognize rob larew for five minutes. Thank you members of the committee. Thank you for the opportunity to speak today. I serve as president of the National Farmers union. We work to ensure farm families are respected, valued and enjoy Economic Prosperity and social justice, thank you for adjusting the challenges that farmers in the food system faced during this time of crisis and Public Health in the economy and our society. In recent decades our members have been hurt by corporate consolidation among companies who purchase what farmers produce. The mounting market concentration has been compounded by a global trade war and increasingly frequent Severe Weather