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>> This is a 3rd session that we've had. Today and we hope that this is a benefit to our clientele to our producers and also within the organization here in Virginia cooperate of the extension to share these updates and make make the best use of it and it we have during the current situation just a few ground rules this morning we've got 2 speakers I think that are going to share some topics with us we just ask everyone when you've entered the meeting believe everybody has been put on you so we're going to leave it that way while the speakers are presenting and then at the end of the presentation I will take some questions for our speakers and we'll on you everybody at the end if you have a question and you just want to jot it down or put it into a chat box if you put those in the chat box during a presentation we'll go back and scroll through all of those questions to make sure that we cover everybody and get all your questions answered as best as possible so with that being said we'll go ahead in an interview saw 1st speaker this morning where we're pleased to be joined by John Bobet who is assistant professor of agricultural economics at Virginia Tech So John we reprise should you join us this morning and I think John is going to be talking a little bit about that he coded 1000 situation and the cares act and something tells us so she added with at and maybe answer some of your questions for the financial side of your production operations or agricultural natural resource operations whatever you may be joining us for this morning so with John we appreciate you joining us and go ahead thanks thank you thank you so much Robby.

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Yeah so so. Title on the side to have here is cut in 19 and cares act but really I'm going to be focusing on the cares Act and some of the. Issues associated with the outbreak as they relate to agriculture. So just hasn't this claim or this presentation certainly doesn't constitute legal or medical advice I'm going to contest that I do my best to understand policy and talk about policy implications.

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And the economics of of. All that's happening but it's certainly. Not me to advice. So here's a little how wine. We're going to be talking about. Well the situation is in Virginia the cares act and then coated 19 and farm labor and a couple of other related issues.

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So as we all know this is a global pandemic and. The numbers are changing rapidly every day. Thousands of people are dying in the United States every day and I just want to remind everybody that in Virginia as of 22 and half weeks ago now under Northern issued a state executive order we are supposed to be able to sustain a house for the most part but we may leave for many reasons including buying food.

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Seeking medical attention taking care of other people visiting family members facilitating child care. We are allowed to engage in outdoor activity including exercise if we maintain a distance 60 from others we may travel to and from our residence I work. And we have banned gatherings of more than 10 people.

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Of course this is all these are all rules on the books that we have proper different ways very little in force names of any of this but I bring it all up as a reminder of how we should be maintaining. Distance from each other that should be inventing our activities outside the home.

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Agriculture is considered essential industry. And. You know as far as I know no no state in the country has shut down farming operations as places of employment. But you know other than other than work we really shouldn't be doing much outside the house. So the cares Act the stimulus package that was passed a few weeks ago is what I'd like to spend most of my time talking about this morning.

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So this was a 2 trillion dollar package that was passed and signed last week of March they set aside within this $23.00 and a half $1000000000.00 for farmers $14000000000.00 of that $23.00 to have billions going to be used to. Re up the account of the commodity credit commodity credit Corp.

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This. Corporation will use those funds to make payments to farmers hurt by code 900 using similar I'm sort of method as the same commodity credit corporation used to help farmers who were hurt by the trade war of in the last 2 years. You know addition to that $14000000000.00 There's another guy I don't have the him which is given to the secretary of agriculture is office that is supposed to be used specifically to support producers of livestock dairy and specialty crops and also for his for support local food systems and I understand based on his article from Chris claimed that the industry groups have put in requests for certain number of billions of dollars.

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Of this money of this $23.00 have to go in and it will be up to some. Economists and other decision makers with then the u.s.d.a. secretary's office to disperse that money. I also want to have a couple of other. Liberal focused. And farming focused out elements of this massive piece of legislation they are putting yet another 100 the $100100000000.00 for rural broadband and there's a small tax incentive for farmers who don't need commodities to share.

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Of course in addition to the u.s.d.a. specific programs some farmers and farm workers are going to benefit from the checks or direct deposits that everybody should be receiving within a couple of weeks. If you make less than $75000.00 as an individual or less than 150000 as a married couple you'll get $1200.00 per adult and another $500.00 per child and as your income rises up to $99000.00 per person.

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This benefit is phased out. What you know this is this is been in the news a lot of the last few weeks and I'm sure you've read about it but one thing I want to make sure to hit the size is that this is based on the most recent tax return to you've filed so if you filed your $29000.00 tax returns.

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The payment will be based on your income in 20 and if you haven't found a 2900 tax return you may want to think about whether your income or number of children. Makes it more of an advantageous to. Base to have these payments based on your 20000 or 2900.

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So if you have $2900.00 tax return yet it will be basically $20000.00 tax return. And it's not about which one is more but of well once you file the $29000.00 tax return there's nothing you do about the payment will be based on your $20.00 tax return. The other big component of the stimulus package that's been making a lot of headlines is the paycheck protection this is administered through the Small Business Administration.

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It's really important to note that looms will be forgiven entirely if all employees are kept on the payroll for 8 weeks and if the money is used to cover payroll rent mortgage interest where he Toni's. Theoretically it's available through June 30th 2020 but I just heard on the news a day or 2 ago that the s.b.a. is likely to butt out of the money to allocated to this program by today or tomorrow so if you have if you're a farmer and you're And you've been thinking about the paycheck protection program you've got to submit your or your loan paperwork today.

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To have a chance of getting these this is a. Loan Program that's broadly available to small businesses those with fewer than 540 days whose principal place of residence is in the United States so it does not so if you have migrant laborers they do not count towards that $500.00 employees limit.

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I'm sorry I should update and that's I didn't I don't know what happened there. This was from my presentation 2 weeks ago when there's work to begin processing if it were done it will thorough. And so and the other thing is if you so most most employers should expect to get their loan forgiven entirely if you don't get it forgiven then the maturity will be 2 years and it will have an interest rate point 5 percent.

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So that loan amount is calculated as your average monthly payroll in 2019 times 2 and a half you know there was 2 half months worth of payroll expenses there are a couple of adjustments to this obvious take basic formula one is that each employee salary has to be capped at $100000.00 per year the other is that migrant laborers h 2 n h 2 b. workers pay does not count towards payroll for for the purpose of translating this money.

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And then the legislation says the boom forgiveness will be provided for the sum of payroll costs mortgage interest payments rent payments and utilities. Now the 75 percent of the loan amount should be spent on payroll costs u.s. business may only take out $1.00 and I've provided a link here from 2 to have a website from there by yesterday that provides more information.

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So proprietorships are eligible for the paycheck protection program if you provide documentation. Including documentation of the business was operating as of Feb 15th and some payroll tap payroll your creation. You must include that 1040 Schedule c. some of some of the forms there may be some flexibility but also worth noting that you have to provide payroll information and not all farms may be able to provide you can go to the u.s.d.a. says coronavirus website you guessed it I got slashed coronavirus to see more information about how.

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How this documentation may may apply to you right now. I just want to prevent it about this other s.p. a run programs called an economic injury disaster. So farms are you know a jewel for this except for cooperatives higher postal enterprises and nurture ease. And so for that reason I don't want to spend any more time talking about the idea but the site is here the wind is here and so if you go back and view the record later you can get more mission about it.

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There are some additional committed to the plight of small businesses in general not just farms. If you don't take out a misfit limb you may receive a tax credit for keeping employees on payroll. This a tax credit will be 50 percent of employees wages up to a certain limit.

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But you have to document a 50 percent reduction in receipts relative to the same quarter the previous year. You know addition to to all. These new limb programs the s.b.a. he's going to be paying principal interest and fees on certain existing. Loans that have been issued biased not in the 70 ones and 5 of 4 the hands and also my programs this principle interest in fees will be paid for 6 months on existing loans and it will be paid on new homes through September 27th.

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Final little. Character giving to small businesses that self-employed individuals and employees may defer the 6.2 percent payroll tax and pay it 420-2122. So just a couple more issues I want to Sky Besides what is. You know in the legislation that was issued a few weeks ago. Farm labor a lot of farmers have been concerned.

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Guest workers may not be able to cross the Mexican border trying to Pendennis. But the Department of Homeland Security has stated very clearly that by or cultural guest workers are considered essential and they are going to be allowed to cross the border despite whatever other restrictions may be in place they've also agreed to waive it in person interview screeched to a visas and they've kept the u.s. consulate in Mexico open so there may be some some issues still with getting laborers but you know in terms of like the policy that's on the books guest workers are certainly supposed to be able to get there he says get it he says renewed and cross the border another couple of issues.

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That I wanted to raise this morning to just come up in conversations this week. What's happening with cattle markets just in the last couple of weeks. There's been a lot of meat plant closures just to Al breaks coronavirus among workers you need. Capacity is down something like 25 percent in cattle import.

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Houses and so what does that mean for farmers to means that. Buyers are not buying as many had if of cattle. You means that prices are going down prices received by farmers are going down. And at the same time there isn't as much meat reaching consumers so. There's this perception and it is relatively scarce now and you know grocery stores are running out of meat on the shelves and said retail prices are going up to some extent now and farm prices are going down yams that's certainly.

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I think has a tendency to create a sense of panic among both producers and consumers we. Had a conversation a couple of days ago and a couple of the agents were talking about how. You know with the way that the way that the market is going the way the prices are looking.

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It's going to it's just going to become more and more expensive to keep feeding cattle that are ready to market and the prices certainly don't seem to they're not going to recover very soon because of the way to meet plants are closing so you may be a good idea to go ahead and.

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Market your cattle. Just given given that it's going to be more and more expensive to keep getting them. Ok so this lie just summarizes what I said what I said of the last minute. You know prices prices paid to farmers is going to decrease farmers may have to find another buyers farther away now and.

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Prices if it graze should probably also decrease because. The prices that farmers are receiving from the fed cattle are not to higher. Last because I know that there may be some folks on the cart who are interested in vegetables. I've heard that a lot of growers are having trouble finding buyers because their restaurant markets are drying out.

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And so you know that's that's an issue and growers are going to have to make individual decisions if they're able to they're able to make decisions about planting style or harvesting they may have to decide not to plant or not to harvest or to find other buyers. And I just want to highlight it farmers markets.

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May be an option at some growers are considering but they may not be the best option because the state has put in place restrictions on farmers markets they have accidents not requiring that all farmers markets operate as Dr theories are used online create ordering systems so some of the markets are not open and some of them have these restrictions in place that make it even harder to access to those markets so those are the side to have for this morning thank you all so much for listening and I'd be happy to if you need questions I guess after the next speaker Thanks Miles.

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Thank you John we appreciate all all they great information and you taking the time to join us this morning. I guess we'll go ahead John I don't know if cans on the call I don't know if you can hear me can we got can a Shaw think or hope to have from u.s.d.a. on service agency on the call with us this morning and he's just here he does have a formal presentation but if anybody has any specific questions for kin from from u.s.d.a. or to on service agency on he's going to hope to be able to answer some of those questions but at this time I guess we'll go ahead and open it up for any questions for John and his presentation on the carriers Act and the impacts on markets and those things from coke at 19 so.

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I think just a quick note for those of you that are joining us for the laptop or computer if you look in the chat box during the presentation Stephanie did share a couple of those links to the u.s.d.a. coronavirus website as well as a Small Business Administration disaster assistance website so some of those columnist John maybe you can find out information more that information at those links excuse me.

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I guess we'll go ahead and I'm just going on you everybody if you've got a lot of background noise where you are if you would mind you know removing yourself or something if you don't have a question but we'll go ahead and try this and if you have questions we'll open it up for questions now that you know and so.

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Everybody's been on muted. Does anybody have any further questions for John we encourage you all to ask questions this is your opportunity to get get your questions answered. Robbie's this is the Democrat old under the stars form for you this morning thank you Jay are you going to an awesome thanks for inviting me to this so my biggest question for John is political too I think all evolve saw.

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That maybe don't process payroll. Like you know like a standard company. And for those that are newer right so as you know from our conversation the other day our farm did not qualify pretty much across the board for any of the distance. Which in some cases has put our farm.

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In all the stops right so we've been hearing. Rumors that there's going to be some other type of small business potential capital assistance that is designed to help get keep farms going. And whatnot and then I've also heard that u.s.d.a. is getting some specific money that will be utilized for more working capital that is you know designed to be in the cares Act So you know credit checks are less than the qualifications are less than what John have you heard anything like that or is this all just hearsay and rumor.

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There's a great question. For us work to make sure I mean I have not no I'm not. Us to be able to provide more capital to farms I know that. The Small Business Administration p.p.p.. Was there was supposed to be some really quick cash flow coming from. But as I said during my presentation that money is probably going to start tomorrow so I don't I don't know about.

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You know there's this possible program which refers. To my reading it's not indicated cares. I'd love to hear more about it for sure. You have any do you have any links or is this just all based on conversations. You had tenable I do have one link and I'm going to go look for it right now.

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So I will send it off to Robbie. I think I've got 2 links that I sent over to another member. A member of f.s.a. basically saying you know. I think it's I think it's a p R's sustainable culture blog and then again I'll have to go back and look where like even details out like.

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Agricultural provisions for 398 or something like that so maybe a place to reference back to. I know that world development is noted in this in this blog that says that they're going to be given additional income goes through the most. Sections or sectors or divisions of u.s.t.a.. So I also find that.

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Thank you. T.j. this is connection with the Farm Service Agency here in Hanover Maryland. Have you contacted your local volunteer program Brandon office Yeah Brandon Waldron Yeah great guy really appreciated all the information and the kind of the back and forth I sent him some information he sent me some information so I really appreciated that unfortunately based on what I'm hearing from him you know after say still going right they're still moving forward and doing their loans that they take 3 or 4 months our farm will be out of their job before then.

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You know and I'm exaggerating of course that was a little you know God Almighty would be out of business but that's that's the feel right that sense of urgency and so you know again Brandon is awesome his team everybody that I've ever talked to over there they're great but they're honest right which is what we want there up front there Frank t.j. takes 3 to 4 months to you know to go through the process.

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In so like you know for us for our crops not that I'm not going to fill it out it's just. The standard route through as I say the challenge is is that the time it would take me to fill out that. Really big application I've got to spend it elsewhere looking for funds because you know we're getting ready to go get into our big season and with the code shut down it's already have to work coming up with creative and different ways and different ideas to keep our specialty crop.

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Getting into the public. I just I have to manage my time as only selling hours a day and unfortunately dying at the f.s.a. that's going to take create a far greater 4 months that's just not I mean getting my priority but it can't be a priority that way that I sent back right well typically anytime a bill is passed and funds are earmarked for particular program it could take months before trickle down to the county level and then their process begins with application have an app and fill them out or so I do understand Yes Are there any other questions this morning for for either John or kin related to the to the 1000 cares I and on the ng and all of those things in question Robbie I have a question for John yes our Mike actually is John it's a statement you touched on the farmer's market this morning yes quarter to 9 about the same time you signed on we all got the message extension we all got an email from to recent military of.

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Being has just found out as of this morning maybe the farmers' markets have been reopened Ok but but with God strict guidelines. So they are they in fact have been reopened I've got a note from her in also got a note that said From begin your farmer's market.

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Just seeing the new guidelines so they are able to reopen the grid Thank you Ron Yes Yes I'm Mike I see that e-mail in my inbox now. Yes thanks for the update I wasn't sure if you'd gotten that or not yet but if you are just charges for the.

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Next. Brought me to this and again I'd like to mention a few things about the Farm Service Agency we have Tom Yes sir can yes or anything we can ship as well on behalf of all the county offices that you know their doors are open well out our office is open we're working out of our duty to cover not teen pandemic the doors are locked and we are not allowed to let any customers inside the office however we're making arrangements to meet with boosters because this is a crock reporting time a while getting started getting that reporting of corn planted corn as of this point but.

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Farmers can call also e-mail us we can meet them in the lobby at most offices or in the parking lot to exchange information so we can enter the acreage is and keep the ball rolling far as with the programs in crop insurance and so forth so we are making arrangements to meet with farmers not inside the office but we can meet in the lobby and and talk a lot any producers that need maps to assist them with reporting their eggs which we have them available where as requested we will mail them out of the past in some instances deliver them were in the area but.

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Now we have many programs normal right now other than just crop importing but we have a whip program which I don't think many farmers are you aware of this but any issues with the hurricane no excessive moisture of floods do into those 18 into those and not seen crop year.

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We have a whip program which will. I guess pick up some of that the losses they incurred. That crop insurance did not pick up and possibly deny the crop insurance as a as a section for them also I just want to mention that there's no deadline on this program as of yet but it could be announced a time so I know farmers are busy in the field but this is something I need to take a look at to recoup some of the losses from 2000 to 18 to that is not a crop year and 2 thighs not seen specifically is probably prevented plant wheat in the fall of 2 that is 19.

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We really didn't have that many excessive most issues and now team we did have a drop spill and August and September but none of the counties in this area were designated as a decent County which means if you had no rainfall precipitation within a tune of continuous 10 weeks for think for the most part it was a 5 week period for this area.

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Just want to mention that any other questions this morning for were John are can related to the coated 19 pairs that u.s.d.a. f.s.a. programs in the other questions Robbie I have won most of the cattle. Of all. Places where they bring cattle in the sale shutting they were the cattle market yet what is the reason for that I had was talking with one of my large farms yesterday and runs a lot of it.

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And he he just couldn't say that I could not explain why of I told him I said you know maybe the slaughter houses have got to close down because of close contact I got a good day and he well Ok sure you know this great question Mike. The smaller houses a lot of smaller missions a lot about about a quarter of Sawyer houses court in town the Midwest have shut down because.

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Of outbreaks of coronavirus among their workers so it's not it's not really a preventative measure it's more of my necessity. That there this illness is present at a sort of houses and they decided to shut down. Because because it's an actual problem. For their staff and so you get some you know in terms of Virginia maybe it's not an impact maybe it's not a direct impact here yet but maybe just because national count prices are down because some of the sore houses particularly in the Midwest haven't been able to stay open or have reduced capacity maybe some of the cattle markets are closing I'm just kind of as a as a knock on or more spillover effect of what's happening among the big aggregators.

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So that's the best I can answer it. I did share with some of you took a day or so ago. A blog. By a pretty prominent agricultural economist Jason mosque and he has posted several. Several blog posts just in the last week or 2 about this issue so I recommend people check that out this week and he's he's very insightful and you can you can mark off or reading his blog in general thank you yes.

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I mean they have no beef on the sales in the supermarkets what they are going to how price people want it all is to keep on with I'm going to go to hell and they can't in the things that and I. So. You're welcome it's very frustrating All right well in lesson anyone else has any further questions just like to take the opportunity to thank John and can again for your time this morning we appreciate you all and taking a few minutes to share those up days and know the folks that were joining us on you know does some information that that's very part man and timely and hopefully will be a great benefit everyone so thank you all again for joining us this morning really appreciate.

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Also would like to thank you know all the participants that called in and joined us this morning we appreciate you all coming in and you know be a part of this effort and in being able to get this information so thank you all for that so we will continue to to host these every Thursday morning at 9 am for those of you you know that have joined us you have the links and phone numbers to be able to call in if you know friends or family coworkers anybody other producers that may benefit from these calls please share that information you know this is open for anyone so anybody to benefit we greatly urge him to join us so just like to thank everybody again and hope everyone stays safe and healthy through this thing in if you have any questions you know please contact your local extension agent in whatever county you may be joining us from that would be glad to help so thank everybody and have a great rest of your afternoon.