OPEN THIS TIP SHEET AS A PDF

The recent federal COVID-19 recovery law includes significant funding for farmers and the agriculture industry. What follows are the most beneficial funding allocations available for small business owners in agriculture and farming.

Paycheck Protection Program (PPP)

Non-employers – businesses without any employees – are eligible to apply for a PPP loan. 

The COVID-19 Recovery law enacted in December includes $284 billion in PPP funding. 

• Previously: Farmers/Ranchers had to use 2019 net income from Schedule F when applying for PPP
• Now: Can use 2019 Schedule F gross income instead of net income
  • ALSO: This is retroactive! So, if you already received a PPP loan, which has NOT been forgiven, you can recalculate and receive a larger loan amount based on 2019 gross income.

NFIB has created a helpful Second-Draw PPP loan tip sheet for small business owners available here.

Agriculture/Farming Targeted Programs

Roughly $13 billion for agricultural and farming-related programs, which includes:

• $11.2 billion to the Department of Agriculture
• $75 million for the Farming Opportunities Training and Outreach Program
• $870 million for the Dairy Margin Coverage program and Dairy Donation Program
• $75 million for the Gus Schumacher Nutrition Incentive Program
• $300 million to the Department of Commerce for aiding fisheries
• $60 million for interstate shipment grants
• $100 million for crop block grant programs
• $28 million for farm stress programs
• $100 million for Local Agricultural Market programs
• $20 million each year for 10 years for nutrition research

More details on selected funding provisions:

• $11.2 billion to the Department of Agriculture is for direct assistance to producers of certain commodities
  • Farmers who produced 2020 price trigger and flat-rate crops are eligible for payment of $20/acre
    • This U.S. Department of Agriculture site discusses what qualifies as a price trigger commodity or flat-rate crop
  • $1 billion in payments for contract growers of livestock and poultry
  • Requires supplemental CFAP payments to cattle producers
  • Directs the Department of Agriculture to make payments to producers who had to euthanize livestock and poultry
    • 80% of the euthanized livestock/poultry fair market value and costs of euthanasia
  • Requires payments to domestic users of upland cotton and extra-long staple cotton
  • Up to $1.5 billion for direct purchases of food and agriculture products, including dairy, produce, meat, and seafood
  • Up to $200 million for timber harvesting and timber hauling businesses
• $300 million for fisheries assistance
  • Available until September 30, 2021
  • CARES Act assistance program and distribution requirements continue to apply

Other Helpful Provisions

• Tax credits:
  • $1.01/gallon for producing second-gen biofuels
  • $.50/gallon for alternative fuels
• Increase in the monthly SNAP benefit level by 15% and extends this increase through June 30, 2021
• $600 direct stimulus payments

For a more detailed overview of the Act’s beneficial provisions for the agricultural industry, the American Farm Bureau has an excellent summary, as does the U.S. House Agricultural Committee here.

For more information on the PPP visit NFIB’s coronavirus resource page  and join in NFIB’s COVID-19 webinar series.

Updated 01/12/2021