New COVID-19 Relief Package a Win for More Farmers
Congress finally came to terms and agreed on a $900 billion COVID-19 relief package, which will include up to $13 billion in funding that directly benefits agriculture. Through votes of 359-53 in the House and 92-6 in the Senate, Congress passed the 5,600 page COVID-19 relief package, which included Fiscal Year 2021 agriculture appropriations provisions as well as agriculture and nutrition program funding.
More help will be made available to specialty and non-specialty crop growers, and the Paycheck Protection Program (PPP) will be expanded, which will allow small farmers to continue operating and paying their employees.
Most importantly, many farmers and ranchers who were previously left out of aid will now qualify for assistance.
“We’re pleased that Congress understands the toll the pandemic continues to take on farmers, ranchers, and rural Americans,” American Farm Bureau Federation President Zippy Duvall said. “Farmers who were left out of previous aid packages or whose losses were far more devastating than recognized in initial aid are grateful that their families will be helped, too.”
Echoing Duvall’s sentiment, the National Potato Council (NPC) welcomed actions by the House and Senate to support agriculture workers, family farms, and local communities struggling to survive ongoing food service disruptions ordered by state and local governments in response to the coronavirus pandemic.
“Throughout the year, the National Potato Council and our state partners have fought for increased recognition by the federal government of the unforeseen market challenges growers have experienced during this pandemic,” NPC President Britt Raybould said. “We appreciate the additional funding to help close some of the gaps in our communities. Americans need practical, real-world solutions to ensure continued access to safe, healthy food, while keeping in place long-term, essential activities required for the well-being and sustainability of our industry.”
Some highlights of the new bill for agriculture include:
- CROP LOSS SUPPORT. The bill provides an estimated $225 million for supplemental payments to specialty crop producers for crop losses they suffered in 2019.
- AG WORKER PROTECTION. The bill provides $1.5 billion in funding to support food purchases for those in need, food donations, and ag worker protections, including PPE and support for farmers, farmers’ markets, and food processors to respond to COVID-19.
- SPECIALTY CROP BLOCK GRANTS. The bill provides $100 million in additional funding to support specialty crop farmers and address COVID-19 specialty crop supply chain issues at the state level via the farm bill’s Specialty Crop Block Grant Program.
- RURAL BROADBAND. $7 billion is allocated for broadband, including $300 million for rural broadband and $250 million for telehealth.
- PPP TAX DEDUCTIBILITY. The bill ensures that Paycheck Protection Program loan recipients can deduct the payroll costs and other expenses covered by forgiven loans. The action reverses a Treasury Department ruling that denied the deductions, creating the potential for a surprise tax increase of up to 37 percent on small businesses when they file their taxes for 2020.
- GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM. The bill provides $75 million for the Gus Schumacher Nutrition Incentive Program, which incentivizing purchases of fruits and vegetables by SNAP participants at farmers markets and grocery retailers.
As of this posting, the bill was still waiting for President Trump’s signature.
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