A new report from the American Farm Bureau Federation says few farmers have been able to take advantage of the Paycheck Protection Program. Of the $349 billion originally allocated for the program, it’s estimated $4.37 billion or 1.3 percent was distributed to the agricultural, forestry, fishing and hunting sector. According to Farm Bureau Economic Analyst Megan Nelson, a self-employed farmer’s participation is based on net farm profits from 2019. If that farmer reports a net farm loss for 2019, they are ineligible for the loan. “Its likely that trade disruptions and other natural disasters have made major impacts on net farm profits.” One North Dakota-based CPA says farmers could revisit their 2019 tax return and file an amended return to qualify. Nelson says that option wasn’t considered for the report. Due to a strong interest in the loan program, Congress approved $310 billion in additional funds at the end of April. As of May 10, the Small Business Administration says $188.03 billion of round two has been approved. Agricultural businesses also qualify for Economic Injury Disaster Loans.
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