By Amanda Bilek
After months of closed door negotiations, traded offers, partisan gridlock and communication breakdowns Congress passed a $900 million COVID-19 relief package and funding for federal government operations for the 2021 fiscal year. There are several provisions included in the spending and aid package of interest to corn farmers, here are a few key highlights.
Agriculture Support
A total of $13 billion to address COVID-related impacts on farmers, ranchers, growers and fisheries. Included is a specific $20 per acre Coronavirus Food Assistance Program (CFAP) plus up for all price triggered and flat rate crops. Corn is a price triggered commodity under the program.
Language was added to the bill that allows USDA to make payments to biofuel facilities who have experienced economic loses during the COVID-19 pandemic, but no amount of payment calculation was specifically included. In the annual appropriations section of the package, two biofuels industry tax credits received short-term extensions; the Second Generation Biofuel Production Tax Credit and the Alternative Vehicle Refueling Property Credit.
There was also relief support for livestock producers. The USDA Secretary is directed to make payments to livestock producers for losses included due to the depopulation of livestock and poultry due to lack of processing capacity. Relief will be provided equal to 80 percent of fair market value plus cost of depopulation offset by any federal or state program payment. Payments to contract growers of livestock and poultry is capped at $1 billion and will not cover more than 80 percent of revenue losses. Additionally, the package provides $20 million for animal disease prevention and response capacity.
For other agricultural specific assistance provisions that might be of interest, you can reference this summary put together by the U.S. House Agriculture Committee.
Business, Rural Community and Other Key Provisions
Other items were included that have benefit for a broad spectrum of businesses, including the agriculture-related business and rural communities of interest to corn farmers include:
- Paycheck Protection Program – $284.5 billion to reopen the program for first time and second time borrowers. Maximum loan amounts are limited to $2 million and there is preference given for businesses with less than 300 employees that experience a 25 percent loss in revenue and includes a specific calculation for farm business. Additional detail is available here.
- Economic Injury Disaster Loan – authorize $20 billion to reopen and extend the program. If a business that previously applied but received a loan of less than $10,000, the business can reply to receive the maximum loan amount.
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