New bill offers farmers more PPP flexibility

Jul 23, 2020

Representatives from both sides of the aisle support the Expanding Access to Farmers Act

By Diego Flammini
Staff Writer
Farms.com

A bipartisan bill recently introduced in the House of Representatives would provide farmers with more options for spending money they receive from the federal government during the pandemic.

On July 16, Congresswoman Abby Finkenauer (D-IA-01) unveiled the Expanding Assistance to Farmers Act of 2020. Dan Bishop (R-NC-09) cosponsored the bill.

If passed, the legislation would allow farmers to use Paycheck Protection Program (PPP) funds to cover rental costs related to equipment, land and buildings.

When the PPP went into effect in March as part of the U.S. response to the COVID-19 pandemic, small business owners could only use the program funds to cover items like payroll costs, interest on mortgages and utilities.

Producers are business owners as well and their unique expenses should be covered under the PPP umbrella, Finkenauer said.

“We’re trying to make sure we provide more clarity to the Small Business Administration to make sure that they do not leave our farmers behind,” she told KMA on Tuesday. “Specifically, some of our beginning farmers and our smaller family farms who may rent land or equipment. When we look at this PPP program, we need to make sure it doesn’t just cover wages, but also the equipment and land to keep people going.”

Farm groups hope the legislation will pass.

Giving farmers more flexibility with the federal funds will help them come out the other side of the pandemic, said Zippy Duvall, president of the American Farm Bureau Federation (AFBF).

“While (the PPP) program has been helpful, additional changes can make it even more effective for farmers and ranchers to participate by extending loan forgiveness for rental expenses on agriculture equipment, land and buildings,” he said in a statement. “Farm Bureau commends Congressman Dan Bishop and Congresswoman Finkenauer for providing much-needed assistance to agricultural producers."

Farms.com has reached out to AFBF for comment.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.