President Trump has signed a new coronavirus relief bill that has implications for dairy farms and other agricultural businesses. This action on Sunday night comes after Congress passed the $900 billion relief legislation a week ago.
The bill was attached to a $1.4 trillion spending package to fund the government through September.
The legislation provides the possibility for direct financial assistance and dairy product purchases, and modifies certain aspects of existing programs, like the Paycheck Protection Program, created in previous relief bills. Any additional changes would require approval from Congress and the president.
Key provisions in the bill:
$11 billion in funding to the U.S. Department of Agriculture to support ag producers, growers and processors. There is no specific rate of assistance for dairy. The bill provides a payment of $20 per eligible acre for row crop producers based on the 2020 crop year. The bill also provides specific payments for cattle producers.
$1.5 billion to purchase and distribute food to individuals in need. These funds may also be used to provide grants or loans to small- and mid-size food processors.
Supplemental Dairy Margin Coverage payments for farms that have grown by increasing production histories up to a limitation of 5 million pounds.
$400 million dairy donation program to pay for milk that is processed and donated to non-profit entities.
Ability to deduct PPP loan expenses on tax returns, correcting an Internal Revenue Service position that those expenses could not be deducted.
Did not extend the employer-required paid sick and family leave past Dec. 31 but did extend a refundable tax credit that subsidizes the cost of providing paid leave, allowing employers the option to provide paid sick and family leave.
Our team will keep you updated as things move forward. Please continue to reach out to us with questions. You can contact Edge’s director of government affairs, John Holevoet, at jholevoet@voiceofmilk.com.
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