Impact of COVID-19 on Agriculture

AFBF: Technical Correction Needed for Paycheck Protection Program

News / Newsline December 3, 2020

Credit: Photo by Ken Teegardin / CC BY 2.0 

The American Farm Bureau Federation is calling on lawmakers to make a technical correction to the Paycheck Protection Program. Micheal Clements shares how the change will keep farmers from being taxed for using PPP loans.

Clements: The American Farm Bureau Federation recently sent a letter to Congress asking them to ensure farmers won’t pay taxes on forgiven Paycheck Protection Program loans. AFBF Senior Congressional Relations Director Pat Wolff says an IRS regulation means small businesses and farms would face a tax burden for using PPP funds.

Wolff: Congress needs to act, or farmers and ranchers and other small businesses are going to see a big and surprise tax increase when they file their taxes. When Congress passed PPP loans, they intended for them to be tax free. The IRS issued regulations to the contrary, and Congress needs to fix it by passing a bill preferably before the end of the year.

Clements: PPP loans were meant to provide tax-free COVID assistance that makes payroll, rent, mortgage interest or utility expenses paid for using the funds tax-deductible as business expenses.

Wolff: If you do what the IRS proposes, and tax that loan, you’ve done something that’s contrary to what Congress meant and it takes away money that farmers need to operate their businesses.

Clements: With little time remaining in Congress for action, Wolff says the correction needs to be attached to other pending legislation.

Wolff: It’s not likely that there is going to be any free-standing bills moving, so the ask for today is that Congress incorporate this fix into any piece of legislation that is moving. That might be the appropriations bill, that might be a tag-on tax bill, or anything else that’s moving.

Clements: Micheal Clements, Washington.

Share This Article

Credit: Dlz28 / CC0 

President-elect Joe Biden announced he will nominate Dr. Jewel Bronaugh to serve as Deputy Secretary of Agriculture. The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall: “AFBF congratulates Dr. Jewel Bronaugh on her nomination to serve as USDA Deputy Secretary. Dr. Bronaugh’s work as Virginia’s Agriculture Commissioner and her previous experience as state director of USDA’s Farm Service Agency have established her as someone who understands the needs of America’s farmers and ranchers. We also appreciate the work she has done to address mental health issues in rural communities - a priority we hope she continues to pursue at the federal level. “Dr. Bronaugh’s nomination, as well as the nomination of Tom Vilsack for Secretary of Agriculture, shows President-elect Biden is carefully considering the challenges facing our nation’s farmers and ranchers. We look forward to working with the new leadership at USDA to ensure American agriculture continues to lead the world in growing safe, affordable food.” Virginia Farm Bureau President Wayne F. Pryor also commented on Dr. Bronaugh’s nomination: “Virginia Farm Bureau is proud to see Dr. Bronaugh nominated as USDA Deputy Secretary. The Commonwealth has been fortunate to benefit from Dr. Bronaugh’s leadership as VDACS Commissioner, State FSA Executive Director, and her roles at Virginia State University. She has done much to promote agriculture and address the many issues facing farm families and rural Virginia. Dr. Bronaugh will carry on this work in her new leadership role in Washington, D.C., and we support her swift confirmation”

Full Article
Credit: Photo by Jomar Thomas on Unsplash 

Farm Bureau delegates voted on policy priorities for 2021 at the conclusion of the American Farm Bureau Federation Virtual Annual Convention. Micheal Clements shares what issues top the list for the new year.

Full Article