Congress Passes Economic Relief Package, Agriculture Weighs In

WASHINGTON, DC – Agricultural groups are reacting to the passage of an economic relief package by Congress this week. The bill, riding along with the Fiscal Year 2021 Appropriations, will ensure that recipients of the Paycheck Protection Program (PPP) can deduct payroll costs and other expenses covered by forgiven loans.

According to the National Potato Board, that was actually the intent of Congress, but a ruling from the Treasury Department denied the deductions thus creating a potential tax surprise of up to 37 percent for small businesses and farmers when filing their tax returns.

The Renewable Fuels Association (RFA) argues that although the provisions in the bill could provide a short-term shot in the arm for the ethanol industry, actually the “tax extenders” measure could spur long-term innovation and expansion within the industry. The extenders package includes at $1.01 per gallon, non-refundable income tax credit for second-generation biofuel sales. It also extends the credit for the installation of alternative refueling pumps up to $30,000 per location.

The American Farm Bureau Federation points out that the highlights also include an 80 percent reimbursement to any producers who had to euthanize livestock, a $20 per acre payment for non-specialty crops (including corn, soybeans, wheat, cotton, and sorghum), a 15 percent increase in SNAP (Supplemental Nutrition Assistance Program) benefits, and $7 billion of new funding for broadband – including $300 million for rural connectivity and $250 million for expansion of telehealth services.
(SOURCE: All Ag News)