Congress, White House reach deal on COVID aid package

Congressional leaders reached agreement Sunday with the White House on a $900 billion COVID-19 relief package that will include a new round of aid to a wide array of agriculture sectors while also ensuring the deductibility of expenses used to get forgiveness of Paycheck Protection Program loans.

The package provides detailed instructions on how the Agriculture Department is to spend most of the $13 billion provided in agriculture aid, including a third round of payments under the Coronavirus Food Assistance Program.

All row crop producers would be provided payments totaling $5 billion, and another $3 billion is set aside for payments to cattle producers, contract livestock and poultry growers, dairy farms, and producers who were forced to euthanize livestock or poultry due to disruptions in processing plants. Ethanol and biodiesel producers also would be eligible for payments. According to the Senate Agriculture Committee, the payments to row crop producers would be worth $20 an acre.

The package, which also would provide a new round of stimulus checks to Americans of up to $600 per person, was combined with a $1.4 trillion fiscal 2021 funding bill for the federal government and a two-year authorization bill for waterway and harbor projects. Also included is a package of tax incentive extensions. The text of the nearly 5,600-page bill can be downloaded here. A summary of the COVID package is here.

“As our citizens continue battling this coronavirus this holiday season, they will not be fighting alone,” said Senate Majority Leader Mitch McConnell, R-Ky., announcing the deal on the Senate floor Sunday evening.

The COVID package's ag provisions include $400 million for a new Dairy Donation Program that would reimburse companies for the processing costs of donated products as well as the cost of the milk.

Small and medium-size dairy producers also would receive supplemental Dairy Margin Coverage payments based on the difference between a farm's 2019 actual production and DMC production history.

In an effort to expand meat and poultry processing capacity, the bill would provide $60 million in grants to small companies to help them qualify for federal inspection and begin to sell their product across state lines. The legislation also requires a report on the availability of financing for new processing capacity.

A federal livestock dealer trust would be established by the legislation to ensure that livestock producers are paid for their animals.

The package also earmarks $100 million to the Specialty Crop Block Grant program, which funds state assistance to fruit, vegetable and nut producers, and another $100 million to the Local Agriculture Market Program.

Senate Agriculture Committee Chairman Pat Roberts, R-Kan., told Agri-Pulse that because of the pending change in administrations the legislation restricted how the USDA could spend the money.

“You’ve got Sonny saying adios, and you’ve got Tom coming in. I don’t want to give this baby to the secretary to run,” said Roberts, referring to outgoing Agriculture Secretary Sonny Perdue and President-elect Joe Biden's pick to replace him, Tom Vilsack. “We should be making those decisions, not (the secretary),” Roberts said.

The top Democrat on the Agriculture Committee, Debbie Stabenow, secured $1.5 billion for implementing elements of a bill she introduced this spring, The Food Supply Protection Act. The money would fund worker protection measures, food distribution to the needy, and assistance to farmers, farmers markets, and food processors that have needed to retool to respond to COVID-19.

The bill also includes $13 billion for nutrition assistance, including a 15% increase in Supplemental Nutrition Assistance Program benefits for six months, a top priority for Stabenow. The package would exclude jobless benefits from counting as income when determining SNAP eligibility and benefits.

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"After many months of pushing for a critical SNAP increase and other funding to address the hunger crisis in our country, I am very pleased that we finally reached a bipartisan agreement that will help both families and farmers in need. Farmers will receive the support they need to keep their farms and businesses going," Stabenow said.

Another $400 million is earmarked for the Emergency Food Assistance Program, known as TEFAP, would funds the distribution of commodities through food banks.

The agreement also includes $7 billion to expand broadband access. The package would provide $300 million for rural broadband, $250 million for teleheatlh and authorize a new emergency broadband benefit to help students, families and unemployed workers afford high-speed internet service during the pandemic.

Deductibility of PPP expenses is a major concern of farms and other small businesses that qualified for forgiveness on the loans. The Internal Revenue Service has taken the position that the expenses couldn’t be deducted on tax returns, but Treasury Secretary Steven Mnuchin ultimately backed down.

“Most people who got those PPP loans had an expectation they would continue to be able to deduct their business expenses and operate accordingly,” said Senate GOP Whip John Thune, R-S.D.

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Businesses with ongoing revenue problems would be allowed to apply for a second round of PPP funding.

To facilitate COVID-19 immunizations, the package includes $20 billion for purchasing additional vaccines and $8 billion for vaccine distribution. There also is $20 billion to assist states with coronavirus testing.

Senate Minority Leader Charles Schumer, D-N.Y., blamed Republicans for the package not getting finalized until the final days of the lame duck session.

“The agreement on this package could be summed up by the expression ‘better late than never,’ although I know many of my Republican colleagues wished it was never," Schumer said.

The biggest snag in the final days of the negotiations was over Republicans demands for restrictions on the Federal Reserve’s emergency powers.

The massive bill was not expected to clear Congress until Monday. House Minority Leader Kevin McCarthy, R-Calif., said he expected the majority of House Republicans to support it. After the COVID package was announced, the House promptly passed a one-day stopgap spending bill to keep the government funded through Monday. The Senate approved the measure as well.

The water projects authorization bill that was being added to the massive legislation includes a funding change that could accelerate the reconstruction of locks and dams and other waterway projects.

 

Oh great $600 per person that I probably make too much to qualify for.

 

I heard McConnell say today that this is basically the exact same bill they were pushing for a few months ago that sorry ass Pelousy voted against.. I'm all for swift justice for cowardly, self righteous worthless scumbag politicians.

 

The problem is the money printing is causing inflation so people’s money is losing purchasing power. That is causing a large wealth transfer.

 

All this free money is taxable. I wonder how many people are losing their homes and cars right now? Dynamic Joe to the rescue!
or maybe Trump toys with people's minds until he wins or is forced to go play golf and consider starting a news channel.

 

Not sure about this current bill... but my understanding after some research was that the last set of checks was a tax credit that you just collected now instead of in the spring, meaning no change/effect on your tax burden.. Check with your own CPA for sure.. but I did a fair amount of research before I was willing to spend it to make sure it wouldn't come back to bite me later.
For What Its Worth.
-JW

 

Every time the Government Prints more money...... It is a loan backed by the Tax Paying Citizens equity. So basically the Government is once again borrowing your future tax dollars and giving you back fractions of pennies on the dollar. Seems most people can't grasp just how Massive our National Debt is and even bigger if you calculate in the all of the unfunded obligations. So if the bill is for $900,000,000,000 and there are 320,000,000 or so Americans shouldn't we all be getting a check for say $2,800,000 each........ Since this is for the people and all.

 

No matter what the Gov says it will all come back to bite us in the butt as SUPER INFLATION>

There is no free lunch program and never has been.

 

Democrats equalization!

 

The American people should/must come first --if people are suffering from the China virus financially and need relief for every dollar in the relief package an equal amount should/must be cut from foreign aid or some wasted domestic program as ditch witch posted. China is out to destroy us and they don't have to do it militarily devalue or destroy the dollar and we are finished. This country is so divided a depression like the 30's and we will see violence like we have never seen before. What has been going on recently is only a small preview maybe I am being overly pessimistic ---I hope I am wrong

 

We could start with the 10 million to Pakistan for "Gender Programs".

 

Something there is in Congress that abhors balancing income with outgo.

 

Paper tiger BS.
When we in the US were providing food to the USSR they were using the food to keep their people in line, figuratively and as a way to keep them worried.

Do not kid yourselves,this is just another chapter and it's our turn in the barrel.
Th US has been in total control of our lives since we were born.

 

I guess you msssed out on how the funds have already been divided up to producers that killed off live stock because they could not procress it.

Just like the last depression.

This has no concerns about the US People just about Big Busines.

 

Too late the deal was done months ago, we are just more stupid people standing in line for our rice bowel to be filled.

Really, cannot you folks see beyond our shores?

 

That
25 million to Pakistan is to fund "Gender Studies"?
WTAF

 

Not for the hard working people however as frustrating as it is there are some that continually get the FREE lunch at our expense!!! There are so many that seem to know how to work the system and truly get the Free lunch and we all suffer because they learned the system and do not want to work for themselves and the system somehow is oblivious to it...

 

They pay with the eternal yoke of greed to the oppressor and willing sell their off spring into slavery.