Hagedorn Introduces Legislation to Expand PPP Access for Farmers and Ranchers
WASHINGTON – Congressman Jim Hagedorn (MN-01) introduced the bipartisan PPP Flexibility for Farmers and Ranchers Act, which would allow farmers and ranchers categorized as partnerships to utilize gross income when calculating maximum Paycheck Protection Program (PPP) loan amounts.
The CARES Act allowed for farmers and ranchers to apply for PPP loans by utilizing net income in their loan calculations. Unfortunately, this prevents many agricultural partnerships from receiving the maximum PPP loan possible. Rep. Hagedorn’s legislation provides enhanced flexibility by allowing the use of gross income to calculate the maximum loan amount. The bill also includes a retroactive provision to enable producers, who initially used net income, to recalculate their PPP loans, so long as the loans have not been forgiven.
Reps. Blaine Luetkemeyer (MO-03), GT Thompson (PA-15), Henry Cuellar (TX-28), Dan Newhouse (WA-04), Austin Scott (GA-08), Rick Crawford (AR-01), Doug LaMalfa (CA-01), Pete Stauber (MN-08), Dan Meuser (PA-09), Jodey Arrington (TX-19), Don Bacon (NE-02), Elise Stefanik (NY-21), Clay Higgins (LA-03), Jim Baird (IN-04), John Moolenaar (MI-04), Brian Fitzpatrick (PA-01), Mike Rogers (AL-03), Trent Kelly (MS-01), David Kustoff (TN-08), Fred Upton (MI-06), Mike Turner (OH-10), Claudia Tenney (NY-22), Tracey Mann (KS-01), Darrell Issa (CA-50), Jason Smith (MO-08), Troy Balderson (OH-12), Rick Allen (GA-12), Michelle Fischbach (MN-07), Pete Sessions (TX-17), John Carter (TX-31), August Pfluger (TX-11), William Timmons (SC-04), Young Kim (CA-39), Ben Cline (VA-06), Lisa McClain (MI-10), Gregory Murphy, M.D. (NC-03), David Rouzer (NC-07), David Valadao (CA-21), John Rose (TN-06), Ronny Jackson (TX-13), Mike Kelly (PA-16), Randy Feenstra (IA-01), Tom Emmer (MN-06), Matt Rosendale (MT-AL), Kevin Hern (OK-01), Brian Babin (TX-36), Bob Gibbs (OH-07), Beth Van Duyne (TX-24), Chris Stewart (UT-02), John Joyce, M.D. (PA-13), Fred Keller (PA-12), Byron Donalds (FL-19), Roger Williams (TX-25), and Cliff Bentz (OR-02) signed on as original cosponsors.
“Agriculture producers in southern Minnesota and throughout the nation have suffered a great deal from historic drops in demand and packing plant closures throughout the COVID-19 pandemic. As we approach a return to normalcy and reopening our economy, it is critical that we ensure our farmers and ranchers have access to the resources needed to maintain operations. I am grateful to my colleagues on both sides of the aisle who joined me in this effort to boost our farmers, ranchers, rural communities and agricultural economy,” said Hagedorn.
“Congressman Hagedorn’s bill is an important step to ensuring that our nation’s farm partnerships have access to the resources needed to contribute to the food supply, fuel rural America, and support local businesses. While farmers and ranchers across the country have been severely impacted by the pandemic, this bill provides our hardworking men and women with the tools and freedom they deserve to thrive,” said House Committee on Small Business Ranking Member Blaine Luetkemeyer (R-MO).
“The agriculture industry has been rocked by coronavirus and the Paycheck Protection Program has extended a financial lifeline. The PPP Flexibility for Farmers and Ranchers Act will provide increased flexibility to ensure more of our producers can get the assistance they need to keep providing the food, fiber, and energy we all depend on,” said House Committee on Agriculture Ranking Member Glenn ‘GT’ Thompson (R-PA).
“We strongly support Representative Hagedorn’s legislation that would provide much needed help to farmers struggling to overcome the effects of the pandemic. His proposal would make more family farmers eligible for Paycheck Protection Program loans as was originally intended when Congress passed the last Covid relief legislation. We urge Congress to move quickly to pass this important legislation,” said Farm Credit Council CEO Todd Van Hoose.
“The American Sugar Alliance is pleased to support efforts, including legislation authored by Rep. Jim Hagedorn (R-MN), to ensure that the Paycheck Protection Program works for all of America’s farm and ranch families impacted by COVID-19, irrespective of how their operations are structured, just as intended by Congress. We look forward to this issue being addressed so farmers and ranchers receive the help they need and we thank the Congressman for his efforts,” said American Sugar Alliance Chairman Jack Pettus.
“The Paycheck Protection Program has the potential to provide vital assistance to cattle producers still struggling in the wake of this on-going global pandemic. While the December 2020 COVID-relief package established a new loan calculation to expand farmers and ranchers’ access to PPP, many cattle producers continue to miss out due to a narrow interpretation of the law. Federal relief is only as good as the access that people in need have to it – and NCBA is incredibly grateful to Representative Hagedorn and the lawmakers on Capitol Hill who are working tirelessly to ensure agricultural producers have equitable access to PPP,” said Danielle Beck, Senior Executive Director of Government Affairs, National Cattlemen’s Beef Association.
Rep. Hagedorn’s legislation received public support from the American Farm Bureau Federation, National Cattlemen’s Beef Association, Farm Credit Council, CoBank, National Corn Growers Association, Independent Community Bankers of America, Compeer Financial, and American Sugar Alliance.
Jim Hagedorn was reelected in 2020 to serve Minnesota’s First District in the U.S. House of Representatives for a second term. He grew up on his family’s grain and livestock farm near Truman. Jim’s father, former Congressman Tom Hagedorn (MN-02), grandfather, and great-grandfather were all southern Minnesota farmers, and Jim resides in the rural community of Blue Earth. During his time in Congress, Hagedorn has consistently fought for the conservative principles that have made America the greatest nation in the history of the world and championed legislation to promote the First District’s primary industries and job creators – farming, small business and medical care. Hagedorn is a member of the House Committees on Agriculture and Small Business.