More Farm Relief from States and Local Governments
Toni Moeller out of our Rochester, Minnesota office worked up most of this blog post.
Beyond Federal PPP loans, tax credits, and other COVID-19 funding options, we are beginning to see grants that apply to agricultural businesses at the state and county levels too. It’s important for operations to be aware of and keep an eye out for assistance in their regions of the country. An example of state-level assistance are the recent Covid-19 Agriculture Relief Programs in Iowa that are an extension of the Iowa Small Business Relief Grant Program (https://www.iowaeconomicdevelopment.com/programDetails?pid=151&ppid=26%23beginningfarmer). The application period for the programs opened on August 31, 2020 and depending on the program, closes on September 14 at 5:00 pm or when funds are exhausted.
Iowa farmers can choose to apply for one of the following two relief programs as either an individual or as a member of an agricultural entity: Iowa Beginning Farmer Debt Relief Fund or Iowa Livestock Producer Relief Fund. If applicants apply for both programs, they will be disqualified from receiving any funding. The Iowa Beginning Farmer Debt Relief Fund provides beginning farmers with a debt service payment of up to $10,000. The payment will go directly to the lender to be applied to the applicant’s annual debt service payment. This grant is awarded on a first-come, first-serve basis until funds are exhausted. The Iowa Livestock Producer Relief Fund provides eligible livestock producers with up to $10,000 in grants to be used as working capital. The application period closes on September 14, 2020 at 5:00 pm. There is also a third relief program for biodiesel and ethanol companies. The Iowa Biofuels Relief Program provides grants of up to $750,000 per eligible company. The application period closes on September 14, 2020 at 5:00 pm.
With the recent Derecho and COVID-19 impacts to Ag in Iowa, this assistance is welcome. See the link above for program details, eligibility requirements, and application information.
This is just one example from Iowa. There are likely many other examples in other states that may be applicable.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
How might one be able to identify additional relief grants available in other states, like in Wisconsin where I live?