Highlights from the USDA FSA Georgia state newsletter

The full April newsletter is available here.

Small Business Administration’s Paycheck Protection Program 

The Paycheck Protection Program (PPP) is a guaranteed loan program administered by the Small Business Administration (SBA). The purpose of the program is to support small businesses and help support their payroll during the coronavirus situation. 

Agricultural producers, farmers, and ranchers with 500 or fewer employees whose principal place of residence is in the United States are eligible. 

Farms are eligible if: (i) the farm has 500 or less employees, OR (ii) it fits within the revenue-based size standard, which is on average annual receipts of $1 million. 

Additionally, farms can qualify for PPP if meeting SBA’s “alternative size standard.” The “alternative size standard” is currently: (1) a maximum net worth of the business not more than $15 million, AND (2) the average net income Federal income taxes of the business for the two full fiscal years before the date of the application be not more than $5 million. 

Small agricultural cooperatives may receive PPP loans as long as other eligibility requirements are met. Other forms of cooperatives may be eligible provided they comply with all other Loan Program Requirements (as defined in 13 CFR 120.10). 

In regard to H-2A or H-2B workers on payroll, only employees with a principal place of residence in the U.S. count toward eligibility and calculation of the PPP loan amount. 

SBA requires sole proprietors, independent contractors, and other eligible self-employed individuals to provide documentation to its lender that the business was in operation as of February 15, 2020. This documentation may include payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship. For borrowers who do not have any such documentation, the borrower must provide other supporting documentation to its lender, such as bank records, sufficient to demonstrate the qualifying payroll amount. 

Documentation options for payroll tax filings include the following: 

IRS Form 941 (quarterly wages); IRS Form 944 (calendar year wages); State income, payroll and unemployment insurance filings; QuickBooks; bank repository accounts; and/or internally generated profit and loss statements. However: 

• •Nonprofit organizations must include IRS Form 990; 

• • Sole proprietors must include IRS Form 1040 Schedule C; 

• • Any entity that filed IRS Form 1099-MISC must include this form; 

• • Seasonal employers must document the period beginning February 15, 2019 through June 30, 2019 

More extensive FAQs can be found at the Treasury Department’s CARES Act website. 

USDA’s Conservation Reserve Program Grasslands Signup 

Farmers and ranchers may apply to enroll grasslands in the Conservation Reserve Program (CRP) Grasslands signup. The signup runs through May 15. 

Through CRP Grasslands, participants retain the right to conduct common grazing practices, such as haying, mowing or harvesting seed from the enrolled land. Timing of some activities may be restricted by the primary nesting season of birds. 

Participants will receive an annual rental payment and may receive up to 50 percent cost-share for establishing approved conservation practices. The duration of the CRP contract is either 10 or 15 years. FSA will rank applications using a number of factors including existence of expiring CRP land, threat of conversion or development, existing grassland, and predominance of native species cover, and cost. 

The 2018 Farm Bill set aside 2 million acres for CRP Grassland enrollment. CRP is one of the largest conservation programs at USDA. CRP marks its 35-year anniversary in 2020 with 22 million acres currently enrolled. 

For more information or to enroll in CRP Grasslands, contact your local FSA County Office or visit fsa.usda.gov/crp. To locate your local FSA office, visit farmers.gov/service-locator. 

2020 Acreage Reporting Dates 

In order to comply with FSA program eligibility requirements, all producers are encouraged to contact the local FSA office to file an accurate crop certification report by the applicable deadline. 

The following acreage reporting dates are applicable for Georgia: 

• May 15, 2020 Sweet Corn (planted 8/26-5/15), Tobacco, Tomatoes (planted 8/16-4/5) 

• July 15, 2020 All Other Crops, Perennial Forage 

• August 15, 2020 Tomatoes (planted 7/1-8/15) 

• September 15, 2020 Sweet Corn (planted 7/15-8/25) 

• October 15, 2020 Cabbage (planted 7/16-9/30) 

• November 15, 2020 Onions (planted 9/20-10/20)