Late last December Congress passed and President Trump signed into law another COVID-19 aid package. In the bill there was another round of direct payments to farmers based on acres planted of row crops and inventories of livestock. Also in the aid package was a payment of $600 per adult citizen. I did hear that there was an expanded Payment Protection Program (PPP) called round two. Because of the way it was set up not very many farmers qualified for the PPP, especially if they had no or very few employees.

So, I did not pay much attention to the PPP round two until I read Ag Analyst Kent Thiesse's weekly news letter. Under the PPP round two it is likely almost all farmers will qualify for the program. In round one if you did not show a profit on the FM 7 form on your taxes you did not quality, or if it was a small profit it was not worth the effort to apply. The PPP round two uses gross income instead of profit. So, if your farm grossed over $100,000 you qualify.

It is a very simple form to fill out. If you grossed at least $100,000 you divide that by 12 months and multiply by 2.5, That means you qualify for $20,833 dollars. Like the PPP round one you work with your local ag lender and they verify the information. So, talk with your ag lender about applying for the PPP round two! Click on the link and listen to Ag analyst Kent Thiesse discuss the PPP round one and PPP round two.