Financial Assistance Programs for Farmers

woman filling out paperwork

Are there any programs available to help farms and agricultural enterprises? 

If you know of anyone having problems due to the COVID-19 situation, USDA Farm Service Agency (FSA) can make loans to eligible agricultural producers struggling with financial crisis.  FSA offers a variety of fixed rate, low interest loans to help with working capital and cash flow needs.  Currently, the direct loan program rate is 2.625%, fixed.  If you know of anyone that is in need of a farm loan, please tell them to contact FSA NH Farm Loan Manager, Rebecca Davis at 223-6003 or rebecca.davis2@usda.gov

What records will help me to access new disaster relief programs if some become available? 

From Keith Farrell, District Director, USDA/Farm Service Agency, New Hampshire State Office, James C. Cleveland Federal Building, 53 Pleasant Street, Room 1601, Concord, NH 03301, phone: 603.224.7941, keith.farrell@usda.gov:

If a new disaster program is announced, typical documentation that would be needed showing the financial impact of COVID-19 may be:

  • Comparison of Schedule F profit and loss numbers for 2019 as compared to farm income and expenses in 2020.
  • Sale receipts of unplanned livestock sales because of the impact of the financial conditions due to COVID-19.
  • Receipts for additional feed purchases needed as a result of the virus’s financial impact.
  • Copies of vender open accounts bills unpaid because of the loss of farm income.
  • List of account receivables not received because of the financial impact to customers.

The general rule is to keep all documentation that can help prove and measure the overall impact of COVID-19 on your farming operation.

As a farm owner, do I qualify for Small Business Administration loans? 

SBA is now accepting EIDL applications for ag businesses only.
 
SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.
 
The SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. The application is available at:
 
The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
 
Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
 
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.
 
For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
 
For more information or to apply, please visit: https://www.sba.gov/funding-programs/disaster-assistance

 

For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.

 

Federal Tax Updates

For those whose tax return or estimated tax payment is due by April 15, the IRS has extended the period to file and pay taxes to July 15. The deadline is automatically extended, you do not need to file an extension to meet the July 15 deadlineYou will not be charged interest or penalty if tax is owed as long as payment is made by July 15, 2020. If you are owed a refund, the IRS is recommending you file as soon as possible to receive your refund in a timely fashion.

**Update, 3/31/20-New Hampshire Department of Revenue Administration has granted an extension/tax relief for the Business Profits Tax, Business Enterprise Tax, and the Interest & Dividends Tax. Additional details on this announcement.