ppp

PPP Loans Provided Billions to U.S. Farm Sector in 2020

Dan Agri-Business, Economy, Funding, This Land of Ours

How much pandemic help did farmers get? That’s coming up on This Land of Ours.

ppp

Researchers at USDA’s Economic Research Service (ERS) estimate that the Paycheck Protection Program (PPP) provided $5.8 billion to the farm sector in 2020. The PPP was a non-USDA assistance program for small businesses adversely affected by the pandemic.

Total Federal Government payments to the farm sector in 2020 were $45.6 billion, meaning that PPP payments were 13 percent of total payments. The Small Business Administration administered the PPP, providing forgivable loans to eligible small businesses and certain other entities to allow them to cover some of their payroll costs. The PPP loans were forgiven in full if the loan was used on eligible expenses, including at least 60 percent on payroll expenses.

Agricultural producers in California were the largest recipients of PPP loans at $1.1 billion, followed by Washington at $285 million. California leads the nation in the value of agricultural production and has the highest hired labor expense among states.

From the National Association of Farm Broadcasting.

Listen to Sabrina Halvorson’s This Land Of Ours program here.

PPP Loans Provided Billions to U.S. Farm Sector in 2020

Sabrina Halvorson
National Correspondent / AgNet Media, Inc.

Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.