Hagedorn Works to Increase PPP Flexibility for Farmers and Ranchers

Press Release

Congressman Jim Hagedorn offered an amendment during this evening's House Small Business Committee markup that would enable farmers and ranchers to report either gross or net income for the purposes of calculating their maximum Paycheck Protection Program (PPP) loan amount. Currently, the U.S. Small Business Administration only allows for net income to be considered.

Hagedorn's amendment was supported by corn, soybean, pork, beef and poultry producers, as well as Farm Bureau members throughout the First District, Minnesota and the nation.

Rep. Pete Stauber (MN-08) joined Hagedorn in supporting it. Small Business Committee Democrats voted down an en bloc amendment 9-14, which contained the measure.

"This amendment would expand PPP eligibility and ease of access for farmers and ranchers across southern Minnesota and the nation, who have suffered historic drops in demand through no fault of their own during the COVID-19 pandemic. Ensuring that our agriculture-focused small businesses have the needed resources to sustain operations and overcome the pandemic and state mandated lockdowns is key to maintaining America's food supply, supporting rural America and kickstarting the nation's economic recovery," said Hagedorn.

"I am grateful to Congressman Hagedorn for offering an important amendment that will allow for more of our farmers and ranchers to access the maximum Paycheck Protection Program loan amount. The challenges that farmers and ranchers face have only been exacerbated by this COVID-19 crisis, so I am happy to support my colleague in his call for more relief for the men and women who work hard to put food on our tables," said Stauber.

"The Paycheck Protection Program (PPP) provides valuable financial assistance to Minnesota farmers and ranchers. While many self-employed farmers were initially blocked from getting loans, Congress solved the problem for most by amending the program so they qualified based on gross income. However, that fix didn't include farmers in partnerships. Minnesota Farm Bureau commends Rep. Hagedorn for expanding PPP eligibility for farm partnerships," said Kevin Paap, President, Minnesota Farm Bureau Federation.

"The Minnesota Corn Growers Association, appreciates the efforts of Congressman Hagedorn to see farmers through some very hard times, including his work to ensure support under the Coronavirus Food Assistance Program and his ongoing work to improve the Paycheck Protection Program so it works for all of Minnesota farmers. We are grateful for his efforts to shore up the safety net for farmers," said Tim Waibel, President, Minnesota Corn Growers Association.

"The Red River Valley Sugarbeet Growers Association values the work of Congressman Hagedorn in improving the Paycheck Protection Program to make sure it works for all Minnesota farmers. We appreciate his efforts on behalf of our farms during these uncertain times," Neil Rockstad, President, Red River Valley Sugarbeet Growers.

"Minnesota's farmers are still facing difficult economic conditions resulting from many factors including Covid 19. Some of the relief that has been passed has left family farms behind simply because of how they are organized. MSGA applauds Representative Hagedorn for putting forth this amendment to help make this aid available to more of our family farmers that need it," said Joe Smentek, Executive Director, Minnesota Soybean Growers Association.

"We appreciate Representative Hagedorn's work to open up more opportunities for Minnesota's family farmers to full utilities the PPP program," said John Anderson, President, Minnesota Pork Producers Association.

Jim Hagedorn was reelected in 2020 to serve Minnesota's First District in the U.S. House of Representatives for a second term. He grew up on his family's grain and livestock farm near Truman. Jim's father, former Congressman Tom Hagedorn (MN-02), grandfather, and great-grandfather were all southern Minnesota farmers, and Jim resides in the rural community of Blue Earth. During his time in Congress, Hagedorn has consistently fought for the conservative principles that have made America the greatest nation in the history of the world and championed legislation to promote the First District's primary industries and job creators -- farming, small business and medical care. Hagedorn is a member of the House Committees on Agriculture and Small Business.

Source