The Paycheck Protection Program: Keeping up with the Changes

Written by Peggy Kirk Hall and Barry Ward, Leader, Production Business Management, June 24, 2020

Many farmers have utilized the CARES Act’s Paycheck Protection Program (PPP) to obtain federal funds to help with payroll and certain non-payroll expenses in the wake of COVID-19.  As we’ve discussed on our Farm Office Live webinars here, Congress revised the PPP with the passage of the Paycheck Protection Program Flexibility Act earlier this month.  As a result of the new legislation, the Small Business Administration released a series of Interim Final Rules (IFRs) and a new forgiveness application.  The IFRs, available hereclarify certain points contained in the bill and provide revisions to previous IFRs.  All of these changes affect how farmers can use the funds and how much of the funds can be forgiven from loan repayment requirements. Continue reading

Recordings of Farm Office Live

One of the questions I have received this week is I can’t join the OSU Farm Office Live, where do I get these recordings.  Great News — You can view these recordings and also download the presenter slides at farmoffice.osu.edu/farmofficelive.

I have also included the webinars from April 6 to June 11 below.  Go to the link above to review today’s session. Continue reading

CAUV Calculation- Where do I go to find more information? – Tax Value of Farmland Expected to Drop

Today on the OSU Farm Office Live, there was a great discussion about CAUV. This information is very helpful for any landowner in Paulding County.  You can listen to the recorded session at farmoffice.osu.edu/farmofficelive

Check out this website for more information: https://www.robertdinterman.com/CAUV/

Additionally, I am adding the most recent article from Robert Dinterman.

Tax Value of Farmland Expected to Drop

There’s a bit of good news for Ohio farmers to counter the bad news caused by COVID-19, as well as by last year’s historic rain. In counties scheduled for property value updates in 2020—about half of Ohio’s 88 counties—the average value of farmland enrolled in the Current Agricultural Use Value (CAUV) program should be about 40% lower than 2017–2019, or about $665 per acre. Continue reading

Ohio Department of Agriculture: dicamba use in Ohio ends June 30, 2020

By:  Peggy Hall

The dicamba roller coaster ride continues today, with a statement issued by the Ohio Department of Agriculture clarifying that the use of XtendiMax, Engenia, and FeXapan dicamba-based products in Ohio will end as of June 30, 2020.  Even though the US EPA has issued an order allowing continued use of the products until July 31, 2020, use in Ohio must end on June 30 because the Ohio registrations for the three dicamba-based products expire on that day. Continue reading

U.S. Farm Liquidity Measures Projected to Decline in 2020

by: Chris Zoller, Extension Educator, ANR

Click here for Article (access the figures)

Liquidity is a measure of the ability of a farm to use cash or ability to convert assets to cash quickly to meet short-term (less than 12 months) liabilities when due.  Data from the United States Department of Agriculture Economic Research Service (USDA-ERS) forecast a continued decline in 2020 of liquidity on U.S. farms.  This article discusses two metrics, the current ratio, and working capital, to evaluate liquidity. Continue reading

Farm Office Live Webinar Slated for Thursday, June 11 at 9:00 a.m.

OSU Extension is pleased to be offering the “Farm Office Live” session on Thursday morning, June 11 from 9:00 to 10:30 a.m.  Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues that impact our farm economy.

The session will begin with the Farm Office Team answering questions asked over the two weeks.  Topics to be highlighted include:

  • Updates on the CARES Act Payroll Protection Program
  • Prevent Plant Update
  • Business & Industry CARES Act Program
  • EIDL Update
  • CFAP- update on beef classifications and commodity contract eligibility
  • Dicamba Court Decision Update
  • Other legal and economic issues

Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day.  Participants can pre-register or join in on Thursday morning at  https://go.osu.edu/farmofficelive 

CFAP Direct Support Webinar

Listen to the recording Ben Brown and Dianne Shoemaker for a webinar on “Navigating Direct Support for Ohio’s Farmers and Ranchers” recorded on May 27, 2020, with Ohio FSA Director Leonard Hubert.  Go here to access the recorded webinar, here for webinar handouts and here to access the CFAP fact sheet. 

Additionally, here is the national website from FSA for the CFAP program which includes a link to the calculator. https://www.farmers.gov/cfap?fbclid=IwAR36XOa1V8FtSWpNsUMCtKqlnk7u8LZRYWArbwqRv0YjlHaV-h0wyA8VW9Y

Learn about the CFAP Program

OSU Extension is pleased to be sponsoring two events to help Ohio farmers learn more about the Coronavirus Food Assistance Program (CFAP).  Join us:

Wednesday, May 27 from 9:30 – 11:00 a.m.

Join OSU Extension’s Ben Brown and Dianne Shoemaker for a webinar on “Navigating Direct Support for Ohio’s Farmers and Ranchers” on Wednesday, May 27, 2020 at 9:30 am with special guest, Ohio Farm Service Agency Director Leonard Hubert.  This webinar is generously produced and distributed by Ohio Ag Net.  The webinar will be available for viewing at https://farmoffice.osu.edu/, or through Ohio Ag Net’s Facebook Live Video.

 

Thursday, May 28 from 9:00 to 10:30 a.m.

OSU Extension is pleased to be offering a “Farm Office Live” session on Thursday morning, May 28 from 9:00 to 10:30 a.m.  The session will begin with the Farm Office Team answering questions asked over the past 2 weeks.  Topics to be highlighted include Updates on the CARES Act, Payroll Protection Program, Economic Injury Disaster Loan (EIDL), and Coronavirus Food Assistance Program (CFAP).  Participants can pre-register or join in on Thursday morning at  https://go.osu.edu/farmofficelive

Farmers and 1099 filers might qualify for new COVID-19 unemployment benefits program

by: Peggy Kirk Hall

Farmers aren’t traditionally eligible for unemployment benefits, but that won’t be the case when Ohio’s newest unemployment program opens.   We’ve been keeping an eye out for the opening of the Pandemic Unemployment Assistance (PUA) program, which will provide unemployment benefits to persons affected by COVID-19.  The program is targeted to persons who are not eligible for regular unemployment benefits, such as self-employed and 1099 filers.   PUA is yet another economic assistance program generated by the Coronavirus Aid, Relief and Economic Security (CARES) Act recently passed by Congress. Continue reading

Sign up for USDA-CFAP Direct Support to Begin May 26, 2020

Ben Brown, Peggy Kirk Hall, David Marrison, Dianne Shoemaker, and Barry Ward
The Ohio State University

Since the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020, and the announcement of the Coronavirus Food Assistance Program (CFAP) on April 17, 2020, producers in Ohio and across the country have been anxiously awaiting additional details on how the Coronavirus Food Assistance Program (CFAP) will provide financial assistance for losses experienced as a result of lost demand, short-term oversupply and shipping pattern disruptions caused by COVID-19.

The additional details on CFAP eligibility, payment limitations, payment rates, and enrollment timeline arrived on May 19, 2020, when the USDA issued its Final Rule for CFAP.  In this article, we explain the Final Rule in this issue of News from the Farm Office. Continue reading

USDA Coronavirus Food Assistance Program

by: Chris Zoller, Extension Educator, ANR, Tuscarawas County &  Mike Estadt, Extension Educator, ANR, Pickaway County

The United States Department of Agriculture (USDA) Coronavirus Food Assistance Program (CFAP) is part of the Coronavirus Aid, Relief, and Economic Security Act, the Families First Coronavirus Response Act, and other USDA authorities to provide $16 billion in support to farmers impacted by the coronavirus pandemic.  The program is available to all farmers, regardless of size, who suffered an eligible loss. Included in the program is $3 billion that will go toward purchases of commodities for distribution by food banks and faith-based programs through the Farmers to Families Food Box Program. USDA announced $1.2 billion in contracts for that program last week. Continue reading

Expect Higher Solvency Rates on Farms in 2020

by: Chris Zoller, Extension Educator, ANR, Tuscarawas County

The United States Department of Agriculture Economic Research Service (USDA-ERS) collects and summarizes an incredible amount of data about farm financial conditions.  This article will discuss solvency and solvency ratios of U.S. farms.

Solvency is a measure of the ability of a farm to satisfy its debt obligations when due and is measured using the debt-to-equity ratio and debt-to-asset ratios.  These ratios help determine whether, if your farm were sold, all debts would be paid.

The U.S. farm sector debt-to-equity (D/E) and debt-to-asset (D/A) ratios are expected to continue increasing. In 2020, ERS forecasts a debt-to-equity ratio of 15.7 percent, and a debt-to-asset ratio of 13.6 percent (Chart 1). These higher ratios indicate that more of the farm sector’s assets are financed by credit or debt relative to owner equity (D/E) and relative to total farm assets (D/A).  While not as high as the ratios experienced during the 1980s, the concern is that these ratios are rising. The impact of this year’s shelter-in-place restrictions due to COVID-19, and associated supply chain issues are not reflected in this ERS data. Continue reading

City quietly drops appeal of Lake Erie Bill of Rights ruling

By Tom Henry, The Toledo Blade, thenry@theblade.com

With little explanation, the city of Toledo has withdrawn its appeal of U.S. District Judge Jack Zouhary’s Feb. 27 ruling to invalidate the Lake Erie Bill of Rights.

In his eight-page ruling, Judge Zouhary said his decision to invalidate LEBOR was “not a close call.”

The ruling came on the one-year anniversary of a special February 2019, a special election which drew only 9 percent of the city’s registered voters. Of those, 61 percent approved a citizen-led referendum that called for amending the city’s charter. Continue reading

Farm Office Live Session Slated for Thursday, May 14 from 9:00 to 10:30 a.m.

OSU Extension is pleased to be offering a “Farm Office Live” session on Thursday morning, May 14 from 9:00 to 10:30 a.m.  Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues that impact our farm economy.

The session will begin with the Farm Office Team answering questions asked over the ten days.  Topics to be highlighted include:

  • Updates on the CARES Act, Payroll Protection Program, Economic Injury Disaster Loan (EIDL), and Coronavirus Food Assistance Program (CFAP) Update
  • Corn and soybean budgets
  • Supply and demand balance sheets
  • Other legal and economic issues

Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day.  Participants can pre-register or join in on Thursday morning at  https://go.osu.edu/farmofficelive 

Economic Assistance for Agriculture during COVID-19

Written by: David L. Marrison, Associate Professor & Extension Educator, Coshocton County; Ben Brown, Assistant Professor, Department of Agricultural, Environmental, and Development Economics; Barry Ward, Director, OSU Income Tax Schools & Leader, Production Business Management; Peggy Hall, Associate Professor, Agricultural & Resource Law, Director, OSU Agricultural & Resource Law Program; and Dianne Shoemaker, Field Specialist, Dairy Production Economics

Click here for PDF Version of this article.

The coronavirus pandemic has certainly altered all our lives. The impact is being felt by families, businesses, governmental agencies, and civic organizations.  To help families and businesses alike, various levels of government have passed legislation to help lessen the economic blow of COVID-19. This article provides a brief overview of some of the assistance which has been made available. These include tax deadline provisions, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Families First Coronavirus Response Act, Ohio Bureau of Workers’ Compensation rebates, unemployment compensation, and Wind and Hurricane Indemnity Program, Plus (WHIP+)

Tax Deadline Extensions:

On March 21, 2020, the Internal Revenue Service extended the federal tax filing deadline for 2019 taxes from April 15 until July 15, 2020.  The IRS encourages any taxpayer who is owed a refund to file as quickly as possible. The Ohio General Assembly through House Bill 197 also extended the deadline on March 25, 2020, to file Ohio Taxes until July 15, 2020. Continue reading

WHIP Not Only Applies to Baseball- Enrollment at FSA Now Open!

By: Ben Brown & David Marrison, The Ohio State University

Click Here for PDF Version of Article

Historically, Midwest producers have seen the acronym WHIP and associated it with the baseball statistic (Walks plus Hits per Inning Pitched), a statistic used to cross evaluate pitchers. However, Midwest producers might find it beneficial to participate in a federal aid program through the United States Department of Agriculture (USDA) with the same acronym, Wildfires, and Hurricane Indemnity Program Plus (WHIP+).

Ohio producers have rarely qualified for WHIP+ because the weather eligibility requirements could not be met. However, when President Trump signed the Additional Supplemental Appropriations for Disaster Relief Act in June 2019 it provided more than $3 billion to the USDA for WHIP+ to help US producers who were affected by natural disasters in 2018 and 2019. WHIP+ builds on its predecessor program the 2017 Wildfire and Hurricane Indemnity Program (2017 WHIP) that was authorized by the Bipartisan Budget Act of 2018. Continue reading

Join OSU Extension for Farm Office Live on April 20

OSU Extension is pleased to be offering the third session of the “Farm Office Live” session on Monday evening, April 20, 2020, from 8:00 to 9:30 p.m.  Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues impact our farm economy.

The session will begin with the Farm Office Team answering questions asked over the past week.  Topics to be highlighted include:

  • Update on the CARES Paycheck Protection Program (It is out of money!)
  • WHIP+
  • Update on commodity prices
  • Update on Dairy Margin Coverage program
  • Update on Unemployment compensation
  • Other legal and economic issues

Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day.  Participants can pre-register or join in on Monday evening at  https://go.osu.edu/farmofficelive 

The March 2020 Soybean Crush Report is One for the Record Books

Click here for a PDF version of this article

By Ben Brown, Department of Agricultural, Environmental and Development Economics, The Ohio State University – 4/17/2020

The National Oilseed Processors Association (NOPA) released their March 2020 soybean estimates on Wednesday, April 15- a day that usually is not held in high regard due to US tax collections. That is until this year when federal income tax filings could be deferred to the middle of July and NOPA released a report further solidifying one of the few bright spots in the agricultural marketplace amid COVID-19 disruptions. The report indicated that monthly soybean crushing by the organization’s 13 members who account for approximately 95% of all crushed soybeans in the US reached a new monthly crush record of 181.374 million bushels.  This far exceeds any previous month and the market analyst expectation for the month of 175.163 million bushels. The March total is the first month above 180 million bushels and bested the previous record set just two months earlier by 6.211 million bushels. Soybean crush during the 2019/20 marketing year has been supported by strong domestic and international demand for soybean meal and healthy crush margins with new records being broken in four out of seven reported months- October 2019, December 2019, January 2020 and March 2020. Continue reading

April 10 AG Law Harvest

By: Peggy Kirk Hall, Friday, April 10th, 2020

Source: https://farmoffice.osu.edu/blog/fri-04102020-532pm/ag-law-harvest

Although many of us are quarantined at home these days, the gears of the legal world are still turning.  Here’s our gathering of recent notable news and legal developments:

Our Farm Office is open Monday Night! Join us for the Farm Office’s live online office hours this Monday night from 8—9:30 p.m.  Our team of experts will provide updates on the Paycheck Protection Program and the dairy economy and discuss COVID-19 macro-economic and export impacts, BWC dividends, property tax concerns, potential legal issues arising from COVID-19, and other issues you want to discuss.  Register at https://go.osu.edu/farmofficelive.

What’s the deal with dicamba? Our partner, the National Agricultural Law Center, is hosting a free webinar on dicamba litigation on Wednesday, April 15 at noon EST.  “The Deal with Dicamba:  An Overview of Dicamba Related Litigation,” will feature attorney Brigit Rollins, who will review each of the dicamba lawsuits, the claims made by the plaintiffs, and what the outcome of each suit could mean for dicamba use in the United States.  Go to https://nationalaglawcenter.org/webinars/dicamba/ to learn more. Continue reading