On December 21, 2020, Congress passed additional COVID-19 relief to the tune of $900 billion. It includes $13 billion for agriculture. The package includes much-needed financial relief for agricultural producers, funding for food assistance programs, enhancements to the Paycheck Protection Program and funding for enhanced broadband access, as well as additional financial resources for agricultural research and farmer stress assistance programs, among others. You can read details in AFBF’s Market Intel.
Coronavirus Aid, Relief, and Economic Security (CARES) Act
The CARES Act provided coronavirus relief for small businesses, including farmers. Farmers may be eligible for programs through the Small Business Administration, including:
The CARES Act also provided a lot of flexibility for the USDA to develop programs to assist farmers, including the Coronavirus Food Assistance Program (CFAP) and CFAP 2. Find details on our USDA page.
The Federal Funding Accountability and Transparency Act requires entity recipients of federal financial assistance to have a Dun and Bradstreet Data Universal Numbering System (DUNS) number and to maintain current registration in the System for Award Management (SAM) database.
Financial Assistance for Farm Bureau Organizations
- A Guide to the Resources for Nonprofit Organizations
- Coronavirus Tax Relief for Businesses and Tax-Exempt Entities
- Frequently asked questions about carrybacks of NOLs for taxpayers who have had Section 965 inclusions
- CARES Act provides tax relief to insurers
- Tax implications of the CARES Act
As we navigate these new waters, remember our financial auditors will want to understand all steps taken and review the corresponding documentation
Charitable Giving / Tax Impacts in the CARES Act
- Cash Gifts – Individuals may deduct $300 above-the-line. This charitable deduction enables a taxpayer who is one of the 90% who take the standard deduction to also benefit from his or her charitable gifts. The $300 above-the-line deduction must be gifts of cash by a nonitemizer, and may not be to a donor advised fund or supporting organization.
- 100% Charitable Deduction Limit – The usual deduction limit for cash gifts to public charities is 60% of adjusted gross income (AGI). For 2020, gifts of cash to charity (excluding donor advised funds and supporting organizations) are deductible to 100% of AGI. The gift may be for any charitable purpose and is not limited to gifts for Coronavirus relief.
- Required Minimum Distribution (RMD) Waiver – The RMD is waived for IRA and other qualified retirement plan owners for the year 2020. This provision will permit IRA and other qualified retirement plan owners to retain funds in their IRAs. Because the markets declined substantially after the current RMD was calculated based on the plan value on December 31, 2019, Congress determined that it was beneficial to waive the RMD for 2020.