Governor Northam Announces More Than $29.6 Million to Expand Broadband Access

Governor Ralph Northam has announced that Virginians living and working in 11 localities will gain access high-speed internet thanks to more than $29.6 million in grants awarded through the Virginia Telecommunication Initiative (VATI). The funding will support five projects, connecting more than 11,700 households, businesses, and anchor institutions to broadband service, and leveraging over $34 million in private and local investments.

Administered by the Department of Housing and Community Development (DHCD), VATI provides targeted financial assistance to extend broadband service to areas that are currently unserved by a provider. In his 2020 budget, Governor Northam made an historic investment of nearly $50 million in VATI funding. His proposed budget invests an additional $15 million in fiscal year 2022 to maintain this significant level of funding.

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Livestock and Poultry By Contract Growers Now Eligible for CFAP2

USDA has announced additional assistance for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP2) – Additional Assistance began January 19 and will run through February 26, 2021.

The additional assistance will be used to update payments to accurately compensate producers who already applied for earlier assistance and to expand CFAP eligibility to producers and commodities. Details are located at https://www.farmers.gov/cfap. Producers can modify applications or apply for CFAP2 at USDA’s Farm Service Agency (FSA) county offices.  For details on how to modify or submit a new CFAP2 applications, visit www.farmers.gov/cfap/apply.

Updated Payment Calculations

CFAP additional assistance includes changes to more accurately compensate producers who already applied for the program. Producers of certain commodities may be eligible for higher payments.

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U.S. Paycheck Protection Program – Farms are Eligible

The Paycheck Protection Program (PPP) is a guaranteed loan program for small businesses to keep their employees on the payroll. Eligible businesses include nonprofits, veterans, organizations, tribal business concerns, sole proprietorships, self-employed individuals and independent contractors with 500 or fewer employees. It is our understanding that this help does not apply to foreign workers under the visa programs like H-2A.

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. New borrowers to the program may also be eligible.

This second round of PPP loans includes improvements that can benefit farmers:

  • Allowable expenses that had been paid for with forgiven PPP loans may be taken as a business deduction for income tax purposes without limitation.
  • The qualifying reduction in gross revenue was reduced from 50% to 25% between comparable quarters in 2019 and 2020. This much-needed change for producers who suffered multiple years of losses expands the number of farms that can qualify to participate.
  • Gross income, instead of net farm income, will now be used for the loan requirement calculation for farmers who file as sole proprietors will allow many more producers to participate.
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Governor Northam Commends Nomination of Dr. Jewel Bronaugh as USDA Deputy Secretary

Governor Ralph Northam has commended President-elect Joe Biden for appointing Dr. Jewel H. Bronaugh to serve as Deputy Secretary of the United States Department of Agriculture (USDA). Dr. Bronaugh has served as Commissioner of the Virginia Department of Agriculture and Consumer Services (VDACS) since May 2018. Pending confirmation by the United States Senate, Commissioner Bronaugh will become the first African American Deputy Secretary of Agriculture.

“As Commissioner of VDACS, Dr. Bronaugh has been a true leader—promoting the agency’s core mission while taking on new challenges, including our COVID-19 pandemic response and farmer mental health, focusing economic development to improve food access in underserved communities, and engaging youth in the field of agriculture,” said Governor Northam. “I am proud that she will be representing the both the Commonwealth and all Americans in such a critical role at USDA and in this new Administration.”

USDA consists of 29 agencies and offices with nearly 100,000 employees who serve at more than 4,500 locations across the country and abroad. The Department promotes agriculture production that helps feed Americans and others throughout the word, supports rural economic development, and conserves the nation’s natural resources through conservation, forest restoration, improved watersheds, and healthy private working lands.

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American Farm Bureau Establishes 2021 Policies

Farmer and rancher delegates to the American Farm Bureau Federation’s 102nd Annual Convention have adopted policies to guide the organization’s work in 2021. Key topics ranged from farm diversity to farm labor and dairy policy to livestock marketing. For the first time in AFBF history, delegates met and voted virtually due to COVID-19.

“Our Farm Bureau delegates showed that no challenge, not even a pandemic, will keep them from working to improve the lives of America’s farmers and ranchers,” said AFBF President Zippy Duvall. “Their work not only sets policy for 2021, it will also serve as a guide for AFBF as we prepare to work with a new president and a new Congress to ensure we continue to lead the world in producing healthy and safe food, fiber and fuel.”

Recognizing the importance of broadening access to agriculture, delegates voted to encourage increased racial diversity in farming. This new policy calls for increased funding for USDA programs that make inheriting farms easier and increases funding to promote diverse farmland ownership.

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Agricultural Economic Outlook Tied to Pricing, Trade Agreements and More

Commodity prices, COVID-19 and trade agreements are three of the top subjects shaping the farm economy outlook in 2021.

Three American Farm Bureau Federation economists presented their top topics influencing commodity prices, livestock markets and overall farm policies during a Jan. 11 presentation at the organization’s virtual convention.

During the “2021 Farm Economy Outlook” workshop, AFBF livestock economist Michael Nepveux said, “China is the big elephant in the room.” Before the swine flu reduced China’s hog herds in 2018, the country accounted for half of the world’s production and consumption of pork, he noted.

Since then, U.S. pork, beef and poultry exports to China not only rebounded, but also experienced significant increases in 2020. The question Nepveux posed is whether those exports will continue to increase under the new administration.

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