Source: POLITICO'S MORNING AGRICULTURE, 4/22/20

Congress and the Trump administration reached a bipartisan deal on Tuesday to add about $321 billion to the depleted Paycheck Protection Program, giving farmers and ranchers another chance to apply for forgivable loans to maintain their workforces, your host reports.

Todd Van Hoose, president of the Farm Credit Council, which represents lenders in the nationwide Farm Credit System, said his group supports the infusion of funds for PPP loans, which are forgiven if a business keeps its workers on the payroll for eight weeks.

But Van Hoose said he doubts the money will last for more than a few days. "There's going to be a huge rush to get that," he said.

"We're not confident at all that this will be terribly effective for agriculture."

Tracy Sparks, CEO of Yosemite Farm Credit, said the institution had submitted 70 applications for a combined $18 million in loans by the time the program's initial pot of money expired last week, while 30 customers are waiting for Congress to replenish the funds.

More loan options: The $484 billion legislation also specifies that ag operations with fewer than 500 employees are eligible for Economic Injury Disaster Loans. Congress authorized another $60 billion for the program, which provides up to $10,000 in advance to small businesses that are losing revenue amid the crisis.

Giving farmers another lifeline is "encouraging," said House Ag ranking member Mike Conaway (R-Texas) in a statement, but it's "no substitute for a comprehensive, fully funded relief program" from USDA. The department last week unveiled its initial $19 billion rescue package for farmers, but it won't start mailing checks to producers until at least the end of May.

— Worth noting: Senate Majority Leader Mitch McConnell said the chamber will proceed "cautiously" to the next phase of coronavirus relief, suggesting that he's growing weary of quickly shoveling billions of dollars out the door even as the economy continues to crater.

As for USDA's commodity purchase plan, officials said Tuesday that they plan to send the first wave of boxes to food banks by mid-May, Pro Ag's Helena Bottemiller Evich reports. The department will outline the products it wants to buy and redistribute, potentially including precooked pork and chicken; yogurt, butter and milk; and produce like apples, oranges, pears, tomatoes, blueberries and salad mixes.

— Timeline: USDA aims to start soliciting bids by Friday and to receive proposals by May 1; contracts would then be awarded around May 8, with shipments going out May 15, officials said.