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rickgthf
Senior Advisor

BA, "where's my CFAP(2?)", maybe a clue.

https://www.politico.com/news/2021/02/13/biden-cuts-medicare-farm-aid-468895

If I understand this article correctly (& I make no claims  I do), it seems that there is pay-as-you-go language in both Medicare & Farm Program law that requires a simple few word adjustment before they can pass.  And unlike the majority of the coronavirus package which can be passed by "reconciliation" in the Senate, this adjustment needs 60 votes.

  Given the republicans' suddenly new-found obsession with a balanced budget, can they get the 10 republican votes needed to avoid massive Medicare cuts? 

  It seems that any more coronavirus relief for farmers may depend on farm-state republican Senators.  

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13 Replies
BA Deere
Honored Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

That`s a no-brainer, I`ll gladly give up the crumbs I`d get in CFAP if it makes Democrats look bad for bullying with their majority to cut medicare & farm subsidies while passing a bloated 3X Covid relief package. 

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bruce MN
Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

Re: “understanding”, as you say.

As for these people working on this, the chances of holding it all together probably pretty good if the perspective of those on the inside of working it out see the farm program complex as being about “farm workers”

SNIP: “No one is going to allow Medicare or farm worker programs to be cut because of the reconciliation bill … That I can guarantee you.”

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Hobbyfarmer
Honored Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

After another year of this,

Cfap 1, 2, 3 ... 28.5, whip, arc. PPP first draw, PPP second draw, and others I'm sure I've missed will any of us remember how to farm/raise grain and livestock productivity and profitability on it's own merits?

Anybody letting any of it stick to your fingers or is the pickup, farm machinery dealer, and out bidding your neighbor on rent keeping it vacuumed out of your bank acct?

 Maybe an extra principal pmt on debt?   Probably not, thats not glamorous...

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nitefarm
Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

Used 100% of our first ppp on payroll. Not eligible for second one   

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BA Deere
Honored Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

"farm WORKER programs" LOL   

The Covid package only needs $600 Billion to give us our extra $1400, the $1.9 Trillion is pork & Twinkies.   I don`t understand the sausage making of reconciliation any more if at all more than anyone else.   But why do Dems want Republican fingerprints on this spending monstrosity?  For medicare and "farm WORKER programs" does the senate need the same majority it would take to impeach a president?   Smiley Happy 

Can`t they change the rules of reckless  spending so a simple majority could pass it, Heels up breaking any tie?

I think we can farm without programs, there`s still enough of us that have skills to turn a steering wheel and follow a planter marker.  Smiley Happy    If CFAP 2.1 does get funded and approved and $20/acre payment, rents will go up $40, seed corn $20, fertilizer $50.   Which makes it all the more important that if it is approved, you better be signed up or you`ll be just that much further behind.

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BA Deere
Honored Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

Nitefarm, I know a guy that received PPP 1, but paid it back and was then eligible for this latest round.  You might want to look into that if it`ll make sense.

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nitefarm
Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

Thanks for the information didn’t know that was an option. It was our c p a s understanding that you had to have one quarter of 2020 that had 25% less gross income than 2019, closest one for us was 23.5%. That was determined last month, and at the time they weren’t sure if ours had been forgiven, said rules were still changing . We opened separate bank account for payroll to remove all doubt about where the money went I guess we will see if it is worth paying off next week. Thanks again for the info .

 

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Hobbyfarmer
Honored Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

Second PPP is same $ as first so why pay if off ?

Only qualification is as you stated 25% or more reduction from any quarter in 20 as compared to  same quarter in '19. 

4 chances at that lottery. 

24.95% will not do it.

Lots of disinformation and half truths out there.

If 1st draw was done on net and not yet forgiven and was not at maximum, request an amendment to get to maximum. Has to be done before forgiveness happens. Rules were changed 2 days before Christmas.

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BA Deere
Honored Advisor

Re: BA, "where's my CFAP(2?)", maybe a clue.

I`ll just lay all my cards on the table as to what I know about the PPP.  The place I work is agricultural and wasn`t shutdown through covid in Aprilish, I was hoping to get laid off and collect unemployment for staying home and planting corn.  But no, I had to take time off work, no pay to plant, meanwhile my boss gets the PPP forgivable loan buys newer truck and trailer and paves the parking lot with the money ...no raises for employees who "risked our lives working for him during this daaaaaangerous pandemic", but whatever he`s the boss.

I looked into it for my farm, didn`t think i`ll qualify because i don`t have employees on a payroll and forgot about it.  Well, a neighbor who`s a small farmer and first one in the line for all this stuff finagled $3,500 out of it, he doesn`t have employees on payroll.... whatever none of my business.  Then he signs up for this latest +$20,000 forgivable PPP, but he said he had to pay off the $3500 loan thing first.   My boss probably got way over $100,000 in that first run of PPP, in his case, that first run would be a much better deal...God forbid he give us employees a little raisey-raise.

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