Ask Our Experts: How Far Does Federal PPP Pandemic Relief Go for Hemp Farmers?

 

Q: How much money is available in the Paycheck Protection Program (PPP) for me as an owner of hemp farmland?

 

By William Sumner, Hemp Content Manager, New Frontier Data

A: As the COVID-19 pandemic and its massive economic fallout continues to affect American commerce, more hemp farmers have started to look towards government relief programs like the PPP as a stopgap measure to help weather the uncertain times. The degree to which the program can help struggling farmers depends greatly on how their businesses are structured.

For owners of hemp farmland, programs like the PPP may not be the lifeline expected. It is important to note that the PPP covers only payroll-related costs. For any cultivator owning the farmland, odds are that most of one’s expenses are separate from payroll.

While most farms keep some employees or contract laborers, essential operating expenses include equipment maintenance, utilities, and insurance. While the PPP may help provide for one’s employees, farmers may be advised to consider other federal resources, such as Economic Injury Disaster Loans, to help cover costs of operations.

For more information and insights about why and how to apply for federal COVID-19 relief, watch New Frontier Data’s recent webinar, Unpacking the CARES Act: Opportunities For Hemp Operators.