07/23/2021
West Virginia Loggers Council will be hosting meetings for loggers and truckers throughout the next few weeks about this opportunity
Yesterday, the Farm Services Agency (FSA), a unit within the U.S. Department of Agriculture, hosted a webinar to brief stakeholders on the logger relief program enacted late last year, officially known as the Pandemic Assistance for Timber Harvesters and Haulers (PATHH) program. Steve Koehn, Director of Cooperative Forestry at the U.S. Forest Service, kicked off the program by thanking FRA as well as the American Loggers Council, the National Association of State Foresters, and a tribal association for helping secure Congressional authorization of this program. Koehn noted that Covid-19 related losses for the logging and timber hauling sectors totaled $1.83 billion and resulted in 21.4 million fewer tons of raw material delivered to end markets.
The webinar then turned to specifics of the program, which are the following:
Eligibility—Any business that derives its gross revenue from one or more of the following—cutting timber, cutting and transporting timber, or producing wood chips on forestland. Also eligible are timber hauling businesses which are defined as log hauling businesses with gross revenue derived from transporting products harvested from forestland with vehicles registered as highway motor vehicles used in the transportation of timber.
To be eligible for payment, businesses in these two categories must be in operation during some portion of both—January 1, 2019, through December 1, 2019, and January 1, 2020 through December 1, 2020 (this 11 month period is correct as that is how it was drafted in the authorizing legislation)
In addition, the eligible business must have had at least a 10 percent gross revenue loss when comparing the 2020 period with the 2019 period and the business must have had 50 percent or more of its gross revenue derived from timber harvesting, timber hauling or both during these time periods.
Businesses must be classified under NAICS code 113310 for timber harvesting eligibility. Must be classified as codes 484220 or 484230 for timber hauling eligibility. Haulers must submit IRS Form 2290 (Heavy Highway Vehicle Use Tax Return) for 2019 and 2020 as well.
Must be one of the following: US citizen, Resident Alien, Partnership, Corporation, Indian Tribe or Tribal Organization
Transportation must be from the point of harvest to an off-site location (mill, wood yard, etc.). Transportation from one off-site location to another off-site location is not an eligible activity.
Ineligible applicants:
Residential or commercial tree care (arborist, tree expert, etc.)
Landscape Services
Timber Brokers
Trucking businesses that do not transport trees or logs
US Federal, State, and local governments (including public schools)
Minor children
Program Funding—Total program funding is capped at $200 million.
Sign-up period is July 22 – October 15, 2021 (postmark/time stamp on application)
Any Paycheck Protection Program funds received will not impact enrollment eligibility for PATHH funding
Any payments received will be considered taxable income and a 1099 will be issued for payments in excess of $600
Applicants are encouraged to work with their local FSA office on the application process. There are over 2100 local FSA offices and staff has received PATHH-specific training to assist applicants. It is recommended applicants call to schedule an appointment since FSA offices are at 75 percent staffing capacity due to COVID restrictions. One-on-one assistance is also available at 877-508-8364.
FSA is planning state and local webinars to promote the PATHH program
Application Process:
AD-2047 Customer Data Worksheet
CCC-901 (if applicable)
AD-1026
SF-3881 Direct Deposit Form
FSA-1118 for all timber harvesting and/or hauling operation interests nationwide
IRS 2290 (haulers only – not required if hauling on tribal lands)
NAICS principal business code
Applicant is required to certify timber harvesting/hauling gross revenue received for the 11-month periods
2019 Gross Revenue (received 1/1/2019 through 12/1/2019)
2020 Gross Revenue (received 1/1/20 through 12/1/2020)
Must submit FSA-1118 by one of the following methods:
In person to local FSA Office
By mail (October 15th postmark deadline)
Electronically
Fax, Scan, or email signed AD-3117
www.farmers.gov online application
Box, OneSpan (register for Level 2 eAuthentication account at www.eauth.usda.gov)
Payment Limitation—Each non-Tribal applicant is limited to a total of $125,000 (Tribal Organizations are not subject to the $125,000 cap)
Payment Formula:
Calculated by subtracting Gross Revenue for the 2019 period (1/1-12/1) minus the Gross Revenue for the 2020 period, then multiplying this balance by 80%
There will be two payment cycles:
Initial Payment (issued as applications are approved and all eligibility forms are processed)
Final Payment (issued after the application period ends)
Initial Payment will be equal to the lesser of:
The gross revenue for the 2019 period minus the gross revenue for the 2020 period, multiplied by 80%, or
$2,000
Final Payment will be equal to:
The gross revenue calculation above minus the initial payment of $2,000
