Demand for wood products increased during the pandemic and combined with supply chain disruptions resulted in shortages and high prices for consumers. Some timber-related businesses may have received relief assistance through the CARES Act, but until now there has not been a relief option specifically for the timber industry. As part of the USDA’s Pandemic Assistance for Producers Initiative, the U.S. Department of Agriculture (USDA) is providing up to $200 million to provide relief to timber harvesting and timber hauling businesses that have experienced losses due to COVID-19. The Pandemic Assistance for Timber Harvesters and Haulers (PATHH) program will run from July 22 through Oct. 15, 2021 for eligible loggers and truckers.
Who is Eligible for PATHH?
According to the USDA, to be eligible for payments, individuals or legal entities must be a timber harvesting or timber hauling business where 50% or more of its gross revenue is derived from one or more of the following:
- Cutting timber
- Transporting timber, or
- Processing of wood on-site on the forest land. This includes chipping, grinding, converting to biochar, cutting to smaller lengths, etc.
How are PATHH Payments Calculated?
Payments will be based on the applicant’s gross revenue received from Jan. 1, 2019, through Dec. 1, 2019, minus gross revenue received from Jan. 1, 2020, through Dec. 1, 2020, multiplied by 80%. FSA will issue an initial payment equal to the lesser of the calculated payment amount or $2,000 as applications are approved. A second payment will be made after the signup period has ended based upon remaining PATHH funds. The maximum amount that a person or legal entity may receive directly is $125,000.
How Can I Apply for PATHH?
Loggers and truckers can apply for PATHH using the application portal on the USDA website.
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