Are you a timber logger or trucker whose operation has been impacted by the coronavirus pandemic? USDA’s Pandemic Assistance for Timber Harvesters and Haulers program (PATHH) will provide financial relief to timber harvesting and timber hauling businesses that experienced losses in 2020 due to COVID-19. This new program is part of USDA’s Pandemic Assistance for Producers initiative.
How the Pandemic Assistance for Timber Harvesters and Haulers Program Works
PATHH provides up to $200 million to support timber harvesting and timber hauling businesses that experienced a loss of at least 10 percent gross revenue from January 1 through December 1, 2020, compared to the same period in 2019. Individual loggers or truckers, or legal entities, may be eligible for up to $125,000 in financial assistance through this program.
Eligible program applicants will receive up to two PATHH payments based on the following payment calculation, where both years reflect gross revenue from January 1 through December 1.
Expected PATHH Payment = (2019 Gross Revenue – 2020 Gross Revenue) x 0.80
FSA will issue an initial payment of no more than $2,000 shortly after application approval. A final payment will be made after the signup period ends to applicants whose expected total payment exceeds $2,000. The sum of both payments will not exceed $125,000, and USDA may prorate final payments if total calculated payments nationally exceed the $200 million in funding allocated for PATHH.
The below list captures all eligibility requirements for PATHH. We recommend you review this list before initiating your PATHH application.
To be eligible for PATHH, an individual or legal entity must:
- Have been in operation as a timber harvesting business or timber hauling business for at least part of the periods from January 1, 2019, through December 1, 2019, and January 1, 2020, through December 1, 2020. USDA will adjust your gross revenue proportionally if you did not operate during the entire period for one or both years.
- Be a business that derived at least 50 percent of gross revenue from timber harvesting and/or timber hauling from January 1, 2019, through December 1, 2019, and from January 1, 2020, through December 1, 2020. Specifically, eligible activities to earn revenue during these periods include cutting timber, transporting timber, and/or the processing of wood on-site on the forest land, such as chipping, grinding, converting to biochar, cutting to smaller lengths, etc.
- Have experienced a loss of at least 10 percent in gross revenue during this period in 2020 as compared to 2019. You can calculate your loss in revenue using the following formula, where both years reflect gross revenue from January 1 through December 1:
Percent Revenue Loss = ((2019 Gross Revenue – 2020 Gross Revenue) / 2019 Gross Revenue) x 100
- If a logger, must have a 2017 North American Industry Classification System (NAICS) code of 113310 for tax purposes. The NAICS code for your business will be located on your federal tax return documents for 2019 and 2020.
- If a trucker, must have a NAICS code of 484220 or 484230 and must have filed an IRS Form 2290. The NAICS code for your business will be located on your federal tax return documents for 2019 and 2020.
- Comply with provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions. These will be addressed via form AD-1026 during the application process.
- Not have a controlled substance violation.
- Be a citizen of the United States or a resident alien.
- Submit a complete PATHH application form (FSA-1118) and provide all required documentation. The below section details all documents required to apply for PATHH.
- Not be a minor. Minors under 18 years of age are not eligible for PATHH.
If you have questions about your eligibility, please contact the FSA office at your local USDA Service Center or call 877-508-8364 to speak directly with a USDA employee ready to offer assistance.
Apply for the Pandemic Assistance for Timber Harvesters and Haulers Program
Loggers and truckers will be able to apply for PATHH by working directly with the Farm Service Agency office at their local USDA Service Center. Applications will be accepted via mail, fax, hand delivery, or electronic means.
Producers with an eAuthentication account can apply for PATHH via the PATHH Application Portal. Applications can be completed, electronically signed, and submitted directly to your local USDA Service Center through this online system. Reference the PATHH Application Portal User Guide for more information.
The forms you will need to complete your application are outlined below.
- FSA-1118, Pandemic Assistance for Timber Harvesters and Haulers (PATHH) Application: Applicants must complete and sign the PATHH application form and submit it to any FSA county office nationwide. The applicant must certify their gross revenue for 2019 and 2020 on the FSA-1118.
- AD-2047, Customer Data Worksheet: This form will be filled out for all individuals and legal entities, including entity members, who have not previously provided their personal information to USDA that positively identifies the customer.
- CCC-901, Member Information for Legal Entities (If Applicable): Legal entities will fill out the CCC-901 to facilitate the administration of the payment limitation and eligibility requirements, including providing members’ names and taxpayer identification numbers.
- AD-1026, Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification: All applicants must complete the AD-1026 form. If the applicant does not have any farming interests, this can be certified in box 5A. If the applicant does have a farming interest, the form must be completed in its entirety.
- IRS Form 2290, Heavy Highway Vehicle Use Tax Return: An applicant applying as a timber hauler must provide a copy of IRS Form 2290 for logging vehicles for 2019 and 2020. Under special circumstances, as determined by USDA, this form will not be required for a timber hauler.
- SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form: This form will be filled out for all applicants to collect your banking information to allow USDA to make payments to you via direct deposit.
- If requested by USDA, the applicant must provide documentation to verify eligibility and specific information included on the application, such as tax records with NAICS 113310, 484220, or 484230, as well as evidence that supports the gross revenue the applicant received from timber harvesting or hauling. Evidence could include receipts, tax returns, and other documentation that is determined acceptable by USDA as valid.
You are encouraged to contact the FSA office at your local USDA Service Center with any questions about PATHH, program eligibility, or the application process. You may also call 877-508-8364 to speak directly with a USDA employee ready to provide one-on-one assistance.