This bill creates a new federal payment program to compensate timber harvesting and timber hauling businesses for unexpected revenue losses caused by major disasters. Eligible entities must have harvested or hauled unrefined timber in the prior calendar year and suffer a 10% or greater drop in gross revenue in a 30‑day period or calendar quarter, relative to the same period in the previous year.
The payment equals 10% of the eligible entity’s gross revenue for the applicable period. Payments are restricted to operating expenses.
The program is administered by the Department of Agriculture through the Farm Service Agency, with annual reports to Congress. A $50 million annual appropriation funds the program for 2025–2029, and regulations may be issued promptly with exemptions from typical rulemaking requirements.
At a Glance
What It Does
The act creates a disaster-relief payment mechanism: eligible timber harvesting or hauling businesses receive a payment equal to 10% of their gross revenue for the period of revenue decline if that decline reaches at least 10% in the 30‑day window or a quarter. Eligibility hinges on prior-year operation and classification as an eligible entity.
Who It Affects
Direct recipients are timber harvesting and timber hauling businesses that operated in the previous year. The Farm Service Agency administering the program is the key administrative node; the relief affects small to mid-sized timber operators and their supply chains.
Why It Matters
Provides targeted liquidity support to a volatile sector highly exposed to weather, pests, and market shocks, potentially stabilizing local economies dependent on timber.
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What This Bill Actually Does
The Loggers Economic Assistance and Relief Act creates a new, targeted relief program within the Agriculture Department. If a timber harvesting or timber hauling business experienced a major disaster and saw a 10% or greater drop in gross revenue in a 30‑day period or a calendar quarter compared with the same period in the previous year, the business can receive a payment from the federal government.
The payment is set at 10% of the entity’s gross revenue for the applicable period. To receive the funds, the business must certify that the payment will be used solely for operating expenses.
The definitions section clarifies who qualifies as an eligible entity, including both timber harvesting and timber hauling operations, and expands the concept of a major disaster to include insect infestations declared under the Stafford Act. The Secretary of Agriculture, acting through the Farm Service Agency, handles payments and compliance, while the act calls for annual reporting to Congress detailing recipients and amounts paid.
Regulations to implement the program are to be issued within 30 days of enactment, and the usual notice-and-comment requirements are waived for these regulations and for related paperwork reduction rules. The program is funded at $50 million per year from 2025 through 2029.
The Five Things You Need to Know
Eligible entities are timber harvesting or timber hauling businesses that harvested or hauled unrefined timber in the previous calendar year.
A major disaster includes events under the Stafford Act and insect infestations declared major disasters.
Payments equal 10% of the eligible entity’s gross revenue for the applicable period (30 days or a quarter).
Payments may only be used for operating expenses.
The program is funded at $50 million annually (2025–2029) and overseen by the Farm Service Agency with annual reports to Congress.
Section-by-Section Breakdown
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Short title
The act may be cited as the Loggers Economic Assistance and Relief Act, establishing the formal name for the measure and its scope.
Definitions
Key terms are defined to shape eligibility and scope. An ‘eligible entity’ includes timber harvesting or timber hauling businesses that harvested or hauled unrefined timber in the prior calendar year. A ‘major disaster’ incorporates events under the Stafford Act and includes insect infestations declared a major disaster. ‘Gross revenue’ means the revenue generated by the eligible entity from timber activities within its normal operations, as determined by the Secretary. The ‘Secretary’ refers to the Secretary of Agriculture via the Farm Service Agency.
Payments
Eligibility for payments requires a loss of not less than 10% in gross revenue in a 30‑day period or quarter, compared to the same period in the prior calendar year. Eligible entities meeting this threshold receive a payment under the program. The mechanism ties relief directly to real-time revenue shocks from disasters.
Amount of Payment
The payment equals 10% of the eligible entity’s gross revenue during the applicable period (30 days or quarter) that experienced the revenue drop. This creates a simple, transparent calculation that aligns relief with magnitude of impact.
Allowable Use
Payments are restricted to be used only for operating expenses. This constraint aims to preserve business continuity by supporting ongoing operations rather than capital investments.
Report
The Secretary must report to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture within 180 days of enactment and annually thereafter. Reports identify recipients and amounts disbursed, ensuring transparency and oversight of the program.
Regulations
Regulations implementing the section must be issued within 30 days of enactment. The rulemaking process is streamlined by waiving notice-and-comment procedures and specific paperwork reduction requirements, expediting program rollout while relying on the Secretary’s administrative discretion.
Authorization of Appropriations
The act authorizes $50 million in appropriations for each fiscal year from 2025 through 2029 to fund the payments and related administration.
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Explore Economy in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Timber harvesting businesses that operated in the prior year and experience a ≥10% revenue drop due to a major disaster, who receive direct payments.
- Timber hauling businesses that operated in the prior year and experience a ≥10% revenue drop, gaining relief to maintain operations.
- Rural communities and regional economies reliant on timber activity may benefit from stabilized business activity and cash flow in disaster years.
- Timber-related equipment suppliers and service providers may see maintained demand from operator cash flow that remains functional due to relief payments.
Who Bears the Cost
- U.S. Treasury and taxpayers fund the $50 million annual appropriation.
- The Department of Agriculture and Farm Service Agency incur administrative and enforcement costs to process applications, verify eligibility, and oversee use of funds.
- Recipient businesses bear the administrative burden of certifying the use of funds for operating expenses and complying with reporting requirements.
Key Issues
The Core Tension
The central dilemma is whether to prioritize rapid, simplified relief that can be disbursed quickly to a targeted sector (timber) versus the desire for precision, accountability, and adequate funding in a program that must operate under a fixed annual budget and expedited regulatory processes.
The bill creates a targeted relief mechanism but raises important questions about oversight, adequacy, and targeting. The rapid rulemaking exemption and exemption from certain paperwork reduction requirements reduce friction to deploy funds quickly, but they also raise concerns about accountability and measurement of proper use.
The fixed annual appropriation ($50 million) may or may not be adequate to fully offset revenue shocks across diverse timber regions, and there is no automatic adjustment mechanism tied to regional disaster frequency or inflation. The 10% revenue-drop threshold is straightforward, yet it may exclude some businesses suffering less-visible but material revenue declines, or conversely, may overstate need in periods of temporary market volatility.
The reporting requirement, while transparent, could raise privacy considerations and administrative burdens for small operators.
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