USDA Assistance for Ag Producers
Time is running out to apply for the Emergency Relief Program (ERP) Phase 2 and the Pandemic Assistance Revenue Program (PARP).
The COVID-19 Pandemic affected everyone around the globe and hit our ranching and farming communities hard. These programs were put in place to help clients like ours who experienced revenue losses from 2020-2021. The goal is to better support our farmers and offer a comprehensive approach to disaster assistance and provide economic support to those bearing the financial brunt of circumstances beyond their control. Although part of the USDA, these programs are administered by your county’s Farm Service Agency (FSA).
ERP Phase 2 – This is a tax year-based certification program that provides assistance for producers that suffered a loss in revenue due to necessary expenses associated with losses of eligible crops (excluding crops intended for grazing), due in whole or in part, to a qualifying disaster event that occurred in the 2020 or 2021 calendar year. Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, smoke exposure, excessive moisture, qualifying drought, and other related conditions.
In general, payments for ERP Phase 2 are based on the difference in allowable gross revenue between the selected representative benchmark year(s) and the disaster year(s). ERP Phase 2 uses 2018 and 2019 for the benchmark years and 2020 and 2021 for the disaster years.
To prepare the application, you will need your Schedule F tax return information for these respective years along with the details of what is included in the revenue. As always, some types of revenue are excluded and there may be ag producers that are ineligible for the program.
PARP – The USDA is providing critical support to producers impacted by the effects of the COVID-19 outbreak through PARP. PARP provides direct financial assistance to producers of agricultural commodities who suffered at least a 15% loss in gross revenue in calendar year 2020 due to the COIVID-19 pandemic.
This program also looks at the overall allowable gross revenue between the COVID-19 year (2020 calendar year) and the benchmark years (2018 and 2019 calendar year). If there was a 15% decline in revenue, you may be eligible for PARP.
The deadline for both programs is June 2, 2023.
Ketel Thorstenson has a team of experienced agricultural accounting professionals that can help with this application process or assist you with tax returns and information to fill out the application. Please contact your FSA representative or refer to the USDA website for complete information and details on these programs.
PARP Revenue Loss Assistance Information Sheet:
Revenue Loss Assistance – Comparison Fact Sheet:
PARP and ERP Phase Two Myth-Buster Fact Sheet: