USDA Revenue Loss Assistance Programs For Agricultural Producers
Feb 07, 2023
At the end of last year, the U.S. Department of Agriculture (USDA) announced its plan to launch the Emergency Relief Program (ERP) Phase Two, as well as the new Pandemic Assistance Revenue Program (PARP). These two disaster programs were developed to help offset crop and revenue losses for agricultural producers. Just last month, the USDA announced its Farm Service Agency (FSA) is now accepting applications for both of these programs through June 2, 2023. Below are some of the key details to know before applying. For a full listing of all the guidance and qualifications, visit the USDA’s website.
Emergency Relief Program (ERP) Phase Two
- ERP Phase Two is for producers who didn’t receive assistance from ERP Phase One.
- Eligibility for assistance through this program is based on revenue losses experienced from eligible natural disasters in 2020 and 2021.
- Producers should begin reviewing the following documents in preparation for applying for ERP Phase Two:
- Schedule F (Form 1040)
- Profit or Loss from Farming (or similar tax documents for tax years 2018-2022, representing their applicable Benchmark Year and Tax Year for Disaster Year Revenue)
Pandemic Assistance Revenue Program (PARP)
- PARP provides financial assistance for producers who suffered at least a 15% decrease in allowable gross revenue for the 2020 calendar year, as compared to 2018 or 2019.
- Producers may be eligible for assistance through PARP for a range of agricultural commodities and allowable gross revenue sources.
- Other notable eligibility requirements include:
- Must be a citizen of the United States, a resident alien, a partnership or organization structure organized under state law, an Indian Tribe or Tribal organization, or an eligible foreign person or foreign entity
- Have an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017, and 2018
- Comply with provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions.
- Submit a complete PARP application form (FSA-1122) and provide all required documentation.
Applications for each program are due June 2, 2023. Producers can apply for both programs during the same appointment with USDA’s Farm Service Agency (FSA).
For more information, producers should contact their local USDA service center or reference the ERP Phase Two-PARP Comparison Fact Sheet.
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Jeffery Long, CPA