Two new programs are available for agricultural producers who have had revenue losses.

Producers who have losses from 2020 or 2021 natural disasters, or the COVID-19 pandemic, can apply for the programs, which equitably fill gaps in earlier assistance.

The Emergency Relief Program Phase Two is for producers who lost revenue from eligible natural disasters in 2020 and 2021.

Producers may also be eligible for the Pandemic Assistance Revenue Program if losses were experienced in 2020. PARP addresses gaps in previous pandemic assistance, which was targeted at price loss or lack of market access, rather than overall revenue losses.

Applications for both programs are due June 2, 2023, and can be applied for during one appointment with the USDA Farm Service Agency.

FSA programs have historically been designed to make direct payments to producers based on a single disaster event or for a single commodity loss. For many, this may be the first revenue-based program for which they have applied.

 

Why revenue-based?
ERP Phase Two and PARP take a much more holistic approach to disaster assistance, ensuring that producers not just make it through a single growing season but have the financial stability to invest in the long-term well-being of their operations and employees.

In general, ERP Phase Two payments are based on the difference in allowable gross revenue between a benchmark year, representing a typical year of revenue for the producer and the disaster year — designed to target the remaining needs of producers impacted by qualifying natural disasters and avoid duplicative payments. ERP Phase Two revenue loss is based on tax years.

For PARP, an agricultural producer must have been in the business of farming during at least part of the 2020 calendar year and had a decrease in revenue for the 2020 calendar year, as compared to a typical year. PARP revenue loss is based on calendar years.

 

How to apply

Producers should gather supporting documentation including:

• Schedule F (Form 1040); and
• Profit or Loss from Farming or similar tax documents for tax years 2018, 2019, 2020, 2021 and 2022 for ERP and for calendar years 2018, 2019 and 2020 for PARP.

 

Producers should also have, or be prepared to have, the following forms on file for both ERP and PARP program participation:

• Form AD-2047, Customer Data Worksheet (as applicable to the program participant);
• Form CCC-902, Farm Operating Plan for an individual or legal entity;
• Form CCC-901, Member Information for Legal Entities (if applicable); and
• Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification.  
• Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, as certain existing permanent and ad-hoc disaster programs provide increased benefits or reduced fees and premiums.

 

Most producers, especially those who have previously participated in FSA programs, will likely have these required forms on file. However, those who are uncertain or want to confirm should contact FSA at their local USDA Service Center.

 

March 15 deadline for Safety Net programs

Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for the 2023 crop year have until March 15, 2023, to elect and enroll a contract. The USDA offers these two safety net programs to provide vital income support to farmers experiencing substantial declines in crop prices or revenues.

Producers can elect coverage and enroll in ARC-County or PLC, which are both commodity-by-commodity, or ARC-Individual, which covers the entire farm. Although election changes for 2023 are optional, producers must enroll through a signed contract each year. Additionally, if a producer has a multi-year contract on their farm and makes an election change for 2023, they will need to sign a new contract.

If producers do not submit an election by the deadline, the election remains the same as the 2022 election for commodities on the farm. Farm owners cannot enroll in either program unless they have a share interest in the commodity.

Producers who do not complete enrollment by the deadline will not be enrolled in ARC or PLC for the 2023 year and will not receive a payment if triggered.

Producers are eligible to enroll farms with base acres for the following commodities:  barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.