Understanding ERP Phase 2 and PARP
USDA Farm Service Agency (FSA) has announced two new disaster and pandemic assistance programs. Both programs opened on January 23, 2023, and will run through June 2, 2023. When applying for either program, producers will need to gather supporting documentation including Schedule F (Form 1040), Profit or Loss statements, or similar tax documents for the required calendar years. Other FSA standard forms will be requested — refer to our blog post on FSA Forms to Have on File for more information.
If a farmer wishes to apply for either program, they should contact their local FSA office to confirm which forms they need to complete. And, in the case of ERP Phase 2, farmers should confirm if the losses they experienced were caused by a ‘qualifying disaster event.’
Read below for a quick breakdown of both programs to see if you may be eligible for a relief payment. Check the bottom of the table for links to more information about each program.
Side-by-Side Comparison: ERP Phase 2 vs PARP | ||
Emergency Relief Program Phase Two | Pandemic Assistance Revenue Program | |
Purpose | Assist producers impacted by a qualifying disaster event in 2020 or 2021, which resulted in losses to eligible crops | Assist producers impacted by effects of COVID-19 pandemic which resulted in at least a 15% decrease in gross revenue in 2020. |
Eligible Commodities | *Includes crops, trees, bushes, and vines | *Includes crops, livestock, livestock or animal byproducts |
Necessary Calculations for Application | Determine allowable gross revenue in 1) the calendar year when the disaster event occurred and 2) in 2018 or 2019 as a ‘benchmark revenue’ year**. You must be able to show there was an eligible loss in revenue in the disaster event year in comparison to 2018 or 2019 in order to receive a payment.
| Determine allowable gross revenue in 1) the calendar year 2020 and 2) in 2018 or 2019 as a ‘benchmark revenue’ year**. You must be able to show there was a 15% in gross revenue in 2020 in comparison to 2018 or 2019 in order to receive a payment.
|
Calculation Exclusions | When calculating allowable gross revenue, producers should only count revenue that applies to eligible crops in their total. For instance, if a farmer raises cattle, honey bees, and grows peanuts, they can only include revenue related to peanuts. | When calculating allowable gross revenue, producers should only count revenue that applies to eligible crops in their total. For instance, if a farmer raises cattle, perch, and grows peanuts, they can only include revenue related to cattle and peanuts. |
Payment Limitations and Program Conditions | $125,000 payment limit per person or entity. This limit is combined from Phase 1 and Phase 2. A separate $125,000 payment limit applies to speciality/high value commodities.
| $125,000 payment limit per person or entity. |
Underserved Producers | BIPOC, women, limited resource, beginning, and veteran farmers will receive a higher ERP payment, at a percentage rate to be determined. | BIPOC, women, limited resource, beginning, and veteran farmers’ payments will be calculated at a rate of 90% (the difference between revenue in 2018/2019 compared to 2020). Other producers will have payment rates set at 80%. |
Where to Learn More | ||