The USDA is reviewing aid to agricultural producers for crop and income losses

INSURANCE OPTIONS…

New programs to provide additional pandemic and disaster relief for 2020 and 2021

PUBLISHED ON November 21, 2022

WASHINGTON — Secretary of Agriculture Tom Vilsack today announced plans for additional emergency and pandemic assistance from the United States Department of Agriculture (USDA). USDA is preparing for release Emergency Response Program (ERP) The second stage, and also new Pandemic Income Program (PARP), which are two programs that will help compensate for the loss of crops and income of producers. The USDA is sharing preliminary information to help growers gather paperwork and train initial staff on the new approach.

“We’ve worked diligently to help agricultural producers recover from devastating natural disasters, as well as the coronavirus pandemic, with a wide array of programs,” Vilsack said. “No matter how well we plan these targeted efforts, we often find that some growers fall through the cracks or are more severely affected than their neighbors. These new programs take a holistic approach to emergency relief — one that focuses not on a single disaster or commodity, but on filling the gaps in helping agricultural producers who have suffered losses from natural disasters and pandemics over the past few years.”

The second phase of the ERP will assist eligible agricultural producers who have suffered eligible crop losses, measured in reduced income, due to wildfires, hurricanes, floods, droughts, excessive heat, winter storms, freezing temperatures (including the polar vortex), exposure to smoke, excessive moisture and qualifying droughts occurring in the 2020 and 2021 calendar years.

PARP will assist agricultural producers who experienced a decrease in income in the 2020 calendar year compared to 2018 or 2019 due to the COVID-19 pandemic. PARP will help address gaps in pre-pandemic aid that focused on price loss or lack of market access, rather than overall income losses.

The second phase of the emergency program

ERP is authorized under State Funding Expansion and Emergency Relief Actwhich includes $10 billion in aid to agricultural producers affected by wildfires, droughts, hurricanes, winter storms and other related disasters in calendar years 2020 and 2021.

The second phase is based on the first ERP phase that was launched in May 2022 and has since paid out more than $7.1 billion to growers who suffered eligible crop losses that were covered by the federal crop insurance program or the uninsured disaster relief program.

The second stage of the ERP includes producers who have suffered relevant losses but may not have received the benefits of the program in the first stage. To be eligible for Phase Two, producers must suffer a loss of eligible gross income as defined in future program regulations in 2020 or 2021 due to necessary costs associated with eligible crop losses due to a natural disaster.

Eligible crops include both traditional insurable commodities and specialty crops produced in the United States as part of an agricultural operation and intended for commercial sale. Like other emergency and pandemic assistance programs, the USDA’s Farm Service Agency (FSA) continues to look for ways to streamline the process for both staff and producers while reducing the paperwork burden. The design of the second phase of the ERP is part of this effort.

Payments in the second stage of the ERP are expected to be based on the difference in certain farm income between a typical year of income, as defined in the producer program rules, and the disaster year. ERP Phase Two assistance focuses on the remaining needs of producers affected by qualified natural disasters, avoiding windfalls or duplicate payments. Details will be available when the rule is published later this year.

Timing of the first phase of the emergency assistance program

Producers eligible for assistance through the first stage of the ERP must contact the FSA in their place of residence by Friday 16 December 2022. USDA Service Center to receive the benefits of the program. Subsequently, if any additional pre-populated ERP Phase One applications are created due to corrections or other circumstances, the 30-day period from the date of notification for that particular application will apply.

Pandemic Assistance Program

PARP is authorized and funded by the Consolidated Appropriations Act of 2021.

To be eligible for the PARP program, an agricultural producer must farm for at least part of the 2020 calendar year and have a certain threshold decrease in allowable gross income for the 2020 calendar year compared to 2018 or 2019. detailed information on settlements and entitlements will be available when a future rule is published.

How manufacturers can prepare

ERP Phase Two and PARP will use income information that can be easily obtained from most tax documents. The FSA recommends that producers prepare the last few years’ tax returns and supporting materials as explained below. Producers will need documentation similar to that required for the second phase of the Coronavirus Food Assistance Program (CFAP), where the producer can use 2018 or 2019 as a reference year relative to the disaster year.

In the coming weeks, the USDA will provide more information on how to apply for assistance through the second phase of ERP and PARP. In the meantime, manufacturers are encouraged to begin collecting supporting documentation, including:

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

Manufacturers must also have, or be prepared to have, the following forms to participate in the ERP and PARP programs:

• Form AD-2047, Customer Data Worksheet (depending on the program participant);
• Form CCC-902, Farm work plan for an individual or legal entity;
• Form CCC-901, Information about participants for legal entities (if applicable); and
• Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certificate..

Most growers, especially those who have previously participated in FSA programs, will likely have these required forms on file. However, those who are unsure or want to confirm should contact the FSA for their place of residence USDA Service Center.

In addition to the forms listed above, non-servicing producers are encouraged to register their status with the FSA using Form CCC-860, Socially Vulnerable, Limited Resource, Novice and Veteran Farmer or Livestock Breeder Certificateas certain existing permanent and special disaster relief programs provide increased benefits or reduced fees and premiums.

Additional information

Through active communication and outreach efforts, USDA will inform growers and stakeholders as details become available about program eligibility, application, and implementation.

The USDA touches the lives of all Americans in many positive ways every day. In the Biden-Harris administration, the USDA is transforming America’s food system with a greater focus on more sustainable local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, and creating new markets and income streams . for farmers and producers who use climate-smart food and forestry practices, making historic investments in infrastructure and clean energy opportunities in rural America, and striving for equity across the Department by removing systemic barriers and creating a workforce that is more representative America. To learn more, visit usda.gov.

USDA is an equal opportunity provider, employer and employer.

– USDA FSA