June 5, 2023 UPDATE: The deadline to apply for PARP and ERP has been extended to July 14, 2023. View a webinar with ABM Educator Ryan Pesch for more information.
There are two new FSA programs that provide financial assistance to producers who experienced losses due to the COVID-19 pandemic or from eligible natural disasters. Producers have until June 2 to apply for both the Pandemic Assistance Revenue Program (PARP) and the Emergency Relief Program (ERP) Phase Two.
Pandemic Assistance Revenue Program (PARP)
The Pandemic Assistance Revenue Program (PARP) provides direct financial assistance to producers of agricultural commodities who suffered at least 15 percent loss in gross revenue in calendar year 2020 due to the COVID-19 pandemic. Payments to eligible producers will be based upon a comparison of the producer’s gross revenues from 2020 compared to either 2018 or 2019, as elected by the producer. If the producer is new enough to not have a look-back comparison, applications will be accepted in those cases too. The comparison from 2020 to previous years will be done on a spot check basis.
Emergency Relief Program Phase 2 (ERP 2)
Producers are eligible to apply for the Emergency Relief Program (ERP) Phase Two if they experienced revenue losses from eligible natural disasters in 2020 and 2021. Historically, FSA programs have been designated to make direct payments to producers based on a single disaster event or for a single commodity loss. However, the 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 and have the financial stability to invest in the long-term well-being of their operation and employees.
ERP Phase Two payments are based on a comparison between the allowable gross revenue between a benchmark year and the disaster year. This is designed to target the remaining needs of producers impacted by qualifying natural disasters and to avoid duplicate payments. The Emergency Relief Program Phase 2 (ERP 2) is a revenue-based program that relies on tax and financial records instead of production history like FSA programs usually require.
All producers are eligible to apply for ERP Phase Two benefits, even if a producer has received ERP Phase One benefits. If you received ERP Phase One benefits, there is also a possibility that your Phase Two payment may be offset.
For more information or to apply, make an appointment with your local Farm Service Agency office.