- April 4, 2023
- Posted by: Daniel Lefstad
- Category: News
In the last few months, USDA released two programs:
- ERP (Emergency Relief Program) Phase 2
- PARP (Pandemic Assistance for Producers*)
ERP Phase 2 is for the disaster years of 2020 and 2021 while PARP covers 2020. Each of these programs utilize a tax revenue-based approach to determine if a producer is eligible for a payment. The revenues used for the calculations are based on gross income (not net income) derived from your taxes (i.e. Schedule F) minus certain sources of revenue that can be excluded. To determine payment eligibility, items to gather for the years of 2018, 2019, 2020, 2021, 2022 include:
- Schedule F (or other form of farm tax documents)
- FSA 1099’s – Contact your FSA office to email you a 1099 summary from 2018 – 2023.
- NRCS 1099’s – If you participate in any conservation program (CSP, EQUIP) contact NRCS to email you a 1099 summary from 2018 – 2021.
- Schedule F Line #8 Other Income – if income is showing on this line, include tax return form that pertains to this income. This could include:
- Patronage/Dividend 1099 Distribution Splits (need to know how much patronage was paid from crops vs how much was paid from purchases of chemicals, fert, etc.) Contact elevator for a report or get the checkstub breakdown.
- Sales of Livestock
If you would like help determining payment eligibility as well as assisting with the application process, please reach out to us. If you want a quick check to see if it is worth pursuing before digging up all the information listed above, gather your tax documents from 2018-2022. Quick check:
- For PARP, 2020 gross revenue needs to be 15% lower than either 2018 or 2019.
- For ERP Phase 2, the disaster year gross revenue needs to be 30% lower than either 2018 or 2019.
A USDA fact sheet link detailing both programs is available HERE and the deadline for sign-up is June 2, 2023, but we encourage everyone that is interested to look at this sooner rather than later. If you have any questions regarding the above, feel free to give us a call.
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