Disaster assistance funding was part of the 2021 Continuing Resolution to keep the federal government in business back on Sept. 30, 2021. Last summer, Phase 1 of that disaster assistance was announced with the Emergency Relief Program (ERP). Phase 1 paid benefits only to producers that received crop insurance indemnity payments for crop losses in 2020 and 2021. At that time, producers who did not receive indemnity payments were told that further assistance would be made available in ERP Phase 2.
USDA Secretary Tom Vilsack recently announced Phase 2 of ERP and additional COVID 19-pandemic assistance through the Pandemic Assistance Revenue Program (PARP).
ERP Phase 2 will assist producers who suffered production and quality losses by comparing gross revenue for 2020 and 2021 to 70% of 2018 or 2019 benchmark revenues.
USDA said using gross revenue streamlines the aid and minimizes the burden on producers, as well as the processing of applications by county Farm Service Agency offices. Any benefits producers received from ERP Phase 1 will be subtracted from eligible ERP Phase 2 payments. The application period is Jan. 23-June 2. USDA already has distributed $7.31 billion under ERP Phase 1 from a total of $10 billion earmarked for ERP for 2020 and 2021 crop losses.
PARP payments will be made available for producers who suffered a 15% or greater decrease in allowable gross revenue for the 2020 calendar year compared with either 2018 or 2019. This program will assist producers who fell through the gap of relief assistance during the COVID-19 pandemic. Eligible assistance will have a factor of 80% (90% for underserved producers) and will be reduced by any assistance received under the Coronavirus Food Assistance Program 1 and 2. USDA also has the authority to lower the payment factor if eligible applications exceed available funding.
Some other program benefits have been announced as part of a mega rule that was published in the Federal Register the week the Secretary of Agriculture made his announcement. The only benefit activated so far has been a 15% top up payment for the Coronavirus Food Assistance Program 2 that was active in 2021. These benefits were available only to a producer previously certifying as a member of the many USDA designated underserved categories. These payments went out to producers over the last two weeks. The same 15% provision was a part of ERP program Phase 1 that was administered last summer.
The full extent of these changes and benefits are not known to local county FSA offices.
FSA is conducting national training for the recent changes and new programs this week in Dallas, Texas, which will be attended by Mississippi state FSA office employees. More information will be available after the national training.
While the start date for ERP Phase 2 and PARP sign-up is here, unfortunately, the program software or program directives have not been made available to date to local FSA offices. As usual with new disaster legislation and regulations, more will be known in the future.
