USDA Launches Phase 2 of Emergency Relief

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USDA Launches Phase 2 of Emergency Relief

What is the Emergency Relief Program (ERP)?

The ERP is a program administered by the U.S. Department of Agriculture (USDA) which provides relief payments to commodity and specialty crop producers who were impacted by natural disaster events in 2020 and 2021. 

The ERP is a two-phase program. Enrollment for phase 1 ended on December 12, 2022; enrollment for phase 2 is open now, and will close on June 2, 2023.

ERP is meant to compensate for losses to crops, trees, bushes, and vines due to a qualifying natural disaster event in calendar years 2020 and 2021. Eligible crops include all crops for which crop insurance or NAP coverage was available, except crops intended for grazing. Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions.

Note that losses due to drought are only eligible for the ERP if they occurred within a county rated by the U.S. Drought Monitor as having a D2 (severe) drought for eight consecutive weeks, or a D3 (extreme) or higher-intensity drought.

What is the Difference Between Phase 1 and Phase 2?

Phase 1 of the Emergency Relief Program calculated payment using existing federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) data.

Phase 2 will fill gaps identified during phase 1 and cover producers who did not participate in or receive payments through the above programs.

Specifically, phase 2 will use information available from tax records to compare the producer's revenue during the year(s) of the disaster (2020 and/or 2021) with their revenue during the benchmark years of 2018 and 2019. The difference in the producer's revenue during the disaster year(s) and the benchmark years will help determine their ERP phase 2 payment. 

How Do I Enroll?

Before enrolling, it will be helpful to gather your IRS Schedule F (Form 1040) and supporting documentation, and your "Profit or Loss from Farming" document or similar tax documents for tax years 2018 through 2022.

The following forms may also be necessary:

  • Form AD-2047, Customer Data Worksheet (as applicable to the program participant).
  • Form CCC-902, Farm Operating Plan for an individual or legal entity.
  • Form CCC-901, Member Information for Legal Entities (if applicable).
  • Form AD-1026, Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification

To apply, fill out the ERP Phase 2 application and submit it to your local FSA county office before June 2, 2023.

Be sure to review the information available on the USDA's website for details and a full explanation of the ERP program.

What About Phase 2 of the Emergency Livestock Relief Program (ELRP)?

The FSA is still evaluating the impact of 2021 disasters on livestock producers and the relief benefits that will be required. Full details and resources for phase 2 of the ELRP will be released soon. We will update you as this information becomes available.

 

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