Emergency Relief Program (ERP)

1 Emergency Relief Program (ERP). Disaster Recovery Assistance for Commodity and Specialty Crop Producers Background Eligibility Phase 1 For More Info On September 30, 2021, President Biden Eligible crops include all crops for which Additional USDA. signed into law the Extending Government federal crop insurance or NAP coverage disaster assistance Funding and Delivering Emergency was available and a crop insurance information can be Assistance Act ( 117-43), which includes indemnity or NAP payment was found on , $10 billion in assistance to agricultural received, except for crops intended for the Disaster Assistance producers impacted by wildfires, droughts, grazing and crops intended for forage Discovery Tool, hurricanes, winter storms, and other eligible or seed that were grazed.

2 Qualifying Disaster-at-a-Glance disasters experienced during calendar years natural disaster events include wildfires, fact sheet, and Farm 2020 and 2021. The Farm Service Agency hurricanes, floods, derechos, excessive Loan Discovery Tool. (FSA) has also made payments to ranchers heat, winter storms, freeze (including impacted by drought and wildfire through apolar vortex), smoke exposure, For FSA and Natural the first phase of the Emergency Livestock excessive moisture, qualifying drought, Resources Conservation Relief Program (ELRP). ERP is another Relief and related conditions. Service programs, component of the Act. For ERP eligibility, related conditions producers should are damaging weather and adverse contact their local Overview natural occurrences that occurred USDA Service Center.

3 ERP covers losses to crops, trees, bushes concurrently with and as a direct result For assistance with and vines due to a qualifying natural of a specified qualifying disaster event. a crop insurance disaster event in calendar years 2020 and They include: claim, producers and 2021. Excessive wind that occurred landowners should For impacted producers, FSA will be as a direct result of a derecho; contact their crop administering Emergency Relief to row crop insurance agent. Silt and debris that occurred and specialty crop producers through the as a direct result of flooding;. following two-phased process: Excessive wind, storm surges, Phase 1 will leverage existing tornados, tropical storms, Federal Crop Insurance or and tropical depressions that Noninsured Crop Disaster occurred as a direct result of a Assistance Program (NAP) hurricane; and data as the basis for calculating Excessive wind and blizzards initial payments.

4 That occurred as a direct Phase 2 will be intended to fill result of a winter storm. additional assistance gaps and For drought, ERP assistance is cover eligible producers who did available if any area within the county not participate in existing risk in which the loss occurred was rated management programs. by the Drought Monitor as having This two-phased approach enables a drought intensity of: USDA to streamline the application D2 (severe drought) for eight process to reduce the burden on consecutive weeks; or producers, proactively include underserved producers who have D3 (extreme drought) or higher been left out of past Relief efforts and level of drought intensity. encourage participation in existing Lists of 2020 and 2021 drought risk management tools that can help counties eligible for ERP are available producers handle future extreme on the Emergency Relief website.

5 Weather events. AUGUST 2022 Emergency Relief Program 2. How to Apply Phase 1. To simplify the delivery of ERP Phase 1 benefits; FSA will send pre-filled application forms to producers whose crop insurance and NAP data is already on file because they received a crop insurance indemnity or NAP payment. This form includes eligibility requirements, outlines the application process, and provides ERP payment information. Producers will receive a separate application form for each Program year. Receipt of a pre-filled application is not confirmation that a producer is eligible to receive an ERP. Phase 1 payment. Producers will need to return completed and signed ERP Phase 1 applications to their local FSA. county office. Producers must also have the following forms on file with FSA within a subsequently announced deadline as calculation.

6 The ERP Phase 1 payment calculation for a determined by the Deputy Administrator for Farm Programs: crop and unit will depend on the type and level of coverage Form AD-2047, Customer Data Worksheet obtained by the producer. RMA and FSA will calculate Form CCC-902, Farm Operating Plan for an individual each producer's loss consistent with the loss procedures or legal entity for the type of coverage purchased but using the ERP. factor in place of the coverage level. This calculated amount Form CCC-901, Member Information for Legal would then be adjusted by subtracting out the net crop Entities (if applicable). insurance indemnity or NAP payment, which is equal to the A highly erodible land conservation (sometimes producer's gross crop insurance indemnity or NAP payment referred to as HELC) and wetland conservation already received for those losses minus service fees and certification (Form AD-1026 Highly Erodible Land premiums.)

7 Conservation (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and ERP Factor Tables applicable affiliates. ERP factor tables can be found below and on the Most producers, especially those who have previously participated in FSA programs will likely have these required forms on file. However, those who are uncertain or want ERP Factor Crop Insurance Level to confirm should contact their local FSA county office. (Percent). In addition to the forms listed above, certain producers will also need to submit the following forms to qualify for Catastrophic coverage 75. an increased payment limitation or payment rate. Form FSA-510, Request for an Exception to the More than catastrophic coverage 80. $125,000 Payment Limitation for Certain Programs.

8 But less than 55 percent Form CCC-860, Socially Disadvantaged, Limited At least 55 percent Resource, Beginning and Veteran Farmer or Rancher Certification, for the applicable Program year. but less than 60 percent At least 60 percent How Payments are Calculated but less than 65 percent 85. Phase 1. At least 65 percent ERP Phase 1 payments for crops covered by crop insurance will be prorated by 75 percent to ensure that total ERP but less than 70 percent payments, including payments under ERP Phase 2, do At least 70 percent not exceed the available funding. ERP Phase 1 payments 90. for NAP-covered crops will not be prorated due to the but less than 75 percent significantly smaller NAP portfolio that by its nature only At least 75 percent covers smaller acreages and specialty crops that are not covered by crop insurance.

9 But less than 80 percent RMA and FSA will calculate ERP Phase 1 payments At least 80 percent 95. based on the data on file with the agencies at the time of AUGUST 2022 Emergency Relief Program 3. If at least 75 percent of the person or legal entity's average ERP Factor AGI is farm income (income derived from farming, ranching, NAP Coverage Level (Percent) or forestry related activities) the person or legal entity, other than a joint venture or general partnership, is eligible Catastrophic coverage 75 to receive, directly or indirectly, up to: $900,000 for each Program year for specialty crops;. 50 percent 80 and $250,000 for each Program year for all other crops. 55 percent 85. The sale of equipment used to conduct farm, ranch or forestry operations and the provision of production inputs 60 percent 90.

10 And services to farmers, ranchers, foresters, and farm operations is included in the average adjusted gross farm 65 percent 95 income, if the average adjusted gross farm income is at least percent of the average AGI of the person or Emergency Relief website: legal entity. Because the amount of loss due to a qualifying disaster event in calendar years 2020 and 2021 cannot be The relevant tax years for establishing a producer's AGI and separated from the amount of loss caused by other eligible percentage of farm income are: causes of loss as defined by the applicable crop insurance 2016, 2017, and 2018 for Program year 2020;. or NAP policy, the ERP Phase 1 payment will be calculated 2017, 2018, and 2019 for Program year 2021; and based on the producer's loss due to all eligible causes of loss.