USDA announces Emergency Relief Program

The U.S. Department of Agriculture (USDA) announced today that commodity and specialty crop producers impacted by natural disaster events in 2020 and 2021 will soon begin receiving emergency relief payments (likely in June) totaling approximately $6 billion through the Farm Service Agency’s (FSA) new Emergency Relief Program (ERP — formerly known as WHIP+). 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-filed 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 have the following forms on file with FSA within a deadline that will be announced soon:

ERP Factor Tables

• Form AD-2047, Customer Data Worksheet

• Form CCC-902, Farm Operating Plan for an individual or legal entity

• Form CCC-901, Member Information for Legal Entities (if applicable)

• A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conserva tion (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and applicable affiliates.

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 to confirm should contact their local FSA county office.

In addition to the forms listed above, certain producers will also need to submit the following forms to qualify for an increased payment limitation or payment rate:

• Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs.

• Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, for the applicable program year.

How Payments are Calculated —

ERP Phase 1 payments for crops covered by crop insurance will be prorated by 75% to ensure that total ERP payments, including payments under ERP Phase 2, do not exceed the available funding. ERP Phase 1 payments for NAP-covered crops will not be prorated due to the significantly smaller NAP portfolio that only covers smaller acreages and specialty crops that are not covered by crop insurance.

USDA Risk Management Agency (RMA) and FSA will calculate ERP Phase 1 payments based on the data on file with the agencies at the time of calculation. The ERP Phase 1 payment calculation for a crop and unit will depend on the type and level of coverage obtained by the producer. RMA and FSA will calculate each producer’s loss consistent with the loss procedures for the type of coverage purchased but using the ERP factor in place of the coverage level. This calculated amount would then be adjusted by subtracting out the net crop insurance indemnity or NAP payment, which is equal to the producer’s gross crop insurance indemnity or NAP payment already received for those losses minus service fees and premiums. For more information, visit the ERP fact sheet.