June
2, 2023 Deadline to Apply for FSA’s New Revenue-Based Disaster and
Pandemic Assistance Programs
Send a link to a friend
[May 31, 2023]
In January, we announced two new
programs designed to assist producers who experienced revenue losses
from 2020 and 2021 natural disasters or the COVID-19 pandemic. These
programs are revenue-based and feel a little different from our
regular programs, but the goal is to better support farmers.
|
Both
the Emergency Relief Program (ERP) Phase Two and the Pandemic
Assistance Revenue Program (PARP) offer a holistic approach to
disaster assistance and provide economic support for producers
who bear the financial brunt of circumstances beyond their
control.
With the rollout of any new program, there is a learning curve
for producers and employees alike. ERP Phase Two and PARP are no
exception. To encourage producer participation in these valuable
programs, I’m going to do my best to debunk some myths and
misconceptions surrounding ERP Phase Two and PARP.
With a June 2, 2023, deadline to apply for both programs, it’s
important that we clear up confusion about how to apply, what
documents are required for participation, insurance requirements
and related misinformation making its way across the
countryside.
Now, let’s do some myth-busting.
Myth #1 – You need to submit a completed tax return to FSA to
apply for ERP Phase Two or PARP.
While these programs are based on revenue losses, you do not
need a tax return, completed or otherwise, to apply for
assistance. In fact, we have an ERP Phase 2 tool and PARP tool
that walk you through the process step by step.
We understand that you may have questions for your certified
public accountant or tax preparer, who has likely been hard to
reach prior to the April 18 Internal Revenue Service tax
deadline but we encourage you to download the program decision
tools and get started. You’ll probably discover that you already
have on hand much of the information you need.
The following supporting materials will help you:
Schedule F (Form 1040); and
Profit or Loss from Farming or similar tax documents for tax
years 2018, 2019, 2020, 2021, and 2022 for ERP and for calendar
years 2018, 2019, and 2020 for PARP.
[to top of second column] |
The only reason you might have to provide your tax
returns to FSA is in the event of a spot check or a request from the
FSA County Committee.
Producers can register for a free webinar hosted by
USDA and members of the National Farm Income Tax Extension Committee
on Monday, May 1 at 2 p.m. eastern for a discussion on completing
the ERP Phase Two application form.
Myth #2 – You cannot receive an ERP Phase Two payment if you
received a payment under Phase One.
It’s possible that you can still receive ERP Phase Two benefits if
you received an ERP Phase One payment. There is also a possibility
that your Phase Two payment may be offset.
Myth #3 – ERP Phase Two was intended to be an
additional payment to those who received payment under Phase One.
ERP Phase Two was never designed or intended to be an additional
payment. Instead, it was intended to assist those producers who did
not receive relief in Phase One.
Click here to read the full blog and view a producer
testimonial on the application process.
[Illinois / USDA - FPAC
Farm Service Agency]
|