fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
Emergency Relief Program (ERP) 2022 Track 2
REVENUE LOSS ASSISTANCE
Overview
Emergency Relief Program 2022 (ERP) will provide
payments to eligible crop producers for losses due to
qualifying disaster events which occurred in calendar year
2022, following a two-Track process:
• Federal Crop Insurance or
Noninsured Crop Disaster Assistance Program (NAP)
• Track 2 will assist producers for other eligible crop and
This two-Track approach enables USDA to streamline the
Eligibility — Track 2
disaster year revenue as compared to the benchmark year
due in whole or in part to qualifying disaster event that
alien, which for purposes of ERP 2022 means “lawful alien,”
and tropical depressions that occurred as a direct result of
damaging weather and adverse natural occurrences that
occurred concurrently with and as a direct result of a
means an area within the county in which the loss occurred
2022 is available through local FSA service centers and at
https://www.fsa.usda.gov/programs-
and-services/emergency-relief/index
Track 2 Methodology
Track 2 will provide assistance for eligible revenue,
qualifying disaster events, regardless of whether the loss
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
Terminology Used in Track 2:
Benchmark Year — is intended to represent a typical year of
crops prior to a qualifying disaster event in calendar year
Benchmark Year Revenue —
2022, including crops prevented from being planted, crops in
storage, and planted crops (including inventory and perennial
Representave Revenue Year — is intended to represent the
Disaster Year Revenue —
disaster year revenues:
The tax year opon — (similar to the approach used in Phase
the benchmark and disaster year and allows producers to
for which the revenue would be reported for the purpose of
benchmark years, did not have a full year of revenue for
not generate revenue directly from the sale of the crop,
https://www.fsa.usda.gov/programs-and-services/
emergency-relief/index to help producers determine
allowable gross revenue for the benchmark and disaster year
The expected revenue opon —
by a qualifying disaster event in calendar year 2022, including
crops prevented from being planted, crops in storage, and
does not include revenue from crop by-products, such as
revenue will include revenue from all eligible crops that were
revenue in a normal year without a loss due to disaster
at https://www.fsa.usda.gov/programs-and-services/
emergency-relief/index to help producers determine
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
Opon Benchmark Year
Revenue
Disaster Year
Revenue
allowable gross
revenue for the
year, as elected by
allowable gross
revenue for the
year, as elected by
Revenue
from all eligible
crops that could
by a qualifying
disaster event in
revenue from all
eligible crops that
were included in
Special Provisions for Certain Producers:
Situaon 1: Producers who received a payment under the
Also included in allowable gross revenue for these
producers is a value for certain crops, as determined by
the Deputy Administrator, that was produced and did not
generate revenue directly from the sale of the crop and
own wine grapes and process those grapes into wine and
producers of forage crops who store the crop to feed to
on the best available data for each crop, as determined by
the Deputy Administrator and published through guidance
that received a payment under the previous ERP for the
Situaon 2:
produced crops that did not generate revenue directly from
the sale of the crop and that the producer uses within their
Underserved Producers
Underserved producers, including beginning, limited
resource, socially disadvantaged and veteran farmers and
To qualify for the higher payment percentage, eligible
Payment Limitaon and Adjusted
Gross Income
partnership, cannot receive, directly or indirectly, more than
and Track 2 combined) for the program year if their average
percentage derived from farming, ranching, and forestry
•
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
specialty and high value crops and other crops, for both
The percentages must be based on what the producer would
Excepon to Payment Limitaon
eligible to receive, directly or indirectly, up to:
•
•
The sale of equipment used to conduct farm, ranch or
and services to farmers, ranchers, foresters, and farm
averaged only for the years of the base period for which it
common ownership interest and land with the preceding
website or, contact your local FSA service center
Future Insurance Coverage Requirements
All producers who receive ERP 2022 payments, are
statutorily required to purchase crop insurance, or NAP
NAP, as may be applicable:
•
• At the catastrophic level or higher for NAP crops
Coverage requirements will be determined from the date a
producer receives an ERP payment and may vary depending
crop insurance or NAP coverage to meet the second year of
For crops where no insurance policy is available, and ERP
must meet this requirement by either:
• Obtaining NAP coverage and paying the applicable NAP
service fee as required above, regardless of ineligibility
for NAP payment, or
•
If the crop is not eligible for NAP, then producers are
(WFRP) or Micro Farm crop insurance at a coverage level of
they must obtain the required level of Federal crop insurance
producers who have the crop or crop acreage in subsequent
years and who fail to obtain the required 2 years of Federal
crop insurance or NAP coverage must refund the ERP Track
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
insurance or NAP coverage for that crop if they also receive
• A NAP-eligible crop, and crop insurance becomes
available for the crop in a linkage year, the producer is
• An insured crop, and crop insurance is not available
for the crop in a linkage year, the producer is required
in a year for which the Federal crop insurance and NAP
crop insurance or NAP purchase requirement for that crop
How to Apply for Track 2
to the percentage of their disaster year revenue from
specialty and high value crops combined, and the percentage
eligible crops (including crops grown, prevented from being
planted, and in storage or inventory in the disaster year)
were covered by Federal crop insurance or NAP during their
applicable growing season, for the purpose of determining
•
•
•
applicable)
•
Note:
COC or CED approving
•
•
Track 2 Payment Calculaon
will calculate:
crops were covered by Federal crop insurance or NAP, or
progressive factoring will be applied to the calculated
Payment Range Progressive Factor (%)
Up to $2,000
20
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
FSA will calculate the total of the results for each range
producers, the sum of the results for each range will be the
specialty and high value crops or other crops, as applicable,
to determine the amounts that will apply to the payment
payments to underserved producers, to ensure payments
How to Determine Allowable Gross Revenue
• Determining allowable gross revenue source
•
gross revenue
TABLE 1. Tax Year Opon
Producers who choose to use the tax year will choose either 2018 or 2019 as their benchmark year and either 2022 or
2023 as their representave revenue year for the disaster year. Allowable gross revenue is based on the year for which the
revenue would be reported for the purpose of ling a tax return, except as noted in Table 1.
Include Gross Revenue from the Following Sources: Exclude Gross Revenue from the Following Sources:
Sales of eligible crops produced by the producer, which includes
•
•
• For industrial or biomass uses
•
•
Eligible aquacultural species must be raised by a commercial
•
contract grower
• Eggs
• Milk
• Mink including pelts
•
• Wild free roaming animals
• Pollinators
•
on a Schedule F
•
•
•
•
• Timber
•
Table connues
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
Include Gross Revenue from the Following Sources: Exclude Gross Revenue from the Following Sources:
Sales of eligible crops a producer purchased for resale that had a
crops produced by the producer, such as patronage paid to producer
that are not produced by the producer such as:
• Patronage paid to a producer based on the amount of money
borrowed and the interest paid
• Dividend paid to a producer based on the services used or
• Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC)
Program
•
•
CFAP 2
•
Raised Fish Program (ELAP) - payments for aquaculture crop(s)
•
•
• Market Loan Gains (MLG) - repayment of Commodity
•
• On-Farm Storage Loss Program (OFSLP)
• Pandemic Assistance Revenue Program (PARP)
•
• Seafood Trade Relief Program (STRP)
•
Pandemic Assistance payments including but not limited to
payments from:
• Pandemic Livestock Indemnity Program (PLIP)
•
•
Any pandemic assistance payments that were not for the loss of
eligible crops or the loss of revenue from eligible crops, such as:
• Cost-share assistance
• Assistance for loss of buildings
•
Other program payments, including but not limited to payments
from:
•
• Dairy Margin Coverage (DMC) Program
•
• CCC loan proceeds for eligible crops if elected to be treated as
•
to be treated as income and reported to IRS when all or part of
• Forfeited CCC loans for eligible crops
Table connues
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
Include Gross Revenue from the Following Sources: Exclude Gross Revenue from the Following Sources:
FCIC crop insurance proceeds for eligible crops, minus the amount
Federal disaster program payments under the following programs:
•
Raised Fish Program (ELAP) for livestock and honeybees
• Emergency Livestock Relief Program (ELRP)
•
• Livestock Forage Disaster Program (LFP)
• Livestock Indemnity Program (LIP)
• Milk Loss Program (MLP)
• Tree Assistance Program (TAP)
Noninsured Crop Disaster Assistance Program (NAP) payments for
Payments issued through grant agreements with FSA for losses of
direct payments for the loss of eligible crops or the loss of revenue
that IRS requires the producer to report as income including but not
limited to:
•
governments
• Net gain from hedging
•
•
Limited Liability Company (LLC)
•
• Custom hire income
•
•
•
• Rental of equipment or supplies
• Revenue earned as a contract producer
•
For producers who applied for the previous ERP Phase 2 and selected
• All eligible crops grown for feed, to be stored, and fed to
livestock on the farm
• Any variety of grapes grown and used by the same producer for
• Fresh apples, cherries, peaches and plums grown and processed
into cider and wine by the same producer
The value will be based on:
•
• Published price for the crop based on the best data available for
the crop such as NASS, RMA, NAP, and locally published prices
based on sales for the applicable year
The method for determining the value is the same for both the
Note:
fsa.usda.gov/erp
FACTSHEET • OCTOBER 2023
How to Determine Expected and Actual Revenue
TABLE 2. Expected Revenue Opon
For producers who elect the expected revenue opon, the producer’s expected revenue must include the expected revenue
from all eligible crops that could have been aected by a qualifying disaster event in calendar year 2022, including crops
prevented from being planted, crops in storage, and planted crops (including inventory and perennial crops).
Expected Revenue Prior to Disaster Includes: Calculang Expected Revenue:
Revenue from all eligible planted and prevented planted yield-based
Includes eligible crops that were planted in 2022 but not harvested unl
calendar year 2023.
Excludes all crops with an intended use of grazing.
Example:
benchmark year revenue will be calculated for both the corn and
Revenue from all eligible perennial crops that could have been
Excludes all crops with an intended use of grazing.
Example:
Example:
Includes eligible crops from 2022 and prior years in storage at the
Example:
produced on the farm and stored in grain bins and the grain elevator
TABLE 3. Actual Revenue
For producers who elect the expected revenue opon, the producer’s disaster year revenue is the actual revenue from all
eligible crops were included in the expected revenue calculaon.
Actual Revenue Includes: Actual Revenue Excludes:
The value of the eligible crop for crops not sold (such as crops in
The same price used to calculate the expected revenue for the
benchmark year must be used to calculate the actual disaster year
revenue for crops in storage from 2021 or earlier that remain in
storage at the me of applicaon because ERP does not pay for market
uctuaons for prior year crops.
Payments issued for 2022 calendar year disaster losses, including
but not limited to payments under:
• ELAP for aquaculture crops
• ARC, (ARC-CO, ARC-IC)
• LDP
• MLG
• Net gains hedging
• Grants from NOAA, and State program funds for the direct loss
of eligible crops or the loss of revenue for eligible crops
https://www.fsa.usda.gov/programs-and-services/emergency-relief/index
For More Informaon
gov, the Disaster Assistance Discovery Tool,
Disaster-at-a-Glance fact sheet, and Farm Loan Assistance Tool
programs, producers should contact their local
USDA Service Center
claim, producers and landowners should contact their crop
•
