The U.S. Department of Agriculture has announced an assistance program to assist farmers, ranchers, and other agricultural producers. The program was introduced by Tom Vilsack, the Agriculture Secretary, at the American Farm Bureau Federation annual convention.
Vilsack stated that at USDA the goal of the program was to provide all farmers, including new and underserved producers, with the opportunity to receive the assistance that they need to continue farming, to make and maintain their competitive-edge, and to get access to more new and advanced markets.
He added that by working together they can ensure American agriculture would be as resilient as ever and would do so by implementing a holistic approach to emergency assistance, by lowering the cost of input through domestic fertilizer production investments, and by promoting competition in agricultural markets.
The main highlights of the program are:
- Assistance for producers who face high input costs to access domestic, innovative fertilizer capacity.
- Improvement of risk protection for the underserved producers.
- Investment in new choices and meat processing capacity for the livestock producers.
- Supply of relief programs for the producers who are impacted by the pandemic and disasters.
What Is Pandemic Assistance Revenue Program (PARP)?
The Pandemic Assistance Revenue Program is a direct financial assistance to the eligible producers of agricultural commodities who had to suffer losses in their gross revenue during the COVID-19 pandemic period in comparison to the previous years.
The assistance is provided by the United States Department of Agriculture (USDA). In order to be the beneficiaries of the program the agricultural commodity producers would have to submit proof that shows a loss of a minimum of 15 percent of the gross revenue.
The producers can apply to get verified. The applications for PARP are to be sent to the Farm Service Agency (FSA). Applicants would be able to submit their requests in a period between the 23rd of January 2023 to the 2nd of June 2023.
Benchmark Years Of The Pandemic Assistance Revenue Program (PARP)
The eligibility of the PARP applicant is determined by particular regulations. The primary point is that the agricultural producer must have been in the farming business for at least a part of the calendar year of 2020.
Also that the agricultural producer must have undergone a loss of 15% in the allowable gross revenue of the same calendar year in comparison to:
- the calendar years of 2018, or 2019 on condition that they had received allowable gross revenue during the same years, according to the election of the producer, or
- the expected 2020 calendar year of the agricultural producer’s allowable gross revenue on the conduit that the producer did not have any allowable gross revenue in 2018 or 2019.
Who Is Eligible For The PARP, Pandemic Assistance Revenue Program?
To be considered as the beneficiaries of the PARP payments, the applicants, whether it be an individual or a legal entity, they ought to be:
- In the case of an individual: a citizen of the United States, a resident alien,
- In the case of a legal entity: a partnership, a corporation, a limited liability company, or an organizational structure that is organized under State Law, Indian Tribe, or Tribal Organization.
- In the case of a foreign person or a foreign entity: Those who meet the prescribed eligibility requirements.
An eligible agricultural producer who has been entitled to a share in the agriculture commodity or would have shared and had the agriculture commodity been produced and marketed.
Been in the farming business in any part of the calendar year 2020 to produce an agricultural product. Have suffered at least 15 percent or above that of gross revenue loss in 2020 when compared to 2018 or 2019.
In compliance with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations which are commonly known as the conservation compliance provisions. A citizen or legal entity who does not have a controlled substance violation in their name.
Those who fulfill these requirements can proceed to submit a completed PARP application form (FSA – 1122). After submitting the application form the applicant has to provide the required documents that are specified in the below documents section.
A person or legal entity should have:
An average adjusted gross income (AGI) that is less than 900,000 US Dollars in the tax years 2016, 2017, and 2018, or
An adjusted gross income (AGI) that is less than 900,000 US Dollars in the tax year 2020 on exceeding the average AGI.
If the applicant qualifies under the category of a general partnership or a joint venture, the provisions of AGI would be applied to members of the general partnerships and joint ventures.
The Eligible Commodities For PARP
An agricultural commodity can be a crop, aquaculture, livestock, and livestock byproduct. It can also be other animal or animal byproduct that is being produced as part of a framing operation and is intended to be commercially marketed.
The point to note is that the agricultural commodity has to be the ones that are produced in the United States or the commodities that are produced outside the US by a producer located in the United States and marketed inside the US
Excluded categories are:
- Free-roaming wild animals.
- Horses or other animals that are used or intended to be used for wagering or racing.
- The aquatic species that does not meet the definition of aquaculture.
- Cannabis sativa L. or any part of the plant that does not meet the definition of hemp
- Timber.
How To Apply For PARP?
Qualified agricultural producers can apply by filling in the FSA-1122, Pandemic Assistance Revenue Program (PARP) Application. After filling this has to be submitted to any FSA county office.
A complete application form would comprise of the following:
• FSA-1122, PARP (Pandemic Assistance Revenue Program) Application
Applicants ought to complete the PARP application and then sign it. After that, it should be submitted to any Farm Service Agency county office nationwide. The applicant must take care to certify to the gross revenue for either 2018 or 2019; and 2020 on the FSA-1122.
• AD-2047, Customer Data Worksheet
This is a form that would be filled out for all the individuals and the legal entities (including the members of the entity) those who have previously not provided their personal information to the USDA that positively identifies the customer.
• CCC-902, Farm Operating Plan
The individual and legal entities would fill out the CCC-902 in order to facilitate the administration of the payment limitation and eligibility requirements, including the names of the providing members and the identification numbers of the taxpayers.
• CCC-941, Average Adjusted Gross Income (AGI)
Certification And Consent To Disclosure Of Tax Information
This form would be required for the 2020 program year for the person or the legal entity, which includes the legal entity’s members, partners, shareholders, heirs, or beneficiaries, if already not on file.
• FSA-1123, Certification Of 2020 AGI, Only If Applicable
This form might be used by persons or legal entities who exceed the average AGI limit of 900,000 US Dollars. The individuals or legal entities might otherwise meet the AGI requirements if their 2020 AGI is 900,000 US Dollars or less than that.
• AD-1026, The Highly Erodible Land Conservation (HELC), And Wetland Conservation (WC) Certification
All the applicants ought to fill out the AD-1026. If the applicant does not possess any farming interests, that could be certified in box 5A. If the applicant does possess a farming interest, then the form must be completed in its entirety.
• Other Documentation
If case of a request from the USDA, the applicant ought to provide documentation to verify eligibility and the information included in the application, like the evidence that supports the gross revenue that an applicant is certified to, such as the tax returns, receipts, and other documentation that is determined as acceptable by the USDA as valid evidence.
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Where To File Your PARP Application?
FSA staff at the local USDA Service Center would work with the applicants to file their applications. Applications might be submitted via mail, fax, in-person delivery, or by electronic means.
Applicants should call their FSA office prior to sending out the applications electronically for instructions and assistance. The PARP application and associated forms could be found online at farmers.gov/parp.
Payment Calculation
PARP payments can be availed by a producer suffering a 15 percent loss or above it of the allowable gross revenue in the year 2020 compared to the allowable gross revenue from 2018 or 2019 as elected by the agricultural producer.
Who To Call For Assistance?
Applicants who are interested in one-on-one support with the PARP program application could contact the call center at 877-508-8364.
A USDA employee would be on wait to offer assistance to the callers.
The USDA program is the result of the Biden-Harris administration’s commitment to lowering costs for producers, increasing competition, and accessing market opportunities, and also ensuring equity in designing and developing programs to help all producers.
The USDA has been investing more in meat and poultry processing. Approximately 12 million US Dollars have been invested to expand the processing capacities.
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