Farmers have a couple more months to apply for either the Emergency Relief Program (ERP) Phase 2 or the Pandemic Assistance Relief Program (PARP). Both of these programs start with allowable gross revenue (AGR) and in most cases use the same requirements. However, there are differences and they can be material.
Here are some of those differences:
ERP is primarily a crop-based program, therefore, no livestock sales are allowed as part of AGR. PARP allows for most livestock sales to be included.
ERP requires the cost of crop insurance to be deducted against crop insurance proceeds. This is true even if the proceeds are minor and the cost exceeds the proceeds. PARP, on the other hand, allows for no deduction for premiums and fees.
ERP Phase 2 payments will be reduced by the Phase 1 payments. PARP will be reduced by the total of Phase 1 and Phase 2 payments.
These are some of the key differences we have found in reviewing several applications. There are probably others. We will keep you posted.
Related story: Paul Neiffer: PARP – Will You Get Anything?
