FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 1

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: 

• Track 1 leverages existing Federal Crop Insurance or 

Noninsured Crop Disaster Assistance Program (NAP)

data as the basis for calculating initial payments.

• Track 2 will assist producers for other eligible crop and 

tree losses through a revenue-based approach.

This two-Track approach enables USDA to streamline the 

application process to reduce the burden on producers, 

proactively include underserved producers who have been 

left out of past relief efforts and encourage participation 

in existing risk management tools that can help producers 

handle future extreme weather events.

Eligibility — Track 2 

Track 2 is a revenue-based certification program that 

provides assistance for producers that suffered a loss in 

disaster year revenue as compared to the benchmark year 

revenue, that was due to necessary expenses associated with 

losses of eligible crops (excluding crops intended for grazing), 

due in whole or in part to qualifying disaster event that 

occurred in the 2022 calendar year.

To be eligible, a producer must be a U.S. citizen, resident 

alien, which for purposes of ERP 2022 means “lawful alien,” 

as defined in 7 CFR part 1400; a partnership organized 

under State law, a corporation, limited liability company, or 

other organizational structure organized under State law, 

Indian Tribe, or Tribal Organization, per section 4(b) of the 

Indian Self-Determination and Education Assistance Act (25 

U.S.C. 5304); or foreign person or foreign entity who meets 

all requirements as described in 7 CFR part 1400.

Qualifying disaster event means: wildfires, hurricanes 

(including excessive wind, storm surges, tropical storms, 

and tropical depressions that occurred as a direct result of 

a hurricane), floods (including silt and debris that occurred 

as a direct and proximate result of flooding), derechos 

(including excessive wind that occurred as a direct result of a 

derecho), excessive heat, tornadoes, winter storms (including 

excessive wind and blizzards that occurred as a direct result 

of a winter storm), freeze (including a polar vortex), smoke 

exposure, excessive moisture, qualifying drought, and related 

conditions occurring in calendar year 2022.

For ERP 2022 eligibility, “Related conditions” mean 

damaging weather and adverse natural occurrences that 

occurred concurrently with and as a direct result of a 

specified qualifying disaster event. “Qualifying drought” 

means an area within the county in which the loss occurred 

was rated by the U.S. Drought Monitor as having a drought 

intensity of D2 (severe drought) for eight consecutive 

weeks or D3 (extreme drought) or higher for any period 

of time during the 2022 calendar year. A list of counties 

that experienced a qualifying drought in calendar year 

2022 is available through local FSA service centers and at 

https://www.fsa.usda.gov/programsand-services/emergency-relief/index.

Track 2 Methodology 

Track 2 will provide assistance for eligible revenue, 

production, and quality losses of eligible crops not assisted 

through Track 1. FSA is using a producer’s decrease in 

disaster year revenue, which will also reflect losses in both 

production and quality without requiring the more extensive 

calculations used in previous disaster programs. Decreases 

in disaster year revenue reflect a producer’s loss due to 

qualifying disaster events, regardless of whether the loss 

occurs before harvest or after harvest while the crop is in 

storage, further streamlining the delivery of assistance.
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 2

Terminology Used in Track 2:

Benchmark Year — is intended to represent a typical year of 

revenue for the farming operation. Producers may use one of 

the following options to represent a typical year of revenue: 

(1) the 2018 or 2019 tax year allowable gross revenue (for 

the tax year option), or (2) expected revenue from all eligible 

crops prior to a qualifying disaster event in calendar year 

2022 (for the expected revenue option).

Benchmark Year Revenue — (1) For producers who elect 

the tax year option, the producer’s allowable gross revenue 

received from all eligible crops for the 2018 or 2019 tax 

year, as elected by the producer; or (2) For producers 

who elect the expected revenue option, the producer’s 

expected revenue from all eligible crops that could have 

been affected 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), based on realistic projections. 

Representative Revenue Year — is intended to represent the 

disaster year revenue for the farming operation. Producers 

may use one of the following options that best represents 

the disaster effects of the 2022 calendar year: (1) 2022 

or 2023 tax year allowable gross revenue (for the tax year 

option), or (2) the actual disaster year revenue from all 

eligible crops that were included in the producer’s expected 

revenue calculation (for the expected revenue option). 

Disaster Year Revenue — (1) For producers who elect the 

tax year option, the producer’s allowable gross revenue 

received from all eligible crops for the 2022 or 2023 tax 

year, as elected by the producer; or (2) For producers who 

elect the expected revenue option, the actual revenue 

from all eligible crops that were included in the producer’s 

expected revenue calculation. 

The revenue-based approach has been expanded, and Track 

2 provides two options for determining benchmark and 

disaster year revenues:

The tax year option — (similar to the approach used in Phase 

2 of the previous ERP for years 2020 and 2021). The tax 

year option uses a calculation of allowable gross revenue for 

the benchmark and disaster year and allows producers to 

use certain information located in their tax records and/or 

supportive documentation to find the information needed to 

apply for Track 2. Tax year is specific to each participant and 

is based on fiscal year which may include multiple years.

Producers who chose tax year option for Track 2 will select 

2018 or 2019 for their benchmark year revenue and 2022 

or 2023 as their representative year for the disaster year 

revenue and will certify to their allowable gross revenue for 

those years. Allowable gross revenue is based on the year 

for which the revenue would be reported for the purpose of 

filing a tax return. Producers who file or would be eligible to 

file a joint tax return will certify their allowable gross revenue 

based on what it would have been had they filed taxes 

separately for the applicable year.

Producers cannot use the tax year option if they 

experienced a decrease in operating capacity during 

the disaster year, as compared to the 2018 and 2019 

benchmark years, did not have a full year of revenue for 

2018 or 2019, or produced any eligible crops that did 

not generate revenue directly from the sale of the crop, 

except as described below in Situation 1. In addition to 

Table 1 of this fact sheet, an optional ERP 2022 Application 

Tool and FSA-524-A worksheet will be available at 

https://www.fsa.usda.gov/programs-and-services/

emergency-relief/index to help producers determine 

allowable gross revenue for the benchmark and disaster year 

if the tax year option was selected. 

The expected revenue option — The expected revenue 

option allows the producer to certify to the revenue a 

producer reasonably expected to receive absent any 

disaster conditions and the actual disaster year revenue. The 

producer’s expected revenue must include the expected 

revenue from all eligible crops that could have been affected 

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). It 

does not include revenue from crop by-products, such as 

cotton seed and corn stalks. Expected revenue will be based 

on Tables 2 and 3 of this fact sheet. 

Expected revenue must be based on realistic projections that 

can be supported by acceptable documentation of expected 

inventory, acres, yield, and unit price. Actual disaster year 

revenue will include revenue from all eligible crops that were 

included in the producer’s expected revenue calculation. 

The expected revenue option is likely to be more beneficial 

to producers who did not have revenue in 2018 or 2019, 

experienced an increase in operating capacity compared 

to the 2018 and 2019 benchmark years, or find that the 

expected revenue option is more representative of their 

revenue in a normal year without a loss due to disaster 

events. Producers must use the expected revenue option 

if they experienced a decrease in operating capacity in 

the disaster year as compared to both the 2018 and 2019 

benchmark years to accurately reflect their loss, except 

as described below. In addition to Table 2 and Table 3, 

on pages 9–10 of this fact sheet, an optional ERP 2022 

Application Tool and FSA-524-B worksheet will be available 

at https://www.fsa.usda.gov/programs-and-services/

emergency-relief/index to help producers determine 

expected and actual revenue for the benchmark and disaster 

year if the expected revenue option was selected. 

The following table summarizes benchmark and disaster 

year revenue for the two options. Sources of revenue to be 

included in allowable gross revenue, expected revenue, and 

actual revenue are explained below in greater detail.
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 3

Option Benchmark Year 

Revenue 

Disaster Year 

Revenue 

Tax Year A producer’s 

allowable gross 

revenue for the 

2018 or 2019 tax 

year, as elected by 

the producer. 

A producer’s 

allowable gross 

revenue for the 

2022 or 2023 tax 

year, as elected by 

the producer. 

Expected 

Revenue 

A producer’s 

expected revenue 

from all eligible 

crops that could 

have been affected 

by a qualifying 

disaster event in 

calendar year 2022. 

A producer’s actual 

revenue from all 

eligible crops that 

were included in 

the producer’s 

expected revenue. 

Special Provisions for Certain Producers:

Situation 1: Producers who received a payment under the 

previous ERP for the 2021 disaster year and elected 2022 as 

their representative revenue year for Phase 2 can only apply 

for Track 2 using the tax year option, and they must select 

2023 as their representative revenue year to ensure that 

they are not paid for the same loss under both programs. 

These producers must certify to an allowable gross revenue 

for the benchmark year that has been adjusted if the 

producer had a decrease in operation capacity in the disaster 

year as compared to the benchmark year. 

Those producers may certify to an adjusted allowable gross 

revenue that has been adjusted the benchmark year on 

FSA–524 if either of the following apply: 

(1) The producer did not have a full year of revenue for 2018 

or 2019; or 

(2) The producer had expanded their operation capacity in 

the disaster year compared to the benchmark year. 

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 

that the producer uses within their ordinary operation. This 

would include, for example, wine makers who grow their 

own wine grapes and process those grapes into wine and 

producers of forage crops who store the crop to feed to 

livestock on their farm. 

The value of the eligible crop reported in the producer’s 

allowable gross revenue will be based on the producer’s 

actual production of the crop and a price for the crop based 

on the best available data for each crop, as determined by 

the Deputy Administrator and published through guidance 

on FSA’s website.

These adjustment provisions only apply to producers 

that received a payment under the previous ERP for the 

2021 program year based on the 2022 tax year for their 

representative disaster year revenue. All other producers 

that would require such adjustments must use the expected 

revenue option. 

Situation 2: Producers, except those described in Situation 1, 

will use the expected revenue option if they had a decrease 

in operating capacity during their disaster year, as compared 

to the 2018 or 2019 benchmark years, were a new producer 

with no benchmark year revenue in 2018 or 2019, or 

produced crops that did not generate revenue directly from 

the sale of the crop and that the producer uses within their 

ordinary operation. 

Producers who had an increase in operation capacity may 

elect either the tax year option or the expected revenue 

option; however, they may not adjust benchmark year 

revenue under the tax year option to reflect the change.

Underserved Producers

Underserved producers, including beginning, limited 

resource, socially disadvantaged and veteran farmers and 

ranchers, will receive an additional 15% ERP payment 

factor for Track 2 payments.

To qualify for the higher payment percentage, eligible 

producers must have a CCC-860, Socially Disadvantaged, 

Limited Resource, Beginning and Veteran Farmer or 

Rancher Certification, form on file with FSA for the 

applicable program year.

Payment Limitation and Adjusted 

Gross Income 

The payment limitation for ERP is determined by the person’s 

or legal entity’s average adjusted gross farm income (income 

from activities related to farming, ranching, and forestry). A 

person or legal entity, other than a joint venture or general 

partnership, cannot receive, directly or indirectly, more than 

$125,000 in payments for specialty crops and $125,000 

in payment for all other crops under ERP 2022 (for Track 1 

and Track 2 combined) for the program year if their average 

adjusted gross (AGI) farm income is less than 75 percent of 

their average AGI the three taxable years preceding the most 

immediately preceding complete tax year.

The relevant tax years for establishing a producer’s AGI and 

percentage derived from farming, ranching, and forestry 

related activities are:

• 2018, 2019, and 2020 for program year 2022

Independent payment limitations for non-specialty/other 

crops and specialty/high value crops will remain, however 

only program year 2022 will be applicable for ERP Track 2.

Since separate payment limitations apply to payments for 
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 4

specialty and high value crops and other crops, for both 

the Tax Year Option and the Expected Revenue Option, 

producers must certify to the percentage of their disaster 

year revenue that they expected to receive from specialty 

and high value crops and the percentage from other crops. 

The percentages must be based on what the producer would 

have reasonably expected to receive for each category in the 

disaster year if the qualifying disaster event had not occurred.

Exception to Payment Limitation

If at least 75% of the person or legal entity’s average AGI is 

derived from farming, ranching, and forestry related activities 

and the participant provides the required certification and 

documentation, as discussed below, the person or legal 

entity, other than a joint venture or general partnership, is 

eligible to receive, directly or indirectly, up to:

• $900,000 for each program year for high value/specialty 

crops; and

• $250,000 for each program year for all other crops

The sale of equipment used to conduct farm, ranch or 

forestry operations and the provision of production inputs 

and services to farmers, ranchers, foresters, and farm 

operations is included in the average adjusted gross farm 

income, if the average adjusted gross farm income is at 

least 66.66 percent of the average AGI of the person or 

legal entity. For legal entities not required to file a federal 

income tax return, or for persons and entities with no 

taxable income in one or more tax years, the average will be 

the adjusted gross farm income, including losses, averaged 

for the three taxable years preceding the most immediately 

preceding complete taxable year.

A new legal entity will have adjusted gross farm income 

averaged only for the years of the base period for which it 

was in business.

A new legal entity will not be considered “new” to the extent 

it takes over an existing operation and has any elements of 

common ownership interest and land with the preceding 

person or legal entity. If such commonality exists, then the 

income of the previous person or legal entity will be averaged 

with that of the new legal entity for the base period.

For a person filing a joint tax return, the certification of 

average adjusted farm income will be reported as if the 

person had filed a separate federal tax return and the 

calculation is consistent with the information supporting the 

filed joint return.

To request the increased payment limitation, participants 

must file form FSA-510 certifying their average adjusted 

gross farm income is at least 75% of their average AGI, 

accompanied by a certification from a certified public 

accountant (CPA) or attorney that the participant meets 

the requirements. If the participant is an entity and files the 

FSA-510, the payment limitation for the entity may increase, 

however if the members of the entity do not file FSA-510s, 

their payment limitation will remain at $125,000, and the 

payments for the entity will be reduced accordingly. To learn 

more, visit the Payment Eligibility and Payment Limitation 

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 

coverage where crop insurance is not available, for the next 

two available crop years, as determined by the Secretary. In 

addition, producers must file an accurate FSA-578 during 

the linkage years. Participants must obtain crop insurance or 

NAP, as may be applicable:

• At a coverage level equal to or greater than 60% for 

insurable crops; or

• 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 

on the timing and availability of crop insurance or NAP for a 

producer’s particular crops. The final crop year to purchase 

crop insurance or NAP coverage to meet the second year of 

coverage for this requirement is the 2027 crop year.

For crops where no insurance policy is available, and ERP 

recipients are ineligible for NAP payments, due to exceeding 

the average Adjusted Gross Income (AGI) limitations, they 

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

• Purchasing Whole-Farm Revenue Protection (WFRP) 

crop insurance coverage or Micro Farm, if eligible.

If the crop is not eligible for NAP, then producers are 

required to purchase Whole Farm Revenue Protection 

(WFRP) or Micro Farm crop insurance at a coverage level of 

at least 60%.

Producers applying for ERP 2022 Track 2 must file FSA-525 

and report all crops that suffered a revenue loss in whole or 

in part due to a qualifying disaster event on form FSA–525 

Crop Insurance and/or NAP Coverage Agreement, as well as 

crops not sold that suffered a loss in value. For these crops, 

they must obtain the required level of Federal crop insurance 

or NAP coverage in all counties where the crop is grown for 

the applicable years. For all crops listed on form FSA–525, 

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 

2 payment with interest from the date of disbursement.
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 5

Producers who receive an ERP Track 1 payment for a crop 

are not required to obtain additional years of Federal crop 

insurance or NAP coverage for that crop if they also receive 

an ERP Track 2 payment for a loss associated with that crop.

If a crop listed on the FSA-525 is:

• A NAP-eligible crop, and crop insurance becomes 

available for the crop in a linkage year, the producer is 

required to obtain crop insurance at the 60/100 level or 

equivalent.

• An insured crop, and crop insurance is not available 

for the crop in a linkage year, the producer is required 

to obtain NAP at the 50/55 level, including paying the 

applicable service fee and filing annual acreage and 

production reports.

Producers who do not plant a crop listed on form FSA–525 

in a year for which the Federal crop insurance and NAP 

coverage requirement applies are not subject to the Federal 

crop insurance or NAP purchase requirement for that crop 

for that year. 

A participant not meeting linkage requirements on any 

crop must repay the entire Track 2 payment plus applicable 

interest.

How to Apply for Track 2

Producers applying for Track 2 must submit FSA-524, 

Emergency Relief Program (ERP) 2022 Track 2 Application, 

certifying their benchmark year revenue and disaster year 

revenue. The FSA-524 Appendix provides a guide for what 

should be included as applicable revenue for the option 

elected by the producer. In addition, all producers applying 

for Track 2 must submit FSA–525, Crop Insurance and/or 

NAP Coverage Agreement, by the application deadline to 

have a complete application on file. 

For the purpose of administration of the ERP 2022 payment 

limitations, for both the tax year option and expected 

revenue option, producers applying for Track 2 must certify 

to the percentage of their disaster year revenue from 

specialty and high value crops combined, and the percentage 

from other crops for the purpose of administration of the 

ERP 2022 payment limitation on their application. The 

percentages certified must be equal to the percentages that 

the producer would have reasonably expected to receive 

for the disaster year if not for the qualifying disaster event. 

Producers must also certify to whether all acreage of all 

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 

the applicable ERP factor, as explained below. 

If requested by FSA, documentation required to support a 

producer’s certifications of revenue and other information 

provided on the application must be submitted within 30 

calendar days of FSA’s request, or the producer will be 

considered ineligible for Track 2.

In addition to submitting the forms required for a complete 

application, the following eligibility forms must be submitted 

within 60 days of the announced ERP 2022 application 

deadline, if not already on file for the applicable disaster year: 

• AD-2047, Customer Data Worksheet 

• CCC-902, Farm Operating Plan for Payment Eligibility 

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

applicable) 

• AD-1026, Highly Erodible Land Conservation (HELC) 

and Wetland Conservation (WC) Certification. 

Note: Completing the eligibility forms is not a condition of 

COC or CED approving 

FSA-524. However, these forms must be filed within 60 

calendar days from the date of the announced deadline. 

Failure to timely provide all eligibility forms may result in no 

payment or a reduced payment. 

Producers requesting an increased payment limitation or 

payment rate must submit the following forms within 60 

days of the announced ERP 2022 application deadline, if not 

already on file: 

• FSA-510, Request for an Exception to the $125,000 

Payment Limitation for Certain Programs. 

• CCC-860, Socially Disadvantaged, Limited Resource, 

Beginning and Veteran Farmer or Rancher Certification.

Track 2 Payment Calculation

To determine a producer’s Track 2 payment amount, FSA 

will calculate: 

Step (1) The producer’s benchmark year revenue, multiplied 

by the ERP factor of 90 percent if all acres of all eligible 

crops were covered by Federal crop insurance or NAP, or 

70 percent if not all acres of all eligible crops were covered 

by Federal crop insurance or NAP; minus

Step (2) The producer’s disaster year revenue; minus

Step (3) The sum of the producer’s gross Track 1 payments. 

After performing the calculation described above, 

progressive factoring will be applied to the calculated 

amount according to the table below. 

Payment Range Progressive Factor (%) 

Up to $2,000 100 

$2,001 to $4,000 80 

$4,001 to $6,000 60 

$6,001 to $8,000 40 

$8,001 to $10,000 20 

Over $10,000 10
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 6

FSA will calculate the total of the results for each range 

above. For underserved producers, the sum of the results 

will be multiplied by a factor of 115 percent, and the 

underserved producer’s calculated Track 2 payment will 

be equal to the lesser of the resulting amount or the 

amount calculated after step 3 above. For all other eligible 

producers, the sum of the results for each range will be the 

calculated Track 2 payment. FSA will multiply that amount 

by the percentage of the expected disaster year revenue for 

specialty and high value crops or other crops, as applicable, 

to determine the amounts that will apply to the payment 

limitations for specialty and high value crops (combined) 

and other crops. FSA will apply a final payment factor of 

75 percent to all calculated Track 2 payments, including 

payments to underserved producers, to ensure payments 

do not exceed available funding. If a producer receives a 

Track 1 payment after their Track 2 payment is calculated, 

the producer’s Track 2 payment will be recalculated, and 

the producer must refund any resulting overpayment.

FSA will issue Track 2 payments as applications are 

processed and approved. If additional funding is available 

after ERP 2022 payments are issued, FSA may issue an 

additional payment, not to exceed the maximum amount 

allowed by law.

How to Determine Allowable Gross Revenue

Table 1 provides guidance for the Tax Year Option:

• Determining allowable gross revenue source

• What to include/exclude when determining allowable 

gross revenue

TABLE 1. Tax Year Option

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 representative 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 filing 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 

sales resulting from value added through post-production activities 

that were reportable on IRS Schedule F.

For example:

• Strawberries into jam

Sales of eligible aquatic species that are grown:

• As food for human or livestock consumption

• For industrial or biomass uses

• As fish raised as feed for fish that are consumed by humans

• As ornamental fish propagated and reared in an aquatic medium

Eligible aquacultural species must be raised by a commercial 

operator and in water in a controlled environment.

Sales of livestock, animal by-products, and any commodities that are 

excluded from eligible crops:

• Animals for consumption by the owner, lessee, or other 

contract grower

• Eggs

• Milk

• Mink including pelts

• Revenue from animals for show, sport, or recreational purposes

• Wild free roaming animals

• Pollinators

• Revenue from raised breeding livestock (Schedule 4797 Part 1, 

Column (d) or (g) or other information that could be reported 

on a Schedule F

• Sales of agricultural commodities resulting from value added 

through post-production activities if reported on Schedule C

• Commodities not grown in the U.S. and its territories

• Crops for grazing

• Aquatic species that do not meet the definition of aquaculture

• Timber

• Cannabis sativa L. and any part of the plant that does not meet 

the definition of hemp

Table continues
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 7

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 

change in characteristic due to the time held (for example, a plant 

purchased at a size of 2 inches and sold as an 18-inch plant after 4 

months), less the cost or other basis of such eligible crops.

Resale items not held for characteristic change

Cooperative distributions directly related to the sale of the eligible 

crops produced by the producer, such as patronage paid to producer 

for gross grain sales.

Distributions that are not directly related to the sale of eligible crops 

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 

products purchased.

Benefits for eligible crops under the following agricultural programs:

• Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) 

Program

• Biomass Crop Assistance Program (BCAP)

• Coronavirus Food Assistance Program (CFAP) – CFAP 1 and 

CFAP 2

• Emergency Assistance for Livestock, Honeybees, and Farm 

Raised Fish Program (ELAP) - payments for aquaculture crop(s)

• Emergency Relief Program (ERP) – Phase 1 and Phase 2

• Loan Deficiency Payment (LDP) Program

• Market Loan Gains (MLG) - repayment of Commodity

• Market Facilitation Program (MFP)

• On-Farm Storage Loss Program (OFSLP)

• Pandemic Assistance Revenue Program (PARP)

• Quality Loss Adjustment Program (QLA)

• Seafood Trade Relief Program (STRP) 

• Wildfire and Hurricanes Indemnity Programs (2017 WHIP and 

WHIP+)

For the disaster year only: ERP 2022 Track 1 payments issued to 

another person or entity for the producer’s share of an eligible crop, 

regardless of the tax year in which the payment would be reported 

to IRS.

Pandemic Assistance payments including but not limited to 

payments from:

• Pandemic Livestock Indemnity Program (PLIP)

• Pandemic Assistance for Timber Harvesters and Haulers 

(PATHH)

• Spot Market Hog Pandemic Program (SMHPP)

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

• Payments for livestock portion

Other program payments, including but not limited to payments 

from:

• Conservation program payments

• Dairy Margin Coverage (DMC) Program

• Marketing Assistance Loan (MAL)

CCC loans for eligible crops, if treated as income and reported to IRS.

For example:

• CCC loan proceeds for eligible crops if elected to be treated as 

income in a prior year less the tax basis in year of repayment 

• CCC loans for eligible crops reported under election if elected 

to be treated as income and reported to IRS when all or part of 

the production is used as collateral to secure the loan

• Forfeited CCC loans for eligible crops

Table continues
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 8

Include Gross Revenue from the Following Sources: Exclude Gross Revenue from the Following Sources:

FCIC crop insurance proceeds for eligible crops, minus the amount 

of administrative fees and premiums.

Proceeds for eligible crops under private insurance policies.

Federal disaster program payments under the following programs:

• Emergency Assistance for Livestock, Honeybees, and Farm 

Raised Fish Program (ELAP) for livestock and honeybees

• Emergency Livestock Relief Program (ELRP)

• Emergency Relief Program 2022 (ERP 2022) Track 1

• 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 

eligible crops, minus the amount of service fees and premiums.

Payments issued through grant agreements with FSA for losses of 

eligible crops.

Grants from the Department of Commerce, National Oceanic and 

Atmospheric Administration and State program funds providing 

direct payments for the loss of eligible crops or the loss of revenue 

from eligible crops.

Other revenue directly related to the production of eligible crops 

that IRS requires the producer to report as income including but not 

limited to:

• Commodity-specific income received from state or local 

governments

• Net gain from hedging

• Federal and State gas/fuel tax credits

• Income from a pass-through entity such as an S Corporation or 

Limited Liability Company (LLC)

• Certificate Exchanges

• Custom hire income

• Wages, salaries, tips, and cash rent

• Employee Retention Credit (ERTC)

• Paycheck Protection Program (PPP)

• Rental of equipment or supplies

• Revenue earned as a contract producer

• Net gain from speculation

For producers who applied for the previous ERP Phase 2 and selected 

2022 as the representative revenue year only: Value of the actual 

production for the following DAFP-approved crops that do not have 

revenue directly from sales due to the producer’s ordinary operation:

• 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 

wine production

• Fresh apples, cherries, peaches and plums grown and processed 

into cider and wine by the same producer 

The value will be based on: 

• Actual production of the crop

• 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 

benchmark and disaster year.

Note: For those using the tax year option, an applicant is not required to have filed a Schedule F to determine allowable gross revenue. If an applicant did not file 

a Schedule F, the applicant will use the applicable federal tax form filed to determine allowable gross revenue in the same manner as if a Schedule F was filed.
FACTSHEET • OCTOBER 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 9

How to Determine Expected and Actual Revenue

Table 2 & 3 provide guidance for the Expected Revenue Option:

Use Table 2 to determine Benchmark Year Revenue for the Expected Revenue Option. 

Use Table 3 to determine Actual Revenue using the Expected Revenue Option.

TABLE 2. Expected Revenue Option

For producers who elect the expected revenue option, the producer’s expected revenue must include the expected revenue 

from all eligible crops that could have been affected 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: Calculating Expected Revenue:

Revenue from all eligible planted and prevented planted yield-based 

crops that could have been affected by qualifying disaster event in 

calendar year 2022.

Includes eligible crops that were planted in 2022 but not harvested until 

calendar year 2023.

Excludes all crops with an intended use of grazing.

Expected Acres × Expected Yield Per Acre × Expected Price 

Example: Producer intended to plant 1,000 acres of soybeans 

in County A and 100 acres of corn in County B. The expected 

benchmark year revenue will be calculated for both the corn and 

the soybeans.

Soybeans: 1,000 acres × 60 bushels/acre × $12.00/bushel = 

$720,000

Corn: 100 acres × 200 bushels/acre × $5.00/bushel = $100,000

The total expected benchmark year revenue for planted and 

prevented planted crops: $720,000 + $100,000 = $820,000

Revenue from all eligible perennial crops that could have been 

affected by a qualifying disaster event in calendar year 2022.

Excludes all crops with an intended use of grazing.

Expected Acres × Expected Yield Per Acre × Expected Price 

Example: Producer planted 1,000 acres of alfalfa and expected to 

harvest 3 tons per acre. The NASS published priced for alfalfa hay in 

the county is $200/ton. 

The total expected benchmark revenue for the alfalfa: 1,000 acres 

× 3 tons/acre × $200/ton = $600,000

Value of all eligible inventory crops that could have been affected by 

a qualifying disaster event in calendar year 2022.

Total Inventory Prior to Disaster × Expected Price 

Example: Producer has 100,000 pounds of red fish in inventory with 

a contract to sell the fish for $3.50 per pound. 

The total expected benchmark year revenue for inventory: 100,000 

pounds × $3.50/pound = $350,000

Value of all crops in storage that could have been affected by a 

qualifying disaster event in calendar year 2022. 

Includes eligible crops from 2022 and prior years in storage at the 

time of the disaster.

Total Production in Storage × Expected Price

Example: Producer has 50,000 bushels of hard red winter wheat 

produced on the farm and stored in grain bins and the grain elevator 

is purchasing wheat for $8.00 a bushel in the county.

The total expected benchmark year revenue for crops in 

storage:50,000 bushels × $8.00/bushel = $400,000
EMERGENCY RELIEF PROGRAM (ERP) 10

TABLE 3. Actual Revenue

For producers who elect the expected revenue option, the producer’s disaster year revenue is the actual revenue from all 

eligible crops were included in the expected revenue calculation.

Actual Revenue Includes: Actual Revenue Excludes:

Revenue from sales of eligible crops. Crops for grazing.

FCIC Crop insurance indemnities and NAP payments, less premiums 

and fees.

Aquatic species that do not meet the definition of aquaculture.

Indemnities for eligible crops under private insurance policies. Cannabis sativa L. and any part of the plant that does not meet the 

definition of hemp.

The value of the eligible crop for crops not sold (such as crops in 

storage or inventory, or fed to the producer’s livestock) 

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 time of application because ERP does not pay for market 

fluctuations for prior year crops.

Timber.

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

Crop by-products such as cotton seed and corn stalks.

Other revenue directly related to the production of eligible crops 

that IRS requires the producer to report as income.

Optional forms FSA-524-A and FSA-524-B are available at https://www.fsa.usda.gov/programs-and-services/emergency-relief/index.

For More Information

Additional USDA disaster assistance 

information can be found on farmers.

gov, the Disaster Assistance Discovery Tool, 

Disaster-at-a-Glance fact sheet, and Farm Loan Assistance Tool.

For FSA and Natural Resources Conservation Service 

programs, producers should contact their local 

USDA Service Center. For assistance with a crop insurance 

claim, producers and landowners should contact their crop 

insurance agent.

USDA is an equal opportunity provider, employer, and lender.

FACTSHEET • OCTOBER 2023