FACTSHEET • JUNE 2023 FARMERS.GOV

ERP PHASE 2 AND PARP COMPARISON 1

Emergency Relief Program 

(ERP) Phase 2

Overview

ERP Phase 2 is part of the Extending 

Government Funding and Delivering 

Emergency Assistance Act, which 

includes $10 billion in assistance to 

agricultural producers impacted by 

expenses associated with losses of 

eligible crops due in whole or part, to a 

qualifying disaster event experienced 

during calendar years 2020 and 

2021. ERP Phase 2 provides direct 

financial assistance to producers who 

suffered an eligible revenue loss in the 

applicable disaster year, compared to 

the benchmark year.

Benchmark & Disaster Years

ERP Phase 2 applicants will use the 

following tax years when selecting 

allowable gross revenue: 

• Benchmark years: 2018 and/or 

2019, or adjusted for new producers 

with no 2018 or 2019 revenue, 

or if the benchmark years are not 

representative of the disaster year due 

to a change in operation size; 

• Disaster years: 2020 and/or 2021. 

The allowable gross revenue for the 

specific disaster year will be based on 

the tax year applicable to that revenue 

(2020, 2021 or 2022)

Emergency Relief Program Phase 2 and 

Pandemic Assistance Revenue Program 

Comparison Factsheet

REVENUE LOSS ASSISTANCE

Pandemic Assistance Revenue 

Program (PARP)

Overview

USDA is providing critical support to 

producers impacted by the effects of 

the COVID-19 outbreak through the 

Pandemic Assistance Revenue Program 

(PARP). PARP provides direct financial 

assistance to producers of agricultural 

commodities who suffered at least a 15% 

loss in gross revenue in calendar year 

2020 due to the COVID-19 pandemic. 

Benchmark & 2020

To be eligible for PARP, an agricultural

producer must have been in the business 

of farming during at least part of the 

2020 calendar year and had a 15% loss 

in allowable gross revenue for the 2020 

calendar year, as compared to: 

• The 2018 or 2019 calendar year, as 

elected by the producer, if they received 

allowable gross revenue during the 2018 

or 2019 calendar years, or 

• the producers’ expected 2020 calendar 

year allowable gross revenue if the 

producer had no allowable gross revenue 

in 2018 or 2019. 
FACTSHEET • JUNE 2023 FARMERS.GOV

ERP PHASE 2 AND PARP COMPARISON 2

Ineligible Commodities

ERP PHASE 2 PARP

Wild free-roaming animals Wild free-roaming animals

Horses and other animals used or intended to be used for racing or 

wagering

Horses and other animals used or intended to be used for racing or 

wagering

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

definition of hemp

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

definition of hemp

Timber Timber

Aquatic species that do not meet the definition 

of aquaculture

Aquatic species that do not meet the definition 

of aquaculture

Livestock

Crops for grazing

Eligible Producers

To be eligible for payments, individuals or legal entities must:

• Be an eligible producer who was entitled to a share 

in the agriculture commodity or would have shared 

had the agriculture commodity been produced and 

marketed;

• Comply with the provisions of the “Highly Erodible 

Land and Wetland Conservation” regulations, often 

called the conservation compliance provisions;

• Not have a controlled substance violation.

• For ERP Phase 2 Only: Be a U.S. citizen, resident alien, 

which means “lawful alien,” a partnership consisting 

solely of U.S. citizens or resident aliens, a corporation, 

limited liability company, or other organizational 

structure organized under State law consisting solely 

of U.S. citizens or resident aliens, Indian Tribe or Tribal 

Organization, per section 4(b) of the Indian SelfDetermination and Education Assistance Act 

(25 U.S.C. 5304 )

• ERP Phase 2 Only: if at least 75% of the person or 

legal entity’s average AGI is derived from farming, 

ranching, or forestry related activities and the 

participant provides the required certification and 

documentation by submitting optional form FSA-510, 

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 specialty and 

high value crops; and

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

• For PARP Only: Be a U.S. citizen, resident alien, which 

means “lawful alien,” a partnership, 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 SelfDetermination and Education Assistance Act (25 U.S.C. 

5304 ), a foreign person or foreign entity who meets all 

requirements as described in 7 CFR part 1400;

• PARP Only: To be eligible for payments, a person 

or legal entity must have an average adjusted gross 

income (AGI) of less than $900,000 for tax years 2016, 

2017, and 2018 or have an adjusted gross income 

of less than $900,000 for tax year 2020 if exceeding 

average AGI. With respect to joint ventures and general 

partnerships, this AGI provision will be applied to 

members of the joint venture and general partnership. 

The following chart outlines which commodities are ineligible for ERP Phase 2 and PARP.
FACTSHEET • JUNE 2023 FARMERS.GOV

ERP PHASE 2 AND PARP COMPARISON 3

How to Determine Allowable Gross Revenue

Allowable gross revenue is calculated differently for ERP Phase 2 and PARP. The table below provides guidance for determining 

allowable gross revenue sources and shows what to include and exclude for each program.

PROGRAM ERP PHASE 2 PARP

SOURCE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE

SCHEDULE F 

LINE 1C

“Sales of purchased 

livestock and other resale 

items,” or information 

that could be reported on 

Scheduled F

Sales of eligible crops 

purchased for resale 

that had a change in 

characteristic due to the 

time held, such as:

• A plant purchased at 

a size of 2 inches and 

sold as an 18-inch 

plant after 4 months

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

Sales of livestock Sales of agricultural 

commodities purchased for 

resale, less the cost or other 

basis of such commodities. 

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

Resale of items not held for 

characteristic change

SCHEDULE F 

LINE 2

Sales of livestock, 

produce, grains, and 

other products you 

raised or information that 

could be reported on a 

Schedule F

Sales of eligible crops 

grown in the United States 

and its territories by the 

applicant. 

Sales of eligible crops 

grown by the applicant 

resulting from value added 

through post-production 

activities that could have 

been reported on IRS 

Schedule F

For example:

• Strawberries into jam

Sales of 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

Sales of animals and their 

by-products:

• Animals for 

consumption by the 

owner, lessee, or 

contract grower

• Eggs

• Milk

• Mink including pelts

• Revenue from animals 

for show, sport, or 

recreational purposes

• Wild free-roaming 

animals

• 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. 

Sales of ag commodities 

produced by the producer, 

including sales resulting 

from value added through 

post-production activities.

• Inventory carried over 

from the prior tax year

• Post-production 

activities (value added) 

i.e., grapes into wine or 

strawberries into jam.

• Commodities not 

grown in the U.S. 

(if grown by U.S. 

producer and 

marketed in the U.S.)

• IC-DISC income from 

the sale of agricultural 

commodities

• Revenue from raised 

breeding livestock 

(Schedule 4797 Part 

1 and 2, Column (d) or 

other information that 

could be reported on a 

Schedule F)

NOTE: eligible aquatic 

species must be raised by 

a commercial operator and 

in water in a controlled 

environment

• Wild free-roaming 

animals

• Horses and other 

animals used for racing 

or wagering 

• Timber

• Aquatic species that 

are NOT 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, or 

• as ornamental fish 

propagated and reared 

in an aquatic medium. 

Cannabis sativa L. and any 

part of that plant including 

the seeds, thereof and 

all derivatives, extracts, 

cannabinoids, isomers, 

acids, salts, and salts of 

isomers, whether growing 

or not, with a delta-9 

tetrahydrocannabinol 

concentration of more than 

0.3 percent on a dry weight 

basis, that is grown under 

a license or other required 

authorization issued by 

the applicable governing 

authority that permits the 

production of hemp

SCHEDULE F 

LINE 3A

“Cooperative 

distributions,” Form 

1099-PATR, or 

information that could be 

reported on a Schedule F

The amount of cooperative 

distributions directly 

related to the sale of 

eligible crops produced by 

the applicant such as:

• Per-unit allocations 

paid to patrons for 

gross grain sales

Distributions that are not 

directly related to the sale 

of eligible crops that are not 

produced by the applicant

The amount of cooperative 

distributions directly related 

to the sale of agricultural 

commodities produced by 

the applicant
FACTSHEET • JUNE 2023 FARMERS.GOV

ERP PHASE 2 AND PARP COMPARISON 4

PROGRAM ERP PHASE 2 PARP

SOURCE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE

SCHEDULE F 

LINE 4A

“Agricultural program 

payments", Form 1099-

G, or information that 

could be reported on a 

Schedule F

Benefits for eligible crops 

under the following 

agricultural programs:

• Agriculture Risk 

Coverage (ARC) and 

Price Loss Coverage 

(PLC) Program

• Biomass Crop 

Assistance Program 

(BCAP)

• Loan Deficiency 

Payment (LDP) 

Program

• Market Loan Gains 

(MLG) - repayment 

of Commodity Credit 

Corporation (CCC) 

loan less than the 

original amount

• Market Facilitation 

Program (MFP)

• Seafood Trade Relief 

Program (STRP)

• For the disaster year 

only- Emergency 

Relief Program (ERP) 

Phase 1 payments 

issued to another 

person or entity for 

the applicant's share 

of an eligible crop, 

regardless of the tax 

year in which the 

payment would be 

reported to the IRS

Pandemic Assistance 

payments including, but not 

limited to:

• Coronavirus Foods 

Assistance Program 1 

(CFAP 1)

• CFAP 2

• Pandemic Livestock 

Indemnity Program 

(PLIP)

• Spot Market Hog 

Pandemic Program 

(SMHPP)

• Cost-share assistance 

• Loss of buildings 

• Livestock portion 

Other programs: 

• Conservation Program 

Payments

• Dairy Margin Coverage 

(DMC) Program

• Marketing Assistance 

Loan (MAL)

Payments received under 

the following programs 

regardless of crop year or 

program year:

• ARC/PLC

• BCAP 

• DMC 

• LDP, MLG 

• MFP 

• MPP Dairy 

• Seafood Trade Relief 

Program (STRP) 

Pandemic Assistance from:

• CFAP 1

• CFAP 2

• PLIP

• SMHPP

Other Programs:

• Conservation Program 

Payments

• 2020 Emergency 

Relief Program

Any pandemic assistance 

payments that were not 

for the loss of agricultural 

commodities or the loss of 

revenue from agricultural 

commodities, including, but 

not limited to: 

• cost-share assistance

• loss of buildings, etc.

Notes: If a CFAP payment 

was received in calendar 

year 2020, and was 

included on Schedule F line 

4a for calendar year 2020, 

the amount of the CFAP 

payment received will need 

to be deducted from that 

line item amount when 

figuring 2020 allowable 

gross revenue.

The PARP software will 

automatically deduct all 

payments received from 

the Pandemic programs 

listed above and the 2020 

ERP program during the 

payment calculation.

SCHEDULE F 

LINE 5A - 5C

“Commodity Credit 

Corporation (CCC) loans 

reported under election,” 

Form 1099-A, or 

information that could be 

reported on a Schedule F

• 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

CCC loans reported under 

election if elected to be 

treated as income and 

reported to IRS
FACTSHEET • JUNE 2023 FARMERS.GOV

ERP PHASE 2 AND PARP COMPARISON 5

PROGRAM ERP PHASE 2 PARP

SOURCE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE

SCHEDULE F 

LINE 6

“Crop insurance proceeds 

and federal crop disaster 

payments” or information 

that could be reported on 

a Schedule F

• Crop insurance 

proceeds less 

administrative fees

and premiums

Benefits for eligible crops 

under the following federal 

crop disaster payments:

• Noninsured Crop 

Disaster Assistance 

Program (NAP) 

payments less 

administrative fees 

and premiums

• Benchmark Year Only 

- 2017 Wildfire and 

Hurricanes Indemnity 

Program (WHIP), 

2018 & 2019 Wildfire 

and Hurricanes 

Indemnity Program 

(WHIP+), and Quality 

Loss Adjustment 

Program (QLA)

• On-Farm Storage Loss 

Program (OFSLP)

• Emergency Assistance 

for Livestock, 

Honeybees, and 

Farm-Raised Fish 

Program (ELAP) - 

payments specific to 

aquaculture

• Payments through 

grant agreements 

with FSA for losses of 

eligible crops

• Grants from the 

Department 

of Commerce, 

National Oceanic 

and Atmospheric 

Administration 

(NOAA), and state 

program funds for the 

direct loss of eligible 

crops or the loss of 

revenue for eligible 

crops

• ELAP- payments 

specific to livestock and 

honeybees

• Emergency Livestock 

Relief Program (ELRP)

• Emergency Relief 

Program (ERP) Phase 1 

Payments

• Livestock Forage 

Disaster Program (LFP)

• Livestock Indemnity 

Program (LIP)

• Milk Loss Program

• Disaster Year 

Only - Quality Loss 

Adjustment (QLA) 

Program

• Tree Assistance 

Program (TAP)

• Disaster Year Only - 

Wildfire and Hurricane 

Indemnity Program 

(WHIP/WHIP+)

Crop insurance proceeds 

received from FCIC or a 

private plan of insurance 

regardless of crop year or 

program year (as reported 

to IRS).

Federal disaster program 

payments under the 

following programs 

regardless of crop year or 

program year:

• 2017 WHIP

• ELAP

• LFP

• LIP

• NAP

• MLP

• OFSLP

• TAP

• WHIP+

Payments through grant 

agreements with FSA for 

losses of eligible crops

• Grants from the 

Department 

of Commerce, 

National Oceanic 

and Atmospheric 

Administration 

(NOAA), and state 

program funds for the 

direct loss of eligible 

crops or the loss of 

revenue for eligible 

crops

SCHEDULE F 

LINE 7

“Custom hire (machine 

work) income,” or 

information that could be 

reported on a Schedule F

Custom hire income Custom hire income
FACTSHEET • JUNE 2023 FARMERS.GOV

ERP PHASE 2 AND PARP COMPARISON 6

PROGRAM ERP PHASE 2 PARP

SOURCE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE ALLOWABLE REVENUE EXCLUDE GROSS REVENUE

SCHEDULE F 

LINE 8

“Other income, including 

federal and state gasoline 

or fuel tax credit or 

refund,” or information 

that could be reported on 

a Schedule F

Other revenue directly 

related to the production 

of eligible crops that the 

IRS requires the applicant 

to report such as but not 

limited to:

• Commodity specific 

income received 

from state or local 

governments

• Federal and State gas/

fuel tax credits

• Income from by-passed 

(unharvested) acres

• Income from a passthrough entity such 

as an S Corporation 

or Limited Liability 

Company (LLC)

• Certificate Exchanges

• Net gain from hedging 

or speculation

• Wages, salaries, and tips

• Cash rent

• Rental of equipment or 

supplies

• Revenue earned as a 

contract producer

Other revenue directly 

related to the production 

of agricultural commodities 

that IRS requires the 

applicant to report as 

income including but not 

limited to: 

• Federal and State gas/

fuel tax credits 

• Income from bypassed (unharvested) 

acres 

• Commodity specific 

income received 

from state or local 

governments. 

• Revenue earned 

as a cattle feeding 

operation.

• Income from a passthrough entity such 

as an S Corporation 

or Limited Liability 

Company (LLC)

• Certificate Exchanges 

• Net gain from hedging 

or speculation 

• Wages, salaries, 

and tips 

• Cash rent 

• Rental of equipment 

or supplies 

• Revenue earned as a 

contract producer

Note: 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.

Producer Documentation 

Producers will need to gather supporting documentation 

including Schedule F (Form 1040), Profit or loss From 

Farming or similar tax documents for calendar years 2018, 

2019 and 2020 for PARP and for tax year 2018, 2019, 

2020, 2021, and 2022 for ERP Phase 2. 

Producers should also have the following forms on file for 

both PARP and ERP Phase 2 program participation: 

• Form AD-2047, Customer Data Worksheet (as 

applicable to the program participant). 

• Form CCC-902, Farm Operating Plan for an individual 

or legal entity. 

• Form CCC-901, Member Information for Legal Entities 

(if applicable); and 

• Form AD-1026 Highly Erodible Land Conservation 

(HELC) and Wetland Conservation (WC) Certification. 

Most producers, especially those who have previously 

participated in FSA programs, will likely have these required 

forms on file. However, those who are uncertain or want to 

confirm should contact their local FSA County Office. 

In addition to the forms listed above, certain producers will 

also need to submit the following form to qualify for an 

increased payment rate as applicable for ERP Phase 2 

and PARP. 

• Form CCC-860, Socially Disadvantaged, Limited 

Resource, Beginning and Veteran Farmer or Rancher 

Certification, if applicable. 

Payment Limitations & Eligibility

PARP and ERP both have a $125,000 payment limit per 

person or legal entity. For ERP, the $125,000 payment limit 

is combined from Phase 1 and Phase 2. 

Additionally, there is a separate $125,000 payment limit 

for specialty/high value commodities for ERP Phase 2. 

Payment Limitations are also separate for each program 

year 2020 and 2021.

ERP Phase 2 Only: As a condition of payment eligibility, 

producers must obtain crop insurance or NAP coverage, as 

applicable for the eligible crops(s) involved in the revenue loss.

 PARP Only: PARP may have a reduced payment limitation
USDA is an equal opportunity provider, employer, and lender.

FACTSHEET • JUNE 2023

ERP PHASE 2 AND PARP COMPARISON 7

Applying for Assistance

The Farm Service Agency (FSA) is accepting applications for 

ERP Phase 2 and PARP from Jan. 23, 2023 to July 14, 2023.

Additional Resources

For more information on how to apply or application forms 

by program, visit farmers.gov/service-center-locator. 

• PARP fact sheet

• ERP 2 fact sheet

All FSA fact sheets are available at fsa.usda.gov/factsheets.

Additionally, applicants interested in one-on-one support 

with the ERP Phase 2 and PARP program application can 

contact our call center at 877-508-8364 to speak directly 

with a USDA employee ready to offer assistance. 

For More Information

This fact sheet is for informational purposes only; 

other restrictions may apply. For more information 

about the PARP program, visit farmers.gov/parp, 

fsa.usda.gov/programs-and-services/emergency-relief

or contact your local FSA office. To find contact your 

local FSA office, visit farmers.gov/service-center-locator.