FACTSHEET • JUNE 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 1

Emergency Relief Program (ERP) Phase 2

REVENUE LOSS ASSISTANCE

Overview

Emergency Relief Program (ERP) covers losses to crops, trees, 

bushes and vines due to a qualifying natural disaster event in 

calendar years 2020 and 2021. 

For impacted producers, FSA is administering emergency relief to 

other crop, high value and specialty crop producers through the 

following two-phased process: 

• Phase 1 leveraged existing Federal Crop Insurance or 

Noninsured Crop Disaster Assistance Program (NAP) data 

as the basis for calculating initial payments.

• Phase 2 intends to fill additional assistance gaps and cover 

eligible producers who did not participate in existing risk 

management programs.

This two-phased 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 — Phase 2 

Phase 2 is a tax year based certification program that provides 

assistance for producers that suffered a loss in revenue due 

to necessary expenses associated with losses of eligible crops 

(excluding crops intended for grazing), due in whole or in part, 

to a qualifying disaster event that occurred in the 2020 or 2021 

calendar year. Must 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 Self-Determination and 

Education Assistance Act (25 U.S.C. 5304).

Qualifying natural disaster events include wildfires, hurricanes, 

floods, derechos, excessive heat, winter storms, freeze (including 

a polar vortex), smoke exposure, excessive moisture, qualifying 

drought, and related conditions. 

For ERP eligibility, “related conditions” are damaging weather and 

adverse natural occurrences that occurred concurrently with and 

as a direct result of a specified qualifying disaster event. 

They include:

• Excessive wind that occurred as a direct result of 

a derecho;

• Silt and debris that occurred as a direct result of 

flooding;

• Excessive wind, storm surges, tornadoes, tropical 

storms, and tropical depressions that occurred 

as a direct result of a hurricane; and

• Excessive wind and blizzards that occurred as a 

direct result of a winter storm.

For drought, ERP assistance is available if any 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;

• D3 (extreme drought) or higher level of drought 

intensity.

Lists of 2020 and 2021 drought counties eligible for 

ERP are available on the emergency relief website. 

In general, payments for ERP Phase 2 are based on 

the difference in allowable gross revenue between 

the selected representative benchmark year(s) and 

the disaster year(s). 
FACTSHEET • JUNE 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 2

ERP Phase 2 program utilizes:

• Benchmark years: 2018, 2019

• Disaster years: 2020, 2021

Important Information Needed for 

the Application 

Some simple prep-work will aid in the application process, 

including locating the supportive documentation that was 

used in creating the IRS Schedule F, as well as a copy of 

the FSA-1099G for the selected benchmark and disaster 

years. In addition, applicants should review the following 

definitions, and will certify these entries on the FSA-521:

Allowable gross revenue: determined using the table found 

on pages 4–5 of this fact sheet for the selected benchmark 

and disaster year(s) listed on the FSA-521, ERP Phase 2 

Application 

FSA issued a technical correction to the ERP Phase 2 

provisions in 7 CFR 760.1903, which allows producers of 

crops approved by the Deputy Administrator to include 

their crop’s value in allowable gross revenue. This method 

of determining allowable gross revenue may only be used 

for crops that have received approval because, due to a 

producer’s ordinary operation, the producer does not have 

revenue directly from the sale of the crop.

For example, producers of wine grapes who do not sell their 

grapes, but instead process the grapes into wine as part of 

their ordinary operation, may use the crop’s value because they 

would not have revenue from the sale of the wine grapes to 

include in their allowable gross revenue.

The value of the eligible crop must be based on the 

producer’s actual production of the crop and a price for 

the crop, as determined by the producer based on the best 

available data, such as published price data for the crop or 

the average price obtained by other producers in the area.

For a current listing of approvals and acceptable price 

data sources, please refer to the following website: 

fsa.usda.gov/erp

Benchmark year revenue: best represents a typical year 

of revenue for the operation, associated to the selected 

disaster year

 **Adjusted Benchmark year revenue: used when:

• Producer did not have any revenue in 2018 or 2019

• Producer did not have a full benchmark revenue year in 

2018 or 2019

• The 2018 or 2019 benchmark year revenue was not 

representative due to a physical expansion or reduction 

in the operation capacity for the disaster year 

Disaster year revenue: actual revenue from the year(s) the 

producer suffered an eligible loss. 

Representative tax year: The tax year (2020, 2021 and 

2022), IRS Schedule F associated with the selected disaster 

year revenue. The producer identifies: 

• The 2020 or 2021 tax year used as the representative 

revenue year for the 2020 disaster year

• The 2021 or 2022 tax year used as the representative 

revenue year for the 2021 disaster year

Producers With Eligible Revenue Losses in Both 

Disaster Years:

• Both disaster years shall be selected on the same 

application

• The same benchmark year may be used for both 

disaster years

• Participants cannot use the same representative tax 

year for more than one disaster year

• Disaster year revenue must consist of consecutive years

Example: If a producer chooses the 2021 tax year as the 

representative revenue year for disaster year 2020, they must 

choose tax year 2022 for disaster year 2021. 

Since the producer used his IRS Schedule F for 2021 as the 

representative tax year for the actual 2020 disaster year 

revenue, the years must be consecutive and can only be 

paired with one disaster year. Therefore, he must use 

2022 as the representative tax year for the 2021 disaster 

year revenue.

Underserved Producers 

Underserved producers, including beginning, limited 

resource, socially disadvantaged and veteran farmers 

and ranchers, will receive a higher ERP payment, at a 

percentage rate that will be determined at a later date. 

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, 

or 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 (for Phase 1 and Phase 2 combined) 

for a 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.
FACTSHEET • JUNE 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 3

The relevant tax years for establishing a producer’s AGI 

and percentage derived from farming, ranching, or forestry 

related activities are: 

• 2016, 2017, and 2018 for program year 2020;

• 2017, 2018, and 2019 for program year 2021; and

• 2018, 2019, and 2020 for program year 2022

Independent payment limitations for non-specialty/other 

crops and specialty/high value crops for each program year 

will remain, however only two program years, 2020 and 

2021 will be applicable for ERP Phase 2. 

Note: This is a change from ERP Phase 1. Phase 1 had 

separate payment limitations for each crop year 2020, 2021, 

and 2022. 

During ERP Phase 2, payments received under ERP 

(Phase 1 and 2), will be applied by program year as follows: 

Program year 2020 = 2020 ERP Phase 1, 2020 ERP Phase 2, 

Combined 

Program year 2021 = 2021 ERP Phase 1, 2021 ERP Phase 2, 

Combined

Exception to Payment Limitation

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, 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 complete with participant’s 

certification their average adjusted gross farm income is at 

least 75% of their average AGI and a certification from a 

Licensed Certified Public Accountant (CPA) or Attorney that 

the participant meets the requirements. To learn more, visit 

the Payment Eligibility and Payment Limitations website.

Future Insurance Coverage Requirements 

All producers who receive ERP 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. 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 2026 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, if eligible

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

required to purchase Whole Farm Revenue Protection 

(WFRP) crop insurance at a coverage level of at least 60%.

How to Determine Allowable Gross 

Revenue

Table 1 provides guidance for:

• Determining allowable gross revenue source

• What to include/exclude when determining allowable 

gross revenue
FACTSHEET • JUNE 2023 fsa.usda.gov/erp

EMERGENCY RELIEF PROGRAM (ERP) 4

PROGRAM ERP PHASE 2

SOURCE 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

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 postproduction 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. 

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

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

• Cost-share assistance

• Loss of buildings

• Livestock portion

• Pandemic Livestock Indemnity Program (PLIP)

• Spot Market Hog Pandemic Program (SMHPP)

Other programs: 

• Conservation Program Payments

• Dairy Margin Coverage (DMC) Program

• Marketing Assistance Loan (MAL)

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
EMERGENCY RELIEF PROGRAM (ERP) 5

ERP PHASE 2

SOURCE 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 for eligible crops, 

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+)

SCHEDULE F 

LINE 7

“Custom hire (machine work) income,” 

or information that could be reported 

on a Schedule F

Custom hire income

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 pass-through 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.

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 Discovery 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.

PROGRAM

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

FACTSHEET • JUNE 2023