Details have emerged on the Pandemic Assistance Revenue Program (PARP). USDA says the program is only for the 2020 crop year. Farmers will calculate Allowable Gross Revenue (AGR) for either 2018 or 2019 and multiply it by a factor to arrive at the base revenue compared to the 2020 AGR. If the benchmark revenue is greater than 2020s, the farmer will qualify for payment.
Most farmers will use an 80% factor, but beginning, limited resource, socially disadvantaged or veteran farmers will use a 90% benchmark. Emergency Relief Payments (ERP) were primarily for crop farmers; however, PARP will also support livestock producers. USDA shared payment limits of $125,000 per entity per owner, subject to the 2020 $900,000 ACI limitation.
USDA expects farmers to have about $2.5 billion in PARP claims, but the agency reports only $250 million in budget allocations. Therefore, farmers should expect to receive only 10% of estimated claims.
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