A commonly asked question is ‘Can I defer Phase 1 payments of the Emergency Relief Program (ERP) to 2023?’ As of right now, that answer is no. While crop insurance payments can normally be deferred one year, there are certain requirements needed to defer proceeds. To defer, the farmer must be on the cash method of accounting (most are), the farmer normally reports more than 50% of total sales in the year after harvest (most do), and the farmer can only defer the year after the damage was incurred.

The third requirement is not met through the ERP payment since the damage would have occurred in 2020 and 2021. Some phase 2 payments could be deferrable, assuming it was for 2022 damage, but this is not certain.

Read more on deferment qualifications and ERP payments here.