Major changes have been identified in how allowable gross revenue (AGR) is calculated in the Emergency Relief Program (ERP) Phase 2 from 2022 compared to 2020 and 2021. First, the latter used benchmark revenue from 2018 or 2019, multiplied by 70%. Under Track 2, this number will now be 90% if the farmer receives a crop insurance payment. This change marks a significant benefit to farmers. Most other AGR calculations are the same, however, hedging gains are no longer allowed to be counted.
Farmers will still be required to remove livestock-related income and other USDA payments outside of crop production. For growers with significant acreage changes in 2022 compared to 2018, expect substantial paperwork. Review the Farm Service Agency (FSA) application to see how to calculate your revenue under various conditions.
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