ERP Track 2

Emergency Relief Program

• Overview:

  • An FSA program that provides an alternative option to qualify for a larger disaster payment when compared to ERP Track 1

  • Track 1 came out in late 2023 and was automatically calculated and sent out to producers who had a MPCI crop insurance loss in 2022

  • Based on the 2022 crop year

  • No deadline to apply at this time

  • This Track 2 option may work for some, but not all.

  • You will be more likely to you qualify for a Track 2 loss payment IF:

    • you received little to no Track 1 payment

    • you received little to no crop insurance loss payments in 2022

    • you had low actual yields and low actual grain sales in 2022

    • you had a large MPCI premium in 2022

  • If you have any questions, just let me know.

  Documents / Information needed:

• 2022 actual grain sales

  • grain settlement sheets

  • Schedule F from Tax Return - may be helpful if your grain sales for 2022 can be isolated on a particular year’s Sch. F.

• 2022 acres & yields

• 2022 MPCI + Private Product (Hail + Wind) crop insurance loss payments

• 2022 MPCI (federal crop insurance) premium

• 2022 expected yields & prices

  • crop insurance yield history - APH document - to support expected yields used

  • documentation to support expected grain prices used

• Track 1 GROSS payment amount (before Progressive Factoring & 75% factor)

  • not needed for application, but good to know as it can help you determine more quickly if you will qualify for a payment under Track 2

• The above list is just an example and is not exhaustive - more and/or other documentation & info could be needed

• How to apply

  • Gather your documentation to support your numbers

  • Fill out the below apps

    • FSA-524 - LINK - main app, very simple

    • FSA-525 - LINK - requirement to purchase MPCI for 2 yrs, also very simple

    • FSA-524-B - LINK - expected revenue worksheet

  • Submit your completed apps & supporting documentation to your controlling FSA office

• Key Links:

  • FACTSHEET:

    • https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/emergency-relief-program/pdfs/fsa_erp_2022_track_2_factsheet.pdf

  • Main ERP website:

    • https://www.fsa.usda.gov/programs-and-services/emergency-relief/index

  • ERP spreadsheet tool:

    • https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/emergency-relief-program/docs/erp2022_tool_version_final-v1.2-02212024.xlsm

• EXAMPLE worksheet / calculation

• Payment Calc

  • [ (benchmark year revenue) x 90% ] - (disaster year revenue) - (ERP track 1 pmt)

    • Then multiply by progressive factoring

    • If underserved, then

      • Multiply the above by 115%

    • Then multiply by 75%

  • If NOT all acres insured by MPCI

    • Change 90% ERP factor to 70%

  • Disaster year revenue = (actual grain sales) + (all crop insurance losses) - (MPCI only crop ins premium)