Estimated ERP Phase 2 Payouts
USDA assumes that $1.504 billion of ERP Phase 2 claims will be filed by July 14. We believe the final number will be much lower and review how we arrive at our numbers.
USDA estimated $1.504 billion of claims for ERP Phase 2, but only budgeted $1.2 billion. They also estimated $2.662 billion of PARP claims but only budgeted $250 million.
In the attached audio recording, we review how much we think the actual final claims might be for ERP Phase 2 and PARP. We believe the final numbers will be lower than their projections. We will keep you posted.
I thought a shallow loss program was promised as Congress intended in the first place. I'm willing to bet there is a billion dollars left over after this program. I'm not sure what USDA was thinking of but this cannot be called a successful program. Had the orginal Whip + formula been followed, as what was the intent of Congress, they could have had this program out of the way a year and a half ago. Instead they intend to use the same formula again for 2022 losses. Cannot usda admit they were wrong?