PARP Details
FSA has an updated website on PARP and some of the details are different from Phase 2 of ERP. We review those differences.
PARP opens January 23, 2023, and closes on June 3, 2023, unless extended. Although not stated on the page, any calculated claim will likely be reduced by 90% based on information from the Regulations issued last week.
Under ERP Phase 2, a farmer needed to have a 30% reduction in Allowable Gross Revenues (AGR) while PARP only requires a 15% reduction. Also, PARP is only available for 2020, not 2021.
The definition of AGR also is slightly different. Sales of raised breeding stock is allowed for PARP and it specifically states that a feedlot operation also qualifies.
Another difference (it appears) that this must be calculated on a calendar year. Therefore, those corporations with a fiscal year will need to adjust sales accordingly to determine if they qualify.
PARP also requires you to reduce any payment by any of the other pandemic programs associated with 2020 such as CFAP, SMHPP, PLIP, and any 2020 ERP payments received.
The payment limit is the same as ERP, but you also must be under the $900,000 AGI limit.
The application is done on Form FSA-1122 and FSA-1122A in some cases. These forms are not available yet.
We will continue to provide updates on both programs.