Urgent: Do you Qualify for ERP 2022 Track 2?

ERP 2022 Track 2 provides assistance for eligible revenue, production, and quality losses of eligible crops not included in Track 1. Track 2 uses a revenue-based approach to compensate for crop losses capturing a producer’s loss regardless of whether the loss occurred before harvest or after harvest or while the crop was in storage.

To be eligible for Track 2, producers must have experienced a decrease in disaster year revenue as compared to a benchmark year revenue, due in whole or in part to a qualifying disaster event that occurred in the 2022 calendar year.

If all or part of the loss was because of a qualifying disaster event or related condition, the entire loss is eligible.

What are qualifying disaster events?

To be eligible for ERP 2022 Track 2 assistance, a producer must have had a crop loss as a result of a qualifying drought, derecho, excessive heat, excessive moisture, flooding, freeze, including polar vortex, hurricanes (must be named), smoke exposure, tornado, wildfire, winter storm, and related conditions occurring in calendar year 2022.

What options do producers have for determining eligible revenue losses?

The following are the 2 options producers have for determining their benchmark and disaster year revenue.

• Expected Revenue Option – The expected revenue option allows producers to certify to the revenue they reasonably expected to receive absent any disaster conditions and the actual disaster year revenue

• Tax Year Option – The tax year option allows producers to use certain information in their tax records or other available financial documents to determine allowable gross revenue to include in benchmark and disaster year revenue.

Here is what you’ll need to fill out the application:

• Tax Returns: 2018, 2019, 2022 & 2023
• Schedule F
• Breakdown of line #2 (Corn, Soybeans, Alfalfa, Livestock)
• All 1099’s for lines 3-6
• Schedule of other income (Line 8)

Expected:

• 2022 acres planted, yield and price – Get approved actual production history from crop insurance
• 2021-year end crop inventory
• 2022 actual crop sales.
• 2022 Bushels fed or tons of alfalfa fed to livestock
• 2022 Ending inventory
• Establish a published price to use for expected price – i.e. crop insurance spring price
• Hedging gains or losses on  2022 crop