What You Need to Know About Emergency Livestock Relief Program (ELRP)
The USDA recently announced an updated livestock disaster aid addressing increased supplemental feed cost in 2021. The ELRP payment will be based on data from the 2021 Livestock Forage Disaster Program (LFP).
Producers do not have to apply for the ELRP aid, but must have the following forms on file with FSA by June 30, 2022:
CCC-853 (Livestock Forage Disaster Program Application)
AD-2047 (Customer Data Worksheet)
CCC-902 (Farm Operating Plan for an Individual or Legal Entity)
CCC-901 (Member Information for Legal Entities, if applicable)
FSA-510 (Request for an Exception to the $125,000 Payment Limitation for Certain Programs, if applicable)
CCC-860 (Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, if applicable)
AD-1026 (Highly Erodible Land Conservation (“HELC”) and Wetland Conservation (“WC”) Certification)
Phases of the ELRP payments
Phase 1 of the payments is expected to total $577 million, basing the payments on percentage of an eligible producers’ gross 2021 LFP payment — 90% for historically underserved producers and 75% for all other producers. And, the payments will be subject to a payment limit.
Phase 2: USDA said it was evaluating impacts of 2021 drought and wildfires on livestock producers as it develops the Phase 2 component.
Phase 1 ELRP eligibility
Producer and livestock eligibility for ELRP aligns with the Livestock Forage Disaster Program (LFP) eligibility requirements. Only 2021 LFP participants are eligible for an ELRP payment under Phase 1. Livestock producers must have suffered grazing losses in a county rated by the U.S. Drought Monitor as a D2 (severe drought) for eight consecutive weeks or a D3 (extreme drought) or D4 (exceptional drought) during the normal grazing season of the 2021 calendar year. Livestock producers who were not allowed to graze their permitted federally managed lands due to wildfire are also eligible for ELRP payments.
ELRP payment calculation and limitations
When calculating an eligible producer’s Phase One ELRP payment, Farm Service Agency (FSA) will use the producer reported (CCC-853 form) livestock inventories and forage acreage or restricted animal units and grazing days for the 2021 calendar year. Payments will be equal to the eligible livestock producer’s gross 2021 LFP payment multiplied by a payment percentage. For historically underserved producers (i.e., socially disadvantaged, limited resource, beginning, and veteran), the payment percentage is 90%, with a payment percentage of 75% for all other producers. Eligible producers with a CCC-860 on file with FSA for the 2021 program year qualify for the 90% payment percentage.
Under ELRP, Adjusted Gross Income (“AGI”) limitations will not apply, however there are payment limitations for eligible producers. The payment limitations will be determined by the producer’s or legal entity’s average adjusted gross farm income, which is income earned from their agricultural operation. If an eligible producer or entity, other than joint ventures or general partnerships, has an average adjusted gross farm income of less than 75% of their average AGI for tax years 2017 through 2019, they cannot receive an ELRP payment of more than $125,000. For an eligible producer or entity, other than joint ventures or general partnership, with an average AGI of at least 75% that is derived from agricultural activities, they may be eligible for an ELRP payment of up to $250,000.
Eligible participants seeking the increased limitation must:
File form FSA-510;
Provide certification that their average adjusted gross farm income is at least 75% of their AGI; and
Provide certification from a licensed Certified Public Accountant or attorney that the participant qualifies to receive the increased limitation.
Additional USDA Assistance Opportunities
The announcement also included information on a new crop-related disaster effort named Emergency Relief Program (ERP). USDA announced a two-phase approach for diversified, row crop and specialty crop operations affected by an eligible disaster event in calendar years 2020 or 2021.
USDA also indicated there will be additional relief through the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP). The ELAP program provides emergency assistance to eligible producers of livestock, honeybees and farm-raised fish for losses due to disease (including cattle tick fever), adverse weather, or other conditions, such as blizzards and wildfires, not covered by LFP. The additional ELAP funding will assist producers with the increased cost of hauling livestock to forage. The ELAP compensation is retroactive to 2021 and will also be available for losses in 2022 and subsequent years. The deadline to request all ELAP assistance for 2022 calendar year losses will be Jan. 31, 2023.
The deadline to file for FSA’s LFP program is 30 calendar days after the end of the calendar year the loss occurred (i.e. January 31, 2022 for loss in calendar year 2021).
The deadline to file for FSA’s ELAP program is January 30 following the end of the calendar year in which the loss occurred. Producers must file a notice of loss within 15 days after the loss is apparent for honeybee operations and within 30 days for livestock and farm-raised fish operations.
More more information on USDA FSA’s Disaster Programs, please contact your local FSA office. To learn more about the Federal Crop/Livestock Insurance programs contact an FBN insurance agent by visiting the FBN Insurance page or calling 877-204-4645.
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