Deadline for Pandemic Assistance Application Fast Approaching
By: Michael Lauher
The Pandemic Assistance Revenue Program (PARP) is a program designed to reimburse producers for the lower gross revenue in 2020 compared to the previous two years due to the pandemic. This support program is meant to assist landowners who have had a share in a crop at the FSA office in 2020.
Payments under the program can vary greatly, and it is not an arrangement where a landowner could expect a specific amount per acre. The maximum amount a landowner could receive is $125,000. However, landowners who make more than $900,000 in a given year as reported on their FSA-941, are not eligible for payment.
For many First Mid Ag Services managed farms, we’re seeing the comparative loss on the 2019 revenues typically generating the payments. It all depends on how a landowner flexed their revenue between 2019 and 2020, considering the lower yields experienced in 2019 due to the wet spring and delayed plantings by many.
Some producers may expect to receive the maximum amount of $125,000, while other producers will receive zero payments. If a landowner has a custom arrangement with their producer, they would also qualify for the program as long as they had an FSA share in the 2020 crop.
While the program may sound straightforward, it can get complicated. It is essential to note that the allowable gross income is being pulled from calendar year tax returns. Therefore, it is crucial to adjust gross revenues to a calendar schedule based on what was reported on the tax return. CFAP payments received because of the pandemic back in 2020-21 are not included in the revenues when determining qualification. Applicants could be subject to a spot audit of their application against the respective years of tax returns showing revenue.
The deadline for the program is June 2nd, and landowners who want to participate must act fast to receive assistance with the program. For those who need assistance, consultation is a service provided by First Mid Ag Services.
Overall, the PARP program is an excellent opportunity for landowners who have had a share in a crop at the FSA office in 2020 to receive reimbursement for the lower gross revenue in 2020 due to the pandemic. While the payments vary greatly, it is worth considering the program to receive financial support. Landowners who want to participate must ensure they meet the eligibility criteria and act fast to receive assistance with the program. Consultation services offered by First Mid Ag Services could assist in navigating the program's requirements and ensuring a smooth application process.
