"When we have less resources than the need, that's when we have to try to figure out some policy decisions and determinations, and that's how we landed where we're at now," Ducheneaux said.
A key change is looking at farmers' losses as a function of their income, Ducheneaux said. Of 210,000-plus applications for ERP 2022, more than 82% of producers are going to receive a higher payment than they would have had with a "flat factor." There will be about 18% of farmers who will receive less than they would have otherwise.
"There are 175,000 producers who are pretty happy with what we've done," he said.
"We think this approach is something that has a lot of merit, and we're really proud of the work our team did to put this together," Ducheneaux said. "Again, we're helping 80%-plus of the producers receive a higher benefit."
ERP payments could start going out this month, Ducheneaux said.
PARP PAYMENTS
Another program where payments are going to be squeezed is the Pandemic Assistance Revenue Program (PARP). Funded with $250 million in 2021, the program was meant to help those farmers who did not get support from the multiple Coronavirus Food Assistance Program (CFAP) payments.
The applications for PARP were 10 times the volume expected. Requests topped $2.7 billion.
"It's a similar story. We were anticipating with a few hundred million dollars we could meet substantial demand for the PARP program, and that one rolled in about a factor of 10 times higher than we thought it would be," Ducheneaux said.
PARP, unfortunately, is going to be "very highly factored," and producers could see roughly 10% of their expected losses because there is just no way to divvy up the dollars in a way that would make a larger impact, Ducheneaux said.
USDA has a Dec. 31 deadline to pay out the PARP claims. That means PARP payments will start going out immediately.
USDA ERP portal: https://www.fsa.usda.gov/…
Lawmakers' letter to Ag Secretary Vilsack: https://www.marshall.senate.gov/…
For more, see "USDA Opens Up ERP Applications for $3 Billion to Pay for 2022 Disaster Losses" here: https://www.dtnpf.com/….
Also see "Seven Worries About Farm Safety Net Heading Into Next Farm Bill" here:
Chris Clayton can be reached at Chris.Clayton@dtn.com
Follow him on X, formerly known as Twitter, @ChrisClaytonDTN
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