USDA pays final $306M to farmers hit by 2020-2021 disasters

By Farms.com

The U.S. Department of Agriculture (USDA) announced final Emergency Relief Program (ERP) payments totaling $306 million to eligible farmers impacted by natural disasters in 2020 and 2021. These payments are intended to help offset financial losses incurred by these producers and their operations. 

Highlights: 

• Additional payments: This disbursement adds to the initial $7.5 billion distributed through ERP Phase One in 2022. 

• Eligible recipients: Farmers who received ERP Phase One payments based on crop insurance indemnities are eligible for an additional 3.5% payout, increasing their overall payment factor to 78.5%. 

• Non-insured crops: Producers who received payments for non-insured crops through the NAP program will not receive further assistance for 2020-2021 losses. 

• Separate program: A distinct ERP program (ERP 2022) is currently accepting applications for losses related to 2022 natural disasters. 

Background: 

• The $10 billion ERP program was established by the Extending Government Funding and Delivering Emergency Assistance Act of 2021. 

• The Disaster Relief Supplemental Appropriations Act of 2023 provided additional funding for ERP 2022. 

USDA broader efforts: 

• The Biden-Harris administration is committed to supporting farmers and strengthening the food system. 

• Initiatives include promoting local food production, ensuring fair markets, expanding access to healthy food, and investing in rural infrastructure and clean energy.