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1 [1] (December 11, 2023)

handle is hein.crs/govenqx0001 and id is 1 raw text is: Congressional Research Service inforrning the legislative debate since 1914 6 December 11, 2023 Department of Agriculture's Emergency Relief Program (ERP) The U.S. Department of Agriculture (USDA) administers a suite of programs that assists farmers and ranchers with recovering from a natural disaster. Many of these programs are permanently authorized and receive funding from mandatory sources. Since 2018, Congress has provided more than $19 billion in supplemental appropriations to fund temporary or ad hoc programs for losses not covered under permanent programs. The language directing the supplemental funds and their implementation has evolved. Both the Trump and Biden Administrations have implemented these funds through a series of ad hoc programs that change in name and eligibility requirements. Currently, the primary ad hoc program created to administer this funding is the Emergency Relief Program (ERP). This In Focus provides an overview of ERP. Livestock forage related losses provided through the Emergency Livestock Relief Program (ELRP), milk loss, and inactive ad hoc programs are not discussed here. For an overview of all USDA disaster assistance programs, see CRS Report RS21212, Agricultural Disaster Assistance. Supplemental Appropriations The Disaster Relief Supplemental Appropriations Act of 2022 (P.L. 117-43, Division B, FY2022 supplemental) provided $10 billion for agricultural production losses in calendar years (CYs) 2020 and 2021 from qualifying natural disaster events, such as droughts, wildfires, hurricanes, floods, tornadoes, excessive heat, and freeze. Eligible losses include crops (including on-farm stored commodities and crops prevented from planting), trees, bushes, and vines. The Disaster Relief Supplemental Appropriations Act, 2023 (passed as Division N of the Consolidated Appropriations Act, 2023, P.L. 117-328, FY2023 supplemental), provided $3.7 billion for agricultural losses in CY2022 from qualifying disaster events and losses, similar to those specified in the FY2022 supplemental. ERP: Phases I and 2 FY2022 supplemental funds covered losses occurring in CY2020 and CY2021 and were implemented through ERP in two phases. ERP Phase 1 used Federal Crop Insurance Program (crop insurance) and Noninsured Crop Disaster Assistance Program (NAP) data as the basis for calculating payments. ERP Phase 2 covered eligible producers that did not participate in crop insurance or NAP. Phase 2 payments were based on estimated revenue loss due in whole or in part to a qualifying natural disaster event. All ERP participants that received a payment under Phase 1 or 2 were required to purchase a crop insurance or NAP policy for the next two available crop years. Of the total FY2022 supplemental funds, $7.45 billion was distributed in Phase 1, and $783.9 million was distributed in Phase 2 (Figure 1). Figure 1. Total ERP Payments by State, Phases I and 2, for Losses in CY2020 and CY202 I Source: USDA, Farm Service Agency, ERP Dashboard. Note: Total reported in nominal dollars and current as of November 1 3, 2023. ERP 2022: Tracks I and 2 Qualified losses and natural disaster events authorized for the FY2023 supplemental funds are nearly identical to those authorized under the FY2022 supplemental funds. The majority of the FY2023 supplemental funds are implemented through a similar version of ERP-referred to as ERP 2022-offered in two tracks. ERP 2022 Track 1 is calculated using existing crop insurance and NAP data, similar to ERP Phase 1. Payment calculations are based on several factors, including (1) the level of insurance or NAP coverage originally purchased, (2) an ERP factor, (3) insurance indemnity or payment received, and (4) a progressive payment factor. Each producer's loss, by crop, is calculated consistent with the loss procedures for the type of coverage originally purchased. An ERP factor is substituted for the original coverage level (Table 1), thereby covering a higher percentage of loss. For example, a producer who originally purchased a NAP policy at 65% coverage would have an ERP factor of 95%. This calculated amount then would be adjusted by subtracting the crop insurance indemnity or NAP payment. For historically underserved producers- Guam Puerto Rico U.S. Virgin Islands Total Emergency Relief Program Payments $5,435 $1,191,070,176

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