The Crush_January_2023 - 6

Relief Programs Announced for 2020 and 2021 Losses
INDUSTRY NEWS
New Programs to fill gaps in 2020/2021 Natural Disaster Assistance (Emergency Relief Program (ERP) Phase 2)
and 2020 Pandemic Assistance (Pandemic Assistance Revenue Program (PARP).
USDA has announced two new programs that wrap-up and fill remaining gaps in previous natural disaster and
pandemic assistance. To be eligible for ERP Phase Two, producers must have suffered a decrease in allowable
gross revenue in 2020 or 2021 due to necessary expenses related to losses of eligible crops from a qualifying
natural disaster event. Assistance will be primarily to producers of crops that were not covered by Federal Crop
Insurance or NAP, since crops covered by Federal Crop Insurance and NAP were included in the assistance
under ERP Phase One.
To be eligible for PARP, an agricultural producer must have been in the business of farming during at least part
of the 2020 calendar year and had a 15% or greater decrease in allowable gross revenue for the 2020 calendar
year, as compared to a baseline year.
The ERP Phase 2 and PARP application period is open from January 23, 2023 through June 2, 2023. For more
information, producers should contact their local USDA service center.
Resources:
ERP Phase Two Fact Sheet
PARP Fact Sheet
ERP Phase Two-PARP Comparison Fact Sheet
Reminder: Winegrape Crop Insurance Deadline, Jan 31.
We've entered the year with a deluge of much needed rain, but the resulting floods are now a major concern.
If your vineyard is impacted by flooding and excess rain, keep your crop insurance agent abreast of your situation.
Though the vines are not covered through your crop insurance policy, the 2023 fruit to be produced is!
Also, as a reminder, the deadline to have your 2023 coverage in place is January 31st, 2023. Crop insurance
is the first line of defense a grower has against unpredictable weather and smoke exposure. Reviewing your
coverage annually and understanding your policy can provide you with peace of mind for the growing season,
knowing you are covered if your crop fails. If you need a policy review or require new coverage, please reach
out to a licensed agent to discuss now. Pan American Insurance Services is a longstanding partner and the endorsed
insurance provider for the California Association of Winegrape Growers, and would be happy to guide
you through your coverage options.
* The Federal Multiperil Crop Insurance (MPCI) policy covers yield losses caused by all naturally occurring
perils, such as:
» frost, heat, excessive moisture/flooding, failure of irrigation supply/drought, and wildfire/smoke
exposure.
* Your vineyard yields are utilized to establish the coverage, so this is a very individualized risk management
tool.
» You can even use your contracted prices to make this more customized, though this is optional.
* The premiums for MPCI coverage are subsidized, so growers only pay a portion of the full premium.
* Catastrophic (CAT) coverage can be purchased for an administrative fee of $655 (by variety/county), with
no premium.
* Policyholders are not billed for their 2023 coverage until September of 2023.
Act now to protect yourself from what may be on the horizon in 2023.
Page 6 | January 2023

https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2023/fsa_erp_factsheet_22.pdf https://www.farmers.gov/sites/default/files/documents/farmersgov-parp-factsheet.pdf https://www.farmers.gov/sites/default/files/2023-01/fsa-parp-erp2-comparison-factsheet-22.pdf

The Crush_January_2023

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