Mattoon, IL-(Effingham Radio)- First Mid Ag Services reminds farmers and farmland owners who have a crop share lease with their tenant that the deadline for the Pandemic Assistance Revenue Program (PARP) is fast approaching. 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. Some producers may expect to receive the maximum amount of $125,000, while other producers will receive zero payments.
For many First Mid Ag Services managed farms, the comparative loss on the 2019 crop year revenues typically generates the payments. It largely depends on how the landowner flexed their crop revenue between 2019 and 2020, considering the lower yields many experienced in 2019 due to the wet spring and delayed plantings.
While the program may sound straightforward, it can get complicated. 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 2, 2023, 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.
The USDA offers more information about the PARP program on their website, including eligibility criteria and the application process. They also provide a calculator to help landowners estimate potential payments. The website also includes information about other pandemic-related assistance programs available for farmers and ranchers.
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.
First Mid Ag Services is a division of First Mid Wealth Management Company, a wholly owned subsidiary of First Mid Bancshares, Inc. (First Mid). First Mid, headquartered in Mattoon, Illinois, offers a wide range of financial services through its wholly owned subsidiaries: First Mid Bank & Trust, First Mid Insurance Group, and First Mid Wealth Management Company. For more information about First Mid Ag Services consultation and other services, please contact Michael Lauher at 217-345-8312 or visit www.firstmidag.com.
For more information about the PARP program and other assistance programs, please visit the USDA website at www.farmers.gov.
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