General
Are livestock and/or animal bi-products eligible for PARP?
Yes, livestock and animal bi-products are eligible.
PARP pays on crops, aquaculture, livestock, livestock by-product, or other animal or animal by-product that is produced as part of a farming operation and is intended to be commercially marketed.
Should an employee take taxes for an allowable gross revenue calculation?
No!
It is not up to FSA employees to give the producer advice on what their allowable gross revenue is or how they are to file or should have filed their taxes.
The goal is to have all files for PARP (& ERP Phase 2) to be ______ only.
Digital
*Note: Encourage all applicants to electronically sign the ERP or PARP application. They can do this online or at the office.
Are COC members required to be spot checked?
They MAY potentially be required to be spot checked.
*Note: There may be provisions for required spot-checks. This is not currently in policy, and will be further clarified in forthcoming spot-check policy.
True or False. PARP payments are subject to offsets.
False.
PARP payments are NOT subject to offsets (including administrative).
PARP payments are reduced by payments the applicant received, or will receive, from all the following programs EXCEPT for:
•CFAP 1
•CFAP 2
•ARCPLC
•SMHPP
•2020 ERP
ARCPLC
True or False. Like ERP Phase 2, PARP takes into consideration allowable gross revenue during the applicable tax year.
False.
PARP takes into consideration allowable gross revenue during the applicable calendar year.
True of False. The PARP Tool and the PARP Workbook are to be completed by the producer.
False.
Only the PARP Tool is completed by the producer. The PARP Workbook is for internal use only so it should be completed by the county office employee.
*Note: The completed workbook MUST be printed and attached to FSA-1122 and FSA-1122A.
True or False. The COC is required to review spot check findings and facts, issue an administrative determination of eligibility, afford appeal rights, and adjust the FSA-1122 if the spot-check results in an overpayment.
True
What is the PARP payment factor for underserved producers? all other applicants?
90% - for underserved producers who have submitted CCC-860 certifying they meet the definition of at least 1 of the applicable groups.
80% - for all other applicants
True or False. The only agricultural commodities eligible for PARP are commodities produced in the United States.
False.
Agricultural commodities produced outside of the United States by a producer located in the United States and marketed inside the United States are also eligible for PARP.
If an applicant filed a federal tax return with another person or legal entity, how should the applicant certify their allowable gross revenue?
The applicant should certify their allowable gross revenue based on what their gross revenue would have been had they filed taxes separately for the applicable year.
A new producer in 2020 had an actual allowable gross revenue of $55,000 and expected to earn an allowable gross revenue of $100,000. When filing an application what amount does the producer put on the FSA-1122, box 8 (2020 Allowable Gross Revenue)?
$55,000 – the amount of their actual allowable gross revenue in 2020.
If needed, supporting documentation will be requested, in writing, within how many calendar days?
30 calendar days
What happens to an entity's payment:
1. if the TIN is not provided for a member holding less than 10% interest?
2. if no TIN is provided from a member above the 4th level of ownership that holds greater than a 10% ownership interest?
1. The payment to an entity will be reduced.
2. The entity will not be eligible for payment.
PARP provides financial assistance to eligible producers who experienced a _______ or more decrease in revenue from 2020 compared to either ____ or ____ for all agricultural commodities.
15 percent
2018 or 2019
*Note: An applicant whose decrease in gross revenue is less than 15 percent is ineligible for a PARP payment not for program eligibility.
Does allowable gross revenue have to be on a Schedule F in order for it to be considered eligible for PARP?
No, as long as it would be looked at as though it had been and it had to have been eligible to be on a Schedule F.
*Think: strawberry example!
A producer grows strawberries and sells their fresh strawberries at a local farmers market; they also make jam with the strawberries that they grow and sell their jam at the farmers market – same producer, same strawberries, just added value.
Revenue earned from the value added does not HAVE to have been reported on the schedule F but needs to be looked at as if it could have been on the schedule F.
Is it beneficial to have a producer complete his or her ERP Phase 2 application (if applicable) prior to completing his or her PARP application? Why or Why not?
Yes, it is beneficial because ERP Phase 2 payments are subtracted from PARP payments. If a producer receives payment for PARP and then receives payment for ERP Phase 2, it could result in a Pending Overpayment situation.
True or False. Producers may request a COC adjustment to the 2019 actual gross revenue for the following reasons:
•New Producer in 2020
•New Producer in 2019 without a full year’s revenue to report
True.
What is the sequestration percentage for PARP?
Sequestration does NOT apply to PARP payments.
Name one or two commodities that are not eligible to be accounted for in the revenue on a PARP application.
•Wild, free-roaming animals
•Horses and other animals used, or intended to be used, for racing or wagering
•Aquatic species that do not meet the definition of aquaculture
•Cannabis sativa L. and any part of that plant that does not meet the definition of hemp, and
•Timber
As an applicant, which of the following do I include in my allowable gross revenue?
A. The taxable amount of cooperative distributions directly related to the sale of the agricultural commodities produced by the applicant
B. Benefits under the following agricultural programs: ARC/PLC, BCAP, DMC , MAL and LDP, MFP, STRP, and MPP-Dairy
C. CCC loans reported under election if elected to be treated as income and reported to IRS
D. All of the above
D. All of the above
Do eligibility documents have to be completed prior to approval of the FSA-1122 and FSA-1122As (if applicable)?
No, with the exception of reviews! All eligibility documents have to be completed prior to review and approval of the first 5 FSA-1122s and FSA-1122As (if applicable) by the CED and prior to review of the additional 5 PARP applications required to be reviewed by the DD.
*Note: Approvals are not allowed until after the first 5 reviews conducted by the CED are complete and loaded in the Internal Control SP site. The CED will complete the questionnaire, as provided in the handbook. Payments in NPS may not be signed and certified in NPS until the DD review has been completed.
Name an example or two of documentation a producer could provide to the COC, if requested, to support allowable gross revenue claims.
•sales receipts from eligible gross revenue sources
•ledgers of income
•income statements of deposit slips
•crop insurance, NAP, and WHIP+ records
•register tapes
•other records determined acceptable by COC
•third-party documents (i.e., CPA statements)
If the producer certified:
2019 Allowable Gross Revenue = $275,000
2020 Allowable Gross Revenue = $250,000
Trigger: $275,000 -$250,000 = $25,000
$25,000/$275,000 = 9.09% Loss
9.09% < (less than) 15%
Would this producer be eligible to apply for PARP?
Yes. The 15% decrease is not an eligibility requirement to apply for PARP, it is a payment requirement. This producer can apply for PARP; however, they would not receive a PARP payment.