Supporting Statement
Pandemic Assistance Revenue Program (PARP)
OMB control number-0560-0312
The Farm Service Agency (FSA) previously requested emergency clearance for PARP. FSA is requesting for an extension of the currently approved of information collection request. The 60-day notice covering PARP was published in the final rule on January 11, 2023. (88 FR 1862-1892).
1. Circumstances that make the collection of information necessary.
USDA determined that there are available funds from the Consolidated Appropriations Act, 2021 (CAA), that remain available until expended to use to prevent, prepare for, and respond to coronavirus by providing support for impacted agricultural producers. FSA will issue payments under the CAA to respond to the COVID-19 pandemic by assisting producers who suffered an eligible revenue loss in calendar year 2020, compared to their revenue in 2018 or 2019. The producers suffered revenue losses as they faced continuing market disruptions and reduced farm-level prices due to COVID-19. Producers must submit form FSA-1122, Pandemic Assistance Revenue Program (PARP) Application, to certify to their allowable gross revenue. Eligible applicants will receive a PARP payment calculated as set forth in the final rule published in the Federal Register. FSA’s use of a producer’s total allowable gross revenue for the PARP payment calculation will streamline the application process by reducing the amount of information an applicant must provide, since applicants are not required to submit loss data separately for each agricultural commodity they produced. Producers may also need to submit additional forms if not already on file with FSA, as described in Item 2.
2. How, by whom, and for what purpose is information used.
The information submitted by respondents will be used by FSA to determine eligibility and issue payments to eligible applicants under PARP. Applicants will complete the following forms to apply for PARP payments:
FSA-1122, Pandemic Assistance Revenue Program (PARP) Application— Applicants must submit this form in order to be eligible for PARP payment. Applicants may submit this form to the FSA County Office in person, by email, fax, or online using e-Authentication.
FSA-1122A, Continuation Sheet for Pandemic Assistance Revenue Program (PARP) Application—This form will be used by applicants to provide additional information if they qualify for an adjustment to their 2018 or 2019 revenue for the purpose of calculating their PARP payment (including those applicants who did not have a full year of revenue in 2018 or 2019, expanded their operation size in 2020, or began farming in 2020). Applicants will manually complete this form and submit it to their FSA County Office.
CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification—Applicants will use this form if they are certifying that they meet the definition of a socially disadvantaged, limited resource, beginning, or veteran farmer or rancher. PARP payments will be calculated using a higher payment rate for applicants who use this form to certify their status as a member of one of those groups. Applicants who have previously participated in the Noninsured Crop Disaster Assistance Program (NAP); the Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish Program (ELAP); the Emergency Livestock Relief Program (ELRP); or the Emergency Relief Program (ERP) are expected to already have this form on file with FSA.
CCC-901, Member Information for Legal Entities—Legal entities are required to complete this form to report information about their farming operation to determine eligibility for payments. Most legal entities will already have this form on file with FSA due to their participation in previous programs.
CCC-902I, Farm Operating Plan for an Individual— This form is used to collect information about individuals to report their farm operations to determine eligibility for payments. Most applicants will already have this form on file with FSA due to their participation in previous programs.
CCC-902E, Farm Operating Plan for an Entity— This form is used to collect information about legal entities to report their farm operations to determine eligibility for payments. Most applicants will already have this form on file with FSA due to their participation in previous programs.
CCC-941, Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information—Applicants will use this form to certify their compliance with the $900,000 average AGI limitation for the 2020 program year (based on an average of the AGI for 2016, 2017, and 2018), if not already on file with FSA. This form is also required for members, partners, shareholders, heirs, or beneficiaries of a legal entity as provided in 7 CFR part 1400.
FSA-1123, Certification of 2020 Adjusted Gross Income—This form is used to certify compliance with the exception to the $900,000 average AGI limitation, based only on AGI for 2020. This is a new form.
AD-1026, Highly Erodible Land Conservation (HELC) and Wetland Conservation Certification—This form is required to certify compliance with the highly erodible land and wetland conservation provisions as a condition of eligibility for certain USDA programs. It is not necessary to complete this form if a previously filed AD-1026 is on file in the FSA serving office and there have not been any changes in the farming operation or previously listed affiliates. This form is exempted from the PRA for any FSA programs but included the burden hours for information.
AD-2047, Customer Data Worksheet — This form is required to collect basic customer information necessary to establish the applicant’s record in FSA’s Business Partner system and issue a payment. Most applicants will already have this form on file with FSA due to their participation in other FSA programs.
3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g. permitting electronic submission of responses, and the basis for the decisions for adopting this means of collection. Also describe any consideration of information technology to reduce burden.
Applicants may submit a PARP application in person in an FSA county office or by mail, emailing, or faxing. Applicants can also complete, sign, and electronically submit their applications online using e-Authentication. FSA county office staff will complete the application processing in an automated system.
The electronic form versions are available in the USDA e-Forms website: https://forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home. Electronic versions of the forms will also be made available through USDA’s website for PARP.
4. Describe efforts to identify duplication. Show specifically why similar information already available cannot be used or modified for use for the purposes described in Item 2 above.
The PARP application is a new information collection; therefore, no similar form exists. While the Emergency Relief Program (ERP) Phase 2 is also using allowable gross revenue to calculate a payment and some producers may apply for both programs, “allowable gross revenue” is defined differently for the two programs due to the different eligibility criteria and commodities covered; therefore, PARP must collect this information from each applicant.
5. Methods to minimize burden on small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods to minimize burden.
The information collected does not adversely impact small businesses or other small entities. There are 21,973 small businesses or entities.
6. Describe the consequences to Federal program or policy activities if the collection is not conducted or conducted less frequently, as well as any technical or legal obstacles to reducing burden.
Failure to solicit applications will result in failure to provide payments to eligible applicants in response to the COVID-19 pandemic as intended by the CAA.
7. Explain any special circumstances that would cause an information collection to be conducted in a manner:
Requiring respondents to report information to the agency more often that quarterly;
None.
Requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;
None.
Requiring respondents to submit more than an original and two copies of any document;
None.
Requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;
None.
In connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;
None.
Requiring the use of a statistical data classification that has not been reviewed and approved by OMB;
None.
That includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or
None.
Requiring respondents to submit proprietary trade secret, other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information’s confidentiality to the extent permitted by law.
None.
8. Describe efforts to consult with persons outside the Agency to obtain their view on the availability of data, frequency of collection, the clarity of instructions and record keeping, disclosure, or reporting format (if any), and on data elements to be recorded, disclosed, or reported.
The 60-day notice covering PARP was published in the final rule on January 11, 2023. (88 FR 1862-1892). There were 4 comments but not related to the information collection.
FSA consulted with outside experts in agricultural taxation, including:
Ruby Ward
435-797-2323
Adam Kantrovich
803-788-5700
JC Hobbs
(580) 237-7677
They had no comments on the application form and instructions, but noted that because the program is revenue-based, some applicants may have been waiting until after tax season to seek assistance from their tax preparers. FSA will consider this issue when evaluating whether to provide additional time or consider late-filed applications.
9. Explain any decision to provide any payment or gift to respondents.
No other payments or gifts will be provided to respondents.
10. Describe any assurance of confidentiality provided to the respondents and the basis for the assurance in statute, regulation, or Agency policy.
Agency policy prohibits the giving out of individual information. This information is handled according to the Privacy Act of 1974 (5 USC 552a, as amended) and Freedom of Information Act. The information collected on the PARP application form may be disclosed to other Federal, State, and Local government agencies, Tribal agencies, and nongovernmental entities that have been authorized access to the information by statute or regulation and/or as described in applicable Routine Uses identified in the System of Records Notice for USDA/FSA-2, Farm Records File (Automated) (84 FR 10770).
11. Provide additional justification for any question of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private.
No questions of a sensitive or personal nature are included in the application.
12. Provide estimates of the hour burden of the collection of information.
USDA estimates that up to 313,901 producers may apply for PARP. See the Reporting and Recordkeeping Requirements spreadsheet that contains all the numbers for each form.
The annual burden for this information collection package is 266,947 hours.
FSA-1122, Pandemic Assistance Revenue Program Application— Applicants must submit this form in order to be eligible for PARP payment. The estimated burden hours for the application is 235,426 (313,901 x 0.75 hours). The estimated average burden hours for the FSA-1122 include the time a producer may incur, if subject to spot check, to collect and provide the appropriate documentation in support of the spot check.
FSA-1122A, Continuation Sheet for Pandemic Assistance Revenue Program (PARP) Application—This form is used to provide additional information needed to calculate a payment for applicants who did not have a full year of revenue in 2018 or 2019, expanded their operation size in 2020, or began farming in 2020. The estimated burden hours for the application is 7,848 (15,695 x 0.5 hours).
CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification—Applicants must use this form if they are certifying that they meet the definition of a socially disadvantaged, limited resource, beginning, or veteran farmer or rancher. The estimated burden hours for the application is 3,139 (31,390 x 0.1 hours).
CCC-901, Member Information for Legal Entities— Producers are required to complete this form to report information about their farming operation, if they have not previously provided it. The estimated burden hours for the form is 1,308 (15,695 x 0.08 hours).
CCC-902I, Farm Operating Plan for an Individual— This form is used to collect information about individuals to report their farm operations to determine eligibility for payments. The estimated burden hours for the form is 3,270 (39,238 x 0.08 hours).
CCC-902E, Farm Operating Plan for an Entity— This form is used to collect information about legal entities to report their farm operations to determine eligibility for payments. The estimated burden hours for the form is 3,270 (39,238 x 0.08 hours).
CCC-941, Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information—Applicants will use this form to certify their compliance with the $900,000 average AGI limitation for the 2020 program year. The estimated burden hours for the form is 7,848 (31,390 x 0.25 hours).
FSA-1123, Certification of 2020 Adjusted Gross Income—This form is used to certify compliance with the exception to the $900,000 average AGI limitation, based only on AGI for 2020. The estimated burden hours for the form is 3,924 (15,695 x 0.25 hours).
AD-1026- Highly Erodible Land Conservation (HELC) and Wetland Conservation Certification—This form is required to certify compliance with the highly erodible land and wetland conservation provisions as a condition of eligibility for certain USDA programs. It is not necessary to complete this form if a previously filed AD-1026 is on file in the FSA serving office and there have not been any changes in the farming operation or previously listed affiliates. This form is exempted from the PRA for any FSA programs but included the burden hours for information. The estimated burden hours for the form is 131 (1,570 x 0.08 hours).
AD-2047, Customer Data Worksheet — This form is required to collect basic customer information necessary to establish the applicant’s record in FSA’s Business Partner system and issue a payment. The estimated burden hours for the form is 785 (15,695 x 3 minutes).
Respondent cost per hour of $ 46.40.was derived by using U.S. Bureau of Labor Statistics Occupational Employment and Wages, May 2021, 11-9013 Farmers, Ranchers, and Other Agricultural Managers. Fringe benefits for all private industry workers are an additional 29.9 percent, or $11.47, resulting in a total of $57.97 per hour. The estimated cost is $15,474,897 ($57.97 x 266,947).
13. Provide an estimated of the total annual cost burden to the respondents or recordkeepers resulting from the collection of information.
There are no capital, startup, or ongoing operation/maintenance costs associated with this information collection to the respondents or record-keepers.
14. Provide estimates of annualized cost to the Federal Government.
The cost of form development, printing and distribution is minimal because the forms are computer generated. PARP application information will be entered in an automated system manually by the county office employees. County employee cost per response is equal 1 hours for completion of the application form multiplied by $ 27.21 (estimated county employee average hourly wage; based 2020 General Schedule, Grade 7, Step 6). Fringe benefits for all government workers are an additional 31 percent, or $ 12.72, resulting in a total of $39.93 per hour. The total annualized cost to the Federal Government is $20,743,875 ($39.93 x 519,506 responses).
15. Explain the reason for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I.
There are no changes to the burden since the emergency request.
16. For collection of information whose results will be published, outline plans for the tabulation and publication.
FSA may announce the total number of PARP applicants and payments issued by press release or other means.
17. If seeking approval to not display the expiration date for the OMB approval of information collection, explain the reasons that display would be inappropriate.
The OMB expiration date is displayed.
18. Explain each exception statement to the certification statement identified in the request.
FSA is able to certify compliance with all provisions.
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| Author | Ball, MaryAnn - FPAC-BC, Washington, DC |
| File Modified | 0000-00-00 |
| File Created | 2023-08-18 |