 Welcome to the NDSU FSA webinar. Laura Hindrich from the State FSA office will be doing a PowerPoint. And I will be doing an example. I am Ron Hogan with the Extension Service Fire Management Specialist. And we're going to go over the ERP 2022 one aspect to it. We're going to kind of concentrate on the expected revenue portion of it. So welcome to the webinar. With that, I will let Laura take over. All right. I'll go ahead and get started. And thank you so much, Ron, Scott and Miranda with NDSU Extension Service for assisting North Dakota Farm Service Agency, getting information out on the ERP 2022 Disaster Program. So Congress allocated over $3.74 billion in assistance to agricultural producers impacted by qualifying natural disasters experienced during the calendar year 2022. The Farm Service Agency or FSA is administering this emergency relief to eligible producers through a two-tracked process. Track one leverages existing federal crop insurance or non-insured crop disaster assistance program or NAP data as the basis for calculating that initial payment. And track two is intended to fill additional assistance gaps and cover eligible producers through a revenue-based certification program. And as Ron said, today we're going to just briefly go over track one. And track two, there is two options to apply for assistance, but we're going to focus more on the expected revenue and I'll get into that in a few slides. So you'll notice when I talked about the 2022 ERP that we talked about a qualifying natural disaster event. So to be eligible for 2022 ERP track one and track two, you must have suffered a qualifying disaster event in whole and or in part for crop on your farm. So those qualifying disaster events include wildfires, tornadoes, hurricanes, floods, durations, excessive heat, winter storms, freeze, smoke, excessive moisture, qualifying drought and related conditions. In regards to qualifying drought, qualifying drought ERP 2022 assistance is available if any area within the county in which the loss occurred was rated by the U.S. Drought Monitor as level two or D2 for eight consecutive weeks or higher or D3 at any time during the calendar year. In North Dakota, we had about 31 count. We had 31 counties that were eligible under qualifying drought and a listing of those can be found on our national ERP website. And I will cover that at the end of the presentation. You can also reach out to your local FSA office and they can let you know if qualifying drought is one of the eligible qualifying disaster events in your county. So the first part we're going to talk about is 2022 ERP track one. Eligible crops and trees included in track one are crops for which federal crop insurance or NAP coverage was available and a crop insurance demnity or NAP payment was received. Crops intended for grazing are not included in ERP track one or track two. Producers were mailed a pre-filled application and FSA 523. To producers whose crop insurance or NAP data was available and on file because they received a crop insurance and demnity or NAP payment. Producers will need to return that completed FSA 523 to their FSA recording county office along with additional eligibility forms, optional payment limitation and our increased benefit forms if those are not already on file. So those original FSA 523 applications were originally mailed out from our Kansas City office on November 9, 2023. And we will be doing an updated mailing for anyone who maybe had changes to their crop insurance or NAP data, or maybe weren't originally included in that initial mailing in November. And that should happen within the next couple of weeks. In regards to the eligibility forms that need to be filed, producers will need to either file or have one on file already and AD 1026 for highly erodible and wetland conservation certification and a farm operating plan. In regards to the optional payment limitation and or increased benefit forms, those forms would consist of the FSA 510, which is a request for exception of the $125,000 payment limitation and the CCC 860, which is for our under producer certification. The eligibility forms, the 1026 and farm operating plan need to be filed within 60 days of the announced deadline, which we have not announced a deadline yet for track one or track two. And then the FSA 510 or that exception to the $125,000 payment limitation and the CCC 860, the under producer certification, those will need to be filed by a deadline that will announce at a later date. So once you receive that application, on the application, you'll also need to certify that the calculated RMA indemnity or NAP payment received was due in whole or in part to a crop production loss or tree loss caused by a qualifying disaster event or related condition occurring in calendar 2022. And in the previous slide, we covered what those qualifying disaster events were. The producer must also certify that they agree to purchase crop insurance or NAP coverage as applicable for the crop at a 6100 coverage level or higher for insured crops or at a basic 50-55 catastrophic level or higher for NAP crops. They must purchase that coverage for the next two available crop years and that linkage requirement must be met by the year 2027. So the application, the FSA 523 is in the name of the primary policyholder for crop insurance. And if that primary policyholder had producers who had a substantial beneficial interest or an SBI interest in that crop, they will be listed on the application. This primary policyholder will need to certify to the percentages of interest in the crop on that application also and any of those SBI's if they're designated to share must also sign for it to be a completed application when received by the FSA office. Once we receive that application, we'll review it and payments will be calculated. Estimated 2022 ERP estimated payment on the application are calculated by RMA and FSA data that's on file for both agencies at the time the application was ran. RMA and FSA will calculate each producer's loss consistent with the loss procedures for the type and level of coverage purchased but using the ERP 2022 program factor in lieu of a coverage level obtained by the producer. And we'll go through the program factors in the next slide. This calculated amount is then adjusted by a progressive payment factoring for RMA insured crops. Producers, underserved producers will have their share of the premiums and administrative fees added to the payment amount. So this slide just shows based on the crop insurance level what that ERP 2022 factor will be for both crop insurance and NAP coverage levels. So in the example, if you had a crop insurance policy at a 60% coverage level, we would bump up that production coverage level to 85% to calculate your estimated 2022 ERP track 1 payment. The estimated 2022 ERP track 1 payment will then be factored using a progressive factoring and then also have a 75% payment factor applied to it. So as an example, if a producer had a $10,000 payment, their payment would be factored down to $6,000. So for the first $2,000, they're going to get 100% of the pay of that amount from $2,001 to $4,000. They get 80% of that $2,000. So with that calculation, it comes out to about $6,000. And then that 75% payment factor is applied, which results in about a $4,500 payment. For anything over $10,000, that's paid out at an additional seven and a half percent. So that's that anything over $10,000 is that 10% and then we factor that by the 75%. The reasoning for the factors that we had about $11.7 billion nationally of uncovered losses. And we only had $3 billion that were allocated by Congress for the program. So if we would have just factored all payments the same, the payment factor would have been 27% instead of 75%. And nationally, 80% of the producers benefited from using this progressive payment factor instead of doing that flat payment factor of 27%. And in North Dakota, 78% of our producers benefited from using this progressive payment factor. And just so you know, we've issued a lot of payments under track one already since those applications went out in November. And we've issued about $75.9 million so far. So now we're going to get into track two. So track two is a revenue based certification program that provides assistance for producers that suffered a loss in disaster year revenue as compared to the benchmark revenue. That was due to necessary expenses associated with losses of eligible crops due in whole or in part to a qualifying disaster event that occurred in the 2022 calendar year. Again, we're excluding grazing crops when we look at track two for eligible crops. If all or part of a loss was because of a qualifying disaster event or relating condition that entire loss is eligible under track two. So an example would be if a producer suffered a loss for his wheat crop in 2022 because of excessive moisture and hail. Remember, hail isn't a qualifying disaster event. If that excessive moisture and hail caused a decrease in allowable gross revenue, they would be eligible for track two. However, even though part of that loss was due to hail because they had the excessive moisture that caused a portion of the loss, the entire loss is eligible. Track two provides assistance for eligible revenue production and quality losses of eligible crops. Utilizing a producer's decrease in disaster revenue allows for the loss to reflect the producer's revenue regardless of whether the loss occurs before harvest or after harvest while the crop is in storage. There's two options for applying for track two producers can either select the taxier option or the expected revenue option. And today we're going to focus more on the expected revenue option to just give you a quick overview of the taxier option. Producers who choose the taxier option will select either 2018 or 2019 as their benchmark year and then either their 2022 or 2023 as their representative revenue year for the disaster year. For those years, the producer will determine their allowable gross revenue based on the year for which the revenue would be reported for the purpose of filing a tax return. And the reason we're not going in depth on the taxier option is because in late March or early April and ERP 2022 track two webinar focusing on the taxier option will be conducted by a USDA tax group and will be posted to the taxes and USDA programs farmers dot gov website and we'll amplify that as soon as we get that recording out there. We'll put it in our state FSA newsletter or a bulletin and provide that information to county offices. So if you have any questions, we can get you that link and you can review it if you choose to apply under the taxier option. There are certain producers who are required to use the taxier option. And those are producers who receive payment under the previous ERP phase two for the 2021 disaster year and chose 2020 2022 is their representative revenue year for 2021. I'm not sure if I said that right. I want to say that again. So producers who are required to do it are producers who receive payment under the previous ERP phase two for the 2021 disaster year and chose 2022 as a representative revenue year for 2021. That sounds confusing. Your county offices know which one which producers this is applicable to, and we only had a handful in North Dakota so this really isn't widespread so there's not a lot of producers who are required to take the taxier option. So now we're going to get into the expected revenue option. So producers who choose the expected revenue option will certify to their expected benchmark year revenue, which represents what the producer reasonably expected prior to the impact of a quality and fine disaster event. And they'll also certify to their actual disaster year revenue. The certified expected and actual actual values will include revenue from all eligible crops that could have been affected by a qualifying disaster event that occurred in calendar year 2022. Expected revenue must be based on realistic projections that can be supported by acceptable documentation of expected inventory acres yielding unit price. And for actual disaster year revenue will include revenue for all eligible crops that were included in the producers expected revenue calculation. There are certain producers who are required to use the expected revenue option. Those producers are producers so use the expected revenue option instead of the taxier option. And those are producers who did not have a revenue in 18 or 19. Those producers who experienced experienced a decrease in their operation capacity during their disaster year as compared to their 2018 and 2019 benchmark years. And those producers who need to include the value of eligible crops produced but not sold that could have been affected by a qualifying disaster event that occurred in calendar year 2022. So these are going to be crops that maybe were in storage used in the operation like wheat for seed or crops that were fed to the producers livestock like maybe corn silage corn for grain that was used for feed. Or any like say native grass or DMA or alfalfa grass that was bailed and fed to the producers livestock. So those producers would be required to use the expected revenue option or track to producers who had an increase in operation capacity may elect either to use the taxier or the expected revenue option. Producers who choose the taxier option and had an increase in operation capacity may not adjust their benchmark year revenue under the taxier option to reflect an increase. So more than likely if you had an increase in your operation from 2018 and 2019 to 2022 you're more than likely going to want to use the expected revenue option because you can't under the taxier option. Increase your 18 or 19 benchmark year to reflect what you would have gotten based on the increases that you had in production capacity for 2022. So now we'll kind of get into the nuts and bolts with this expected revenue. So if you choose this option, the first thing you want to do is determine what your eligible crops are that you need to include for your benchmark year. So benchmark year revenue is the producers expected revenue from all eligible crops that could have been affected by a qualifying disaster event in calendar year 2022. So those crops include prevented crops that were prevented from being planted. Crops that were planted including annual and perennial crops, inventory crops and then crops that were in storage that could have been affected by a qualifying disaster event in calendar year 2022. Crops that could have been impacted by a 2022 qualifying disaster event include crops planted in 2021 that could have been affected by a disaster event in 2022. Crops planted or prevented from being planted in 2022 that were affected by a disaster event in 2022 and 2023 crops that were planted in 2022 that could have been affected by a disaster event in 2022. So that was a lot of words. So to give you examples of the first bullet and the third bullet. So the first bullet would be say you planted winter wheat in 2021. And it came back up in the spring and was affected by drought or excessive moisture in 2022. So that would be an example of a 2021 crop that was planted in or 2022 crop that was planted in 2021 but was affected by a calendar year event in 2022. The third bullet would be kind of just the opposite. So you'd have a 2023 winter wheat that was planted in the fall of 2022 that could have been affected by say drought in 2022. Even though it's a 2023 crop, it was planted in 2022 and was affected by 2022 disaster events. So we would include that as part of our benchmark year revenue. Additionally, crops that could be impacted by a 2022 qualifying disaster event are crops in storage that could have been affected by a qualifying disaster event in calendar year 2022. So example there would be corn that was grown harvested and placed in storage during calendar year 2021. And it remained in storage into calendar year 2022 and was then affected by flood damage that occurred in March of 2022. So because that 2021 crop was in storage during calendar year 2022 and was affected by a qualifying disaster event, it should be included as part of our benchmark year revenue. In addition, we'll also include perennial crops that could have been affected by a 2022 disaster event and then inventory crops that could have been affected by a disaster event in 2022. And when we talk about inventory crops, we're talking about like aquaculture, floriculture, those type of crops where it's based on inventory, not necessarily acres. So once we've determined what our crops are that we need to include in our benchmark year, then we need to determine what our expected revenue was from them. So to calculate the benchmark year revenue for perennial planted and prevent plant yield based crops, we'll take the producers expected acres multiplied by their expected yield per acre, multiplied by the expected price. So that'll be the expected revenue for our benchmark for any yield based crops. For crops that are in storage, we'll take the producers production that was in storage, multiplied by an expected price. And then for inventory crops, we take the total inventory multiplied by the expected price. Benchmark year revenue must be based on realistic projections that can be supported by acceptable documentation of expected inventory, acres, yield and unit price. And this slide lists a bunch of different options that producers can utilize to document or use to determine what their expected benchmark revenue is. So you may have a sales contract, a 2022 sales contract that you had for say corn at $6. You could utilize that sales contract to determine that the quantity and price that you had contracted and the price that you had contracted for. That's what you utilize to determine what your benchmark year revenue was for that quantity. You can also use crop insurance documents, which is probably the most simple. If you had all your crops insured, you can use for your acres that would have your acres on there that would match your acreage reported FSA also. It would also have your APH, which would be what your expected yield is. And then it would have the RMA price for the unit price that you could utilize as what your expected price would be. If you had a crop that you maybe didn't have insured and you're not sure what type of yield and price to use for a expected revenue, you can go out to their website to the RMA website and find out for your county what the T yields are or the expected yield for that crop is in county. And then also what the crop insurance price was and you could utilize that to help determine what your expected revenue was. You can also use farm business plans. You have our FSA acreage report that you can utilize for your number of acres. You have a crop such as native grass and you need help establishing what the yields and prices would be for that. You can contact your local FSA office and they can look up what our T yields are that we use for our NAP program and then also what prices. And then there's also NAS data in the information like that NDSU puts out for yields and prices. Any of the documentation that you've utilized, you do need to keep for three years in case you're selected for spot check. Okay, so we've determined what our expected revenue is based on the crops that we determined could have been affected by a 2022 disaster event. So then for each one of those crops, we need to determine what our actual disaster year revenue was. So the disaster year revenue is the actual revenue from all crops included in the producer's expected revenue and the revenue must include the following. So revenue from sales of those of that eligible crop, federal crop insurance indemnities and NAP payments for eligible crops minus the premiums and fees. Indemnities for eligible crops from private crop insurance policies, so that would be if you had like a private hail insurance policy. The value of eligible crops produced but not sold, such as crops in storage or inventory used in the operation or fed to producers livestock. So again, if you fed some of the hay that you included in your expected revenue, then you need to determine the quantity and price for the disaster year to include in your actual disaster year revenue. You'll also need to include any 2022 calendar year disaster losses for eligible crops. So if you received any arc County or arc individual note that this not doesn't say PLC because that's a price decrease right so we're just looking at yield based. So if you received an arc County or an arc individual payment for 2022 arc PLC, you'll want to include that. And then if you had any LDPs or market loss gains. You also want to include any net gains from hedging any grants or state programs for the direct loss of eligible crops or the loss of revenue for eligible crops. And then any other revenue directly related to the production of eligible crops that IRS requires the producer to report as income. And again for your actual year revenue, you also need to include any or keep any of the documentation you used to come up with that value for three years to establish the value of crops and storage at the time of application. We have the filing the following guidance for crops and storage that were produced in 2022 or 2023. The actual disaster year price may differ from the expected benchmark price, because the market because the market price fluctuations between planting in the time of marketing. This can be attributed to market price fluctuations quality, or production losses are related to the qualifying events that occurred in the 2022 calendar year. Crops and storage from 2021 or earlier must use the expected price in calculating benchmark and actual disaster year revenue. If the crops remain in storage at the time of application. So they have to use the same price for 2021 and earlier. So we'll go through an example. Farmer Joe grew 100 acres of corn 100 acres of barley and 1000 acres of soybeans in 2022. And also had wheat from 2021 that was in storage in 2022. Farmer Joe suffered a qualifying loss on corn soybeans in 2021 wheat in storage but did not suffer a loss on his barley. The expected disaster year revenue and actual disaster year revenue will be calculated for all crops, including the 2021 wheat, as it was in storage during 2022 and could have been impacted by a 2022 qualifying disaster event. Farmer Joe also certified that all eligible acreage of his eligible crops were covered by crop insurance or now. So the first thing we want to do is identify our crops that could have been affected by a 2022 disaster event. So in this example, we have the corn, soybeans and barley that the producer that Farmer Joe planted. And then the 50,000 bushels of 2021 wheat that was in storage that in 2022 that could have been affected by a 2022 qualifying disaster event. The next thing we need to do then is establish what our benchmark year revenue or our expected benchmark year revenue is. So for our yield based crops of corn, soybeans and barley, we're going to take our acres times our expected bushels times our price to get our expected revenue. So the 100 acres times could have for corn that producer could have used is a pH of 200 bushels an acre times an RMA price of $5 to come up with $100,000 and do the same thing for the soybeans and barley. And then for the 50,000 bushels of 2021 wheat, the producer valued that at $6 and 50 cents. So we total all four of those items up and the producers total expected revenue is $1,179,000. The next thing we need to do then is determine what Farmer Joe's actual disaster year revenue is. And again, so we're going to look at those crops that he included for his expected revenue and we need to account for those under the actual disaster year revenue. So we had the 100 acres of corn. So we have the revenue from the corn sales. So we sold some and received $25,000. And he still had 4000 bushels stored that was quality affected of his 2022 corn. And so he took a sample of that took it down to the elevator. And they at the time of application and they said the value would be $3. So that's what he utilized and you'd want to keep that documentation. So you take the 4000 bushels times the $3 that gives you $12,000. He sold all of his barley. So that totaled 34,000. He sold all of his soybeans, which totaled 50,000. And then we get to the 2021 wheat that was in storage in 2022. So out of that 50,000 bushels, he sold 35,000 in 2022 or later. And the value of that was $270,000. He had 5000 bushels of 2021 wheat that was still in storage at the time of application. And so he had to value that at $6.50 because that's what he used as his expected revenue price. So the 5000 times the 650 gets you 32,500. And then the remaining 10,000 was destroyed by a flood. So the value of that is zero because it was destroyed. And then we also need to include he received a soybean and corn crop insurance indemnity. So we took that subtracted off the premiums and fees and that total 400,000. So we total all that up and the actual disaster year revenue is $823,500. So based on that information, how do we calculate a payment? So we're going to take the producer's benchmark year revenue and multiply it by an ERP factor of 90%. If all acres of all eligible crops were covered under federal crop insurance or NAP or 70%, if not all acres of all eligible crops were covered by federal crop insurance or NAP. So we'll take that amount. So the benchmark times the ERP factor and then we'll subtract off the producer's disaster year revenue and then subtract off the sum of the producer's gross ERP 2022 track one payments. So once we run through the calculation in the previous slide, we'll then apply the progressive payment factoring like we did to the track one payments. And then a 75% factor will also be applied to the track two payments for underserved producers that progressive factored payment will be multiplied by a factor of 115%. So in the example we just went through for Farmer Joe, we have his bench to calculate what his payment would be. We take our 1,179,000 benchmark revenue and we multiply that by 90% because he insured all of his 2022 crops and that equals our guarantee of 1,061,100. We subtract off our $823,500 for our disaster year revenue and Farmer Joe received $70,000 for ERP 2022 track one gross payment. So that results in a revenue loss of $167,600. So, and then that $167,600 will go through that progressive payment factoring and then apply the 75% payment factor. So how do we actually apply for track two? Producers will need to complete an FSA 524 which is the track two application and submit it to their recording county. On the 524, they'll certify to what their benchmark year revenue is and their disaster revenue. And then they also need to certify on the application the percentage of their disaster year revenue from specialty or high value crops. And those specialty high value crops are like dry edible beans, potatoes, maybe food grain soybeans, organic crops. Those would be considered specialty or high value crops. And that percentage certified on the application must be equal to the percentages that the producer would have reasonably expected to receive from a specialty or high value crop for the disaster year if there was not a qualifying disaster event that affected the crop. Producers in addition to the FSA 524 must also submit an FSA 525, which is the crop insurance and or NAP coverage agreement. And this is similar to our track one. They're just agreeing to the buy up coverage for two years. They'll also need to submit any additional eligibility forms within 60 days of the program deadline and any optional payment limitation and or increased benefit forms by the deadline that FSA announced at a later date if those are not filed already. There are some worksheets that are available to assist producers in determining their benchmark and actual year revenues. There's the FSA 524 a worksheet, which is for the tax year option and then the FSA 524 B worksheet, which is for the expected revenue option. And Ron's going to cover that FSA 524 B in a little bit and go through an more real life example. There is an Excel automation tool that's available and Ronald utilize that and give you an example on how to enter information into the tool. This is a screen print of our National FSA ERP website and down on the bottom right is where that ERP 2022 tool is. You have to scroll down a little bit, but it is on there. And then it also has links to all the applications and any of the instructions for completing any of the forms. If you need any additional information on ERP 2022 track one or track two, you can contact your local FSA office or you can visit our National FSA website. And it just as a reminder at this time we don't have a deadline for track one or track two. And so you'll want to be watching any newsletters or information received from your local offices to know when that deadline is announced. And here's my contact information. If you have any questions, you can reach out to me. And with that I will turn it over to Ron and he'll go through an example. Okay, thank you. I'm going to open up that tool that Laura showed that you need to click on on the bottom. I'm going to be going back and forth a little bit here. So I just wanted to show you how to enter some things as kind of a real life example. So when you load this you got to have Excel on your computer and it'll ask you to enable macros because these little blocks go from page to page and that's what they call macros. Some computers are set so that they do not allow macros and you would have to go to your settings and allow them to run this worksheet if you wanted to use these macros just for your own information. So it's pretty easy to fill out this information on the first line here. I'm just going to type in Joe Farmer. I won't bother putting in the phone numbers and things but I'll just put an address in here. And let's just say it's Fargo, North Dakota. And then you do have some dropdown arrows here. So for example the recording state will pick North Dakota and then for the county will pick Cass County. Oops, wrong county. There we go. Now question 12 says which benchmark year, 18 or 19 attacks here or will you use the expected revenue? So in this block here we have a choice. If you're using the taxier method you pick a year but we're just going to demonstrate the expected revenue option. So we're going to click the bottom one and you can see when you click that it automatically pops in the representative revenue year as the actual revenue. Okay, that's the only choice you have if you have expected revenue. So that fills out automatically question 14. Question 15, were all eligible crops covered by crop insurance or NAP? So if they aren't all covered you click no. If they all are covered you click yes. Next question 15, what percentage of expected revenue is from specialty or high valued crops? Okay, you put in a percentage here and I'm going to put in zero. So what that means is that you do not in this simple example that you do not have any specialty crops such as potatoes or probably some food grade soybeans. All of your crops are considered non-specialty crops. When you do this, when you do the expected revenue option it automatically fills in line 16 A, B, C and D and puts no. You don't have to worry about that at all, okay? So the next thing, it's a little confusing here, we're to go next. You would think you'd probably want to keep going right down the spreadsheet. But the next thing you do, you want to go to this blue block where it says go to expected revenue sheet and you click on that. And then you say, well now what do I do? What do I put in there? I'm going to stop sharing this. I'm going to bring up another sheet here to show you. I can find it, there it is. What information should we put on that sheet, okay? So this is a typical crop insurance schedule of insurance. And as Laura mentioned before, you can use this information. So here's your APH, which is a good thing for a yield, your acres of course, and then you've got your crop insurance price. I just wanted to show you where you can pluck numbers off your crop insurance sheet. And as she mentioned, there's a lot of other sources that you can use to come up with this information. And then I'm going to go back to that other one again. So what are we going to enter in here? Let's just say that here is what I expected to get. Pretend we have two units of corn and one unit of soybeans. So I'm going to just type in corn. And let's say this first unit is 200 acres. And let's say based on our APH, it was 200 bushels an acre. And we need to type in bushels. And then let's just put in that crop insurance price. This is back in 2022 when the corn prices were very good. So we'll put in 590. Okay. Let's say in this other unit of corn, type in corn. So let's say that's 200 acres. Let's say the yield was, this unit isn't quite as profitable. It's only got 180 bushel yield average. We'll put 100 bushels. And we'll put the same price 590. Then let's use, have soybeans here. If I could spell. Let's say that's 200 acres. And we'll say our average yield is APH is 40 bushels. And then actually the crop insurance price is pretty high there as well, 1433. That was the crop insurance price back in 2022. So all this revenue added together is your expected revenue. Now let's pop back to the data entry area. Okay. We've got that done. Then we go to line 17, actual revenue. Now here, it's a little tricky. It just wants you to put that in. So you're going to have to do some side calculations here. So I'm going to go and show you another sheet here. What are we going to put in here? This is your actual revenue on your disaster year of what you actually got, not what you expected. Unit one, let's just say we had a couple of assembly sheets. 12 loads, 12,000 bushels, 550. Let's say we have another assembly sheet for this unit showing 10 loads, 8,500 bushels at 540. The total revenue for that unit is 20,500 bushels netting 111,900. We actually only got 102 and a half bushels compared to a 20 bushel average. So that was quite a loss on that unit. Now unit two, let's say we combine some corn and got 9,000 bushels. We sold it for 530. Let's say we had a delay and later on we combine some more. That got on a separate assembly sheet. Let's say there's 11 loads, 10,500, sold it for $5 a bushel. The total income for that unit is $100,000 and $200. $19,500 bushels. You netted 97 and a half bushels an acre when the actual average for that unit was 180. So let's say we also combine our soybeans in unit one of soybeans. We had 10 loads, 8,500 bushels, sold it at $13. We netted 110,500. We actually got 42 and a half bushels an acre where our average as I mentioned was 40. So we're above average here. We did not get a loss on these soybeans, but you still need to include this in your income. So all this added together, the two units of corn and the unit of soybeans equals 322,600. Let's remember that number, 322,600. Now I'll get back to that other sheet again. And so in this actual revenue, we type in 322,600. Okay, that's what we actually got. The next question, line 18, enter the amount of... Enter the total value of eligible crops that were not sold. Okay, what this is, this would be... Let's say you kept some grain for feed for livestock and that would be crop that's not sold. For this example, we'll just put in zero. The next question, 19, enter the amount of total value of eligible crops that are in storage. Okay, what that means is that this is grain that you have not yet sold. It could be in your own physical storage or it could be at the elevator. For purposes of this example, we've pretended up here on line 17 that we sold everything, so now we're just going to put in a zero. Question 20, enter the amount of eligible crops that remain in inventory. This is something we don't have to worry about too much. As Laura mentioned, this is kind of for nursery crops and other specialty type crops. We don't have to worry about that. Not too much of that in North Dakota. Okay, if I can get my screen adjusted here. Line 21, enter the amount of revenue from federal insurance proceeds on the eligible crops less the fees and premiums. So let's say we did collect some crop insurance on this loss and after subtracting the administrative fees and the premiums, let's say it ended up to be $40,000. Okay, next question, enter the amount of total revenue from NAP payments. Let's say we don't have NAP, so we're just going to put in a zero. Next question, enter the amount of total revenue from private insurance and what does private insurance mean? Probably hail insurance would be a good example. So if you did collect some hail insurance on this, in addition to the other losses, you need to put in zero. I mean, you need to put in the amount, I should say. But for our purposes, we're going to put in a zero. Now, remember what Laura said that hail is not an eligible disaster. Okay, but you still need to include any hail proceeds. As Laura mentioned also, you need to include any government payments that are listed here, Arc County or Arc IC, but you do not have to include any PLC payments. So let's just assume we're going to have zero, because back in 2022, there was not many payments paid out. Okay, so basically that is the form that you filled out. Then I'm going to go look at the FSA 524, as Laura had already talked about. I'm going to shrink that up a little bit here. So this is the FSA form already filled out. You can see it's got your name and your address in there. And basically FSA wants two numbers from you. You notice that we clicked the expected, and we're expecting $563,000 in revenue, but we only got $362,000, the actual. Those are numbers that we entered. They're the only numbers that you really need to give to FSA and let them do their thing on figuring out how much they owe you. Okay, and you need to sign that and send it in. Also, part of this is the 524A, that's for the tax option, but we're looking at the 524B, which is for the expected revenue option. And you can see these are the expected revenue that we've entered in here. The two units of corn, it's totaled up here to $563,000 expected income. These other things are zeros that we've entered. All totals to $563,000 on our actual. We had the $322,600, but we need to add that crop insurance that we collected so it ended up to be $362,600. And this is the 524B. That is an addendum to the 524. So it's all filled out for you by doing that worksheet. It's kind of a handy tool. So with that, did I miss anything, Laura? I think we'll stop sharing and entertain some questions. So that first question was, if we have multiple recording counties, do we submit an application to both or just one? So you're only going to submit one application to the recording county. It's confusing. Producers may have more than one administrative county, but they really only have one recording county. And that recording county is the county where they generally submit their eligibility form. So their farm operating plan, their 1026, that's their recording county. And they can contact any... They can submit it to any local FSA office and they will... If that local FSA office is not their recording county, they'll go ahead and submit it to the proper county to process the application. But you are only going to do one application to one county. The next question is, does it matter the year in which you sold the 2022 crop? And it does not. If you sold the crop prior to the time of application, you're going to use the revenue from the crop that was sold. So you're going to use that assembly sheet to determine what the value of that crop was. And I believe that answers the next question of line 19. Does that mean in storage at the end of the calendar year 2022 or at the time of application? So that would be in storage at the time of application. The question was, is line 17, is that the 2022 crop sold in 2022? It can be sold at 2023 as well. Anytime the 2022 crop is sold is what you report, right? Right. Yep. What did lines 11 through 14 include under adjustments? Can you pull it up again, Ron? Is that the part that's for the tax, your option? Lines 11 through 14. Oh, there's where you can enter stored crops. There's a question about the recording. And yes, there we will. This is being recorded and it will be posted on the NDSU website. Along with we will provide that link in our farm service agency state newsletter and bulletins. And our local county offices will have the link available to that they can provide to producers. For large farms, do we have breakdown? Must be. Do we have to break down expected revenue by section unit? Or can we take total dollar, total pounds of total number of acres of that crop multiplied by their simple average? So example, a thousand corn acres. You can, yes, you can, if you know that that 185 is your APH over all of your acres, you can, you don't have to do it by individual unit on that on the worksheet. So I know like on our farm, we have our individual crop units still show we have enterprise units. So it does total it up and give us what our average is for our enterprise unit also. But you can do it either way. I guess one question here does prevent plant corn acres count to unexpected revenue. Yes, it does, right? Correct. Yes, it does. And then your revenue is going to be zero for your actual disaster year revenue. And then it says assume we need to apply that move here, assume we need to need to apply the share percentage on expected revenue, right? Yes. Ron, is there a share percent? Is there a share percentage on there? No, I didn't really, I didn't see that actually. If I did, I missed it. I think you're going to have to do a side calculation for that. I think so too. And I think Rob, you must be referring to more like maybe a husband and wife where there's really only one assembly sheet. Otherwise, you know, if you're, if you were two brothers farming together and you didn't sell your crop jointly, you're going to have each, each brother is going to have their own assembly sheets and know what their revenue is. No, I don't see any share percentages anywhere on here. Yeah, like Ron said, that would have to be a side calculation. That's a good question. Is there a deadline to submit forms? No, there is not. We haven't announced one at this time. So just make sure you're watching our state and county newsletters to see when that deadline is. So I think we covered the questions in the chat. Now we can go to the Q&A box. So the question is on line 19 as of what date slash time of application. So it's going to be at the time you filed the, the 2022 ERP tract to application. So that would be if you're going to file it next week, then it's as of next week when you file it. What crops are still in, what 20, what crops that were, could have been affected by a 2022 disaster event were still in storage. And then the question was, do you include deferred 2021 crop insurance for the 2022 actual revenue? No, you wouldn't. That's, that's more of a tax year. Option question under the expected revenue option, you're going to use the crop insurance payment minus the premium and fees for your 2022 crops that you listed as part of your expected benchmark revenue. And then the question on for box 17 there for the, for the total amount of revenue, I mean of actual revenue, use the actual 2022 crop, regardless of what, yeah, we, I guess we've already answered that, regardless of what you're sold. Right. Right. So you're including any revenue from the crops that you included on your expected benchmark revenue. So the next part of that question is, do you ignore a carrying crop from 2021 or my choice if that crop was in storage and could have been affected by a 2021 or 2022 calendar year disaster event, you would include that. And you need to account for that in your expected revenue and then account for when it was sold under your actual revenue. And then here Chris is saying they did not receive a FSA 523 last November. If you received a crop insurance indemnity for your 2022 crop and did not get an FSA 523 mailed to you. If you want to wait for a couple weeks, because we are going to mail out any, we're just getting a new updated data for for our track one information. And so we will be mailing out any additional applications but if you don't receive an FSA 523 and you received a crop insurance indemnity or a nap payment, you need to contact your local FSA office. Then the question is, does the drought map use primary and continuous qualifications to allow other counties to qualify? It uses primary. Okay. Ah, eligible crops for this program, is there a listing of eligible crops somewhere? And then for the ERP tool, do we include edible beans? It's all crops that could have been affected by a 2022 disaster event. So there's really not a listing of crops that are eligible. If that makes sense. Great. And then the other question was, if they had dry beans, do we you include that in the actual revenue? Yes, I mean for edible beans, yes, you're going to include them as part of the track to eligible crops. But when you go into your, when you do that percentage of affected or percentage of, I want to scroll up Ron. Oh, right there, okay. The percentage from specialty or high value crops, that's where you dry edible beans will be part of that percentage. So if you had edible beans, you shouldn't have a zero there, you would have the percentage. This box 15, whatever percentage of your acres are dry edible beans, you need to adjust that percentage in line 15. Ah, is soybean seed production considered high value? That one I would have to look into, that's a good question. If you want to submit that question to me through email, I can answer you. Should I just read this one to you? If you add acres from 18 or 19 tax year versus 2022 or 2023 tax year, what prices and yield do you use for adjustments? Okay, so with this question, I'm going to make an assumption here. So we're going to apply under the expected revenue option. So 18 or 19 doesn't matter at all. Or do you think they're asking about? I think they're asking about the tax year method, I think. And there you just go off your revenue from your tax return. And you can't adjust. I mean, unless they were one of the producers who are required to use the tax year option, there is no adjustment of the benchmark or of the benchmark 18 or 19 years. That's what I was, that was in one of my slides. So if that producer had an increase to their operation from 2018 to 2022 or 2022, then they should be using the expected revenue option. Right. One other question here just to confirm. Do we have to use the same estimated market price for unsold inventory at the end of the year for 18, 19, and 2022? Again, the 18 and 19 is not, right, that's not really applicable to the expected revenue option. The 18 and 19 benchmark year, that is a tax year option. So if you have 2018 or 2019 crop that's still in the bin in 2022 that could have been affected by a 2022 disaster event, then you would need to use and it was still in the bin at the time of application. You would use the same expected benchmark revenue price as you do for the actual revenue price. And does 2023 prevent plant qualify as a cause of loss that occurred in 2022? I would like to see an example of what they're asking there and if we're talking about track one or track two. Maybe they could submit that by email too. Yes. So if you're eligible for the 2022 ERP program, you should have received from FSA in November, correct? Yeah, you should get, Laura kind of already answered that one. So if you had prevent plant on your farm, every acre counts in this program, including prevent plant. Yes, right? So you're going to do, when we went through the slides, when you're determining what your crops that you need to include as part of your expected revenue, you need to look at any 2022 crops that were planted or prevented from being planted. So you'll include those as part of your benchmark expected revenue and then any proceeds you receive from the crop that you planted and sold, you're going to include that revenue as part of your actual revenue. We've got two more questions and then we better wrap it up here. So do you include SEO and ECO payments that were paid out for the 2022 year, but were not received until 2023? So yes, you would. It doesn't matter when you receive that crop insurance payment for the 2022 crop. So if you, the 2022 crop year, you insured the crop, you had SEO and that payment for that 2022 crop was paid, the SEO payment was paid out in 2023. You should include that payment as part of your actual year revenue. Okay, last one. So if some of the wheat was affected by a disaster, then it's all, then all is eligible to be included. Does that include 2021 wheat in storage unsold still in 2022, even if the stored wheat wasn't affected by the disaster itself? So if 2021 wheat was in storage and could have been affected by an eligible disaster event, then it would be included in the application. If we did miss some of your questions, just please submit them by email and we'll try to get them answered. With that, we better, we better cut it off and we appreciate you joining today. We appreciate Laura with all our expertise on from FSA and, and thanks Scott, our IT guy for hanging in there. So with that, I think we're ready to go. Any final thoughts, Laura? No, I just want to send out a big thank you to you and Scott and Miranda for getting information out on the webinar from the NDSU side and working with us to put this together. We very much appreciate it. So with that, thanks a lot.