
Trump Administration Announces Expedited Congressionally
Mandated Disaster Assistance for Farmers
- SDRP will be delivered in two stages: Stage 1 and Stage 2
- First stage: open to producers with eligible crop losses that received assistance under crop insurance or the Noninsured Crop Disaster Assistance Program (NAP) during 2023 and 2024.
Stage 1 Signup:
- In-person at FSA county offices: July 10
- Pre-filled application mailings began July 9
- Stage 1 Payment Calculation
- Payment to indemnified producers will not exceed 90% of the loss and an SDRP payment factor of 35% will be applied to Stage 1 payments.
- If additional funds remain, FSA may issue a second payment.
- Future Insurance Coverage Requirements
- Must purchase federal crop insurance or NAP coverage for the next two available crop years at the 60% coverage level or higher. If you don’t, you’ll have to refund the SDRP payment, plus interest, to USDA.
- Stage 2:
- Additional assistance for uncovered losses, including non-indemnified shallow losses and quality losses will be announced later in the fall with information on how to apply.
- Timeline
- August 19, 2025: The target date to submit final rule to the Office of Management and Budget (OMB)
- September 9, 2025: The target date for the Office of Management and Budget (OMB) clearance
- September 15, 2025: The target date for sign-up to begin
Eligible Losses Must Be the Result of Natural Disasters occurring in Calendar Years 2023 and 2024:
- Wildfires
- Hurricanes
- Floods
- Derechos
- Excessive Heat
- Tornadoes
- Winter Storms
- Freeze (including a polar vortex)
- Smoke exposure
- Excessive Moisture
- Qualifying Drought
Examples
Example Published in USDA FSA Final Rule
Suppose a producer had a crop insurance policy with a coverage level of 65 percent, and the total administrative fee and premium was $3,500. Based on the producer’s approved yield, acres, and applicable price under their insurance policy, the expected value of their crop was $500,000, and the liability was $325,000 (65 percent of the expected value). The producer suffered a crop loss and their production was valued at $250,000, resulting in a gross indemnity of $75,000. To calculate the producer’s Stage 1 payment, RMA will perform the same calculation that was used to calculate the indemnity based on their loss procedures but using $437,500 (the SDRP factor of 87.5 percent multiplied by the expected value) in place of the liability, such that the value of production ($250,000) is subtracted from $437,500 equaling $187,500. From that amount, RMA will subtract the net indemnity of $71,500 ($75,000 minus $3,500), resulting in a calculated Stage 1 payment of $116,000 prior to application of the final payment factor (35%) and any other applicable reductions such as the payment limitation reduction.
2023 Cotton Producer in Texas
Disclaimer:
The example provided below is broad and generic. It does not come from an actual farm operation.
Calculation is based on:
- 65% insurance coverage level
- 200 acres
- 500 pound APH
- 200 pound actual yield
2024 Cotton Producer in Texas
Disclaimer:
The example provided below is broad and generic. It does not come from an actual farm operation. Calculation is based on a 65% coverage level on 200 acres and 500 pound APH and 200 pound actual yield.
Calculation is based on:
- 65% insurance coverage level
- 200 acres
- 500 pound APH
- 200 pound actual yield