What you need to know to get your payment
The USDA’s Supplemental Disaster Relief Program (SDRP) applications are now open, starting on July 10. Thisprogram provides financial assistance to producers whoexperienced eligible crop losses due to natural disasters in 2023 and/or 2024. The funding was passed by Congressback in December and it is now available for distribution to farmers.
It is broken down in two stages of payments to farmers.Stage 1 of SDRP targets producers who already receivedindemnity payments through Federal crop insurance or theNoninsured Crop Disaster Assistance Program (NAP). Thegoal is to help cover remaining losses not fully addressedby those programs.
Who qualifies
To be eligible for SDRP Stage 1, you must:
- Have experienced crop, tree, bush, or vine losses in 2023 or 2024 due to qualifying natural disasters
- Have received an eligible Fedaral crop insurance or NAP indemnity for those losses
Covered disaster events include:
- Drought (at least D2 intensity for eight consecutiveweeks, or D3 or higher), flooding, wildfires, hurricanes,derechos, tornadoes, freeze events, winter storms,including polar vortex conditions, excessive heat ormoisture, smoke exposure, or related conditions
How to apply
The USDA is using existing insurance and NAP data to streamline the application process. Most eligible producers will receive pre-filled application forms.
Steps to apply:
- Review your pre-filled application (Form FSA-526), mailed on July 9
- Submit the signed application in person at your local FSA office beginning July 10
- Ensure your producer records and payment documentation are up to date with FSA
Payment Details
Stage 1 payments are based on the SDRP adjusted NAPor Federal crop insurance coverage level purchased,with the net NAP or federal crop insurance paymentssubtracted from the SDRP calculated payment amount.
The total SDRP payment to indemnified producers will notexceed 90% of the loss and an SDRP payment factor of35% will be applied to all Stage One payments.
Example:
- If your calculated loss is $100,000, your Stage 1 payment will be $35,000
If funding remains after the initial round, USDA may issue a second payment.
What comes next
Stage 2 of SDRP will launch this fall. It will address:
- Shallow losses not covered by insurance
- Quality losses
- Other disaster-related losses not eligible in Stage 1
Additional guidance will be released by USDA in the coming months.
Future insurance coverage requirements
All producers who receive payments are required to purchase federal crop insurance or NAP coverage for the next two available crop years at the 60% coverage level or higher.
Questions? PRM is here to help
If you’re unsure about your eligibility, documentation, or how to complete the application, Precision Risk Management (PRM) is ready to assist. Reach out to your Risk Management Advisor or contact PRM directly.
