USDA has made available $16 billion in assistance through the Supplemental Disaster Relief Program (SDRP) for agricultural producers who suffered eligible crop losses due to natural disasters in 2023 and 2024.
USDA says the Farm Service Agency (FSA) will deliver the assistance in two stages, the first stage is 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 one sign-up began in person at FSA county offices on July 10, and prefilled applications were mailed to producers on July 9. SDRP stage two signups for eligible shallow or uncovered losses will begin in early fall.
Eligible losses must be the result of natural disasters occurring in calendar years 2023 and/or 2024. USDA says these disasters include wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought and related conditions.
To qualify for drought-related losses, the loss must have occurred in a county rated by the U.S. Drought Monitor as having a D2 (severe drought) for eight consecutive weeks, D3 (extreme drought), or greater intensity level during the applicable calendar year.
To apply for SDRP, producers must submit the FSA-526, Supplemental Disaster Relief Program (SDRP) stage one application, in addition to having other forms on file with FSA.
Stage one payments are based on the SDRP adjusted NAP or Federal crop insurance coverage level the producer purchased for the crop. The net NAP or net federal crop insurance payments (NAP or crop insurance indemnities minus administrative fees and premiums) will be subtracted from the SDRP calculated payment amount.
For stage one, the total SDRP payment to indemnified producers will not exceed 90% of the loss, and an SDRP payment factor of 35% will be applied to all stage one payments. If additional SDRP funds remain, FSA may issue a second payment.
All producers who receive SDRP 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. Producers who fail to purchase crop insurance for the next two available crop years will be required to refund the SDRP payment, plus interest, to USDA.
USDA says FSA will announce additional SDRP assistance for uncovered losses, including non-indemnified shallow losses and quality losses and how to apply later this fall.
