Farmers, Get Ready: USDA's New Disaster Relief Program is Here!

Farmers, listen up! The USDA has just opened applications for Stage 1 of the new Supplemental Disaster Relief Program (SDRP), and it's a game-changer for those who've faced natural disasters in 2023 and 2024. Authorized by the Disaster Relief Supplemental Appropriations Act of 2025, this $16.09 billion program is here to offset crop, tree, and vine losses. And let me tell you, this is BIG NEWS!

WHAT YOU NEED TO KNOW ABOUT SDRP STAGE 1

1. HOW IT WORKS:

- Stage 1 uses existing crop insurance and Noninsured Disaster Assistance Program (NAP) data to deliver payments equal to 35% of calculated eligible losses. If funds allow, there could be increased payments down the line.

- Stage 2 is coming mid-September and will target producers with uncovered losses, quality losses, and those who experienced shallow losses but didn't receive an indemnity.

2. ELIGIBILITY:

- You must have received a crop insurance indemnity or NAP payment tied to a qualifying disaster in 2023 or 2024.

- Eligible disasters include floods, wildfires, hurricanes, freezes, excessive moisture or heat, and qualifying drought.

- For drought, eligibility is restricted to counties that experienced eight or more consecutive weeks of D2 (severe) drought or any instance of D3 (extreme) drought or higher, as designated by the U.S. Drought Monitor.

- You must meet USDA’s standard conservation compliance and adjusted gross income requirements.

- Aquaculture losses compensated under the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program are ineligible to avoid duplicate benefits.

- Farmers must not have received ERP 2022 Track 1 or Track 2 payments for the same crop year, as SDRP cannot be used to compensate the same loss twice.

3. PAYMENT CALCULATIONS:

- 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 1, the total SDRP payment to indemnified producers will not exceed 90 percent of the loss and an SDRP payment factor of 35 percent will be applied to all Stage 1 payments. If additional SDRP funds remain, FSA may issue a second payment.

HOW TO APPLY

FSA and RMA will generate and mail pre-filled SDRP Stage 1 applications (Form FSA-526) to farmers with eligible 2023 or 2024 losses based on existing crop insurance or NAP data. Farmers may also request their pre-filled form from their local FSA office. While pre-filled, producers must complete key fields, including selecting the applicable qualifying disaster event and certifying they will maintain crop insurance or NAP coverage for the crop and county for the next two available years. If a farmer received both a NAP payment and a crop insurance indemnity for the same crop and unit, they must choose which dataset to use for payment and indicate that election. For WFRP policies, farmers must also certify and document the percentage of expected revenue from specialty and high-value crops to determine the applicable payment limit. If corrections are needed, farmers must contact their crop insurance agent or FSA office to update official records before submitting. Applications must be signed by all parties with a share in the crop and submitted to FSA by the to-be-announced deadline via mail, email, fax or in person. Altering pre-filled data outside of official channels will void the application.

In addition to the FSA-526 application form, the following forms must be on file for all applicants:

- CCC-902 (Farm Operating Plan)

- CCC-901 (for legal entities)

- AD-1026 (Conservation Compliance Certification)

- Form AD-2047, Customer Data Worksheet

- SF-3881, Direct Deposit

WHAT'S NEXT?

STAGE 2:

- Application period for producers with uncovered losses, quality losses, and crop insurance or NAP coverage for 2023/2024 but experienced shallow losses and did not receive an indemnity.

- This enrollment period is targeted to begin mid-September.

THE BOTTOM LINE

Farmers, this is your chance to get the relief you need. Don't miss out on this opportunity to offset your losses and get back on your feet. Apply now and take advantage of this new program!

So, get your applications in and let's get you the help you deserve! This is a no-brainer, folks. Don't let this opportunity slip away. BOO-YAH!