Rule2025-12803
Supplemental Disaster Relief Program (SDRP) Stage 1
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 10, 2025
Effective
July 10, 2025
Issuing agencies
Agriculture DepartmentFarm Service Agency
Abstract
The Farm Service Agency (FSA) is issuing this final rule announcing SDRP, which provides assistance to eligible producers for losses to crops, trees, bushes, and vines due to wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions occurring in calendar years 2023 and 2024. SDRP assistance will be provided in two stages, referred to as Stage 1 and Stage 2. This document provides the eligibility requirements, application process, and payment calculations for SDRP Stage 1 only, which will provide payments for eligible crop, tree, and vine losses calculated using data already on file with USDA from previously issued Federal crop insurance indemnities and Noninsured Crop Disaster Assistance Program (NAP) payments. FSA anticipates announcing SDRP Stage 2 in a later rule.
Full Text
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<title>Federal Register, Volume 90 Issue 130 (Thursday, July 10, 2025)</title>
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[Federal Register Volume 90, Number 130 (Thursday, July 10, 2025)]
[Rules and Regulations]
[Pages 30561-30575]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12803]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 760
[Docket ID FSA-2025-0007]
RIN 0560-AI71
Supplemental Disaster Relief Program (SDRP) Stage 1
AGENCY: Farm Service Agency, U.S. Department of Agriculture (USDA).
ACTION: Final rule.
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SUMMARY: The Farm Service Agency (FSA) is issuing this final rule
announcing SDRP, which provides assistance to eligible producers for
losses to crops, trees, bushes, and vines due to wildfires, hurricanes,
floods, derechos, excessive heat, tornadoes, winter storms, freeze
(including a polar vortex), smoke exposure, excessive moisture,
qualifying drought, and related conditions occurring in calendar years
2023 and 2024. SDRP assistance will be provided in two stages, referred
to as Stage 1 and Stage 2. This document provides the eligibility
requirements, application process, and payment calculations for SDRP
Stage 1 only, which will provide payments for eligible crop, tree, and
vine losses calculated using data already on file with USDA from
previously issued Federal crop insurance indemnities and Noninsured
Crop Disaster Assistance Program (NAP) payments. FSA anticipates
announcing SDRP Stage 2 in a later rule.
DATES: This rule is effective on July 10, 2025.
FOR FURTHER INFORMATION CONTACT: Kathy Sayers; telephone: (202) 720-
6870; email: <a href="/cdn-cgi/l/email-protection#2d664c594554037e4c54485f5e6d585e494c034a425b"><span class="__cf_email__" data-cfemail="307b514458491e63514955424370454354511e575f46">[email protected]</span></a>. Individuals with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone (TTY mode))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
Title I of the Disaster Relief Supplemental Appropriations Act,
2025 (Division B of the American Relief Act, 2025; Pub. L. 118-158;
referred to as ``the Act'' in this document) provides
``$30,780,000,000, to remain available until expended, for necessary
expenses related to losses of revenue, quality or production of crops
(including milk, on-farm stored commodities, crops prevented from
planting, and harvested adulterated wine grapes), trees, bushes, and
vines, as a consequence of droughts, wildfires, hurricanes, floods,
derechos, excessive heat, tornadoes, winter storms, freeze, including a
polar vortex, smoke exposure, and excessive moisture occurring in
calendar years 2023 and 2024 under such terms and conditions as
determined by the Secretary of Agriculture . . .''. As provided in the
Act, losses due to drought are only eligible if any area within the
county in which the loss occurs was rated by the U.S. Drought Monitor
\1\ as having D2 (Severe Drought) for eight consecutive weeks or a D3
(Extreme Drought) or higher level of drought intensity during the
applicable calendar years.
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\1\ The U.S. Drought Monitor classifies drought severity on a
weekly basis according to a range of D0 (abnormally dry) to D4
(exceptional drought) and is available at <a href="http://droughtmonitor.unl.edu">http://droughtmonitor.unl.edu</a>.
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FSA is using the funding provided in the Act to assist producers
through several programs.\2\ SDRP will use approximately $16.09 billion
of the authorized $30.78 billion in funding to assist producers who
suffered losses of crops, trees, bushes, or vines due to qualifying
disaster events. FSA will administer SDRP in two stages.
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\2\ On March 29, 2025, FSA announced the Emergency Livestock
Relief Program (ELRP) 2023 and 2024, which provides assistance to
livestock producers for losses due to qualifying drought and
wildfire (90 FR22614-22623). FSA will announce programs for
livestock producers' losses due to flooding, milk losses, and losses
of on-farm stored commodities in a later final rule.
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Stage 1 will use a streamlined process with pre-filled application
forms for producers with indemnified crop, tree, and vine losses.\3\
Data for these losses are already on file with FSA or the Risk
Management Agency (RMA) as a result of the producer previously
receiving a NAP payment or a crop insurance indemnity under certain
crop insurance policies. This rule provides the eligibility
requirements, application process, and payment calculations for SDRP
Stage 1.
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\3\ NAP provides assistance for crop losses, but not for losses
of trees, bushes, and vines that produce those crops. RMA provides
insurance for crop losses and for losses of some trees and vines
that produce crops. Previously the Emergency Relief Program (ERP)
Phase 1 and ERP 2022 Track 1 included losses of trees for which
insurance policies were available. Losses to vines were not included
in the previous ERP 2022 Track 1 because coverage was not offered
for vine losses in the applicable crop years; however, Federal crop
insurance for grapevines was introduced in 2023 and will be included
in SDRP Stage 1. Losses to bushes are not included in SDRP Stage 1
because RMA does not offer coverage for those losses.
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SDRP Stage 2 will provide payments to eligible producers for losses
of crops, trees, bushes, and vines that were not indemnified. These
losses, sometimes referred to as uncovered or shallow losses, include
losses of crops, trees, bushes, and vines for which a producer did not
have crop insurance or NAP coverage, as well as losses that were
insured with crop insurance or covered by NAP but were not severe
enough to trigger an indemnity. Like Stage 1, Stage 2 payments will be
calculated based on individual crop, tree, bush, and vine losses,
rather than a producer's cumulative revenue loss, which was used for
the Emergency Relief Program (ERP) Phase 2 and ERP 2022 Track 2.
Producers who apply for Stage 2 will provide the data required to
calculate a payment through the application process. FSA anticipates
announcing SDRP Stage 2 in a later rule.
Producer Eligibility
To be eligible for SDRP Stage 1, a producer must be a:
<bullet> Citizen of the United States;
<bullet> Resident alien, which for purposes of SDRP means ``lawful
alien'' as defined in 7 CFR part 1400;
<bullet> Partnership organized under State law consisting solely of
citizens of the United States or resident aliens;
<bullet> Corporation, limited liability company, or other
organizational structure organized under State law consisting solely of
citizens of the United States or resident aliens; or
<bullet> Indian Tribe or Tribal organization, as defined in section
4(b) of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304).
This requirement aligns with the eligibility criteria for ERP Phase
1 and Phase 2.
[[Page 30562]]
To be considered a producer, as defined in this final rule at 7 CFR
760.2202, an applicant must share in the risk of producing the eligible
crop and be entitled to a share in that crop available for marketing
from the farm, or would have shared had the crop been produced. Members
of legal entities who do not individually share in the risk of
producing the crop and ownership of the crop are not considered
producers and are not eligible to apply for SDRP; in those instances,
the entity is considered the applicant.
To be eligible for SDRP, a producer must also be in compliance with
the provisions of 7 CFR part 12, ``Highly Erodible Land and Wetland
Conservation,'' and the provisions of 7 CFR 718.6, which address
ineligibility for benefits for offenses involving controlled
substances.
FSA's creation and mailing of a pre-filled Stage 1 application does
not indicate that a producer is eligible for SDRP. For example, some
entities with members who are not U.S. citizens or resident aliens may
have received crop insurance indemnities. The process of transferring
data from RMA to FSA may result in creation of a pre-filled application
for those entities; however, those entities are not eligible for a
Stage 1 payment. Also, FSA's creation and mailing of a pre-filled
application does not indicate that a crop and unit listed on the
application suffered an eligible loss due to a qualifying disaster
event. For example, a crop insurance indemnity may have been issued for
a loss due to drought, but the county did not meet the criteria for
qualifying drought as defined in 7 CFR 760.2202. The producer would not
be eligible for payment for those losses under SDRP.
Eligible and Ineligible Losses
SDRP Stage 1 provides a streamlined application process for
eligible crop, tree, and vine losses during the 2023, 2024, and 2025
crop years \4\ due to qualifying disaster events in the 2023 and 2024
calendar years for which a producer:
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\4\ The 2025 crop year is included because a qualifying disaster
event occurring in the 2024 calendar year may cause a loss of a crop
during the 2025 crop year, based on how ``crop year'' is defined in
the applicable crop insurance policy or NAP provisions.
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<bullet> Received an indemnity under a Federal Crop Insurance
policy that provided coverage for a loss of crop production, revenue,
or quality, or a loss of trees or vines, excluding policies for forage
seeding, policies for crops with an intended use of grazing,\5\
livestock policies, Controlled Environment policies,\6\ Margin
Protection Plan policies, banana plants insured under the Hawaii
Tropical Trees provisions,\7\ supplemental policy endorsements based on
county- or area-level losses when purchased with a base policy,\8\
Cottonseed Endorsements; and policies issued in Puerto Rico; \9\ or
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\5\ Producers who received Livestock Forage Disaster Program
payments for grazing losses due to drought or wildfire in calendar
years 2023 and 2024 may be eligible for additional assistance
through ELRP 2023 and 2024.
\6\ Controlled Environment policies were offered beginning with
the 2024 crop year. These policies are excluded because the covered
causes of loss do not align with qualifying disaster events for
SDRP.
\7\ Banana crop losses are included in Stage 1; however, the
banana plants are not considered an eligible tree, bush, or vine.
\8\ The excluded supplemental policy endorsements are Enhanced
Coverage Option, Hurricane Insurance Protection-Wind Index,
Supplemental Coverage Option, and Stacked Income Protection Plan
endorsements when purchased with a base policy.
\9\ Federal crop insurance policies issued in Puerto Rico are
not transmitted through the standardized Policy Acceptance and
Storage System. Therefore, pre-filled applications cannot be
automatically generated under SDRP Stage 1, and assistance for
eligible losses in Puerto Rico will be available under Stage 2.
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<bullet> Received a NAP payment for a crop and unit, excluding
payments for crops intended for grazing.
For insured losses, Stage 1 payments will be calculated based only
on a producer's base crop insurance policy, without considering any
supplemental policy endorsements that are based on area- or county-
level loss, rather than on a producer's actual loss.\10\ By including
only a producer's base policy in calculating a Stage 1 payment, SDRP
will provide assistance for insured losses on a producer's actual loss
for the majority of insured producers, in alignment with Stage 1
payments for NAP-covered losses, which are always based on a producer's
actual loss rather than on losses for an area or county. Payments based
on area- or county-level insurance policies will only be included in
Stage 1 when they are the producer's base policy, because excluding
those policies would prevent FSA from using Stage 1's streamlined
approach for those insured crop losses that would otherwise have been
eligible. Basing Stage 1 payments on a producer's actual crop loss for
the majority of producers is also consistent with the approach FSA will
use for Stage 2, which will calculate payments based on a producer's
actual crop, tree, bush, and vine losses. These changes bring
consistency to the manner in which losses are compensated in both Stage
1 and Stage 2.
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\10\ See 7 U.S.C. 1508(c)(3)(B) and 7 U.S.C. 1508b(b)(4).
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To be eligible for SDRP Stage 1, the crop, tree, or vine loss must
have been caused, in whole or in part, by a qualifying disaster event
that occurred in calendar year 2023 or 2024. When multiple causes of
loss affect a crop, the amount of loss due to each specific cause of
loss cannot be determined from the data on file with FSA and RMA;
therefore, the Stage 1 payment will be based on a producer's total loss
that was used to calculate the producer's crop insurance or NAP
indemnity as long as at least a portion of that loss was caused by at
least one qualifying disaster event.
Eligible crops for SDRP Stage 1 include aquacultural species for
which Federal crop insurance or NAP coverage was available.\11\ Losses
to aquacultural species that were compensated under the Emergency
Assistance for Livestock, Honeybees, and Farm-raised Fish Program
(ELAP) are ineligible for SDRP Stage 1 to avoid providing duplicate
benefits for losses already at least partially compensated for by ELAP.
For example, if a producer received both a NAP payment and an ELAP
payment for a loss of farm-raised fish for the 2024 crop year, the
producer will be ineligible to receive an SDRP Stage 1 payment for that
loss of farm-raised fish. ELAP payments for losses that were not
covered by NAP (for example, losses due to the cost of transporting
water or feed to livestock, and milk losses due to H5N1 infection) do
not affect a producer's SDRP eligibility.
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\11\ Federal crop insurance is available for clams and oysters
in certain counties. NAP coverage is available for aquatic organisms
grown as food for human consumption as determined by the Commodity
Credit Corporation, fish raised as feed for other fish that are
consumed by humans, and ornamental fish propagated and reared in an
aquatic medium. See 7 CFR 1437.303(a).
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FSA is also excluding certain losses from SDRP Stage 1 eligibility
when they were previously compensated under ERP 2022. Producers were
eligible for ERP 2022 if their loss of an eligible crop was caused, in
whole or in part, by a qualifying disaster event occurring in the 2022
calendar year. As a result, ERP 2022 Track 1 included some losses for
the 2023 crop year, and ERP 2022 Track 2 allowed producers to use their
allowable gross revenue for the 2023 tax year as their disaster year
revenue.\12\ For both Track 1 and Track 2, a producer was eligible for
ERP 2022 if the loss was caused, at least in part, by a qualifying
disaster event occurring in the 2022 calendar year; however, an
eligible crop also may have suffered a loss due to 1 or more qualifying
disaster events in
[[Page 30563]]
2023 calendar year. Therefore, to avoid compensating a producer twice
for the same loss, SDRP Stage 1 excludes losses for which a producer
received an ERP 2022 Track 1 payment for the 2023 crop year, or an ERP
2022 Track 2 payment based on their allowable gross revenue for the
2023 tax year.
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\12\ See 88 FR 74411.
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FSA is also excluding crop, tree, bush, and vine losses in
Connecticut, Hawaii, Maine, and Massachusetts from both Stage 1 and
Stage 2 of SDRP to avoid compensating producers twice for the same
loss. The Act authorized $220,000,000 to provide block grants to
eligible States \13\ to provide compensation to producers for necessary
expenses related to crop, timber, and livestock losses, including on-
farm infrastructure, as a consequence of any weather event in 2023 or
2024 that a State, in its sole discretion, determines warrants such
relief. Under that authority, FSA is establishing block grants with
Connecticut, Hawaii, Maine, and Massachusetts covering crop, tree,
bush, and vine losses in those states.
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\13\ The Act specifies that eligible States are those States
with a net farm income for 2023 of less than $250,000,000, as
recorded in the data in the Economic Research Service publication
``Farm Income and Wealth Statistics'' as of December 3, 2024, and
fewer than eight thousand farms and an average farm size of fewer
than one thousand acres per farm, as recorded in the National
Agricultural Statistics Service publication ``Farms and Land in
Farms 2023 Summary (February, 2024).'' The states that meet those
criteria are Alaska, Connecticut, Hawaii, Maine, Massachusetts, New
Hampshire, Rhode Island, and Vermont. As directed by the Act, FSA
has worked with eligible States on any necessary terms and
conditions for block grants. Connecticut, Hawaii, Maine, and
Massachusetts have indicated that the assistance they provide
through block grants will cover crop, tree, bush, and vine losses
that would otherwise be covered by SDRP. The other eligible states
have determined that their block grants will not duplicate crop loss
assistance provided through SDRP.
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For losses of crops that were covered by NAP, if any portion of
land in the unit was physically located in one of those 4 states, the
entire unit will be ineligible for Stage 1 because FSA cannot determine
the amount of loss for the portion of the unit not located in the
ineligible State using the data previously submitted by the producer.
For insured crops, units that are physically located in one of those 4
states will be ineligible for Stage 1, except in certain instances when
the producer had a Rainfall Index plan for Apiculture policy or for
Pasture, Rangeland, and Forage (PRF), or a Whole-Farm Revenue
Protection (WFRP) policy.
Producers who have a WFRP policy are required to indicate the
county in which the majority of their expected revenue would be earned
on reports required for WFRP coverage, such as their Whole-Farm History
Report, Inventory Report, and Farm Operation Report. The data on file
with RMA does not indicate whether any land in a WFRP unit is located
in any other counties. Therefore, to facilitate administration of SDRP
Stage 1, WFRP units are ineligible for SDRP Stage 1 if the county where
the majority of a producer's expected revenue would be earned is in
Connecticut, Hawaii, Maine, and Massachusetts, even if part of that
unit is physically located outside of those 4 states. Conversely, if
the county in which the majority of a producer's expected revenue would
be earned is not in one of those 4 states, that unit will be included
for SDRP Stage 1, even if the unit includes land that is physically
located in 1 of those 4 states.\14\
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\14\ The grant programs administered by Connecticut, Hawaii,
Maine, and Massachusetts will exclude losses to units covered by
WFRP policies for which the majority of their expected revenue would
be earned outside of the applicable state.
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Similar to WFRP, Rainfall Index plans for Apiculture and PRF may
cover units with land located in more than 1 county, and data on file
with RMA only includes the county entered by the producer on their
insurance application. Losses under those policies will be ineligible
for SDRP Stage 1 if the county entered on the insurance application is
in Connecticut, Hawaii, Maine, and Massachusetts. Losses will be
included in SDRP Stage 1 if the county is not located in 1 of those 4
states.
To avoid paying a producer twice for the same loss, the block grant
programs administered by Connecticut, Hawaii, Maine, and Massachusetts
will exclude losses on land in units covered by Apiculture, PRF, and
WFRP policies that were eligible for SDRP Stage 1. FSA intends to
provide assistance in SDRP Stage 2 for losses on land physically
located outside of those 4 states that is excluded from SDRP Stage 1 as
described above for NAP units and under apiculture, PRF, and WFRP
policies.
SDRP Stage 1 will include Rainfall Index plans for Annual Forage,
PRF, and Apiculture, which provide indemnities based on an index that
reflects how much precipitation is received relative to the long-term
average for a specified area and timeframe. These programs do not
directly compensate producers for drought; however, these programs are
included in SDRP Stage 1 because the lack of rainfall may have resulted
in drought conditions, and including these policies streamlines the
delivery of assistance to producers who may have suffered eligible
losses due to qualifying drought. In some cases, a producer may have
also received a NAP payment for the crop. If a producer received both a
NAP payment and an Annual Forage, PRF, or Apiculture indemnity for a
crop, the data for both the NAP payment and the crop insurance
indemnity will be used to pre-fill the application, resulting in two
separate line items (one under Part C--Insured Crop Information, and
one under Part D--NAP Crop Information). In those instances, the
producer must elect whether to receive a Stage 1 payment based on the
data associated with their Federal crop insurance indemnity or their
NAP payment by completing the line item for their selection as
described below under ``How to Apply.'' This policy is necessary to
avoid compensating producers twice for the same loss under Stage 1.
How To Apply
FSA and RMA will identify the producers who received indemnities
and NAP payments described above. For each of those producers, FSA will
generate an FSA-526, Supplemental Disaster Relief Program (SDRP) Stage
1 Application, with certain items pre-filled with information already
on file with USDA, as listed below, and FSA will mail copies of the
pre-filled applications to producers. The generation and mailing of a
pre-filled application does not indicate that a producer is eligible
for SDRP Stage 1. Producers may also electronically obtain pre-filled
applications by contacting their FSA county office \15\ beginning on
July 10, 2025. Producers will submit separate applications for each
crop year.
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\15\ Producers can locate their FSA county office using the
Service Center Locator available at <a href="https://www.farmers.gov/working-with-us/service-center-locator">https://www.farmers.gov/working-with-us/service-center-locator</a>.
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Producers may submit applications to their FSA county office in
person or by mail, email, facsimile, or other methods announced by FSA.
In order for an application to be processed for FSA County Committee
action, a complete application must be submitted to the producer's
recording county office by the close of business on the deadline
announced by FSA.
Producers cannot alter the data in these pre-filled items; any
alterations in the pre-filled data on the application will result in
FSA disapproving the producer's Stage 1 application. FSA will not
calculate Stage 1 payments using data manually submitted by producers.
Stage 1 payments will only be calculated using data already on file
with RMA and FSA. If a producer
[[Page 30564]]
believes that any information that has been pre-filled on the FSA-526
is incorrect, the producer should contact their Federal crop insurance
agent for insured crops or their FSA county office for NAP-covered
crops. If the crop insurance agent or FSA determine that the producer's
information on file is erroneous, they will correct the producer's data
on file with RMA and FSA. Once the corrections have been made, an
updated Stage 1 application may be generated for the producer.
For producers who received a Federal crop insurance indemnity for
eligible policies, the pre-filled application will include the
producer's physical State and county codes, unit numbers, crops, and
crop years. For producers who received a NAP payment, the pre-filled
applications will include the producer's administrative State and
county codes, unit numbers, crop years, pay crops, and pay groups. FSA
will also pre-fill the calculated Stage 1 payment amounts, prior to any
payment reductions for reasons such as payment limitation and factoring
of payments to stay within available funding.
FSA's generation of a pre-filled application and mailing of that
application to the producer is not a confirmation that the producer is
eligible to receive a Stage 1 payment. To complete the application, the
producer must enter the type of qualifying disaster event that caused,
in whole or in part, the crop, tree, or vine loss. Producers are
responsible for reviewing the list of qualifying disaster events, and
if a loss was due to drought, producers must also ensure that the
county where the crop and unit were located meets the definition of
``qualifying drought.'' \16\
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\16\ A list of counties that met the criteria for ``qualifying
drought'' in the 2023 and 2024 calendar years is available at
<a href="https://www.fsa.usda.gov/resources/programs/supplemental-disaster-relief-program">https://www.fsa.usda.gov/resources/programs/supplemental-disaster-relief-program</a>.
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Producers who received Federal crop insurance indemnities under
WFRP policies, including Micro Farm policies, must also certify the
percentage of their expected revenue from specialty and high value
crops for the purpose of administration of the payment limitations
described below. In addition to this certification, they must also
provide documentation to support their certification by the application
deadline. If a producer does not provide supporting documentation, FSA
will process the producer's application with 0 percent of their revenue
attributed to specialty and high value crops, resulting in the
producer's payment for loss being attributed to the lower payment
limitation that applies to other crops, described below, rather than
the higher payment limitation that applies to specialty and high value
crops.
All producers must certify on FSA-526 that they will meet the
requirement to purchase Federal crop insurance or NAP coverage for the
next 2 available crop years, as described later in this document. If
multiple crops and units are listed on an application, and the producer
only agrees to purchase Federal crop insurance or NAP coverage for only
some of the crops and units, a Stage 1 payment will be issued only for
those crops and units for which the producer agrees to purchase Federal
crop insurance or NAP coverage for the next 2 available crop years.
For producers who had Federal crop insurance, the application will
list the primary policy holder and all producers with a substantial
beneficial interest (SBI) who have a record established with FSA.
Inclusion of an SBI on the application does not mean that the SBI is
considered an eligible producer; to be considered an eligible producer,
an SBI must individually share in the risk of producing the crop and
ownership of the crop. If one or more producers with an SBI had a share
in a crop, the primary policy holder must update the application to
show the share in the crop for each of those producers in addition to
the primary policy holder. If the producer(s) are determined to be
eligible for a Stage 1 payment, payments will be issued to the primary
policy holder and to any eligible producers with an SBI based on their
ownership share of the crop. To receive a payment, each person or
entity listed as having a share of the Stage 1 payment for a crop and
unit must sign the application and agree to purchase Federal crop
insurance or NAP coverage for that crop and unit in each of the next 2
available crop years.
To receive an SDRP payment, producers, including any producers with
an SBI who have a risk and share in a crop as indicated on a Stage 1
application, must also have the following forms on file with FSA by the
deadline announced by FSA:
<bullet> CCC-902, Farm Operating Plan, for an individual or legal
entity;
<bullet> CCC-901, Member Information for Legal Entities, if
applicable; and
<bullet> AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification, for the producer and
applicable affiliates as provided in 7 CFR part 12.
Most producers will already have these forms on file with FSA due
to participation in other FSA programs.
In addition to the forms listed above, producers and members of
legal entities who are requesting the increased payment limitations
described below may submit FSA-510, Request for an Exception to the
$125,000 Payment Limitation for Certain Programs, including the
certification from a certified public accountant or attorney that the
person or legal entity has met the requirements to be eligible for the
increased payment limitation. FSA will continue to accept FSA-510 until
the deadline announced by FSA. If FSA-510 and the accompanying
certification is filed after the SDRP Stage 1 payment is issued but
before the deadline to submit FSA-510, FSA will process the FSA-510 and
issue any resulting additional payment amount.
Payment Calculation
FSA and RMA will calculate Stage 1 payments using the loss data on
file with FSA or RMA at the time of payment calculation or as later
updated by FSA or RMA upon identification and correction of an error in
the data on file at time of payment calculation.
The Stage 1 payment calculation for a crop and unit will depend on
the type and level of Federal crop insurance or NAP coverage obtained
by the producer. Crops covered under a WFRP policy or included in a
whole-farm unit will be treated as a single crop for payment
calculation purposes. Each payment calculation will use an SDRP factor
based on the level of Federal crop insurance or NAP coverage the
producer had obtained for the crop and unit, as specified in the
following table. These factors are consistent with the factors used
previously for ERP Phase 1 and ERP 2022 Track 1.
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SDRP factor
Type of coverage Coverage level (percent)
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Crop insurance................................ Catastrophic coverage.......................... 75.0
More than catastrophic coverage but less than 80.0
55 percent.
At least 55 percent but less than 60 percent... 82.5
[[Page 30565]]
At least 60 percent but less than 65 percent... 85.0
At least 65 percent but less than 70 percent... 87.5
At least 70 percent but less than 75 percent... 90.0
At least 75 percent but less than 80 percent... 92.5
At least 80 percent............................ 95.0
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NAP........................................... Catastrophic coverage.......................... 75.0
50 percent..................................... 80.0
55 percent..................................... 85.0
60 percent..................................... 90.0
65 percent..................................... 95.0
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When determining the SDRP factors, analysis was conducted to ensure
that payments do not exceed available funding and, in aggregate across
all eligible Stage 1 producers, do not exceed 90 percent of losses, as
required by the Act. The difference between the SDRP factors for
Federal crop insurance and NAP is due to differences in the available
coverage levels under Federal crop insurance and NAP. Federal crop
insurance is available at the catastrophic coverage level (50 percent
production coverage for 55 percent of the price) and buy-up coverage
levels (50 percent to 85 percent production coverage for 100 percent of
the price). The coverage level for NAP is limited by statute to a
maximum of 65 percent.\17\ For both NAP and Federal crop insurance, the
SDRP factors for the catastrophic and maximum buy-up levels are 75
percent and 95 percent, respectively, with the factors stair-stepping
for the buy-up options as shown in the table above. The Act provides
that payments to eligible producers who did not have Federal crop
insurance or NAP coverage cannot exceed 70 percent of their loss; these
producers' eligible losses will be addressed by Stage 2. The lowest
SDRP factor for Stage 1 producers is set at 75 percent. Payment limits
and other reductions may decrease Stage 1 payments, further lowering
the percent of losses covered.
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\17\ See 7 U.S.C. 7333(a)(1)(A)(ii).
---------------------------------------------------------------------------
To calculate a Stage 1 payment for an eligible insured crop, tree,
or vine loss, RMA will perform a calculation consistent with the
calculation of an indemnity for the crop and unit. The calculation will
use the approved RMA loss procedures for the type of coverage purchased
by the producer, but it will substitute the applicable SDRP factor for
the policy's coverage level. Using that SDRP factor, RMA will determine
the amount that will be used in place of the liability \18\ for SDRP
purposes. The result of that calculation will then be adjusted by
subtracting the net crop insurance indemnity, which is equal to the
producer's gross crop insurance indemnity for the crop and unit, minus
administrative fees and premiums. This step eliminates any overlap
between the producer's crop insurance payment and the assistance
provided through SDRP Stage 1.
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\18\ As defined in the Common Crop Insurance Policy Basic
Provisions, the producer's liability is the total amount of
insurance, value of the production guarantee, or revenue protection
guarantee for a unit determined in accordance with the Settlement of
Claim provisions of the applicable Crop Provisions for their
coverage.
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The specific calculation will vary depending on the type of crop
insurance, but the following example illustrates the general approach
used to determine a Stage 1 payment for an insured producer. 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 described
below and any other applicable reductions such as the payment
limitation reduction.
$500,000 (expected value) x 87.5% (SDRP factor) = $437,500
$437,500-$250,000 (value of production)-$71,500 (net indemnity) =
$116,000 (SDRP payment prior to final payment factor and applicable
reductions)
For consistency throughout Stage 1, payments for NAP-covered losses
will use the same approach as for insured losses. To calculate a Stage
1 payment for a NAP-covered crop loss, FSA will perform a calculation
consistent with the NAP payment calculation for the crop and unit as
provided in 7 CFR part 1437. FSA will substitute the applicable SDRP
factor for the coverage level to determine the applicable guarantee for
SDRP purposes. This calculated amount will then be adjusted by
subtracting the net NAP payment, which is equal to the producer's gross
NAP payment for the crop and unit minus service fees and premiums.
For both insured and NAP-covered crops, the calculated amounts will
be multiplied by a final payment factor of 35 percent to ensure that
total payments do not exceed the available funding. FSA will issue
Stage 1 payments as applications are processed and approved. All SDRP
payments are subject to the availability of funding. If additional
funding is available after all eligible SDRP applications have been
processed and payments have been issued, FSA may issue additional Stage
1 payments, not to exceed the maximum amount allowed by law.
Payment Limitations
Two payment limitations apply to SDRP--one payment limitation for
specialty and high value crops combined, and a second payment
limitation for other crops that are not included in the definitions of
``specialty crop'' or ``high value crop.'' As under ERP Phase 1 and ERP
2022, specialty crops include fruits, tree nuts, vegetables, culinary
herbs and spices, medicinal plants, and nursery, floriculture, and
horticulture crops. This includes common specialty crops identified by
USDA's Agricultural
[[Page 30566]]
Marketing Service.\19\ For SDRP, high value crops include trees,
bushes, vines, aquaculture, hemp, grass for seed, tobacco, and
vegetable seed.\20\ The category of ``other crops'' includes all other
crops that are not included in the definitions of specialty crop or
high value crop.
---------------------------------------------------------------------------
\19\ See AMS, USDA Definition of Specialty Crop, available at
<a href="https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf">https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf</a>.
\20\ This definition means that trees, bushes, and vines will be
grouped under the same payment limitation as the specialty crops
they produce, which is consistent with ERP Phase 1 and ERP 2022
Track 1. The remaining high value crops have previously been grouped
with specialty crops as ``sales-based commodities'' for payment
calculation purposes for the Coronavirus Food Assistance Program 2.
See 7 CFR 9.201.
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As required by the Act, SDRP is subject to payment limitations
consistent with:
<bullet> 7 CFR 760.1507(a)(2), as in effect on January 1, 2019, for
specialty and high value crops; and
<bullet> 7 CFR 760.1507, as in effect on December 21, 2024, for
other crops.
Separate payment limitations apply for each program year. Payments
under both Stage 1 and Stage 2 will be combined for the purpose of
applying payment limitations. Therefore, producers who receive the
maximum payment amount for a crop year under Stage 1, based on their
applicable payment limitation, will not be eligible to receive
additional payment for losses under Stage 2 for the same crop year.
The payment limitations are determined by the person's or legal
entity's average adjusted gross farm income. Specifically, a person or
legal entity, other than a joint venture or general partnership, cannot
receive, directly or indirectly, more than $125,000 for specialty and
high value crops combined and $125,000 for other crops if their average
adjusted gross farm income is less than 75 percent of their average
adjusted gross income (AGI) for the applicable base period. If at least
75 percent of the person or legal entity's average AGI is average
adjusted gross farm income and the participant provides the required
certification and documentation, as discussed below, the person or
legal entity, other than a joint venture or general partnership, is
eligible to receive, directly or indirectly, up to $900,000 for
specialty and high value crops combined and up to $250,000 for other
crops for each program year.
Average adjusted gross farm income includes income derived from
farming, ranching, and forestry operations, which has the same meaning
as in other recent FSA programs such as ERP, ERP 2022, Emergency
Livestock Relief Program (ELRP), ELRP 2022, and ELRP 2023 and 2024. If
the average adjusted gross farm income derived from the items listed in
the definition of ``income derived from farming, ranching, and forestry
operations'' (7 CFR 760.2202) is at least 66.66 percent of the average
adjusted gross income of the person or legal entity, then the average
adjusted gross farm income may also take into consideration income or
benefits derived from the sale, trade, or other disposition of
equipment to conduct farm, ranch, or forestry operations, and the
provision of production inputs and production services to farmers,
ranchers, foresters, and farm operations. Inclusion of those items and
benefits in this manner was first introduced by section 1604 of the
Food Conservation and Energy Act of 2008 (Pub. L. 110-234), which
amended section 1001D of the Farm Security and Rural Investment Act of
2002 (Pub. L. 107-171). This provision has been applied in other recent
FSA and Commodity Credit Corporation programs that use a producer's
average adjusted gross farm income for payment eligibility or payment
limitation purposes.
As provided in 7 CFR 1400.105, a payment made to a legal entity
will be attributed to those members who have a direct or indirect
ownership interest in the legal entity unless the payment to the legal
entity has been reduced by the proportionate ownership interest of the
member due to that member's ineligibility. As in other FSA programs,
attribution of payments made to legal entities will be tracked through
four levels of ownership as follows:
<bullet> First level of ownership--any payment made to a legal
entity that is owned in whole or in part by a person will be attributed
to the person in an amount that represents the direct ownership
interest in the first level or payment legal entity; \21\
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\21\ The ``first level or payment legal entity'' is the highest
level of ownership of the applicant to whom payments can be
attributed or limited. There will be a reduction applied for the
``first level or payment legal entity,'' and if the payment entity
happens to be a joint venture, that reduction is applied to the
first level, or highest level, for payments. If the applicant is a
business type that does not have a limitation or attribution, the
reduction is applied to the first level, but if the business type
can have the reduction applied directly to it, then the limitation
applies.
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<bullet> Second level of ownership--any payment made to a first-
level legal entity that is owned in whole or in part by another legal
entity (referred to as a second-level legal entity) will be attributed
to the second-level legal entity in proportion to the ownership of the
second-level legal entity in the first-level legal entity; if the
second-level legal entity is owned in whole or in part by a person, the
amount of the payment made to the first-level legal entity will be
attributed to the person in the amount that represents the indirect
ownership in the first-level legal entity by the person;
<bullet> Third and fourth levels of ownership--except as provided
in the second level of ownership bullet above and in the fourth level
of ownership bullet below, any payments made to a legal entity at the
third and fourth levels of ownership will be attributed in the same
manner as specified in the second level of ownership bullet above; and
<bullet> Fourth level of ownership--if the fourth level of
ownership is that of a legal entity and not that of a person, a
reduction in payment will be applied to the first-level or payment
legal entity in the amount that represents the indirect ownership in
the first level or payment legal entity by the fourth-level legal
entity.
If an individual or legal entity is not eligible to receive an SDRP
payment due to the individual or legal entity failing to satisfy
payment eligibility provisions, the payment made either directly or
indirectly to the individual or legal entity will be reduced to zero.
The amount of the reduction for the direct payment to the producer will
be commensurate with the direct or indirect ownership interest of the
ineligible individual or ineligible legal entity.
Like other programs administered by FSA, payments made to an Indian
Tribe or Tribal organization, as defined in section 4(b) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 5304), will
not be subject to payment limitation.
Payments made directly or indirectly to a person who is a minor
child will not be combined with the earnings of the minor's parent or
legal guardian.
Requirement To Purchase Federal Crop Insurance or NAP Coverage
The Act requires all producers who receive SDRP payments to
purchase Federal crop insurance, or NAP coverage where Federal crop
insurance is not available, for the next 2 available crop years, as
determined by the Secretary. Participants must obtain Federal crop
insurance or NAP coverage, as may be applicable, at a coverage level
equal to or greater than 60 percent. This requirement establishes a
consistent base level of coverage for both insured and noninsured
crops, and the coverage level is consistent with the required coverage
level for insured crops under ERP and ERP 2022 and for
[[Page 30567]]
all crops under the previous 2017 Wildfires and Hurricanes Indemnity
Program and the Wildfires and Hurricanes Indemnity Program Plus.\22\
Participants must also file an acreage report and any other required
reports or documentation needed to establish crop insurance or NAP
coverage for the applicable crop years.
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\22\ See 87 FR 30164, 88 FR 74404, and 7 CFR 760.1517.
---------------------------------------------------------------------------
Availability will be determined from the date a producer receives
an SDRP payment and may vary depending on the timing and availability
of Federal crop insurance or NAP coverage for a producer's particular
crops.
In situations where Federal crop insurance is unavailable for a
crop, a participant must obtain NAP coverage. Section 1001D of the Food
Security Act of 1985 (1985 Farm Bill; Pub. L. 99-198) provides that a
person or entity with an average AGI greater than $900,000 is not
eligible to participate in NAP; however, producers with an average AGI
greater than $900,000 are eligible to participate in SDRP. To reconcile
this restriction in the 1985 Farm Bill and the requirement to obtain
NAP or Federal crop insurance coverage, SDRP participants may meet the
purchase requirement by purchasing WFRP coverage, if eligible, or they
may apply for NAP coverage and pay the applicable service fee and
premium despite their ineligibility for a NAP payment.
Producers who receive a Stage 1 payment that was calculated based
on an indemnity under a PRF policy; Annual Forage policy; or WFRP
policy must purchase the same type of policy or a combination of
individual policies for the crops that had covered losses under SDRP to
meet the Federal crop insurance and NAP coverage requirement.
If both Federal crop insurance and NAP coverage are unavailable for
a crop, the producer must obtain WFRP Federal crop insurance coverage,
if eligible.
For Stage 1, the Federal crop insurance and NAP coverage
requirements are specific to the crop and county (which is the county
where the crop is physically located for insured crops and the
administrative county for NAP-covered crops) for which Stage 1 payments
are paid.
Producers who were paid under Stage 1 for a crop in a county, but
do not plant that crop in that county in a year for which the Federal
crop insurance and NAP coverage requirement applies, are not subject to
the Federal crop insurance or NAP purchase requirement for that year.
Producers who receive a Stage 1 payment on a crop in a county and
who have the crop or crop acreage in subsequent years, as provided in
this document, and who fail to obtain the 2 years of Federal crop
insurance or NAP coverage required as specified in this document must
refund all Stage 1 payments for that crop in that county, with
interest, from the date of disbursement.
Notice and Comment and Effective Date
The Administrative Procedure Act (APA) provides that the notice and
comment and 30-day delay in the effective date provisions do not apply
when the rule involves specified actions, including matters relating to
benefits or contracts (5 U.S.C. 553(a)(2)). This rule governs disaster
assistance payments to agricultural producers and therefore falls
within the benefits exemption.
This rule is exempt from the regulatory analysis requirements of
the Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)
because it involves matters relating to benefits. The requirements for
the regulatory flexibility analysis in 5 U.S.C. 603 and 604 are
specifically tied to the requirement for a proposed rule by section 553
or any other law; in addition, the definition of rule in 5 U.S.C. 601
is tied to the publication of a proposed rule.
The Office of Management and Budget (OMB) found this rule meets the
criteria in 5 U.S.C. 804(2) of the Congressional Review Act (CRA),
which would ordinarily necessitate delaying its effective date for 60
days (5 U.S.C. 801(a)(3)(A)). However, the CRA, at 5 U.S.C. 808(2),
allows an agency to make such regulations effective immediately if the
agency finds there is good cause to do so. USDA has determined that
such good cause exists here. The beneficiaries of this rule have been
impacted by disaster events in calendar years 2023 and 2024, and this
assistance is necessary to support the continued operation of crop
producers who have suffered severe losses that impact their ability to
sustain their operations and continue farming. To mitigate further
adverse impacts on affected producers for losses due to these disaster
events, USDA finds that notice and public procedure are contrary to the
public interest. Therefore, USDA is not required to delay the effective
date for 60 days from the date of publication to allow for
Congressional review. Accordingly, this rule is effective upon
publication in the Federal Register.
Executive Orders 12866, 13563, and 14192
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility. Executive Order 14192,
``Unleashing Prosperity Through Deregulation,'' announced the
Administration policy to significantly reduce the private expenditures
required to comply with Federal regulations to secure America's
economic prosperity and national security and the highest possible
quality of life for each citizen and to alleviate unnecessary
regulatory burdens placed on the American people. In line with the
Executive Order requirements, the Agency chose this regulatory
approach, including leveraging data previously filed with USDA and the
use of pre-filled applications, to maximize benefits and minimize
burden on American producers. The requirements in Executive Orders
12866 and 13563 for the analysis of costs and benefits apply to rules
that are determined to be significant or economically significant.
The Office of Management and Budget (OMB) designated this rule as
economically significant under Executive Order 12866 and therefore, OMB
has reviewed this rule. The costs and benefits of this rule are
summarized below. The full CBA is available on <a href="http://regulations.gov">regulations.gov</a>.
Cost Benefit Analysis Summary
FSA is using $16.09 billion of the $30.78 billion authorized by the
Act to implement SDRP. SDRP provides relief to qualifying producers
who: had previously received certain Federal crop insurance indemnities
or FSA NAP payments for the 2023, 2024, and 2025 \23\ crop years due to
qualifying disaster events in the 2023 and 2024 calendar years; did not
participate in either RMA or NAP programs but suffered eligible losses;
or had shallow losses, which are losses that are too small to trigger
an RMA or NAP payment. To avoid paying for the same loss as already
covered under federal
[[Page 30568]]
crop insurance or NAP, FSA will add the RMA or NAP net indemnities to
the value of crop production after disaster damage (or equivalently,
subtract the net indemnity from the expected crop value times the SDRP
factor) when calculating the SDRP 1 payment. Factoring in the RMA or
NAP net indemnities effectively means that affected producers that had
a qualifying loss will receive a 100 percent reimbursement of RMA
premiums and NAP fees. SDRP Stage 1 leverages data on file with FSA or
RMA for those producers who received a NAP payment or certain RMA
indemnities. SDRP Stage 2 covers eligible producers who suffered an
eligible loss but did not participate in certain RMA programs or NAP
and those with shallow losses too small to trigger an RMA or NAP
payment. SDRP Stage 1, the focus of the cost-benefit analysis for this
rule, accounts for 72 percent of total estimated gross payments, with
Stage 2 accounting for 28 percent. Payments associated with prior RMA
and NAP losses account for 91 percent of total estimated SDRP gross
payments.
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\23\ See footnote 4.
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Environmental Review
The environmental impacts have been considered in a manner
consistent with the provisions of the National Environmental Policy Act
(NEPA, 42 U.S.C. 4321-4347) and the FSA regulation for compliance with
NEPA (7 CFR part 799).
SDRP is authorized by Title I of the Disaster Relief Supplemental
Appropriations Act, 2025. The intent of SDRP is to provide payments to
eligible producers who suffered eligible crop, tree, and vine losses
due to wildfires, hurricanes, floods, derechos, excessive heat,
tornadoes, winter storms, freeze (including a polar vortex), smoke
exposure, excessive moisture, and qualifying drought, and related
conditions occurring in calendar years 2023 and 2024. The limited
discretionary aspects of the program were designed to be consistent
with established FSA disaster programs. As such, the Categorical
Exclusions in 7 CFR 799.31 apply, specifically 7 CFR 799.31(b)(6)(iv)
and (vi) (that is, Sec. 799.31(b)(6)(iv) Individual farm participation
in FSA programs where no ground disturbance or change in land use
occurred as a result of the action or participation; and Sec.
799.31(b)(6)(vi) Safety net programs administered by FSA).
No Extraordinary Circumstances (7 CFR 799.33) exist because this is
an administrative payment program that does not have the potential to
impact the human environment individually or collectively. As such, FSA
has determined that the implementation of SDRP and participation in
SDRP do not constitute major Federal actions that would significantly
affect the quality of the human environment, individually or
cumulatively. Therefore, FSA will not prepare an environmental
assessment or environmental impact statement for this regulatory
action, and this notice serves as documentation of the programmatic
environmental compliance decision for this federal action.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with Tribes on a Government-to-Government
basis on policies that have Tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian Tribes, on the relationship between the Federal Government
and Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
USDA has assessed the impact of this rule on Indian Tribes and
determined that this rule does not, to our knowledge, have Tribal
implications that required Tribal consultation at this time. If a Tribe
requests consultation, FSA will work with the Office of Tribal
Relations to ensure meaningful consultation is provided.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions of State, local, and Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including cost benefit analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local or Tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternatives and adopt the more cost effective or least
burdensome alternative that achieves the objectives of the rule. This
rule contains no Federal mandates, as defined in Title II of UMRA, for
State, local and Tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
UMRA.
Paperwork Reduction Act Requirements
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR
part 1320), requires that OMB approve all collections of information by
a Federal agency from the public before they can be implemented.
Respondents are not required to respond to any collection of
information unless it displays a current valid OMB control number. The
information collection request has been approved by OMB under the
control number of 0503-0028; Expiration Date: 10/31/2027. FSA will use
data already on file with FSA or RMA to generate pre-filled
applications for producers using the following forms: CCC-901, CCC-
902E, CCC-902I, and FSA-510. In addition, for the information
collection under 0503-0028, the agency is seeking to use FSA-526 and a
letter to producers with this data collection. The FSA-526 and letter
to producers are the only new data collection activities associated
with this request; the pre-filled applications are generated with data
previously collected and already on file, with no additional burden to
producers. The total annual burden hours for this information
collection is 123,201. See tables below for the breakout. This final
rule is a one-time announcement of SDRP Stage 1 federal financial
assistance funding.
Requests for additional information or copies of this information
collection should be directed to Kathy Sayers, Farm Service Agency,
U.S. Department of Agriculture, via email to <a href="/cdn-cgi/l/email-protection#a7ecc6d3cfde89f4c6dec2d5d4e7d2d4c3c689c0c8d1"><span class="__cf_email__" data-cfemail="7a311b0e120354291b031f08093a0f091e1b541d150c">[email protected]</span></a>.
Title: Supplemental Disaster Assistance Program (SDRP) Stage 1.
Form Numbers: CCC-901, CCC-902E, CCC-902I, FSA-510, and FSA-526.
OMB Number: 0503-0028.
Expiration Date: 10/31/2027.
Type of Request: Generic Information Collection.
Abstract: As authorized by Title I of the Disaster Relief
Supplemental Appropriations Act, 2025 (Division B of the American
Relief Act, 2025; Pub. L. 118-158), FSA is administering SDRP Stage 1
to assist producers who suffered eligible losses of crops, trees, and
vines due to wildfires, hurricanes, floods, derechos, excessive heat,
tornadoes, winter storms, freeze (including a polar vortex), smoke
exposure, excessive moisture, qualifying drought, and related
conditions occurring in calendar years 2023 and 2024.
Stage 1 will use a streamlined process with pre-filled application
forms for producers with indemnified or NAP-covered crop, tree, and
vine losses. Data for these losses are already on file with
[[Page 30569]]
FSA or RMA as a result of the producer previously receiving a NAP
payment or a crop insurance indemnity under certain crop insurance
policies. Producers will complete a pre-filled application form for
each program year for which they are applying.
Application Process
Affected Public: Business for profit and farms (Agricultural
producers).
Estimated Number of Respondents: 284,200.
Estimated Number of Responses per Respondent: 2.565.
Estimated Total Annual Responses: 729,257.
Estimated Time per Respondent: 0.19075 hours.
Estimated Total Annual Burden on Respondents: 139,110 burden hours.
----------------------------------------------------------------------------------------------------------------
Number of Total
Item Number of responses per annual Hours per Total hours
respondents respondent responses response per year
----------------------------------------------------------------------------------------------------------------
Letter...................................... 284,200 1 284,200 0.0835 22,736
FSA-526..................................... 284,200 1.4 397,880 0.25 99,470
Member Information for an................... 2,842 1 2,842 0.5 1,421
Entity--CCC-901.............................
Farm Operating Plan for an.................. 14,210 1 14,210 0.5 7,105
Entity--CCC-902E............................
Farm Operating Plan for an.................. 14,210 1 14,210 0.5 7,105
Individual--CCC-902I........................
Request for an Exception to the $125,000 11,368 1.4 15,915 0.0835 1,273
Payment Limitation for Certain Programs--
FSA-510....................................
-------------------------------------------------------------------
Subtotal Estimates...................... 284,200 2.565 729,257 0.19075 139,110
----------------------------------------------------------------------------------------------------------------
The FSA-526 may be filled out at a minimum once, at a maximum for 3
crop years, involved in this data collection.
Compliance Process
Affected Public: Business for profit and farms (Agricultural
producers).
Estimated Number Respondents: 284,200.
Estimated Number of Responses per Respondent: 1.32.
Estimated Total Annual Responses: 375,144.
Estimated Time per Respondent: 0.118181 hours.
Estimated Total Annual Burden on Respondents: 44,335 burden hours.
----------------------------------------------------------------------------------------------------------------
Number of Total
Item Number of responses per annual Hours per Total hours
respondents respondent responses response per year
----------------------------------------------------------------------------------------------------------------
Initial Notification Letter--............... 227,360 1 227,360 0.0835 18,189
Compliant...................................
Initial Notification Letter--May Request 56,840 1 56,840 0.0835 4,547
Review.....................................
Time to gather information and respond to 34,104 1 34,104 0.5 17,052
FSA........................................
Second Notification Letter--................ 28,420 1 28,420 0.0835 2,274
Compliant...................................
Second Notification Letter--................ 28,420 1 28,420 0.0835 2,274
Noncompliant................................
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Subtotal Estimates...................... 284,200 1.32 375,144 0.118181 44,335
----------------------------------------------------------------------------------------------------------------
The grand total is 284,200 respondents, 1,104,401 total annual
responses, and 183,445 burden hours.
E-Government Act Compliance
FSA is committed to complying with the E-Government Act of 2002, to
promote the use of the internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Assistance Listing, to which this document applies is 10.988--
Supplemental Disaster Relief Program.
List of Subjects in 7 CFR Part 760
Acreage allotments, Dairy products, Indemnity payments, Pesticides
and pest, Reporting and recordkeeping requirements.
For the reasons discussed above, this final rule amends 7 CFR part
760 as follows:
PART 760--INDEMNITY PAYMENT PROGRAMS
0
1. The authority citation for part 760 continues to read as follows:
Authority: 7 U.S.C. 4501 and 1531; 16 U.S.C. 3801, note; 19
U.S.C. 2497; Title III, Pub. L. 109-234, 120 Stat. 474; Title IX,
Pub. L. 110-28, 121 Stat. 211; Sec. 748, Pub. L. 111-80, 123 Stat.
2131; Title I, Pub. L. 115-123, 132 Stat. 65; Title I, Pub. L. 116-
20, 133 Stat. 871; Division B, Title VII, Pub. L. 116-94, 133 Stat.
2658; Title I, Pub. L. 117-43, 135 Stat. 356; and Division N, Title
I, Pub. L. 117-328, 136 Stat. 4459; Division B, Title I, Pub. L.
118-158, 138 Stat. 1722.
Subpart U [Added and Reserved]
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2. Add reserved subpart U.
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3. Add subpart V, consisting of Sec. Sec. 760.2200 through 760.2217,
to read as follows:
Subpart V--Supplemental Disaster Relief Program
Sec.
760.2200 Applicability.
760.2201 Administration.
760.2202 Definitions.
760.2203 Eligible producers.
760.2204 Stage 1 eligible and ineligible losses.
760.2205 [Reserved]
760.2206 Time and method of application.
760.2207 Required documentation and verification.
760.2208 Stage 1 payment calculation.
760.2209-760.2214 [Reserved]
760.2215 Payment limitation.
760.2216 Requirement to purchase crop insurance or NAP coverage.
760.2217 Miscellaneous provisions.
[[Page 30570]]
Sec. 760.2200 Applicability.
(a) This subpart specifies the eligibility requirements and payment
calculations for the Supplemental Disaster Relief Program (SDRP), which
is authorized by Title I of the Disaster Relief Supplemental
Appropriations Act, 2025 (Division B of the American Relief Act, 2025;
Pub. L. 118-158). SDRP provides payments to producers who suffered
eligible losses of crops, trees, bushes, and vines due to qualifying
disaster events, which include wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter storms, freeze (including a polar
vortex), smoke exposure, excessive moisture, qualifying drought, and
related conditions occurring in calendar years 2023 and 2024.
(b) To be eligible for an SDRP payment, a participant must comply
with all applicable provisions under this subpart.
(c) SDRP Stage 1 provides assistance for eligible losses of
eligible crops, trees, and vines for which a producer had crop
insurance or NAP coverage and received an indemnity for the applicable
crop year.
(d) [Reserved]
Sec. 760.2201 Administration.
(a) SDRP is administered under the general supervision and
direction of the Administrator, Farm Service Agency (FSA), and the
Deputy Administrator.
(b) FSA representatives do not have authority to modify or waive
any of the provisions of the regulations of this subpart as amended or
supplemented, except as specified in paragraph (d) of this section.
(c) The State committee will take any action required by the
regulations of this subpart that the county committee has not taken.
The State committee will also:
(1) Correct, or require a county committee to correct, any action
taken by such county committee that is not in accordance with the
regulations of this subpart; or
(2) Require a county committee to withhold taking any action that
is not in accordance with this subpart.
(d) No provision or delegation to a State or county committee will
preclude the FSA Administrator, the Deputy Administrator, or a designee
or other such person, from determining any question arising under the
programs of this subpart, or from reversing or modifying any
determination made by a State or county committee.
Sec. 760.2202 Definitions.
The definitions in 7 CFR parts 718 and 1400 apply to SDRP, except
where they conflict with this subpart. The following definitions also
apply.
Administrative fee means the amount an insured producer paid for
catastrophic risk protection, and additional coverage for each crop
year as specified in the applicable crop insurance policy.
Average adjusted gross farm income means the average of the person
or legal entity's adjusted gross income derived from farming, ranching,
and forestry operations, including losses, for the base period.
(1) If the resulting average adjusted gross farm income derived
from paragraphs (1) through (13) of the definition for ``income derived
from farming, ranching, and forestry operations'' in this section is at
least 66.66 percent of the average adjusted gross income of the person
or legal entity, then the average adjusted gross farm income may also
take into consideration income or benefits derived from the following:
(i) The sale, trade, or other disposition of equipment to conduct
farm, ranch, or forestry operations; and
(ii) The provision of production inputs and services to farmers,
ranchers, foresters, and farm operations.
(2) For legal entities not required to file a Federal income tax
return, or a person or legal entity that did not have taxable income in
1 or more of the tax years during the base period, the average adjusted
gross farm income will be the adjusted gross farm income, including
losses, averaged for the base period, as determined by FSA. For a legal
entity created during the base period, the adjusted gross farm income
average will include only those years of the base period for which it
was in business; however, a new legal entity will not be considered
``new'' to the extent it takes over an existing operation and has any
elements of common ownership interest and land with the preceding
person or legal entity from which it took over. When there is such
commonality, income of the previous person or legal entity will be
averaged with that of the new legal entity for the base period. For a
person filing a joint tax return, the certification of average adjusted
gross farm income may be reported as if the person had filed a separate
Federal tax return, and the calculation is consistent with the
information supporting the filed joint return.
Average AGI means the average of the adjusted gross income as
defined under 26 U.S.C. 62 or comparable measure of the person or legal
entity for the base period.
Base period means:
(1) 2019, 2020, and 2021 for the 2023 program year;
(2) 2020, 2021, and 2022 for the 2024 program year; and
(3) 2021, 2022, and 2023 for the 2025 program year.
Bush means a low, branching, woody plant, from which, at maturity
of the bush, an annual fruit or vegetable crop is produced for
commercial market for human consumption, such as a blueberry bush. The
definition does not cover nursery stock or plants that produce a bush
after the normal crop is harvested.
Buy-up NAP coverage has the same meaning as in 7 CFR 1437.3, which
is NAP coverage at a payment amount that is equal to an indemnity
amount calculated for buy-up coverage computed under section 508(c) or
(h) of the Federal Crop Insurance Act and equal to the amount that the
buy-up coverage yield for the crop exceeds the actual yield for the
crop.
Catastrophic coverage has the same meaning as in 7 CFR 1437.3,
which is:
(1) For insured crops, the coverage offered by the FCIC under
section 508(b) of the Federal Crop Insurance Act; and
(2) For eligible NAP crops, coverage at the following levels due to
an eligible cause of loss impacting the NAP covered crop during the
coverage period:
(i) Prevented planting in excess of 35 percent of the intended
acres;
(ii) A yield loss in excess of 50 percent of the approved yield;
(iii) A value loss in excess of 50 percent; or
(iv) An animal-unit-days (AUD) loss greater than 50 percent of
expected AUD.
Coverage level means the percentage determined by multiplying the
elected yield percentage under a crop insurance policy or NAP coverage
by the elected price percentage.
Crop year means:
(1) For insured crops, trees, and vines, the crop year as defined
according to the applicable crop insurance policy; and
(2) For NAP-covered crops, the crop year as defined in 7 CFR
1437.3.
Deputy Administrator means the FSA Deputy Administrator for Farm
Programs.
Eligible crop means a crop, including aquacultural species, for
which a Federal crop insurance policy or NAP coverage, as provided in
Sec. 760.2204(a), was available for the 2023, 2024, or 2025 crop year.
Farming operation means a business enterprise engaged in the
production of agricultural products, commodities, or livestock,
operated by a person, legal entity, or joint operation. A person or
[[Page 30571]]
legal entity may have more than one farming operation if the person or
legal entity is a member of one or more legal entities or joint
operations.
FCIC means the Federal Crop Insurance Corporation, a wholly owned
Government Corporation of the U.S. Department of Agriculture (USDA),
administered by RMA.
Federal crop insurance means an insurance policy reinsured by FCIC
administered by RMA under the provisions of the Federal Crop Insurance
Act (7 U.S.C. 1501-1524), as amended. It does not include private plans
of insurance.
Federal crop insurance indemnity means the payment to a participant
for crop losses covered under Federal crop insurance administered by
RMA in accordance with the Federal Crop Insurance Act.
High value crop means trees, bushes, vines, aquaculture, hemp,
grass for seed, tobacco, and vegetable seed.
Income derived from farming, ranching, and forestry operations
means income of an individual or entity derived from:
(1) Production of crops and unfinished raw forestry products;
(2) Production of livestock, aquaculture products used for food,
honeybees, and products derived from livestock;
(3) Production of farm-based renewable energy;
(4) Selling (including the sale of easements and development
rights) of farm, ranch, and forestry land, water or hunting rights, or
environmental benefits;
(5) Rental or lease of land or equipment used for farming,
ranching, or forestry operations, including water or hunting rights;
(6) Processing, packing, storing, and transportation of farm,
ranch, or forestry commodities including for renewable energy;
(7) Feeding, rearing, or finishing of livestock;
(8) Payments of benefits, including benefits from risk management
practices, federal crop insurance indemnities, and catastrophic risk
protection plans;
(9) Sale of land that has been used for agricultural purposes;
(10) Benefits (including, but not limited to, cost-share assistance
and other payments) from any Federal program made available and
applicable to payment eligibility and payment limitation rules, as
provided in 7 CFR part 1400;
(11) Income reported on Internal Revenue Service (IRS) Schedule F
or other schedule, approved by the Deputy Administrator, used by the
person or legal entity to report income from such operations to the
IRS;
(12) Wages or dividends received from a closely held corporation,
an Interest Charge Domestic International Sales Corporation (also known
as IC-DISC), or legal entity comprised entirely of family members when
more than 50 percent of the legal entity's gross receipts for each tax
year are derived from farming, ranching, and forestry activities as
defined in this subpart; and
(13) Any other activity related to farming, ranching, and forestry,
as determined by the Deputy Administrator.
IRS means the Department of the Treasury, Internal Revenue Service.
Legal entity, as used in this subpart:
(1) Means an entity that is created under Federal or State law and
that:
(i) Owns land or an agricultural commodity; or
(ii) Produces an agricultural commodity; and
(2) Includes corporations, joint stock companies, associations,
limited partnerships, limited liability companies, irrevocable trusts,
estates, charitable organizations, general partnerships, joint
ventures, and other similar organizations created under Federal or
State law including any such organization participating in a business
structure as a partner in a general partnership, a participant in a
joint venture, a grantor of a revocable trust, or as a participant in a
similar organization. A business operating as a sole proprietorship is
considered a legal entity.
Liability means the liability as defined by the applicable crop
insurance policy for a crop and unit.
NAP means the Noninsured Crop Disaster Assistance Program, which is
authorized by section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333) and regulations in 7 CFR part 1437.
NAP service fee means the fee the producer paid to obtain NAP
coverage specified in 7 CFR 1437.7.
Ownership interest means to have either a legal ownership interest
or a beneficial ownership interest in a legal entity. For the purposes
of administering SDRP, a person or legal entity that owns a share or
stock in a legal entity that is a corporation, limited liability
company, limited partnership, or similar type entity where members hold
a legal ownership interest and shares in the profits or losses of such
entity is considered to have an ownership interest in such legal
entity. A person or legal entity that is a beneficiary of a trust or
heir of an estate who benefits from the profits or losses of such
entity is considered to have a beneficial ownership interest in such
legal entity.
Other crop means a crop that is not included in the definition of
specialty crop or high value crop.
Premium means the premium paid by the producer for crop insurance
coverage or NAP buy-up coverage levels.
Program year means the crop year.
Producer means an owner, operator, landlord, tenant, or
sharecropper that shares in the risk of producing the crop and is
entitled to share in the crop available for marketing from the farm, or
would have shared had the crop been produced.
Production inputs mean material to conduct farming operations, such
as seeds, chemicals, and fencing supplies.
Production services mean services provided to support a farming
operation, such as custom farming, custom feeding, and custom fencing.
Qualifying disaster event means wildfires, hurricanes, floods,
derechos, excessive heat, tornadoes, winter storms, freeze (including a
polar vortex), smoke exposure, excessive moisture, qualifying drought,
and related conditions that occurred in calendar year 2023 or 2024.
Qualifying drought means an area within the county was rated by the
U.S. Drought Monitor as having a:
(1) D2 (severe drought) intensity for at least 8 consecutive weeks
in the applicable calendar year; or
(2) D3 (extreme drought) or higher intensity for any period of time
during the applicable calendar year.
Related condition means damaging weather and adverse natural
occurrences that occurred concurrently with and as a direct result of a
specified qualifying disaster event. Related conditions include, but
are not limited to:
(1) Excessive wind that occurred as a direct result of a derecho;
(2) Silt and debris that occurred as a direct and proximate result
of flooding;
(3) Excessive wind, storm surges, tornadoes, tropical storms, and
tropical depressions that occurred as a direct result of a hurricane;
and
(4) Excessive wind and blizzards that occurred as a direct result
of a winter storm.
RMA means the Risk Management Agency.
Specialty crops means fruits, tree nuts, vegetables, culinary herbs
and spices, medicinal plants, and nursery, floriculture, and
horticulture crops. This includes common specialty crops identified by
USDA's Agricultural
[[Page 30572]]
Marketing Service at <a href="https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf">https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf</a> and other crops as designated by
the Deputy Administrator.
Substantial beneficial interest (SBI) has the same meaning as
specified in the applicable crop insurance policy. For the purposes of
Stage 1, Federal crop insurance records for ``transfer of coverage,
right to indemnity'' are considered the same as SBIs.
Supplemental policy endorsement based on county- or area-level
losses when purchased with a base policy means an Enhanced Coverage
Option endorsement, Hurricane Insurance Protection-Wind Index
endorsement, Supplemental Coverage Option Endorsement, or Stacked
Income Protection Plan endorsement when purchased with a base policy.
Tree means a tall, woody plant having comparatively great height,
and a single trunk from which an annual crop is produced for commercial
market for human consumption, such as a maple tree for syrup, or papaya
or orchard tree for fruit. It includes immature trees that are intended
for commercial purposes. Nursery stock, banana and plantain plants, and
trees used for pulp or timber are not considered eligible trees for
SDRP.
Unit means the unit structure as defined under the applicable crop
insurance policy for insured crops or in 7 CFR 1437.9 for NAP-covered
crops.
U.S. Drought Monitor means the system for classifying drought
severity according to a range of abnormally dry to exceptional drought
reported by the National Drought Mitigation Center at <a href="https://droughtmonitor.unl.edu">https://droughtmonitor.unl.edu</a>. It is a collaborative effort between Federal
and academic partners, produced on a weekly basis, to synthesize
multiple indices, outlooks, and drought impacts on a map and in
narrative form.
Vine means a perennial plant grown under normal conditions from
which an annual fruit crop is produced for commercial market for human
consumption, such as grape, kiwi, or passion fruit, and that has a
flexible stem supported by climbing, twining, or creeping along a
surface. Nursery stock, perennials that are normally propagated as
annuals such as tomato plants, biennials such as strawberry plants, and
annuals such as pumpkin, squash, cucumber, watermelon, and other melon
plants, are excluded from the term vine.
WFRP means Whole-Farm Revenue Protection available through the
FCIC, including coverage under the Micro Farm Program.
Sec. 760.2203 Eligible producers.
(a) To be eligible for payment under this subpart, a producer must
be a:
(1) Citizen of the United States;
(2) Resident alien, which for purposes of SDRP means ``lawful
alien'' as defined in 7 CFR part 1400;
(3) Partnership organized under State law consisting solely of
citizens of the United States or resident aliens;
(4) Corporation, limited liability company, or other organizational
structure organized under State law consisting solely of citizens of
the United States or resident aliens; or
(5) Indian Tribe or Tribal organization, as defined in section 4(b)
of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304).
(b) Members of legal entities, including those who are listed as an
SBI on FSA-526, who do not individually share in the risk of producing
the crop and ownership of the crop are not considered producers and are
not eligible to apply for SDRP; in those instances, the entity is
considered the applicant.
(c) To be eligible for SDRP, a producer must be in compliance with
the provisions of 7 CFR part 12 and the provisions of 7 CFR 718.6,
which address ineligibility for benefits for offenses involving
controlled substances.
(d) FSA's creation and mailing of a pre-filled application does not
indicate that the person or legal entity listed on the application is
eligible for an SDRP Stage 1 payment.
Sec. 760.2204 Stage 1 eligible and ineligible losses.
(a) For SDRP Stage 1, eligible losses include production, quality,
and revenue losses of eligible crops and losses of eligible trees and
vines for which the producer:
(1) Received an indemnity under a Federal crop insurance policy
that provided coverage for crop production losses or tree or vine
losses related to qualifying disaster events, excluding policies for
forage seeding or crops with an intended use of grazing, livestock
policies, Controlled Environment policies, Margin Protection Plan
policies, banana plants insured under the Hawaii Tropical Trees
provisions, supplemental policy endorsements based on county- or area-
level losses when purchased with a base policy, and policies issued in
Puerto Rico; or
(2) Received a NAP payment, excluding crops with an intended use of
grazing.
(b) To be eligible for SDRP Stage 1, the loss described in
paragraph (a) of this section must have been caused, in whole or in
part, by a qualifying disaster event. FSA's creation and mailing of a
pre-filled application does not indicate that a crop, tree, or vine
loss included on that application is eligible for an SDRP Stage 1
payment.
(c) The following losses are not eligible for SDRP Stage 1:
(1) Losses of aquacultural species that were compensated under
ELAP;
(2) Losses for which the producer received an:
(i) ERP 2022 Track 1 payment for the 2023 crop year; or
(ii) ERP 2022 Track 2 payment for which their allowable gross
revenue for the 2023 tax year was used as the disaster year revenue;
(3) Losses of insured crops, trees, and vines:
(i) In units that were physically located in Connecticut, Hawaii,
Maine, or Massachusetts;
(ii) That were covered under a WFRP policy for which the producer
indicated on their crop insurance reports that the majority of their
expected revenue would be earned in a county located in Connecticut,
Hawaii, Maine, or Massachusetts; or
(iii) That were covered under a Rainfall Index plan for Apiculture
or Pasture, Rangeland, and Forage, for which the producer entered a
county located in Connecticut, Hawaii, Maine, or Massachusetts on their
insurance application; and
(4) Losses of NAP-covered crops that were included in a unit that
included any land physically located in Connecticut, Hawaii, Maine, or
Massachusetts.
(d) If a producer received both a NAP payment and an indemnity
under a Federal crop insurance policy that is included in Stage 1 to
address the same loss, the producer cannot receive a Stage 1 payment
based on both the crop insurance indemnity and NAP payment. The
producer must elect whether to receive the Stage 1 payment based on the
data associated with their Federal crop insurance indemnity or their
NAP payment.
Sec. 760.2205 [Reserved]
Sec. 760.2206 Time and method of application.
(a) For SDRP Stage 1, producers will receive a pre-filled FSA-526,
Supplemental Disaster Relief Program (SDRP) Stage 1 Application, which
includes the producer's information that is already on file with USDA.
Producers may submit complete applications to their FSA county office
in person or by mail, email, facsimile, or other methods
[[Page 30573]]
announced by FSA. A producer must submit a complete application to
their recording county office by the deadline announced by FSA.
(b) Producers may not alter the pre-filled data in FSA-526. Any
alterations in the pre-filled data on the application will result in
FSA disapproving the producer's Stage 1 application.
(c)-(d) [Reserved]
(e) In addition to the SDRP application, a producer must also have
the following forms on file with FSA for the applicable program year by
the deadline announced by FSA:
(1) CCC-902, Farm Operating Plan, for an individual or legal
entity;
(2) CCC-901, Member Information for Legal Entities, if applicable;
(3) AD-1026, Highly Erodible Land Conservation (HELC) and Wetland
Conservation (WC) Certification, for the producer and affiliated
persons as provided in 7 CFR part 12; and
(4) FSA-510, Request for an Exception to the $125,000 Payment
Limitation for Certain Program, for producers and members of legal
entities who are requesting an increased payment limitation.
Sec. 760.2207 Required documentation and verification.
(a) Participants must retain documentation in support of their
application for 3 years after the date of approval. All information
provided to FSA for program eligibility and payment calculation
purposes, including certification of the qualifying disaster event that
caused the loss, is subject to spot check. Participants receiving SDRP
payments or any other person who furnishes such information to USDA
must permit authorized representatives of USDA or the Government
Accountability Office, during regular business hours, to enter the
agricultural operation and to inspect, examine, and to allow
representatives to make copies of books, records, or other items for
the purpose of confirming the accuracy of the information provided by
the participant.
(b) Producers who apply for Stage 1 for losses covered under WFRP
must submit documentation to FSA to support their certification of the
percentage of expected revenue from specialty and high value crops by
the deadline announced by FSA. If a producer does not submit the
required documentation, FSA will process the producer's application
with 0 percent of their revenue attributed to specialty and high value
crops, resulting in the producer's payment for loss being attributed to
the payment limitation for other crops as provided in Sec.
760.2215(a).
Sec. 760.2208 Stage 1 payment calculation.
(a) FSA and RMA will calculate Stage 1 payments using the loss data
on file with FSA or RMA at the time of payment calculation or as later
updated by FSA or RMA upon identification and correction of an error in
the data on file at time of payment calculation. Stage 1 payments will
not be calculated using data manually submitted by producers.
(b) The SDRP Stage 1 payment calculation for each crop and unit
will use an SDRP factor based on the applicable type of coverage and
the level of crop insurance or NAP coverage, as specified in the
following table.
Table 1 to Paragraph (b)--SDRP Factors
----------------------------------------------------------------------------------------------------------------
SDRP factor
Type of coverage Coverage level (percent)
----------------------------------------------------------------------------------------------------------------
Crop insurance................................ Catastrophic coverage.......................... 75.0
More than catastrophic coverage but less than 80.0
55 percent.
At least 55 percent but less than 60 percent... 82.5
At least 60 percent but less than 65 percent... 85.0
At least 65 percent but less than 70 percent... 87.5
At least 70 percent but less than 75 percent... 90.0
At least 75 percent but less than 80 percent... 92.5
At least 80 percent............................ 95.0
----------------------------------------------------------------------------------------------------------------
NAP........................................... Catastrophic coverage.......................... 75.0
50 percent..................................... 80.0
55 percent..................................... 85.0
60 percent..................................... 90.0
65 percent..................................... 95.0
----------------------------------------------------------------------------------------------------------------
(c) To calculate a Stage 1 payment for an eligible insured crop,
tree, or vine loss, RMA will perform a calculation consistent with the
calculation of an indemnity for the crop and unit. The calculation will
use the approved RMA loss procedures for the type of coverage purchased
by the producer, but it will substitute the SDRP factor in table 1 of
paragraph (b) of this section for the policy's coverage level. Using
that SDRP factor, RMA will determine the amount that will be used in
place of the liability for SDRP purposes. The result of that
calculation will then be adjusted by subtracting the net crop insurance
indemnity, which is equal to the producer's gross crop insurance
indemnity for the crop and unit minus administrative fees and premiums.
(d) To calculate a Stage 1 payment for a NAP-covered crop loss, FSA
will perform a calculation consistent with the NAP payment calculation
for the crop and unit as provided in 7 CFR part 1437. FSA will
substitute the SDRP factor in table 1 of paragraph (b) of this section
for the coverage level to determine the applicable guarantee for SDRP
purposes. This calculated amount will then be adjusted by subtracting
the net NAP payment, which is equal to the producer's gross NAP payment
for the crop and unit minus service fees and premiums.
(e) Crops covered under a WFRP policy or insured under a whole-farm
unit will be treated as a single crop for payment calculation purposes.
(f) To ensure that SDRP payments do not exceed available funding,
the SDRP Stage 1 payment will be equal to the amount calculated
according to paragraph (c) or (d) of this section multiplied by a
factor of 35 percent. If funding remains available after Stage 2
payments are issued, FSA may issue additional Stage 1 payments under
this subpart.
Sec. Sec. 760.2209-760.2214 [Reserved]
Sec. 760.2215 Payment limitation.
(a) For each program year, a person or legal entity, other than a
joint venture or general partnership, is eligible to
[[Page 30574]]
receive, directly or indirectly, SDRP payments of not more than:
(1) $125,000 for specialty and high value crops combined and
$125,000 for other crops, if less than 75 percent of the person or
legal entity's average adjusted gross income is average adjusted gross
farm income; or
(2) $900,000 for specialty and high value crops combined and
$250,000 for other crops, if not less than 75 percent of the average
adjusted gross income of the person or legal entity is average adjusted
gross farm income.
(b) To be eligible to receive payments based on the limitations in
paragraph (a)(2) of this section, a producer must submit form FSA-510,
including the certification from a certified public accountant or
attorney that the person or legal entity has met the requirements to be
eligible for the increased payment limitation, by the deadline
announced by FSA. If a producer or member of a legal entity files FSA-
510 and the accompanying certification after their SDRP payment is
issued but before the deadline, FSA will recalculate the payment and
issue the additional calculated amount.
(c) If a producer requesting the increased payment limitations in
paragraph (a)(2) of this section is a legal entity, all members of that
entity must also complete FSA-510 and provide the required
certification according to the direct attribution provisions in 7 CFR
1400.105. If a legal entity would be eligible for the increased payment
limitations based on the legal entity's average adjusted gross farm
income but a member of that legal entity either does not complete an
FSA-510 and provide the required certification or is not eligible for
the increased payment limitations, the payment to the legal entity will
be reduced for the limitations applicable to the share of the SDRP
payment attributed to that member.
(d) Producers who file FSA-510 are subject to an FSA audit of
information submitted for the purpose of increasing the program's
payment limitation. As a part of this audit, FSA may request income tax
returns, and if requested, must be supplied by all related persons and
legal entities. In addition to any other requirement under any Federal
statute, relevant Federal income tax returns and documentation must be
retained a minimum of 3 years after the end of the calendar year
corresponding to the year for which payments or benefits are requested.
Failure to provide necessary and accurate information to verify
compliance, or failure to comply with these requirements will result in
ineligibility for SDRP benefits and require refund of any SDRP
payments, including interest to be calculated from the date of the
disbursement to the producer.
(e) The payment limitation provisions of 7 CFR part 1400, subpart
A, and Sec. Sec. 1400.103 through 1400.106 apply to SDRP.
(f) Payments made directly or indirectly to a person who is a minor
child will not be combined with the earnings of the minor's parent or
legal guardian.
(g) If an individual or legal entity is not eligible to receive
SDRP payments due to the individual or legal entity failing to satisfy
payment eligibility provisions, the payment made either directly or
indirectly to the individual or legal entity will be reduced to zero.
The amount of the reduction for the direct payment to the producer will
be commensurate with the direct or indirect ownership interest of the
ineligible individual or ineligible legal entity.
Sec. 760.2216 Requirement to purchase crop insurance or NAP coverage.
(a) A participant who receives payment under this subpart must
obtain Federal crop insurance or NAP coverage for the next 2 available
crop years after the date a producer receives an SDRP payment as
described in this section. Participants must also file an acreage
report and any other required reports or documentation needed to
establish crop insurance or NAP coverage for the applicable crop years.
(b) To meet the requirement in paragraph (a) of this section, a
producer must obtain:
(1) For an insurable crop, tree, or vine, Federal crop insurance
with at least a 60 percent coverage level; or
(2) For a NAP-eligible crop, NAP coverage with at least a 60
percent coverage level.
(c) Participants who are required to obtain NAP coverage but exceed
the average adjusted gross income limitation for NAP payment
eligibility for the applicable crop year may meet the purchase
requirement paragraph (a) of this section by purchasing WFRP coverage,
if eligible, or paying the NAP service fee and premium even though the
participant will not be eligible to receive a NAP payment.
(d) Producers who receive a Stage 1 payment that was calculated
based on an indemnity under a Pasture, Rangeland, and Forage policy;
Annual Forage policy; or WFRP policy must purchase the same type of
policy or a combination of individual policies for the crops that had
covered losses under SDRP Stage 1 to meet the Federal crop insurance
and NAP coverage requirement.
(e) If both Federal crop insurance and NAP coverage are unavailable
for a crop, the producer must obtain WFRP Federal crop insurance
coverage, if eligible.
(f) The Federal crop insurance and NAP coverage requirements are
specific to the crop and county for which an SDRP payment is issued.
For insured crops, the applicable county is the county where the crop
is physically located. For NAP-covered crops, the applicable county is
the administrative county.
(g) Producers who are paid for a crop in a county, but do not plant
that crop in that county in a year for which the Federal crop insurance
and NAP coverage requirement applies, are not subject to the Federal
crop insurance or NAP purchase requirement for that year.
(h) If a producer fails to obtain Federal crop insurance or NAP
coverage as required by this section, the producer must reimburse FSA
for the full amount of SDRP payment plus interest from the date of
disbursement that the producer received for that crop, tree, bush, or
vine loss. A producer will only be considered to have obtained NAP
coverage for the purposes of this section if the participant applied
and paid the requisite NAP service fee and paid any applicable premium
by the applicable deadline and completed all program requirements,
including filing an acreage report as may be required under such
coverage agreement.
Sec. 760.2217 Miscellaneous provisions.
(a) In the event that an SDRP payment resulted from erroneous
information reported by the producer, or any person acting on their
behalf, or if the producer's data are updated after RMA or FSA
calculates a producer's Stage 1 payment, the SDRP payment will be
recalculated and the producer must refund any excess payment to FSA,
including interest to be calculated from the date of the disbursement
to the producer. If FSA determines that the producer intentionally
misrepresented information used to determine the producer's SDRP
payment amount, the application will be disapproved and the producer
must refund the full payment to FSA with interest from the date of
disbursement. All persons with a financial interest in a legal entity
receiving payments are jointly and severally liable for any refund,
including related charges, which is determined to be due to FSA for any
reason.
(b) If FSA determines that the producer intentionally
misrepresented information used to determine the
[[Page 30575]]
producer's SDRP payment amount, the application will be disapproved and
the producer must refund the full payment to FSA with interest from the
date of disbursement.
(c) Any required refunds must be resolved in accordance with debt
settlement regulations in 7 CFR part 3.
(d) Participants are required to retain documentation in support of
their application for 3 years after the date of approval. Participants
receiving SDRP payments or any other person who furnishes such
information to USDA must permit authorized representatives of USDA or
the Government Accountability Office, during regular business hours, to
enter the agricultural operation and to inspect, examine, and to allow
representatives to make copies of books, records, or other items for
the purpose of confirming the accuracy of the information provided by
the participant.
(e) Any payment under SDRP will be made without regard to questions
of title under State law and without regard to any claim or lien. The
regulations governing offsets in 7 CFR part 3 apply to SDRP payments.
(f) Participants are subject to laws against perjury and any
penalties and prosecution resulting therefrom, with such laws including
but not limited to 18 U.S.C. 1621. If a producer willfully makes and
represents as true any verbal or written declaration, certification,
statement, or verification that the producer knows or believes not to
be true, in the course of either applying for or participating in SDRP,
then the producer is guilty of perjury and, except as otherwise
provided by law, may be fined, imprisoned for not more than 5 years, or
both, regardless of whether the producer makes such verbal or written
declaration, certification, statement, or verification within or
outside the United States.
(g) For the purposes of the effect of a lien on eligibility for
Federal programs (28 U.S.C. 3201(e)), USDA waives the restriction on
receipt of funds under SDRP but only as to beneficiaries who, as a
condition of the waiver, agree to apply the SDRP payments to reduce the
amount of the judgment lien.
(h) In addition to any other Federal laws that apply to SDRP, the
following laws apply: 15 U.S.C. 714; and 18 U.S.C. 286, 287, 371, and
1001.
(i) Prompt pay interest is not applicable to payments under this
subpart.
William Beam,
Administrator, Farm Service Agency.
[FR Doc. 2025-12803 Filed 7-9-25; 8:45 am]
BILLING CODE 3411-E2-P
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</html>Indexed from Federal Register on July 10, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.