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Rule2025-20132

Agricultural Disaster Indemnity Programs

Primary source

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Published

November 18, 2025

Effective

November 18, 2025

Issuing agencies

Agriculture DepartmentFarm Service Agency

Abstract

The Farm Service Agency (FSA) is issuing this rule to provide assistance for eligible quality losses under Stage 1 of the Supplemental Disaster Relief Program (SDRP) and to implement Stage 2 of SDRP, the On-Farm Stored Commodity Loss Program (OFSCLP), and the Milk Loss Program (MLP), all of which will provide assistance using funding authorized by the American Relief Act, 2025. SDRP provides payments to eligible producers for losses of crops, trees, bushes, and vines due to qualifying disaster events that occurred in calendar year 2023 or 2024. SDRP Stage 1 uses a streamlined process for eligible crop, tree, and vine losses that were previously indemnified under Federal crop insurance or the Noninsured Crop Disaster Assistance Program (NAP), while SDRP Stage 2 covers losses of eligible crops, trees, bushes, and vines for which a producer did not have crop insurance or NAP coverage, as well as losses that were insured or covered by NAP but not severe enough to trigger an indemnity. OFSCLP provides payments to eligible producers who suffered uncompensated losses of harvested commodities stored in on-farm structures as a result of wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze, including a polar vortex, smoke exposure, qualifying drought, and related conditions that occurred in calendar year 2023 or 2024. MLP provides payments to eligible dairy operations for milk that was dumped or removed without compensation from the commercial milk market 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 that occurred in calendar year 2023 or 2024. This rule specifies the administrative provisions, eligibility requirements, and payment calculations for these programs. It also announces deadlines and adds quality loss assistance provisions for SDRP Stage 1. This rule also extends the deadlines for the Emergency Livestock Relief Program (ELRP) 2023 and 2024 and ELRP 2023 and 2024 Flood and Wildfire (FW).

Full Text

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<title>Federal Register, Volume 90 Issue 220 (Tuesday, November 18, 2025)</title>
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[Federal Register Volume 90, Number 220 (Tuesday, November 18, 2025)]
[Rules and Regulations]
[Pages 51956-51988]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20132]

[[Page 51955]]

Vol. 90

Tuesday,

No. 220

November 18, 2025

Part IV

Department of Agriculture

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Farm Service Agency

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7 CFR Part 760

Agricultural Disaster Indemnity Programs; Final Rule

Federal Register / Vol. 90, No. 220 / Tuesday, November 18, 2025 /
Rules and Regulations

[[Page 51956]]

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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 760

[Docket ID FSA-2025-0007]
RIN 0560-AI81

Agricultural Disaster Indemnity Programs

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 rule to provide
assistance for eligible quality losses under Stage 1 of the
Supplemental Disaster Relief Program (SDRP) and to implement Stage 2 of
SDRP, the On-Farm Stored Commodity Loss Program (OFSCLP), and the Milk
Loss Program (MLP), all of which will provide assistance using funding
authorized by the American Relief Act, 2025. SDRP provides payments to
eligible producers for losses of crops, trees, bushes, and vines due to
qualifying disaster events that occurred in calendar year 2023 or 2024.
SDRP Stage 1 uses a streamlined process for eligible crop, tree, and
vine losses that were previously indemnified under Federal crop
insurance or the Noninsured Crop Disaster Assistance Program (NAP),
while SDRP Stage 2 covers losses of eligible crops, trees, bushes, and
vines for which a producer did not have crop insurance or NAP coverage,
as well as losses that were insured or covered by NAP but not severe
enough to trigger an indemnity. OFSCLP provides payments to eligible
producers who suffered uncompensated losses of harvested commodities
stored in on-farm structures as a result of wildfires, hurricanes,
floods, derechos, excessive heat, tornadoes, winter storms, freeze,
including a polar vortex, smoke exposure, qualifying drought, and
related conditions that occurred in calendar year 2023 or 2024. MLP
provides payments to eligible dairy operations for milk that was dumped
or removed without compensation from the commercial milk market 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 that
occurred in calendar year 2023 or 2024. This rule specifies the
administrative provisions, eligibility requirements, and payment
calculations for these programs. It also announces deadlines and adds
quality loss assistance provisions for SDRP Stage 1. This rule also
extends the deadlines for the Emergency Livestock Relief Program (ELRP)
2023 and 2024 and ELRP 2023 and 2024 Flood and Wildfire (FW).

DATES: This rule is effective on November 18, 2025.

FOR FURTHER INFORMATION CONTACT: For SDRP, Kathy Sayers; telephone:
(202) 720-6870; or email: <a href="/cdn-cgi/l/email-protection#ade6ccd9c5d483feccd4c8dfdeedd8dec9cc83cac2db">[email&#160;protected]</a>. For OFSCLP, Shayla
Watson; telephone: (202) 690-2350; or email: <a href="/cdn-cgi/l/email-protection#b7e4dfd6cedbd699e0d6c3c4d8d9f7c2c4d3d699d0d8c1">[email&#160;protected]</a>.
For MLP, Douglas E. Kilgore; telephone: (717) 887-0963; or email:
<a href="/cdn-cgi/l/email-protection#f1b59e84969d9082dfb4dfba989d969e8394b184829590df969e87">[email&#160;protected]</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:

Table of Contents

I. Background
II. SDRP
A. Stage 1 Quality Loss Payment Eligibility
B. Stage 1 Quality Loss Payment Calculation
C. Stage 2 Eligible and Ineligible Losses
D. Stage 2 Eligible Crops
E. Stage 2 Eligible Acres
F. Eligible Production
G. Stage 2 Payment Calculations
1. Insured and NAP-covered Crops
2. Uninsured Crops
3. Trees, Bushes, and Vines
H. How To Apply
III. OFSCLP
A. Eligible Commodities
B. Eligible Producers
C. How To Apply
D. Payment Calculation
E. Payment Limitation
F. Miscellaneous Changes
IV. MLP
A. Affected Farmer Eligibility
B. How To Apply
C. Payment Calculation
D. Payment Limitation
E. Miscellaneous Changes
V. ELRP 2023 and 2024 and ELRP 2023 and 2024 FW
VI. Regulatory Analyses
A. Notice and Comment and Effective Date
B. Executive Orders 12866, 13563, and 14192
C. Cost Benefit Analysis Summary
D. Environmental Review
E. Executive Order 13175
F. Unfunded Mandates Reform Act
G. Paperwork Reduction Act Requirements
H. E-Government Act Compliance

I. 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. . .''.
FSA is using the funding provided in the Act to assist eligible
producers through several programs.\1\
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\1\ FSA previously announced the Emergency Livestock Relief
Program (ELRP) 2023 and 2024, which provides assistance to livestock
producers for losses due to qualifying drought and qualifying
wildfire on federally managed land (90 FR 22614), and ELRP 2023 and
2024 Flood and Wildfire (FW), which provides assistance for losses
due to floods and wildfires on non-federally managed land (90 FR
44299). FSA also previously announced the Supplemental Disaster
Relief Program (SDRP) Stage 1, which provides assistance to
producers who suffered indemnified crop, tree, and vine losses due
to qualifying disaster events (90 FR 30561).
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This final rule announces the deadline for all SDRP applications,
including applications for Stage 1 losses addressed in the previous
final rule \2\, and specifies how FSA will implement assistance for
SDRP Stage 1 quality losses. It amends the SDRP regulations to add
information about eligibility requirements, the application process,
and payment calculations for SDRP Stage 2. This final rule also amends
the regulations for OFSCLP and MLP to update information about
eligibility requirements, the application process, and payment
calculations for assistance authorized under the Act.
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\2\ See 90 FR 30561.
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II. SDRP

SDRP is using 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 is
administering SDRP in two stages. On July 10, 2025, FSA announced SDRP
Stage 1, which uses a streamlined process with pre-filled application
forms for eligible losses of crops, trees, and vines for which a
producer received a Federal crop insurance indemnity under certain
policies or a NAP payment.\3\
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\3\ See 90 FR 30561.
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This rule amends the Stage 1 provisions in 7 CFR part 760, subpart
V, to provide program deadlines and additional assistance for eligible
quality

[[Page 51957]]

losses for certain crops previously included in Stage 1. This rule also
adds provisions for Stage 2 to subpart V. Stage 2 provides payments for
eligible crops, trees, and vines that were covered by Federal crop
insurance or NAP but had losses that were not severe enough to result
in an indemnity or NAP payment, referred to as ``shallow'' losses. The
Stage 2 payment calculations for those crops are similar to the
calculations used for Stage 1, which were based on the calculation
specified in the crop's insurance or NAP policy and used an SDRP factor
that varied based on the crop insurance or NAP coverage level. Stage 2
also provides payments for losses of eligible crops, trees, bushes and
vines that were not covered by Federal crop insurance or NAP. The
payment calculations for uninsured crops, trees, bushes, and vines are
similar to the previous 2017 Wildfires and Hurricanes Indemnity Program
(2017 WHIP) and the Wildfires and Hurricanes Indemnity Program Plus
(WHIP+) (see 7 CFR part 760, subpart O). This rule also makes minor
clarifications to existing provisions throughout the subpart where
needed to clarify their applicability to Stage 1 and Stage 2.
The Stage 1 final rule published on July 10, 2025, provided the
general administrative and eligibility provisions that apply to all
SDRP payments, including producer eligibility criteria (7 CFR
760.2203). As provided in Sec. 760.2202, qualifying disaster events
for SDRP include 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 that was rated by the U.S.
Drought Monitor as having a D2 (severe drought) intensity for at least
8 consecutive weeks in the applicable calendar year, or D3 (extreme
drought) or higher intensity for any period of time during the
applicable calendar year.
As explained in the July 10, 2025 final rule, all SDRP payments,
including those announced in this rule, will be combined for the
purpose of applying the payment limitations in Sec. 760.2215.\4\ The
requirement to purchase crop insurance or NAP coverage for the next 2
available crop years applies to all SDRP payments as provided in Sec.
760.2216.\5\
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\4\ See 90 FR 30565.
\5\ See 90 FR 30566.
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A. Stage 1 Quality Loss Payment Eligibility

This rule amends the provisions of SDRP Stage 1 to provide
additional assistance for quality losses, referred to as ``Stage 1
quality loss payments'' in this rule, for certain crops that suffered
losses previously included in Stage 1 (Sec. 760.2204(e) and (f)).
Stage 1 quality loss payments will only be issued for crops for which
the producer has:
<bullet> Received an indemnity under an Actual Production History
(APH) or a yield-based Federal crop insurance plan or a NAP payment;
and
<bullet> Submitted a complete FSA-526, Supplemental Disaster Relief
Program (SDRP) Stage 1 Application.
Crop losses that were indemnified under Federal crop insurance
plans other than APH or yield-based insurance are not eligible for
Stage 1 quality loss payments because the crop insurance plan already
addresses quality losses for those crops (for example, through price
decline for dollar plans and other revenue plans), and the original
Stage 1 payment was based on the producer's underlying Federal crop
insurance plan.
Eligibility criteria for Stage 1 quality losses are generally
consistent with those used for the previous Quality Loss Adjustment
(QLA) Program, which used a similar approach to pay for crop quality
losses (see 7 CFR part 760, subpart R). The following are not eligible
for Stage 1 quality loss payments:
<bullet> Value-loss crops; \6\
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\6\ Value loss crops are crops for which losses are calculated
based on the value of a producer's inventory before and after a
disaster event, rather than based on a yield expressed as a unit of
production per acre. Stage 1 payments for value loss crops in the
previous rule are based on the difference in the value of the crop
before and after the disaster event.
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<bullet> Maple sap;
<bullet> Honey;
<bullet> Crops for which the producer received a Federal crop
insurance indemnity, NAP payment, or Stage 1 payment specified in Sec.
760.2208 based on the quantity of the crop's production that was
considered unmarketable;
<bullet> Crops for which the producer previously received a Federal
crop insurance indemnity, NAP payment, or Stage 1 payment specified in
Sec. 760.2208 for which the crop production was reported as salvage
value or secondary use;
<bullet> Crops that were destroyed;
<bullet> Crops that were prevented from being planted;
<bullet> Losses that could have been mitigated through reasonable
and available measures;
<bullet> Crops that were previously adjusted for a quality loss
under NAP;
<bullet> The portion of quality adjustment previously included in a
crop insurance indemnity;
<bullet> Trees, bushes, and vines;
<bullet> Sugar beets for which a member of a cooperative processor
received a payment for the same loss through a block grant or
cooperative agreement; and
<bullet> Crops that were unharvested.

B. Stage 1 Quality Loss Payment Calculation

Stage 1 quality loss payments will be calculated by applying a
quality loss percentage to the producer's production on file with Risk
Management Agency (RMA) or FSA that was used to calculate the
producer's Stage 1 payment announced in the final rule published on
July 10, 2025. The quality loss percentage for forage crops is the
percentage of loss calculated for a reduction in the nutritional value
of the crop based on applicable nutrient factors, such as relative feed
value (RFV). The quality loss percentage for all other crops is based
on the reduction in value based on applicable grading factors, such as
protein or damage. The quality loss percentage is calculated separately
for crops based on the crop type, intended use, certified organic or
conventional status, county, and crop year.
To determine the quality loss percentage for forage crops, FSA will
first determine the acceptable high and low nutritional values, as well
as the resulting range determined by subtracting the low nutritional
value from the high nutritional value. For example, FSA may determine
that the high RFV is 185 and the low RFV is 130; the resulting range is
then 55. The producer will submit a verifiable test to FSA that
indicates the nutritional value for the impacted production. To be
considered verifiable, FSA must be able to verify the test through an
independent source. The producer will calculate their quality loss by
subtracting the nutritional value from their verifiable test from the
high nutritional value determined by FSA, and then will compute the
percentage difference by dividing the calculated quality loss by the
range determined by FSA. The producer will then calculate the quality
loss percentage by taking 100 percent minus that percentage difference.
For example, suppose the producer's verifiable test indicates an RFV of
150. The producer subtracts 150 from 185 (the high value determined by
FSA), which equals 35, and then divides 35 by 55 (the range determined
by FSA),

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which equals 64 percent. The quality loss percentage is 36 percent (100
percent minus 64 percent).
If a producer has production that was not impacted by quality or
impacted at a different level, the quality loss percentage must be
weighted to account for differing extents of quality loss across all of
the producer's production. To determine the weighted quality loss
percentage, the producer will first calculate the percent production
impacted by quality loss by dividing the impacted production by the
total production. Then, the producer determines the weighted quality
loss percentage by multiplying the percent impacted production by the
quality loss percentage.
As an example, suppose a producer's total hay production was 500
tons. Of that amount, 100 tons were impacted with a 36 percent quality
loss as calculated above, 100 tons were impacted with a 50 percent
quality loss, and 300 tons were unimpacted with no quality loss. The
producer divides 100 tons by 500 tons, which equals 20 percent of
production impacted by a quality loss. Twenty percent impacted
production multiplied by 36 percent (from above) equals a 7.2 percent
weighted quality loss percentage. Twenty percent impacted production
multiplied by 50 percent equals a 10 percent weighted quality loss
percentage. To determine the total weighted quality loss percentage,
the producer adds 7.2 percent plus 10 percent, which equals a 17.2
total weighted quality loss percentage. The producer must enter their
total weighted quality loss percentage on the FSA-526Q.
For crops other than forage, the producer will calculate the
quality loss percentage by calculating the total reduction for all
discounts and then dividing that total reduction for discounts by the
expected price the producer would have received at the point of sale if
not for the quality discounts. As an example, suppose a crop had a
protein discount of $0.24 and a broken kernels discount of $0.03, for a
total reduction for discounts of $0.27. The elevator price was $5.40.
The ``percent SDRP quality loss'' percentage would be $0.27 divided by
$5.40, which equals 5 percent and is certified by the producer on the
FSA-526Q.
For producers with an APH or yield-based plan, the next step
involves comparing the RMA-calculated quality loss percentage and the
``percent SDRP quality loss'' calculated above. For Stage 1 quality
loss payments for crops insured under APH and yield-based plans, RMA
will provide the total revenue to count that was used in the
calculation of the Stage 1 payment in accordance with Sec.
760.2208(c). RMA will provide the production to count before quality
adjustments and the percentage loss that was used to determine the
production to count adjusted for quality. If the producer's certified
``percent SDRP quality loss'' is less than or equal to the RMA quality
loss percentage, FSA will not issue a Stage 1 quality loss payment. If
it is greater than the RMA quality percentage, FSA will calculate the
difference between the two percentages and apply that percentage to the
total revenue to count provided by RMA to calculate the Stage 1 quality
loss payment.
For NAP-covered yield-based crops, FSA will provide the total
revenue to count that was used in the Stage 1 calculation in accordance
with Sec. 760.2208(d). The applicant will certify the quality loss
percentage on the FSA-526Q. FSA will calculate the Stage 1 quality loss
payment by multiplying the revenue to count by the ``percent SDRP
quality loss,'' times the producer's share.
All calculated Stage 1 quality loss payment amounts will be
multiplied by 35 percent to ensure that total payments do not exceed
the available funding.
FSA will issue 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 SDRP payments, not to exceed the maximum amount allowed by
law.

C. Stage 2 Eligible and Ineligible Losses

SDRP Stage 2 provides assistance for eligible losses of eligible
crops, trees, bushes, and vines not covered under Stage 1 (Sec.
760.2205). Stage 2 covers situations in which the producer had:
<bullet> Non-indemnified losses, including quality, under a Federal
crop insurance policy;
<bullet> A loss covered by a Federal crop insurance policy in
Puerto Rico, excluding plantain plants and banana plants insured under
Puerto Rico crop insurance provisions;
<bullet> NAP coverage, but did not receive a NAP payment, excluding
crops with an intended use of grazing;
<bullet> Production or quality losses of eligible crops that were
uninsured and not covered under NAP;
<bullet> An indemnified loss under a Federal crop insurance Annual
Forage policy that was ineligible for SDRP Stage 1 because the unit
included acreage that was intended for grazing, but also included
acreage intended for forage or grain; or
<bullet> An indemnified loss under a Rainfall Index Apiculture
policy or Pasture, Rangeland, and Forage policy that was ineligible for
SDRP Stage 1 because the producer entered a county located in
Connecticut, Hawaii, Maine, or Massachusetts \7\ on their application
but the unit also includes land physically located in another state.
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\7\ FSA is excluding crop, tree, bush, and vine losses in
Connecticut, Hawaii, Maine, and Massachusetts from SDRP to avoid
compensating producers twice for the same loss. The Act authorized
$220,000,000 to provide block grants to eligible States 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. 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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As under Stage 1, the loss of the eligible crop, tree, bush, or
vine must have been caused, in whole or in part, by a qualifying
disaster event.
If a producer has both a NAP policy and a Federal crop insurance
policy that address the same potential crop loss, the producer cannot
receive a Stage 2 payment based on both the crop insurance policy and
the NAP policy. Rather, the producer must elect whether to receive the
Stage 2 payment based on the data associated with their Federal crop
insurance policy or their NAP policy.
Stage 2 does not cover the following:
<bullet> Losses of all crops covered under a Whole Farm Revenue
Protection policy for which the producer received an indemnity;
<bullet> Quality losses covered under Stage 1 Quality Loss
provisions;
<bullet> Losses for which the producer received an ERP 2022 Track 1
payment for the 2023 crop year or an ERP 2022 Track 2 payment for which
their allowable gross revenue for the 2023 tax year was used as the
disaster year revenue;

[[Page 51959]]

<bullet> Sugar beet losses for which a member of a cooperative
processor received a payment through a cooperative agreement; and
<bullet> Losses of crops, trees, bushes, and vines that were
physically located in Connecticut, Hawaii, Maine, or Massachusetts,
because those losses will be compensated through block grants with the
State departments of agriculture.
These provisions ensure that producers do not receive duplicate
benefits for the same loss.
In addition, Stage 2 does not cover:
<bullet> Prevented planting losses for crops covered by Federal
crop insurance or NAP, regardless of whether the acres were determined
ineligible under the terms of the Federal crop insurance plan or NAP
provisions, as applicable, because these would already have been
included in Stage 1 if they were eligible to be indemnified or paid
under NAP;
<bullet> Losses of crops that occur after harvest, although such
losses may be eligible for OFSCLP, as provided in this rule;
<bullet> Losses for which FSA or RMA previously disapproved a
notice of loss for the crop and disaster event, unless that notice of
loss was disapproved solely because it was filed after the applicable
deadline.
Stage 2 also excludes certain losses as provided in Sec.
760.2205(d), such as losses due to poor management decisions or poor
farming practices and losses of volunteer crops and crops not intended
for harvest. These exclusions are consistent with the intent of the
program, which is to provide assistance for losses of commercially
produced crops and trees, bushes, and vines used for commercial
production of a crop due to qualifying disaster events. Excluding these
crops and losses is also consistent with 2017 WHIP and WHIP+.
In addition to general eligibility for Stage 2, certain crops are
ineligible for use of a quality loss percentage in the Stage 2 payment
calculation (Sec. 760.2205(e)), such as value loss crops and crops
that were destroyed or prevented from being planted. These criteria are
consistent with the criteria for eligibility with Stage 1 quality loss
payments discussed above.

D. Stage 2 Eligible Crops

For Stage 2, eligible crops include crops, including aquacultural
species,\8\ for which a Federal crop insurance policy or NAP coverage
was available for the 2023, 2024, or 2025 crop year.\9\ To be eligible,
the crop must have been produced in the United States as part of a
farming operation and intended to be commercially marketed. Livestock,
timber, and crops for grazing are excluded from eligible crops. FSA is
amending the definition of ``eligible crop'' in Sec. 760.2202 to align
with this policy. These changes do not affect the eligibility of crops
previously included under Stage 1, which already was in alignment with
those provisions due to the requirement to have had NAP coverage or
Federal crop insurance under a plan specified in Sec. 760.2204(a).
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\8\ 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).
\9\ 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 7
CFR 760.2202, which is consistent with Federal crop insurance and
NAP provisions for eligible crops.
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E. Stage 2 Eligible Acres

As described below, Stage 2 payment calculations for some crops
will be based on a producer's eligible acres of an eligible crop. For
crops insured under APH or yield-based plans and insured crops in
Puerto Rico, the eligible acres will be those acres that were
considered eligible under the applicable insurance policy, including
the policy's provisions for initial acreage, double cropping, and
subsequently planted crops. For all other eligible crops, the
provisions below regarding eligible acreage apply.
For all other eligible crops, eligible acreage will be based on the
acres reported on the FSA-578, or the lesser of the reported acres or
determined acres, which are the acres established by FSA, if determined
acres are available.
Initial crop acreage will be the eligible acreage used to calculate
Stage 2 payments, unless the provisions for subsequent crops discussed
below are met. Subsequently planted or prevented planted acreage is
considered eligible acreage under this subpart only if it meets the
requirements discussed below. All plantings of an annual or biennial
crop are considered the same as a planting of an initial crop in
tropical regions as defined for NAP (7 CFR part 1437, subpart F).
In cases where there is double cropped acreage, such as winter
wheat followed by soybeans, each crop may be included in the acreage
only if the specific crops are approved by FSA as eligible double
cropping practices. Except for insured crops, which follow provisions
of their applicable insurance policy, participants with double cropped
acreage of crops that are not approved by FSA may have such acreage
included in the acreage for more than one crop only if the participant
submits verifiable records establishing a history of carrying out a
successful double cropping practice.
If a participant had multiple plantings of the same crop on the
same or different acres, such as peas, the participant may receive
payments for each planting only if the planting meets the requirements
of 7 CFR 1437.
For SDRP Stage 2, the 2023, 2024, and 2025 crop year uninsured
prevented planting acres are eligible acres if they meet all
requirements of this subpart. The 2023, 2024, and 2025 crop year
insured and NAP-covered prevented planting acres are not eligible
acres. For prevented planting, the provisions that are generally
applicable to other FSA programs (7 CFR part 718) and NAP (7 CFR par
1437) that specify what is considered prevented planting and how it
must be documented and reported, apply. As under 2017 WHIP, WHIP+, and
NAP, crops located in tropical regions are not eligible for prevented
planting. FSA will use the most accurate data available when
determining planted and prevented planted acres and disregard acreage
of a crop produced on land that is not eligible for Federal crop
insurance or NAP coverage.
In cases where crops were insured by a Federal crop insurance area
plan, producers must calculate the percentage of eligible acreage by
comparing total acreage insured under the respective area plan as shown
as RMA acres provided on the FSA-504 and the total acres reported for
the eligible crop on the FSA-578. This percentage excludes acres of
grazed crops covered by an Annual Forage policy of insurance.

F. Eligible Production

Stage 2 payment calculations will use the producer's net production
for a crop and unit, which includes harvested, appraised, and assigned
production, after any applicable production and quality adjustments.
This production is referred to as the producer's ``production to
count.'' For some producers, production to count will be pre-filled
based on information previously reported to RMA or FSA as described
below.
The harvested production of eligible crop acreage that is harvested
more than once in a crop year includes the total harvested production
from all the harvests in the crop year.
If a crop is appraised and subsequently harvested for the intended
use, the actual harvested production

[[Page 51960]]

must be taken into account to determine payments. FSA will determine
whether a participant's evidence of actual production represents all
that could or would have been harvested.
For all crops eligible for loan deficiency payments or marketing
assistance loans (see 7 CFR parts 1421 and 1434) with an intended use
of grain but harvested for another use such as silage, ensilage, or hay
the production will be converted to a whole grain equivalent using
conversion factors previously established by FSA. This also applies to
commodities that are cracked, rolled, or crimped.
If a participant does not receive compensation based upon the
quantity of the commodity delivered to a purchaser but has an agreement
or contract for guaranteed payment for production, the determination of
the production will be the greater of the actual production or the
guaranteed payment converted to production as determined by FSA.
Often producers will commingle production for a variety of reasons.
This commingling includes various situations including those in which
production from more than one farm and production from more than one
crop year are commingled. To be eligible for a payment under this
program, the producer must provide evidence that substantiates losses
for eligible commodities. The producer is responsible for identifying
production that is commingled between crop years, units, ineligible and
eligible acres, or different practices. If the producer cannot provide
evidence that adequately identifies such production, FSA may deny the
application for payment or prorate such production to each respective
crop year, unit, type of acreage, or practice, respectively. Commingled
production may be attributed to an applicable unit, if prior to
commingling, the producer has documented the production by unit and:
<bullet> Provides copies of verifiable documents showing that
production of the commodity was purchased, acquired, or otherwise
obtained from beyond the unit;
<bullet> Had the production measured in a manner approved by FSA;
or
<bullet> Had the crop year's production appraised in a manner
approved by FSA.
FSA will assign production for the unit as provided in Sec.
760.2211(f). FSA will establish a county disaster yield that reflects
the amount of production producers would have produced considering the
eligible disaster events in the county or area for the same crop. The
county disaster yield will be used when:
<bullet> Unharvested acreage has not been appraised by FSA or a
company reinsured by the Federal Crop Insurance Corporation (FCIC); or
<bullet> Acceptable production records for harvested acres are not
available from any source, except in cases where the applicant has
indicated a quality loss percentage.
In no case will the production amount of any applicant be less than
the producer's certified loss.
Production for eligible adulterated wine grapes will be adjusted
for quality deficiencies due to a qualifying disaster event in a manner
consistent with the previous 2017 WHIP and WHIP+ (Sec. 760.2211(i)).

G. Stage 2 Payment Calculations

SDRP Stage 2 uses several calculations to determine the amount of a
Stage 2 payment (Sec. Sec. 760.2218-760.2231). The specific
calculation used depends on whether the producer had Federal crop
insurance or NAP coverage for the eligible crop, tree, bush, or vine.
Similar to Stage 1, for insured crops, the calculation will also depend
on the type of crop insurance policy obtained by the producer. The
specific calculations are described in more detail below.
Each Stage 2 payment calculation uses an SDRP factor based on the
level of Federal crop insurance or NAP coverage the producer had
obtained, as specified in the following table. These factors for
insured and NAP-covered crops, trees, and vines are consistent with the
factors previously established for Stage 1. The SDRP factor for
uninsured crops, trees, bushes, and vines will be 70 percent.\10\
---------------------------------------------------------------------------

\10\ For a discussion of how SDRP factors were established, see
90 FR 30564-30565.

----------------------------------------------------------------------------------------------------------------
SDRP factor
Type of coverage Coverage level (percent)
----------------------------------------------------------------------------------------------------------------
None.......................................... Not applicable................................. 70.0
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
----------------------------------------------------------------------------------------------------------------

All calculated Stage 2 payment 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 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 SDRP payments, not to exceed the
maximum amount allowed by law.
1. Insured and NAP-Covered Crops
To be consistent with Stage 1, Stage 2 payments for insured and
NAP-covered crops will be based on data already on file with RMA and
FSA when available.\11\ For Stage 2, payments will be calculated in a
similar manner

[[Page 51961]]

to Stage 1; however, producers will have the ability to certify revised
crop information for certain items that are pre-filled on the FSA-504
because the data on file was not used to calculate an indemnity or NAP
payment and may require revision. These items may be adjusted by FSA
when necessary to reflect the amount supported by the producer's
required documentation.
---------------------------------------------------------------------------

\11\ For a discussion of how FSA has calculated Stage 1 payments
for insured and NAP-covered crops, see 90 FR 30565.
---------------------------------------------------------------------------

For NAP-covered crops and units without an application for payment
on file and insured crops and units, excluding those under area-based
plans, the Stage 2 calculation also includes the determination of a
potential insured or NAP-covered payment. For example, a producer had
NAP coverage for green beans and suffered loss due to an adverse
weather event which would have qualified them for assistance under NAP;
however, the producer failed to file a notice of loss or application
for payment on their green beans. The payment that would have been
received represents the amount a producer could have received under the
insurance plan or NAP coverage that was obtained for the crop and unit.
This amount is excluded from the producer's Stage 2 payment because the
intent of SDRP is to provide an additional amount of assistance for
insured and NAP-covered crops beyond what was already covered, not the
entire amount of assistance up to the SDRP factor. Stage 2 will only
pay for the amount calculated beyond the liability under Federal crop
insurance or NAP.
As under Stage 1, the Stage 2 calculations also allow producers to
certify their quality loss percentage for crops covered under APH and
yield-based plans that have eligible quality losses as described above
for Stage 1. This provides consistency between Stage 1 and Stage 2 for
insured and NAP-covered crops.
The specific payment calculations are provided in Sec. Sec.
760.2218-760.2221, 760.2223-760.2226, and 760.2230-760.2231. As an
example, the following illustrates the Stage 2 payment calculation for
a loss of an insured crop under an APH plan (Sec. 760.2218).
a. Calculated loss = SDRP liability - (production x (1 - quality
loss percentage) x price used by RMA to calculate the liability)
b. Potential insured indemnity = (SDRP liability/SDRP factor) x
coverage level - (production x price used by RMA to calculate the
liability x price election)
c. SDRP Stage 2 payment = (Calculated loss - potential insured
indemnity + premium + administrative fee) x 35 percent
To illustrate how this calculation applies to a specific producer's
loss, suppose a producer had 100 acres of soybeans that were insured
under an APH plan with a 65 percent coverage level with a price
election of 100 percent. The producer's yield is 55 bushels per acre,
their production was 2,550 bushels, and they had a quality loss of 3
percent (calculated as explained above for Stage 1 quality losses). The
SDRP liability provided by RMA is $48,269.30, which is the crop's
expected value based on the producer's crop insurance plan multiplied
by the SDRP factor of 87.5 percent. The price used by RMA to calculate
the liability is $10.03 per bushel. The producer paid a premium of
$1,500 and an administrative fee of $100 for their insurance coverage.
a. $48,269.30 - (2,550 bushels x (1 - 0.03) x $10.03) = $23,460.17
b. ($48,269.38/0.875) x 0.65 - (2,550 bushels x $10.03 x 1.00) =
$10,280.75
c. ($23,460.17 - $10,280.75 + $1,500 + $100) x 0.35 = $5,172.80
Insured crop losses in Puerto Rico were excluded from Stage 1
because information for those policies is not transmitted through RMA's
standardized Policy Acceptance and Storage System. Therefore, pre-
filled applications could not be automatically generated at the time
Stage 1 was announced. FSA has now obtained the necessary data to
generate pre-filled applications for insured crops in Puerto Rico for
both indemnified losses (Sec. 760.2230) and non-indemnified shallow
losses (Sec. 760.2231. Losses for those crops will be included in
Stage 2, except, as noted above, for plantain plants and banana plants.
2. Uninsured Crops
Stage 2 payments for yield-based crop losses will be calculated
based on all acreage of the crop in a unit. Adjustments will be applied
to the Stage 2 payment calculation based on whether the crop was
prevented from being planted or unharvested to account for expenses
that were not incurred.
Similar to Stage 1, the Stage 2 payment calculation uses an SDRP
liability, which will be based on the county expected yield for
uninsured crops, or 65 percent of the county expected yield for crops
planted on native sod. The participant's production for the crop year
which suffered the loss is based on their acceptable production records
for that crop year, as specified in Sec. 760.2207(f). Participants who
do not have acceptable records will have their payments limited to the
lower of either:
<bullet> The actual loss certified by the producer and determined
acceptable by FSA; or
<bullet> The county disaster yield, as established by FSA.
The following illustrates the Stage 2 payment calculation for a
loss of an uninsured yield-based crop:

a. SDRP liability = Eligible acres x county expected yield x average
market price x SDRP factor of 70 percent
b. Calculated loss = (SDRP liability - (production x (1 - quality loss
percentage) x average market price x unharvested or prevented payment
factor if applicable) - salvage value) x the producer's share
c. SDRP Stage 2 payment = Calculated loss x 35 percent

As an example, suppose a producer had 50 acres of watermelons with
a 100 percent share. The county expected yield for watermelons was
371.67 cwt/acre with an average market price of $22.94 per cwt. The
producer's production was 12,500.00 cwt with a quality loss of 3
percent. The producer harvested the crop and received no salvage value
for the crop.

a. 50 acres x 371.67 cwt/acre x $22.94 x 0.70 = $298,413.84
b. $298,413.84 - (12,500.00 cwt x (1 - 0.03) x $22.94) x 1.00 =
$20,266.34
c. $20,266.34 x 0.35 = $7,093.22

Assessing loss for value loss crops, such as ornamental nursery and
aquaculture, is significantly different than for yield-based crops. The
participant's inventory of a typical value loss crop may fluctuate from
week to week, sometimes rapidly, in the course of normal business
operations for reasons that may be unrelated to a disaster. As a
result, Stage 2 payments for value loss crops are based on inventory
before and after the qualifying disaster event.
The Stage 2 payment calculation for an uninsured value loss crop is
as follows:

SDRP Stage 2 payment = (((Dollar value before disaster x SDRP factor of
70 percent) - Dollar value after disaster) x unharvested payment factor
if applicable - salvage value) x producer's share x 0.35

As an example, suppose a producer had a nursery crop with a dollar
value immediately before the disaster of $70,000, and a value
immediately after the disaster of $20,000. The producer received no
salvage value for the crop and has a 100 percent share. The payment
would be calculated as follows:

[[Page 51962]]

(($70,000 x 0.70) - $20,000) x 1.00 x 0.35 = $10,150

NAP provisions for value loss crops (7 CFR part 1437, subpart D)
and tropical crop eligibility (7 CFR part 1437, subpart F) apply to
SDRP Stage 2. Nursery stock of trees, bushes, and vines are considered
value loss crops rather than a tree, bush, or vine loss for SDRP
payment calculations.
3. Trees, Bushes, and Vines
Payments for tree, bush, and vine losses will be determined
separately for different growth stages, as determined by FSA. FSA will
determine an associated price and damage factor for each growth stage
to determine the value lost when a tree, bush, or vine is damaged and
requires rehabilitation but is not completely destroyed. Insured and
uninsured tree, bush, and vine losses will use the same calculation;
however, applications for insured losses will be pre-filled with data
already on file with RMA.
Stage 2 payments for tree, bush, and vine losses will be calculated
as follows:

a. Expected value = (Number of trees destroyed + number of trees
damaged) x price determined by FSA
b. Actual value = Expected value - (Number of trees destroyed x price
determined by FSA) - (number of trees damaged x damage factor x price
determined by FSA)
c. SDRP Stage 2 payment = (((Expected value x SDRP factor) - actual
value - salvage value) x producer's share + insurance premium and
administrative fees if applicable) x 0.35

FSA will adjust the number of damaged and destroyed trees, bushes,
or vines, if it determines that the number of damaged or destroyed
trees, bushes, or vines certified by the participant is inaccurate.

H. How To Apply

To apply for SDRP, a producer must submit an SDRP application to
any FSA county office by the close of business on April 30, 2026. This
deadline applies to SDRP applications for payments announced in the
prior final rule, as well as applications and documentation required
for Stage 1 quality loss payments and Stage 2 payments as described
below. Producers must submit separate applications for each crop year.
The date to apply for payments under this program may, at the sole
discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth 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>. Producers may also
obtain that information from any FSA county office.
To apply for a Stage 1 quality loss payment, producers must submit
a completed FSA-526Q, Supplemental Disaster Relief Program (SDRP) Stage
1 Quality Loss Application. For Stage 2, producers must submit FSA-504,
Supplemental Disaster Relief Program (SDRP) Stage 2 Application. FSA
will pre-fill some items on the FSA-526Q with information already on
file with RMA and FSA. FSA will also pre-fill some items on the FSA-504
for producers who had Federal crop insurance or NAP coverage for a crop
and unit. Due to the need to pre-fill data and to develop software
corresponding to the different parts of the FSA-504, FSA is processing
the data and generating pre-filled forms in stages. As a result of the
need to pre-fill applications and develop software to process multiple
parts of the FSA-504 for different categories that reflect the
application payment calculation for a crop and unit, sign up will begin
at different times, in the following anticipated order:
<bullet> Stage 2 applications for:
[cir] Insured crops and NAP-covered crops, excluding insured crops
in Puerto Rico; and
[cir] All uninsured crops;
<bullet> Stage 2 applications for insured and uninsured trees,
bushes, and vines;
<bullet> Stage 1 quality loss applications; and
<bullet> Stage 2 applications for insured crops in Puerto Rico.
FSA intends to announce the beginning dates for the application
period for each group by press release, and the specific dates will be
set forth 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>-sdrp. Producers may also obtain that
information from any FSA county office. The application period for the
first group will begin on November 24, 2025.
For Stage 1 quality loss payments, the pre-filled FSA-526Q will
include the producer's State and county codes, unit numbers, other crop
information, and production to count \12\ on file with RMA or FSA. It
will also include a calculated quality loss percentage provided by RMA
for producers who received Federal crop insurance indemnities including
a quality adjustment. Producers must enter their certified quality loss
percentage as described above.
---------------------------------------------------------------------------

\12\ Production to count is the total amount of harvested,
appraised, and assigned production, as determined by the applicable
Federal crop insurance policy or NAP provisions.
---------------------------------------------------------------------------

For Stage 2 payments, the FSA-504 will include pre-filled
information only for insured and NAP-covered crops. Producers must
enter any additional data required for the applicable part of the form
that corresponds to their crop and unit. For uninsured crops, no data
will be pre-filled and producers must provide all required data needed
to calculate a payment, as specified in the instructions for the FSA-
504.
As under Stage 1, FSA's creation and transmission of a pre-filled
FSA-526Q or FSA-504 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 Federal crop insurance
indemnities. The process of transferring data from RMA to FSA may
result in the creation of a pre-filled application for those entities;
however, those entities are not eligible for an SDRP payment. Also,
FSA's creation and transmission 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
may have suffered a loss due to drought, but the county did not meet
the criteria for qualifying drought as defined in Sec. 760.2202. The
producer would not be eligible for payment for those losses under SDRP.
All producers must certify on the FSA-526Q or FSA-504 that they
will meet the requirement to purchase Federal crop insurance or NAP
coverage for the next 2 available crop years according to Sec.
760.2216. 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, an SDRP 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.
As under Stage 1, a pre-filled FSA-526Q or FSA-504 for an insured
crop and unit 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 to be 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

[[Page 51963]]

crop for each of those producers in addition to the primary policy
holder. If the producer(s) are determined to be eligible for an SDRP
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 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.
Producers applying for Stage 1 quality loss payments and Stage 2
payments must also submit acceptable documentation to support their
certified quality loss percentage, production, dollar value before and
after the qualifying disaster event, and total damaged or destroyed
trees, bushes, and vines, as required by Sec. 760.2207 by April 30,
2026. The records that are considered acceptable are consistent with
requirements in other FSA programs. FSA is requiring all producers to
submit this information as part of their complete application to ensure
program integrity. FSA may also require the producer to submit any
additional information necessary to support the producer's
certifications or determine a producer's eligibility, including but not
limited to certification of citizenship status on the CCC-902, Farm
Operating Plan, and CCC-901, Member Information for Legal Entities (if
applicable), and documentation of the qualifying disaster event and the
producer's ownership share and risk in the crop. If FSA requests
additional information, the producer must submit the requested
information within 60 days or the producer's application will be
disapproved and the producer must refund the payment, if previously
issued.
For Stage 2, producers must also submit the FSA-578, Report of
Acreage, prior to the application deadline for all crops for which
payment is requested, with the exception of crops insured under APH or
yield-based plans and insured crops in Puerto Rico. Many producers will
have previously filed the FSA-578 for the applicable crop years due to
their participation in other FSA programs. Producers who have not
previously reported their acreage for the applicable crop year may file
the FSA-578 even though the deadlines applicable to other FSA programs
have passed. Because SDRP is based on a producer's prior year crop year
acreage and those eligible commodities have already been harvested,
producers who submit late-filed acreage reports for SDRP eligibility
will not be required to pay the cost of a farm inspection and
measurement applicable to other FSA programs. If requested by FSA, a
producer must also submit additional documentation supporting the late-
filed acreage report such as seed receipts, chemical and fertilizer
receipts, precision planting records, harvesting records, geospatial
data or maps, and published weather data. Producers must submit any
required additional documentation within 60 days of the request.
Acreage reports that are late-filed for SDRP eligibility will not be
used to determine eligibility for other FSA programs for which these
reports are required and the deadline applicable to the other programs
has passed.
To receive an SDRP payment, producers, including any producers with
an SBI who have a risk and share in a crop as indicated on the
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 the 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 the FSA-510
until the deadline announced by FSA. If the FSA-510 and the
accompanying certification is filed after the SDRP Stage 1 payment is
issued but before the deadline to submit the FSA-510, FSA will process
the FSA-510 and issue any resulting additional payment amount.

III. OFSCLP

FSA will provide assistance for losses of harvested commodities
stored in on-farm structures through OFSCLP using up to $5 million of
the $30,780,000,000 that was authorized by the Act. The $5 million
funding allocation is based on prior program demand, taking into
account funding limitations. Most crop insurance policies do not cover
crop loss after harvest, unless a supplemental policy has been
purchased. Many producers who suffered losses while their commodity was
stored in an on-farm structure would benefit from this program. The
anticipated number of participants is expected to be fewer than the
2018 and 2019 On-Farm Storage Loss Program as on-farm stocks in
calendar years 2023 and 2024 were lower than in calendar years 2018 and
2019.
This program is similar to the previous On-Farm Storage Loss
Program that provided assistance for losses due to disaster events
occurring in the 2018 and 2019 calendar years. OFSCLP will provide
payments to eligible producers who suffered losses of eligible
commodities, while these commodities were stored in on-farm structures,
due to qualifying disaster events that occurred in calendar year 2023
or 2024. Qualifying disaster events for OFSCLP include wildfires,
hurricanes, floods, derechos, excessive heat, tornadoes, winter storms,
freeze, including a polar vortex, smoke exposure, qualifying drought,
and related conditions that occurred in calendar year 2023 or 2024.

A. Eligible Commodities

Eligible commodities include wheat, oats, barley, corn, grain
sorghum, long grain rice, medium grain rice, seed cotton, pulse crops,
soybeans, other oilseeds, peanuts, and all hay. These commodities must
be produced, harvested, and stored on a farm in the United States.
These commodities are typically stored for a period of time before they
are marketed or used on the farm for feeding or forage use. Losses of
grazed commodities are not included in the OFSCLP.
Eligible commodities must have been harvested and stored in
structures, which, under normal circumstances, would have protected and
maintained the quality of the commodity for an extended period of
time--from harvest to marketing. The damage incurred must have resulted
directly from a qualifying disaster event or related condition which
made the commodity useless, unsuitable for full value sale, or for
reduced salvage value. Losses related to excessive moisture, which
happens when a commodity is stored but not dried sufficiently, are not
included in this program as it is expected that proper drying should
occur as a part of harvest and storage. Quality losses are also not
included in this program because these losses are due to preharvest
conditions.
Commodity storage structures must have been located on the farm and
used for storage of eligible commodities produced and stored on farm
until the

[[Page 51964]]

commodity is marketed or delivered, or intended for private use on the
farm. Commodities stored in commercial storage facilities, wrapped in
plastic or other material and left in fields, uncovered by another
structure, are not included in the program.
Eligible producers will certify their loss on the FSA-878
application form. As required by 7 CFR 760.1611(f), producers of
commingled commodities must submit separate applications for their
ownership share to cover all losses.
The following is an example of commingled storage:
<bullet> Producers A and B are relatives who harvest corn on
neighboring farms but use Bin 1, belonging to Producer A, to store
their harvested corn.
<bullet> Producer A stored 5,000 bushels of corn and producer B
stored 2,000 bushels of corn in Bin 1. Bin 1 was destroyed by a flood.
<bullet> Producer A will submit an FSA-878 for a 100 percent share
of 5,000 bushels of corn.
<bullet> Producer B will submit an FSA-878 for a 100 percent share
of 2,000 bushels of corn.
<bullet> Both producers will indicate in the remarks section on the
FSA-878 that the corn was commingled in Bin 1.

B. Eligible Producers

To be eligible for OFSCLP, a producer must be a:
<bullet> Citizen of the United States;
<bullet> Resident alien, which for purposes of OFSCLP 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).
These requirements align with the eligibility criteria for SDRP (7
CFR 760.2203) and ELRP 2023 and 2024 FW (7 CFR 760.2103), and MLP as
provided in this rule.

C. How To Apply

FSA will accept OFSCLP applications beginning on November 24, 2025.
To apply for OFSCLP, affected producers must submit a completed
FSA-878, On-Farm Stored Commodity Loss Program (OFSCLP) Application, as
well as all other information required to be furnished under the
regulation at the time of application, by the close of business on
January 23, 2026. Additional loss information or additional producer
signatures will be reported on the FSA-878 Continuation form. The date
to apply for payments under this program may, at the sole discretion of
FSA, be extended. If FSA makes that decision, the extended date will be
set forth at <a href="https://www.fsa.usda.gov/resources/programs/farm-stored-commodity-loss-program-ofsclp">https://www.fsa.usda.gov/resources/programs/farm-stored-commodity-loss-program-ofsclp</a>. Producers may also obtain that
information from any FSA county office.
Applicants must also submit the following items by January 23,
2027, for each applicable program year, to be eligible for payment:
<bullet> Form AD-2047, Customer Data Worksheet, for new customers
or existing customers who need to update their customer profile;
<bullet> Form CCC-901, Member Information for Legal Entities, if
applicable;
<bullet> Form CCC-902, Farm Operating Plan for an individual or
legal entity as provided in 7 CFR part 1400;
<bullet> Form AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification, for the OFSCLP applicant and
applicable affiliates as provided in 7 CFR part 12; and
<bullet> Form FSA-510, Request for an Exception to the $125,000
Payment Limitation for Certain Programs, accompanied by a certification
from a certified public accountant or attorney as to that person's or
legal entity's certification, for participants and members of legal
entities to be eligible for the increased payment limitation of
$250,000, if applicable.
The OFSCLP program year is equivalent to the calendar year. Payment
will not be issued if required documentation is not on file.
If requested by FSA, the affected producer must provide additional
documentation that establishes the affected producer's eligibility for
OFSCLP. If supporting documentation is requested, the documentation
must be submitted to FSA within 60 days from the date of the request or
the application will be disapproved by FSA and the producer must refund
the payment, if previously issued.

D. Payment Calculation

FSA will establish one rate for each eligible disaster year (2023
or 2024) per eligible on-farm stored commodity based on the National
Agricultural Statistics Service (NASS) established national Market Year
Average (MYA) price, or a rate determined by FSA based on RMA pricing
if the NASS MYA price is not available. The NASS MYA price provides the
most accurate benchmark to value on-farm stocks for most grains.
The OFSCLP payment rate uses a factor of 75 percent of the NASS MYA
price (or price determined by FSA, as applicable), meaning that the
producer must absorb 25 percent of the loss. The 75 percent payment
factor is consistent with the payment calculation used under the
previous On-Farm Storage Loss Program and the previous MLP.
Additionally, Livestock Indemnity Program payment rates are based on 75
percent of the average fair market value of the national price. The 75
percent factor is not a payment reduction factor applied to remain
within available funding, which will be discussed subsequently.
The 75 percent payment rate is then multiplied by the producer's
share of the quantity lost while in storage. The dollar value of any
compensation received such as salvage or insurance will be deducted
from the calculated payment amount.
OFSCLP payments are expected to be additionally factored because
program demand is anticipated to exceed the amount of funding
available. FSA cannot determine the total number of eligible applicants
and resulting program demand for OFSCLP until eligible producers apply
for assistance. Due to the need to evaluate program demand, FSA will
not issue payments at the onset of the application period. However,
during the application period, FSA will evaluate program demand and if
the additional payment factor (separate from the 75 percent) can be
established, payments may begin to be processed.
On-Farm Storage Loss Program referenced an RMA-determined price in
calculating program assistance in the September 2019 program
announcement; however, the NASS price is the basis for payments. NASS
MYA prices are calculated as a weighted average of the monthly prices
collected during the marketing year. This price is FSA's best
approximation of the year in which a loss occurred.
An example of the OFSCLP calculation is shown below, given a corn
NASS MYA price of $3.60 per bushel, a 1,000-bushel volume, and a $500
payment received from a salvage grain buyer.

($3.60/bushel x 75 percent OFSCLP factor) x 1,000 bushels less $500
salvage worth = $2,200

If FSA determines that the total amount of payments for all
eligible applicants exceeds the funding allocated to this program, an
additional

[[Page 51965]]

factor will then be applied, reducing the original amount of $2,200.
This additional factor will be applied to all OFSCLP payments.

E. Payment Limitation

As required by the Act, OFSCLP is subject to payment limitations
consistent with 7 CFR 760.1507, as in effect on December 21, 2024.
Separate payment limitations apply to each program year (2023 and
2024). The payment limitation for OFSCLP is 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
in payments for each year if their average adjusted gross farm income
is less than 75 percent of their average adjusted gross income (AGI)
for the applicable base period.\13\ If at least 75 percent of the
person's 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 $250,000 for each year.
---------------------------------------------------------------------------

\13\ The base period is 2019, 2020, and 2021 for the 2023
program year; and 2020, 2021, and 2022 for the 2024 program year.
---------------------------------------------------------------------------

The determination of average adjusted gross farm income and
attribution of payments will apply for OFSCLP payments in the same
manner as SDRP. See 90 FR 30565-30566 \14\ for an explanation of how
FSA determines average adjusted gross farm income and attributes
payments to legal entities through four levels of ownership.
---------------------------------------------------------------------------

\14\ On July 10, 2025, FSA announced the Supplemental Disaster
Relief Program (SDRP) Stage 1 available at <a href="https://www.federalregister.gov/documents/2025/07/10/2025-12803/supplemental-disaster-relief-program-sdrp-stage-1">https://www.federalregister.gov/documents/2025/07/10/2025-12803/supplemental-disaster-relief-program-sdrp-stage-1</a>.
---------------------------------------------------------------------------

For consistency in the administration of the payment limitations
with other programs authorized by the Act, FSA is adding the
definitions of ``average adjusted gross farm income'', ``average AGI'',
``base period'', ``farming operation'', ``income derived from farming,
ranching, and forestry operations'', ``legal entity'', ``ownership
interest'', ``production inputs'', and ``production services'' in Sec.
760.1602, and updating the provisions of Sec. 760.1608.

F. Miscellaneous Changes

FSA is amending the provisions of 7 CFR part 760, subpart P, to
update the applicable OFSCLP program years and qualifying disaster
events, consistent with the Act, throughout the subpart. This rule also
removes terms from Sec. 760.1702 that are no longer used in the
regulations.

IV. MLP

MLP will provide payments to dairy operations for milk that was
dumped or removed without compensation from the commercial milk market
in calendar (program) years 2023 and 2024 due to qualifying disaster
events, including dairy operations partially compensated by the Federal
Marketing Milk Order (FMMO) regional dairy pools for milk dumped or
removed, using up to $1,650,000 of the $30,780,000,000 that was
authorized by the Act. The funding allocation was determined based on a
combination of limited funding and expected demand based on
participation in previously administered MLPs. MLP has provided vital
support to affected farmers by compensating for dumped milk due to
severe weather events. Consistent with FSA's administration of the
program in prior years, the milk loss base period is the first full
month of milk production before the dumping or removal of milk first
occurred due to a qualifying disaster event. Base period milk
production is used to determine the average daily milk production from
the cows in the dairy operation. The average daily milk production
calculation includes the number of cows, the pounds of milk marketed
for the month, and the number of days in the month.
The claim period for milk loss is each calendar month that milk was
dumped or removed from the commercial market due to a qualifying
disaster event. Each milk loss application covers the loss in a single
calendar month. Milk loss that occurs in more than one calendar month
due to the same qualifying disaster event requires a separate
application for each month. For example, if the loss occurs at the end
of a month and crosses over into the next month (say, August 28 through
September 3), the producer must file two separate applications--one for
August and one for September. The days that are eligible for
indemnification begin on the date the milk was removed or dumped, and
continue through the last consecutive day milk was removed or dumped.
Once the dairy operation returns to the normal marketing of milk, the
dairy operation is no longer eligible for assistance for milk removed
or dumped due to that qualifying disaster unless, after the commercial
marketing of milk has been restarted, additional milk is removed or
dumped due to the same qualifying disaster event. For MLP, the duration
of yearly claims is limited to 30 days per year for each of calendar
years 2023 and 2024.
The fair market value of removed or dumped milk for the days milk
was dumped and not marketed, reflects the dollar value the dairy
operation would have received if it had commercially marketed such
milk. The dairy operation's milk marketing statement from the claim
period will be used to determine the fair market value of the removed
or dumped milk, based on the net dollar value received for milk
marketings from the applicable month of the claim period, and to verify
the days milk was not marketed.

A. Affected Farmer Eligibility

To be eligible for MLP, an affected farmer must be a:
<bullet> Citizen of the United States;
<bullet> Resident alien, which for purposes of MLP 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).
These requirements align with the eligibility criteria for SDRP (7
CFR 760.2203), ELRP 2023 and 2024 FW (7 CFR 760.2103), and OFSCLP as
provided in this rule.

B. How To Apply

USDA will accept MLP applications beginning November 24, 2025. To
apply for MLP, affected farmers in a dairy operation must submit a
complete FSA-376, Milk Loss Program Application, with applicable milk
marketing statements and a detailed written statement of circumstances
of the milk removal, at the time of application, by January 23, 2026.
The date to apply for payments under this program may, at the sole
discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth at <a href="https://www.fsa.usda.gov/resources/programs/milk-loss-program-mlp">https://www.fsa.usda.gov/resources/programs/milk-loss-program-mlp</a>. Producers may also obtain that
information from any FSA county office. Applicants must also submit all
of the following items by January 23, 2027, if not previously filed
with FSA:
(1) Form AD-2047, Customer Data Worksheet, for new customers or
existing customers who need to update their customer profile;

[[Page 51966]]

(2) Form CCC-901, Member Information for Legal Entities, if
applicable;
(3) Form CCC-902, Farm Operating Plan, for an individual or legal
entity as provided in 7 CFR part 1400;
(4) Form FSA-510, Request for an Exception to the $125,000 Payment
Limitation for Certain Programs, accompanied by a certification from a
certified public accountant or attorney as to that person's or legal
entity's certification, for participants and members of legal entities
to be eligible for the increased payment limitation of $250,000, if
applicable; and
(5) Form AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification, for the MLP applicant and
applicable affiliates as provided in 7 CFR part 12.
If requested by FSA, the affected farmer must provide additional
documentation that establishes the affected farmer's eligibility for
MLP. If supporting documentation is requested, the documentation must
be submitted to FSA within 60 days from the date of the request or the
application will be disapproved by FSA and the producer must refund the
payment, if previously issued.

C. Payment Calculation

Consistent with the previous administration of MLP, the payment
calculation is as follows:
((Base period pounds per cow average daily milk production x number
of milking cows in claim period x number of days milk was removed or
dumped in claim period) / 100 \15\) x per hundredweight pay price.
---------------------------------------------------------------------------

\15\ The amount is divided by 100 to convert to hundredweight.
---------------------------------------------------------------------------

The per hundredweight pay price is calculated as follows:
Gross pay price from claim period milk marketing statement - the
hauling rate \16\ - $0.15 promotion fee = per hundredweight pay price.
---------------------------------------------------------------------------

\16\ The hauling rate is obtained from the producer's milk
marketing statement submitted at the time of application.
---------------------------------------------------------------------------

For the 2023 and 2024 calendar years, the final MLP payment is
determined by factoring the MLP payment by 75 percent for all
participants, meaning that the producer has to absorb 25 percent of the
loss. Use of a 75 percent factor is consistent with the factor used for
most FSA disaster programs. This factor is not a payment factor applied
to remain within available funding, which will be discussed
subsequently.
Dairy operations that apply for MLP will provide, at the time of
application:
<bullet> The milk marketing statement for the month prior to the
month that the milk was removed or dumped;
<bullet> The milk marketing statement for the affected month; and
<bullet> A detailed written statement of the circumstances of the
milk removal, including the type and geographic scope of the weather
event, what transportation limitations occurred, and any information on
what was done with the removed milk production.
In addition, any other pertinent information that further describes
the reason why milk was removed or dumped should be included to provide
FSA the necessary information to determine eligibility for MLP, as well
as all other information required to be furnished in the regulation.
This information must be provided prior to the application deadline.
FSA county offices can assist dairy operations in completing the MLP
application.
MLP payments are expected to be factored because program demand is
anticipated to exceed the amount of funding available. FSA cannot
determine the total number of eligible applicants and resulting program
demand for MLP until eligible producers apply for assistance. Due to
the need to evaluate program demand, FSA will not issue payments at the
onset of the application period. However, during the application
period, FSA will evaluate program demand, and FSA may begin to process
payments depending on whether an additional payment factor is needed.

D. Payment Limitation

As required by the Act, MLP is subject to payment limitations
consistent with 7 CFR 760.1507, as in effect on December 21, 2024. A
separate payment limitation is applicable to MLP for each program 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 in payments 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's 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 $250,000 for each program year.
The determination of average adjusted gross farm income and
attribution of payments will apply for MLP payments in the same manner
as SDRP. See 90 FR 30565-30566 \17\ for an explanation of how FSA
determines average adjusted gross farm income and attributes payments
to legal entities through four levels of ownership.
---------------------------------------------------------------------------

\17\ See footnote 13.
---------------------------------------------------------------------------

For consistency in the administration of the payment limitations
with other programs authorized by the Act, FSA is revising the
definitions of ``average adjusted gross farm income'' and ``average
adjusted gross income'' and adding definitions of ``farming
operation'', ``legal entity'', ``production inputs'', and ``production
services'' in Sec. 760.1702, and updating the provisions of Sec.
760.1709.

E. Miscellaneous Changes

FSA is amending the provisions of 7 CFR part 760, subpart Q, to
update the appliable MLP program years and qualifying disaster events,
consistent with the Act, throughout the subpart. This rule also removes
terms from Sec. 760.1702 that are no longer used in the regulations.

V. ELRP

This final rule extends the deadlines for ELRP 2023 and 2024 and
ELRP 2023 and 2024 FW. The deadlines for these programs were announced
in a final rule published on September 15, 2025.\18\ FSA is amending
Sec. 760.2004(a) to specify that the deadline to have an approved LFP
application on file for the applicable year (2023 or 2024) for ELRP
2023 and 2024 eligibility is November 21, 2025. FSA is also amending
Sec. 760.2107(a) to specify that November 21, 2025, is the deadline to
submit FSA-970, Emergency Livestock Relief Program 2023 and 2024 Flood
and Wildfire Application, for the applicable year (2023 or 2024), and
supporting documentation that verifies the producer's livestock
inventories reported on the FSA-970.
---------------------------------------------------------------------------

\18\ See 90 FR 44299.
---------------------------------------------------------------------------

VI. Regulatory Analyses

A. Notice and Comment and Effective Date

The Administrative Procedure Act (APA, 5 U.S.C. 553(a)(2)) 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. This rule governs
disaster assistance payments to agricultural producers and

[[Page 51967]]

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 are
agricultural producers who have been significantly impacted by disaster
events, which resulted in losses due to the impact of disaster events
in calendar years 2023 and 2024, and this assistance is necessary to
help those producers sustain their normal business operations. To
mitigate further harm to those producers for losses due to qualifying
events that were beyond their control, 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.

B. 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, which is consistent with policy for similar previous programs
where appropriate for SDRP, OFSCLP, and MLP, and uses pre-filled data
for SDRP when that information is already on file with USDA, to
maximize benefits and minimize burden on American producers. This rule
is not an Executive Order 14192 regulatory action because it does not
impose any more than de minimis regulatory costs.
The Office of Management and Budget (OMB) designated this rule as
economically significant under Executive Order 12866, section 3(f)(1),
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>.

C. Cost Benefit Analysis Summary

The three components of this rule are all independent of one
another in terms of expected outlays, which are expected to total to
$2.71 billion:
<bullet> FSA is using $16.09 billion of the $30.78 billion
authorized by the American Relief Act, 2025, to implement SDRP. SDRP
Stage 1 covered those producers who received a NAP or certain RMA
indemnities. SDRP Stage 2, the focus here, covers eligible producers
who suffered an eligible loss in the following categories: (1) those
who did not participate in certain RMA (Federal crop insurance)
programs or NAP; (2) those with ``shallow'' losses too small to trigger
an RMA or NAP payment; and (3) those with quality losses that were not
covered by RMA or NAP policies and quality losses where the producer
did not have Federal crop insurance or NAP coverage. SDRP Stage 2
accounts for 27 percent of total estimated gross SDRP payments, which
are estimated at $2.7 billion after factoring to stay within allocated
funding limits.
<bullet> OFSCLP will provide payments to eligible producers who
suffered uncompensated losses of harvested commodities stored in on-
farm structures due to wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter storms, freeze, including a polar
vortex, smoke exposure, and qualifying drought that occurred in the
2023 and 2024 calendar years. Payments are capped at $5 million, the
limitation imposed due to funding constraints.
<bullet> The Milk Loss Program will provide payments to eligible
dairy operations for milk that was dumped or removed without
compensation from the commercial milk market due to droughts,
wildfires, hurricanes, floods, derechos, tornadoes, excessive moisture,
excessive heat, winter storms, freeze, including a polar vortex, and
smoke exposure that occurred in the 2023 and 2024 calendar years.
Outlays are capped at $1.65 million due to budget constraints.

Estimated Costs of Three Programs
----------------------------------------------------------------------------------------------------------------
2023 and 2024 Estimated Total payments
Program estimated gross factor (with factor,
payments (percent) if needed)
----------------------------------------------------------------------------------------------------------------
SDRP Stage 2.................................................. $7.6 billion 35 $2.7 billion
On-Farm Storage (using Scenario #3)........................... 16.1 million 31 5.0 million
Milk Loss..................................................... 3.3 million 50 1.65 million
-------------------------------------------------
Total..................................................... ............... .............. 2.71 billion
----------------------------------------------------------------------------------------------------------------

[[Page 51968]]

D. 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 USDA regulation for compliance with
NEPA (7 CFR part 1b).
The purpose of SDRP is to provide payments to eligible producers
who suffered eligible crop, tree, bush, and vine losses due to
qualifying disaster events that occurred in calendar year 2023 or 2024.
OFSCLP will provide payments to eligible producers who suffered
uncompensated losses of harvested commodities stored in on-farm
structures as a result of qualifying disaster events that occurred in
calendar year 2023 and 2024. MLP will provide payments to eligible
dairy operations for milk that was dumped or removed without
compensation from the commercial milk market due to qualifying disaster
events in calendar year 2023 and 2024. The limited discretionary
aspects of these programs do not have the potential to impact the human
environment as they are administrative. Accordingly, these
discretionary aspects are covered by the FSA Categorical Exclusions
specified in 7 CFR 1b.4(c)(16)(viii) that apply to individual farm
participation in FSA programs where no ground disturbance or change in
land use occurs as a result of the proposed action or participation,
and 7 CFR 1b.(c)(16)(ix) that applies to safety net programs.
No Extraordinary Circumstances (Sec. 1b.3(f)) exist because these
are administrative payment programs. As such, the implementation of and
participation in SDRP, OFSCLP, and MLP 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 action and, consistent with Sec. 1b.3(g), this document
serves as the programmatic finding of applicability and no
extraordinary circumstance (FANEC) for this Federal action.

E. 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, the USDA Farm Service Agency will work with the
Office of Tribal Relations to ensure meaningful consultation is
provided.

F. 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.

G. 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
issue payments to producers using the following forms: CCC-901, CCC-
902E, CCC-902I, AD-1026, AD-2047, FSA-578 and FSA-510. In addition, for
the information collection under 0503-0028; Expiration Date: 10/31/
2027, the agency is seeking to use FSA-878, FSA-878 Cont., FSA-376,
FSA-504, and FSA-526Q with this data collection.
The AD-1026 is exempt.\19\ The FSA-878, FSA-878 Cont., FSA-376,
FSA-504, and FSA-526Q are the only new data collection activities
associated with this request. The total annual burden hours for this
information collection is 118,131 (117,693 SDRP + 242 OFSCLP + 196
MLP). See tables below for the breakout. This final rule is a one-time
announcement of Federal financial assistance funding for SDRP Stage 1
quality loss assistance, SDRP Stage 2, OFSCLP, and MLP.\20\
---------------------------------------------------------------------------

\19\ This information collection is exempted from the Paperwork
Reduction Act as specified in the Agricultural Act of 2014 (Pub. L.
113-79, Title II, Subtitle G, Funding and Administration).
\20\ OMB previously approved the information collection requests
for ELRP 2023 and 2024 (90 FR 46319) and ELRP 2023 and 2024 FW (90
FR 44306). The OMB control number for these requests is 0503-0028.
There is no change to the estimated respondents or burden hours for
those programs as a result of this final rule.
---------------------------------------------------------------------------

For Further Information Contact: Requests for additional
information or copies of this information collection should be directed
to:
<bullet> For SDRP, Kathy Sayers; telephone: (202) 720-6870; or
email: <a href="/cdn-cgi/l/email-protection#eaa18b9e8293c4b98b938f9899aa9f998e8bc48d859c">[email&#160;protected]</a>;
<bullet> For OFSCLP, Shayla Watson; telephone: (202) 690-2350; or
email: <a href="/cdn-cgi/l/email-protection#aaf9c2cbd3c6cb84fdcbded9c5c4eadfd9cecb84cdc5dc">[email&#160;protected]</a>; and
<bullet> For MLP, Douglas E. Kilgore; telephone: (717) 887-0963; or
email: <a href="/cdn-cgi/l/email-protection#c480abb1a3a8a5b7ea81ea8fada8a3abb6a184b1b7a0a5eaa3abb2">[email&#160;protected]</a>.
Title: Agricultural Disaster Indemnity Programs.
Form Numbers: CCC-901, CCC-902E, CCC-902I, AD-1026, AD-2047, FSA-
376, FSA-504, FSA-510, FSA-526Q, FSA-578, FSA-878, FSA-878 Cont.
OMB Number: 0503-0028.
Expiration Date: 10/31/2027.
Type of Request: Revision to Generic Information Collection.
Abstract: As authorized by Section 2102 of Division B of Title I of
the American Relief Act, 2025 (``the Act''; Pub. L. 118-158), FSA is
administering this rule to provide assistance for eligible quality
losses under Stage 1 of the Supplemental Disaster Relief Program (SDRP)
and to implement Stage 2 of SDRP, the On-Farm Stored Commodity Loss
Program (OFSCLP), and the Milk Loss Program (MLP). SDRP 2 will use up
to $2.7 billion in funds; OFSCLP will use up to $5 million in funds;
and MLP will use up to $1.65 million in funds. Due to limited funding,
payments may be factored.
The PRA section of this rule will be discussed in three separate
components: Supplemental Disaster Relief Program Stage 1 Quality Loss
Assistance and Stage 2, On-Farm Stored Commodity Loss Program, and Milk
Loss Program.

[[Page 51969]]

Component 1: Supplemental Disaster Relief Program Stage 1 Quality Loss
Assistance and Stage 2
FSA is administering SDRP to provide assistance to producers for
losses of 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 that occurred in calendar
year 2023 and 2024. SDRP will use approximately $16.09 billion in
funds. FSA is administering SDRP in two stages, referred to as Stage 1
and Stage 2. Stage 1 was announced in a final rule published on July
10, 2025 (90 FR 30561), and the information collection for Stage 1 was
approved at the time of rule publication. FSA is now announcing
additional assistance for quality losses for certain crops that were
previously included in Stage 1, as well as Stage 2 assistance for
uninsured crops, trees, bushes, and vines; losses that were insured but
did not have a loss that was severe enough to result in an indemnity;
and indemnified losses in Puerto Rico.
Producers who suffered eligible Stage 1 quality losses are required
to submit FSA-526Q, SDRP Stage 1 Application for Quality Losses, and
producers who suffered eligible losses under Stage 2 are required to
submit FSA-504, SDRP Stage 2 Application. Applicants will submit a
separate FSA-526Q or FSA-504 for each application crop year (2023,
2024, 2025) by the application deadline. Applicants must also submit
documentation to support the certified quality loss percentage, amount
of crop production or inventory, and number of damaged or destroyed
trees, bushes, or vines, as applicable for their application. Stage 2
applicants must also submit FSA-578, Report of Acreage, if not already
on file for the applicable crop year. Other forms required are the CCC-
902, Farm Operating Plan, for an individual or legal entity as provided
in 7 CFR part 1400; CCC-901, Member Information for Legal Entities, if
applicable; AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification, for the participant and
applicable affiliates; and FSA-510, Request for an Exception to the
$125,000 Payment Limitation for Certain Programs, for participants and
members of legal entities to be eligible for the increased payment
limitation of $250,000, as applicable.
Affected Public: Farms or businesses for profit (Agricultural
producers).
Estimated Number Respondents: 72,106.
Estimated Number of Responses per Respondent: 3.54277758.
Estimated Number of Total Annual Responses per Respondent: 255,456.
Estimated Time per Respondent: 0.46071759 hours.
Estimated Total Annual Burden on Respondents: 117,693 burden hours.

----------------------------------------------------------------------------------------------------------------
Number of
Burden activity or form Number of responses per Total annual Hours per Total hours
respondents respondent responses response per year
----------------------------------------------------------------------------------------------------------------
Application Process
----------------------------------------------------------------------------------------------------------------
FSA-526Q, SDRP Stage 1 Application 23,500 1.2 28,200 0.5 14,100
for Quality Losses.................
FSA-504, SDRP Stage 2 Application... 48,606 1.3 63,188 0.75 47,391
CCC-901, Member Information for an 486 1 486 0.5 243
Entity.............................
CCC-902E, Farm Operating Plan for an 2,430 1 2,430 0.5 1,215
Entity.............................
CCC-902I , Farm Operating Plan for 2,430 1 2,430 0.5 1,215
an Individual......................
FSA-510, Request for an Exception to 1,944 1.3 2,527 0.0835 211
the $125,000 Payment Limitation for
Certain Programs...................
AD-1026, Highly Erodible Land 972 1 972 0.0835 EXEMPT
Conservation (HELC) and Wetland
Conservation (WC) Certification....
FSA-578, Report of Acreage.......... 14,582 1.3 18,957 0.5 9,478
Documentation of crop, tree, bush, 72,106 1 72,106 0.5 36,053
and vine losses....................
---------------------------------------------------------------------------
Subtotal............................ 72,106 2.652977561 191,296 0.574535803 109,906
----------------------------------------------------------------------------------------------------------------
Compliance Process
----------------------------------------------------------------------------------------------------------------
Initial Notification Letter-- 38,885 1 38,885 0.0835 3,247
Compliant..........................
Initial Notification Letter--May 9,721 1 9,721 0.0835 812
Request Review.....................
Gather information and respond to 5,833 1 5,833 0.5 2,916
FSA................................
Second Notification Letter-- 9,721 1 9,721 0.0835 812
Determination......................
---------------------------------------------------------------------------
Subtotal............................ 48,606 1.32 64,160 0.121363636 7,787
Total Estimates..................... 72,106 3.54277758 255,456 0.46071759 117,693
----------------------------------------------------------------------------------------------------------------

There are 72,106 respondents anticipated for this data collection.
The ``Number of Respondents'' column is not a sum. It represents the
same respondents submitting responses related to different activities
for this data collection; therefore, these respondents are not double
counted.
The FSA-504 and FSA-578 must be filed for each applicable crop year
for which the producer is applying for payment. The FSA-510 must also
be filed for each applicable crop year for which the producer is
requesting an exception to the $125,000 payment limitation. Because
some producers will apply for multiple years, the average number of
responses per respondent is 1.3 for those forms.
Component 2: On-Farm Stored Commodity Loss Program
OFSCLP provides payments to eligible producers who suffered
uncompensated losses of harvested commodities stored in on-farm
structures as a result of wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter storms, freeze, including a polar
vortex, smoke exposure, qualifying drought, and related conditions that
occurred in calendar year 2023 or 2024.
To apply for the OFSCLP, producers must submit a complete FSA-878,
On-Farm Stored Commodity Loss Program

[[Page 51970]]

(OFSCLP) Application, as well as all other information required to be
furnished under the regulation at the time of application. If the
producer has additional losses or if signatures are required in excess
of what can be provided on the FSA-878, the producer(s) must complete
and sign the FSA-878 Continuation form. The FSA-878 and FSA-878
Continuation are the only new data collection activities associated
with this request.
Affected Public: Farms or businesses for profit (Agricultural
producers).
Estimated Number Respondents: 550.
Estimated Number of Responses per Respondent: 1.90909091.
Estimated Number of Total Annual Responses per Respondent: 1,050.
Estimated Time per Respondent: 0.2304762 hours.
Estimated Total Annual Burden on Respondents: 242 burden hours.

----------------------------------------------------------------------------------------------------------------
Number of
Number of responses Total Hours per Total
Burden activity or form respondents per annual response hours per
respondent responses year
----------------------------------------------------------------------------------------------------------------
FSA-878, On-Farm Stored Commodity Loss Program 550 1 550 0.25 138
Application.....................................
FSA-878 Continuation, On-Farm Stored Commodity 50 1 50 .25 13
Loss Program Application........................
CCC-901, Member Information for an Entity........ 50 1 50 0.5 25
CCC-902E, Farm Operating Plan for an Entity...... 50 1 50 0.5 25
CCC-902I, Farm Operating Plan for an Individual.. 50 1 50 0.5 25
FSA-510, Request for an Exception to the $125,000 100 1 100 0.0835 8
Payment Limitation for Certain Programs.........
AD-2047, Customer Data Worksheet................. 100 1 100 0.835 8
AD-1026, Highly Erodible Land Conservation (HELC) 100 1 100 0.0835 EXEMPT
and Wetland Conservation Certification (WC).....
--------------------------------------------------------------
Subtotal Estimates............................... 550 1.909090 1,050 0.2304762 242
----------------------------------------------------------------------------------------------------------------

There are 550 respondents anticipated for this data collection. The
``Number of Respondents'' column is not a sum, it represents the same
respondents participating in different activities for this data
collection; therefore, these respondents are not double counted.
Component 3: Milk Loss Program
FSA is administering MLP to provide payments to affected farmers in
a dairy operation for milk that was dumped or removed without
compensation from the commercial milk market 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 that occurred in calendar
year 2023 or 2024.
Affected farmers in a dairy operation who suffered eligible milk
losses are required to submit FSA-376, Milk Loss Program Application.
Applicants must also provide milk marketing statements and a detailed
written statement of the circumstances of the milk removal as
documentation. Other forms required are the CCC-902, Farm Operating
Plan, for an individual or legal entity as provided in 7 CFR part 1400;
CCC-901, Member Information for Legal Entities, if applicable; AD-1026,
Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC)
Certification, for the participant and applicable affiliates; AD-2047,
Customer Data Worksheet and FSA-510, Request for an Exception to the
$125,000 Payment Limitation for Certain Programs, for participants and
members of legal entities to be eligible for the increased payment
limitation of $250,000, as applicable. The FSA-376 and milk marketing
statements are the only new data collection activities associated with
this request.
Affected Public: Farms or businesses for profit (Agricultural
producers).
Estimated Number Respondents: 250.
Estimated Number of Responses per Respondent: 4.8.
Estimated Number of Total Annual Responses per Respondent: 1200.
Estimated Time per Respondent: 0.1633 hours.
Estimated Total Annual Burden on Respondents: 196 burden hours.

----------------------------------------------------------------------------------------------------------------
Number of
Number of responses Total Hours per Total
Burden activity or form respondents per annual response hours per
respondent responses year
----------------------------------------------------------------------------------------------------------------
FSA-376, Milk Loss Program Application........... 250 1 250 0.25 63
Milk Marketing Statements for Base and Claim 250 2 500 0.0835 42
Period..........................................
CCC-901, Member Information for an Entity........ 50 1 50 0.50 25
CCC-902E, Farm Operating Plan for an Entity...... 50 1 50 0.50 25
CCC-902I, Farm Operating Plan for an Individual.. 50 1 50 0.50 25
FSA-510, Request for an Exception to the $125,000 100 1 100 0.0835 8
Payment Limitation for Certain Programs.........
AD-2047, Customer Data Worksheet................. 100 1 100 0.0835 8
AD-1026, Highly Erodible Land Conservation (HELC) 100 1 100 0.0835 Exempt
and Wetland Conservation Certification (WC).....
--------------------------------------------------------------
Subtotal Estimates............................... 250 4.80 1200 0.163333 196
----------------------------------------------------------------------------------------------------------------

There are 250 respondents anticipated for this data collection. The
``Number of Respondents'' column is not a sum, it represents the same
respondents participating in different activities for this data
collection; therefore, these respondents are not double counted.

[[Page 51971]]

The FSA-376 must be filed by each affected farmer applying for
payment. The FSA-510 must also be filed for each applicable year for
which the affected farmer is requesting an exception to the $125,000
payment limitation. Because some affected farmers will apply for
multiple years, the average number of responses per respondent is
0.1633 hours for those forms.
Grand Totals
In total, FSA estimates this rule will require 72,906 respondents
and a total of 118,131 burden hours. There is a minimal number of
producers, less than 10, anticipated to apply to more than one of the
programs. Once this request has been approved by OMB, the agency plans
to publish another notice in the Federal Register announcing OMB
approval. There is no recordkeeping or third-party burden on the
respondents.

H. 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 titles and numbers of the Federal assistance programs, as found
in the Assistance Listing, to which this document applies are 10.986--
Emergency Livestock Relief Program 2023 and 2024, 10.987--Emergency
Livestock Relief Program (ELRP) 2023 and 2024 Flood and Wildfire (FW),
10.988--Supplemental Disaster Assistance Program; 10.989--On-Farm
Stored Commodity Loss Program, and 10.965--Milk Loss 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, The Farm Service Agency 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 P--On-Farm Stored Commodity Loss Program

0
2. Revise the heading of subpart P to read as set forth above.

0
3. Revise Sec. 760.1600 to read as follows:

Sec. 760.1600 Applicability.

(a) This subpart specifies the terms and conditions for the On-Farm
Stored Commodity Loss Program (OFSCLP). The On-Farm Stored Commodity
Loss Program will provide payments to eligible producers who suffered
uncompensated losses of harvested commodities stored in on-farm
structures as a result of wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter storms, freeze, including a polar
vortex, smoke exposure, qualifying drought, and related conditions that
occurred in calendar year 2023 or 2024.
(b) The regulations in this subpart are applicable to crops of
wheat, oats, barley, corn, grain sorghum, long grain rice, medium grain
rice, seed cotton, pulse crops, soybeans, other oilseeds, peanuts, and
all hay stored in on-farm structures.

0
4. Amend Sec. 760.1601 as follows:
0
a. Revise paragraphs (a), (b) and (d);
0
b. Remove paragraphs (e) through (g).
The revisions read as follows.

Sec. 760.1601 Administration.

(a) The On-Farm Stored Commodity Loss Program will be administered
under the general supervision and direction of the FSA Administrator
and will be carried out in the field by FSA State and county
committees, respectively.
(b) State and county committees, and representatives and their
employees, do not have authority to modify or waive any of the
provisions of the regulations set forth in this part.
* * * * *
(d) No provision or delegation to an FSA State or county committee
will preclude the FSA Administrator, the Deputy Administrator, or a
designee, from determining any question arising under this subpart, or
from reversing or modifying any determination made by an FSA State or
county committee.

0
5. Amend Sec. 760.1602 as follows:
0
a. In the introductory text, remove the second sentence;
0
b. Add the definition of ``Average adjusted gross farm income'',
``Average AGI'', and ``Base period'' in alphabetical order;
0
c. Remove the definitions of ``CCC'' and ``COC'';
0
d. Add the definitions of ``Commercial storage'', and ``Commingled'' in
alphabetical order;
0
e. Remove the definitions of ``Covered commodity'' and ``Crop year'';
0
f. Add the definitions of ``Eligible on-farm stored commodity'',
``Farming operation'', ``Income derived from farming, ranching, and
forestry operations'', ``IRS'', ``Legal entity'', ``Market Year Average
(MYA) Price'', ``NASS'', ``Ownership interest'', ``Production Inputs'',
and ``Production services'' in alphabetical order;
0
g. Revise the definition of ``Qualifying disaster event'';
0
h. Add the definition of ``Qualifying drought'' in alphabetical order;
0
i. Remove the definition of ``Recording FSA County Office'';
0
j. Revise the definition of ``Related condition'';
0
k. Remove the definition of ``STC''; and
0
l. Add the definition of ``U.S. Drought Monitor'' in alphabetical
order.
The additions and revisions read as follows.

Sec. 760.1602 Definitions.

* * * * *
Average adjusted gross farm income means the average of the
person's or legal entity's adjusted gross income derived from farming,
ranching, or forestry operations, including losses, for the base
period.
(1) If the resulting average adjusted gross farm income derived
from paragraphs (1) through (12) 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
one (1) or more of the tax years during the base period, the average
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

[[Page 51972]]

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; and
(2) 2020, 2021, and 2022 for the 2024 program year.
Commercial storage means any activity using storage structure for
hire, for persons other than the program applicant, except for family
members and tenants or landlords sharing the crop storage. Any facility
that shares a physical address, equipment, or other business products
and services with any commercial storage operation is not included in
the OFSCLP.
Commingled means any grain commodity stored in the same non-
commercial storage structure with grain owned by another individual or
entity. The nature of the storage allows for blending, making it
necessary to identify the owner of the grain by share.
* * * * *
Eligible on-farm stored commodity means any of the following
commodities that were produced, harvested, and stored on a farm in the
United States: wheat, oats, barley, corn, grain sorghum, all hay, long
grain rice, medium grain rice, seed cotton, pulse crops, soybeans,
other oilseeds, and peanuts. Grazed commodities are not included in the
OFSCLP.
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
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.
* * * * *
Income derived from farming, ranching, and forestry operations
means income of an individual or entity derived from:
(1) Production of crops, specialty 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, forestry commodities including renewable energy;
(7) Feeding, rearing, or finishing of livestock;
(8) Payments of benefits, including benefits from risk management
practices, crop insurance indemnities, and catastrophic risk protection
plans;
(9) Sale of land that has been used for agricultural purposes;
(10) Payments and benefits authorized under any program made
available and applicable to payment eligibility and payment limitation
rules;
(11) Income reported on IRS Schedule F or Form 4835; and
(12) Wages or dividends received from a closely held corporation,
and 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, or forestry activities as
defined in this part.
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.
Market Year Average (MYA) Price means the national average price
received by producers during the 12-month marketing year established by
NASS.
NASS means the USDA National Agricultural Statistics Service.
* * * * *
Ownership interest means to have either a legal ownership interest
or a beneficial ownership interest in a legal entity. For the purposes
of administering this subpart, 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.
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 a wildfire, hurricane, flood,
derecho, excessive heat, tornado, winter storm, freeze, including a
polar vortex, smoke exposure, 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

[[Page 51973]]

(4) Excessive wind and blizzards that occurred as a direct result
of a winter storm.
* * * * *
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="http://droughtmonitor.unl.edu">http://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.

0
6. Revise Sec. 760.1603 to read as follows:

Sec. 760.1603 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 OFSCLP 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, 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 OFSCLP; in those instances,
the entity is considered the applicant.
(c) To be eligible for OFSCLP, a producer must 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.
(d) A receiver or trustee of an insolvent or bankrupt debtor's
estate, an executor or an administrator of a deceased person's estate,
a guardian of an estate of a ward or an incompetent person, and
trustees of a trust are considered to represent the insolvent or
bankrupt debtor, the deceased person, the ward or incompetent, and the
beneficiaries of a trust, respectively. The production of the receiver,
executor, administrator, guardian, or trustee is considered to be the
production of the person or estate represented by the receiver,
executor, administrator, guardian, or trustee. On-Farm Stored Commodity
Loss Program documents executed by any such person will be accepted by
FSA only if they are legally valid and such person has the authority to
sign the applicable documents.
(e) A minor who is otherwise an eligible producer is eligible to
receive a program payment only if the minor meets one of the following
requirements:
(1) The right of majority has been conferred on the minor by court
proceedings or by statute;
(2) A guardian has been appointed to manage the minor's property
and the applicable program documents are signed by the guardian;
(3) Any program application signed by the minor is cosigned by a
person determined by FSA to be financially responsible.

0
7. In Sec. 760.1604, revise paragraph (a) and add paragraph (c) to
read as follows:

Sec. 760.1604 Eligible commodities.

(a) Commodities eligible to be compensated for loss under this
subpart are eligible on-farm stored commodities as defined in this
subpart.
* * * * *
(c) To be eligible for payment under this subpart, the eligible on-
farm stored commodity must have been:
(1) Stored in an on-farm structure that under normal circumstances
would have maintained the quality of the commodity throughout harvest
until marketing or feed if not for the qualifying disaster event;
(2) At the time of loss, physically located in or under a structure
and not left in a field baled or held together with netting, twine, or
plastic as the only cover;
(3) Not stored in a commercial structure; and
(4) Properly dried prior to harvest--losses resulting from
excessive moisture due to the commodity not being dried properly prior
to storage are not eligible.

Sec. 760.1605 [Amended]

0
8. In Sec. 760.1605(a), remove the words ``a financial'' and add the
words ``an ownership'' in their place.

0
9. Revise Sec. 760.1606 to read as follows:

Sec. 760.1606 General provisions.

(a) Losses will be determined by the total production of an
eligible on-farm stored commodity in storage at time of loss.
Eligibility and payments will be based on physical location of storage.
Payments will be made on eligible commodities that were completely lost
or destroyed while in storage due to the qualifying disaster event.
(b) The amount received from the salvage of the damaged facility
and the amount of any insurance indemnity received with respect to the
damage of the facility will be deducted from the calculated payment
amount determined in accordance with Sec. 760.1612.

0
10. Revise Sec. 760.1607 to read as follows:

Sec. 760.1607 Availability of funds and timing of payments.

On-Farm Stored Commodity Loss Program payments will be prorated,
with all producers receiving payments based on the sum of all eligible
payments and available funds. FSA will not disburse On-Farm Stored
Commodity Loss Program payments at the beginning of the application
period. During the application period, FSA may evaluate program demand
and begin issuing payments if an initial payment factor can be
established to ensure that payments do not exceed available funding.
After the application deadline, a final payment factor will be
determined and applied, which may or may not provide an additional or
final payment, depending upon the factor.

0
11. Revise Sec. 760.1608 to read as follows:

Sec. 760.1608 Payment limitation and AGI.

(a) Per program loss year, a person or legal entity, other than a
joint venture or general partnership, is eligible to receive, directly
or indirectly, payments under this subpart of not more than:
(1) $125,000 if less than 75 percent of the person's or legal
entity's average AGI is average adjusted gross farm income; or
(2) $250,000 if 75 percent or more of the person's or legal
entity's average AGI is average adjusted gross farm income.
(b) To be eligible to receive payments based on the limitation in
paragraph (a)(2) of this section, a person or legal entity must submit
FSA-510, Request for an Exception to the $125,000 Payment Limitation
for Certain Programs, accompanied by a certification from a certified
public accountant or attorney as to that person's or legal entity's
certification.
(c) If a producer requesting the $250,000 payment limitation 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 $250,000 payment limitation 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

[[Page 51974]]

the required certification or is not eligible for the $250,000 payment
limitation, the payment to the legal entity will be reduced for the
limitation applicable to the share of the OFSCLP 2023 or 2024 payment
attributed to that member.
(d) If a producer or member of a legal entity files FSA-510 and the
accompanying certification after their payment is issued but before the
deadline specified in Sec. 760.1611(g), FSA will recalculate the
payment and issue the additional calculated amount.
(e) The direct attribution provisions in Sec. 1400.105 of this
chapter apply for payment limitation and determining average AGI as
defined and used in this subpart.
(f) If an individual or legal entity is not eligible to receive
OFSCLP 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.

0
12. Revise Sec. 760.1609 to read as follows:

Sec. 760.1609 Qualifying disaster events.

(a) The On-Farm Stored Commodity Loss Program will provide a
payment to eligible producers who suffered losses of harvested eligible
on-farm stored commodities while such commodities were stored in on-
farm structures as a result of wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter storms, freeze, including a polar
vortex, smoke exposure, qualifying drought, and related conditions that
occurred in calendar year 2023 or 2024.
(b) A producer must provide supporting documentation that
substantiates that the loss of the commodity was reasonably related to
a qualifying disaster event as specified in this subpart and meets all
other eligibility conditions. Supporting documentation may include
climatological data from a reputable source or other information
substantiating the claim of loss due to a qualifying disaster event.

0
13. Amend Sec. 760.1610 as follows:
0
a. In paragraph (b) introductory text, remove the word ``Storage'' and
add the words ``Stored Commodity'' in its place; and
0
b. Revise paragraph (c).
The revision reads as follows.

Sec. 760.1610 Eligible and ineligible losses.

* * * * *
(c) The following types of loss, regardless of whether they were
the result of a qualifying disaster event, are not eligible losses:
(1) Losses to crops that have not been harvested;
(2) Losses to crops not intended for harvest;
(3) Losses caused by improper storage;
(4) Losses caused by the application of chemicals;
(5) Losses caused by theft;
(6) Losses due to quality loss; and
(7) Losses caused by excessive moisture.

0
14. Amend Sec. 760.1611 as follows:
0
a. In paragraph (a), remove the words ``a date that will be announced
by the Deputy Administrator'' and add ``January 23, 2026'' in their
place;
0
b. In paragraph (c) remove the word ``Storage'' and add the words
``Stored Commodity'' in its place; and
0
c. Add paragraphs (f) through (h).

Sec. 760.1611 Application for payment.

* * * * *
(f) Producers of commingled commodities must designate their
appropriate share of the commodity when applying for payment.
(g) Applicants must also submit all of the following items by
January 23, 2027, if not previously filed with FSA:
(1) Form AD-2047, Customer Data Worksheet, for new customers or
existing customers who need to update their customer profile;
(2) CCC-902, Farm Operating Plan, for an individual or legal
entity;
(3) CCC-901, Member Information for Legal Entities, if applicable;
(4) 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
(5) FSA-510, Request for an Exception to the $125,000 Payment
Limitation for Certain Programs, for producers and members of legal
entities who are requesting an increased payment limitation.
(h) The date to apply for payments under this program may, at the
sole discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth at <a href="https://www.fsa.usda.gov/resources/programs/farm-stored-commodity-loss-program-ofsclp">https://www.fsa.usda.gov/resources/programs/farm-stored-commodity-loss-program-ofsclp</a>. Producers may also
obtain that information from any FSA county office.

0
15. Revise Sec. 760.1612 to read as follows:

Sec. 760.1612 Calculating payments for on-farm stored commodity
losses.

(a) Payments made under this subpart for eligible on-farm stored
commodities are calculated by:
(1) Multiplying the NASS Market Year Average Price or FSA
determined price for the eligible on-farm stored commodity by 75
percent;
(2) Multiplying the result from paragraph (a)(1) of this section by
the eligible quantity of the eligible on-farm stored commodity adjusted
by applicable shares of the producer;
(3) Reducing the calculated amount by subtracting any payment
received from an insurance indemnity or salvage buyer; and
(4) Applying a payment factor based on the total calculated
payments for all applications if the total calculated payments exceed
the available funding.

Subpart Q--Milk Loss Program

Sec. 760.1700 [Amended]

0
16. Amend Sec. 760.1700 as follows:
0
a. Add the words ``tornadoes, excessive moisture,'' after
``derechos,'';
0
b. Remove the years ``2020, 2021, and 2022'' and add ``2023 and 2024''
in their place; and
0
c. Remove the last sentence of the paragraph.

0
17. Revise Sec. 760.1701 to read as follows:

Sec. 760.1701 Administration.

(a) The Milk Loss Program will be administered under the general
supervision and direction of the FSA Administrator and will be carried
out in the field by FSA State and county committees, respectively.
(b) State and county committees, and representatives and their
employees, do not have authority to modify or waive any of the
provisions of the regulations set forth in this subpart.
(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 an FSA State or county committee
will preclude the FSA Administrator, the Deputy Administrator, or a
designee, from determining any question arising under this subpart, or
from reversing or modifying any determination made by an FSA State or
county committee.

[[Page 51975]]

0
18. Amend Sec. 760.1702 as follows:
0
a. In the definition of ``Affected farmer'', add the word ``disaster''
after ``qualifying'';
0
b. In the definition of ``Application period'', remove the years
``2020, 2021, and 2022'' and add ``2023 and 2024'' in their place;
0
c. Revise the definitions of ``Average adjusted gross farm income'' and
``Average adjusted gross income'';
0
d. Remove the definition of ``Beginning farmer or rancher'';
0
e. Add the definition of ``Farming operation'' in alphabetical order;
0
f. Remove the definition of ``Limited Resource farmer or rancher'';
0
g. Add the definition of ``Legal entity'' in alphabetical order;
0
h. In the definition of ``Milk marketing organization'', remove the
words ``weather related'' and add ``disaster'' in their place;
0
i. Add the definitions of ``Production inputs'' and ``Production
services'' in alphabetical order;
0
j. Revise the definition of ``Qualifying disaster event'';
0
k. Add the definitions of ``Qualifying drought'' and ``Related
condition'' in alphabetical order; and
0
l. Remove the definitions of ``Same loss'', ``Secretary'', and
``Socially disadvantaged farmer or rancher'', ``Underserved farmer or
rancher'', and ``Veteran farmer or rancher''.
The revisions and additions read as follows.

Sec. 760.1702 Definitions.

* * * * *
Average adjusted gross farm income means the average of the
person's or legal entity's adjusted gross income derived from farming,
ranching, and forestry operations, including losses, for the 3 taxable
years preceding the most immediately preceding complete taxable year.
(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 3 taxable years preceding the
most immediately preceding complete taxable year, the average 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.
(3) The relevant tax years are:
(i) For the 2023 program year, 2019, 2020, and 2021; and
(ii) For the 2024 program year, 2020, 2021, and 2022.
Average adjusted gross income 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 relevant tax years, which are:
(1) For the 2023 program year, 2019, 2020, and 2021; and
(2) For the 2024 program year, 2020, 2021, and 2022.
* * * * *
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
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.
* * * * *
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.
* * * * *
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 droughts, 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.
* * * * *

0
19. Revise Sec. 760.1704, paragraph (a) introductory text, to read as
follows:

Sec. 760.1704 Payments to dairy farmers for milk.

(a) A milk loss payment will be made to an affected farmer who is
in compliance with this subpart in the amount equal to 75 percent of
the fair market value of the farmer's normal marketings for the
application period, less:
* * * * *

[[Page 51976]]

Sec. 760.1708 [Amended]

0
20. In Sec. 760.1708, remove the words ``of the designated deadline
announced by the Secretary for 2020, 2021, and 2022 losses'' and add
``on January 23, 2026, for 2023 and 2024 losses'' in their place.

0
21. Revise Sec. 760.1709 to read as follows:

Sec. 760.1709 Payment limitation and AGI.

(a) Per program year, a person or legal entity, other than a joint
venture or general partnership, is eligible to receive, directly or
indirectly, payments under this subpart of not more than:
(1) $125,000 if less than 75 percent of the person's or legal
entity's average adjusted gross income is average adjusted gross farm
income; or
(2) $250,000 if not less than 75 percent of the person's or legal
entity's average adjusted gross income is average adjusted gross farm
income.
(b) To be eligible to receive payments based on the limitation in
paragraph (a)(2) of this section, a person or legal entity must submit
FSA-510, accompanied by a certification from a certified public
accountant or attorney as to that person's or legal entity's
certification.
(c) If a producer requesting the $250,000 payment limitation 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 $250,000 payment limitation 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 $250,000 payment limitation, the payment to the
legal entity will be reduced for the limitation applicable to the share
of the payment attributed to that member.
(d) If a producer or member of a legal entity files FSA-510 and the
accompanying certification after their payment is issued but before the
deadline, FSA will recalculate the payment and issue the additional
calculated amount.
(e) The direct attribution provisions in Sec. 1400.105 apply for
payment limitation and determining average adjusted gross income as
defined and used in this subpart.
(f) If an individual or legal entity is not eligible to receive
Milk Loss Program 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.

0
22. Amend Sec. 760.1710 as follows.
0
a. Revise paragraph (a);
0
b. In paragraph (b) introductory text, remove ``within 60 days from the
date of the Milk Loss Program application deadline'' and add ``by
January 23, 2027'' in its place;
0
c. Remove paragraph (b)(2);
0
d. Redesignate paragraphs (b)(3) through (6) as paragraphs (b)(2)
through (5);
0
e. Revise newly redesignated paragraph (b)(4);
0
f. In newly redesignated paragraph (b)(5), add the word ``applicant''
after the word ``Program'';
0
g. In paragraph (d), remove the years ``2020, 2021, and 2022'' and add
``2023 and 2024'' in their place; and
0
h. Add paragraph (f).
The revisions and addition read as follows.

Sec. 760.1710 Time and method of application.

(a) A completed FSA-376, Milk Loss Program Application, must be
submitted at the time of application along with the information listed
in Sec. 760.1707 to any FSA county office by the close of business on
January 23, 2026.
(b) * * *
(4) Form FSA-510, Request for an Exception to the $125,000 Payment
Limitation for Certain Programs, for producers and members of legal
entities who are requesting an increased payment limitation; and
* * * * *
(f) The date to apply for payments under this program may, at the
sole discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth at <a href="https://www.fsa.usda.gov/resources/programs/milk-loss-program-mlp">https://www.fsa.usda.gov/resources/programs/milk-loss-program-mlp</a>. Producers may also obtain that
information from any FSA county office.

0
23. Revise Sec. 760.1719 to read as follows:

Sec. 760.1719 Availability of funds and timing of payments.

(a) Payments under this subpart will be prorated based on the sum
of all payments to eligible affected farmers and available funds.
(b) FSA will not disburse Milk Loss Program payments at the
beginning of the application period. However, during the application
period, FSA may evaluate program demand and begin issuing payments if
an initial payment factor can be established to ensure that payments do
not exceed available funding. After the application deadline, a final
payment factor will be determined and applied, which may or may not
provide an additional or final payment, depending upon the factor.

0
24. In Sec. 760.1720, revise paragraph (a)(4) to read as follows:

Sec. 760.1720 Calculating payments for milk losses.

(a) * * *
(4) Multiplied by a program factor of 75 percent.
* * * * *

Subpart T--Emergency Livestock Relief Program 2023 and 2024

0
25. Revise Sec. 760.2001 to read as follows:

Sec. 760.2001 Administration.

(a) The Emergency Livestock Relief Program 2023 and 2024 will be
administered under the general supervision and direction of the FSA
Administrator and will be carried out in the field by FSA State and
county committees, respectively.
(b) State and county committees, and representatives and their
employees, do not have authority to modify or waive any of the
provisions of the regulations set forth in this subpart.
(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 an FSA State or county committee
will preclude the FSA Administrator, the Deputy Administrator, or a
designee, from determining any question arising under this subpart, or
from reversing or modifying any determination made by an FSA State or
county committee.

0
26. Amend Sec. 760.2004 as follows:
0
a. In paragraph (a), remove the date ``October 31, 2025'' and add
``November 21, 2025'' in its place; and
0
b. Add paragraph (c).
The addition reads as follows.

Sec. 760.2004 Required forms and deadlines.

* * * * *
(c) The date to apply for payments under this program may, at the
sole

[[Page 51977]]

discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth at <a href="https://www.fsa.usda.gov/resources/programs/emergency-livestock-relief-program-elrp">https://www.fsa.usda.gov/resources/programs/emergency-livestock-relief-program-elrp</a>. Producers may also
obtain that information from any FSA county office.

Sec. 760.2006 [Amended]

0
27. In Sec. 760.2006, remove the first paragraph (e).

Subpart U--Emergency Livestock Relief Program 2023 and 2024 Flood
and Wildfire

0
28. Revise Sec. 760.2101 to read as follows:

Sec. 760.2101 Administration.

(a) The Emergency Livestock Relief Program 2023 and 2024 Flood and
Wildfire will be administered under the general supervision and
direction of the FSA Administrator and will be carried out in the field
by FSA State and county committees, respectively.
(b) State and county committees, and representatives and their
employees, do not have authority to modify or waive any of the
provisions of the regulations set forth in this subpart.
(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 an FSA State or county committee
will preclude the FSA Administrator, the Deputy Administrator, or a
designee, from determining any question arising under this subpart, or
from reversing or modifying any determination made by an FSA State or
county committee.

0
29. Amend Sec. 760.2107 as follows:
0
a. In paragraph (a) introductory text, remove the date ``October 31,
2025'' and add ``November 21, 2025'' in its place; and
0
b. Add paragraph (f).
The addition reads as follows.

Sec. 760.2107 Application process.

* * * * *
(f) The date to apply for payments under this program may, at the
sole discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth at <a href="https://www.fsa.usda.gov/resources/programs/emergency-livestock-relief-program-elrp">https://www.fsa.usda.gov/resources/programs/emergency-livestock-relief-program-elrp</a>. Producers may also
obtain that information from any FSA county office.

Sec. 760.2109 [Amended]

0
30. In Sec. 760.2109, remove and reserve paragraph (e).

Subpart V--Supplemental Disaster Relief Program

0
31. In Sec. 760.2200, add paragraph (d) to read as follows.

Sec. 760.2200 Applicability.

* * * * *
(d) SDRP Stage 2 provides assistance for eligible losses of
eligible crops, trees, bushes, and vines for which a producer:
(1) Had Federal crop insurance or NAP coverage but did not receive
a Federal crop insurance indemnity or NAP payment for the applicable
crop year; or
(2) Did not have Federal crop insurance or NAP coverage for the
applicable crop year.

0
32. Revise Sec. 760.2201 to read as follows:

Sec. 760.2201 Administration.

(a) The Supplemental Disaster Relief Program will be administered
under the general supervision and direction of the FSA Administrator
and will be carried out in the field by FSA State and county
committees, respectively.
(b) State and county committees, and representatives and their
employees, do not have authority to modify or waive any of the
provisions of the regulations set forth in this part.
(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 an FSA State or county committee
will preclude the FSA Administrator, the Deputy Administrator, or a
designee, from determining any question arising under this subpart, or
from reversing or modifying any determination made by an FSA State or
county committee.

0
33. Amend Sec. 760.2202 as follows:
0
a. Revise the definition of ``Administrative fee'';
0
b. Add the definitions of ``Affected production'', ``APH and yield-
based plans'', ``Approved yield'', ``Area plans'', ``Average market
price'', ``County disaster yield'', and ``County expected yield'' in
alphabetical order;
0
c. Revise the definitions of ``Coverage level'' and ``Crop year'';
0
d. Add the definitions of ``Damage factor'', ``Determined acres'',
``Dollar plans and other revenue plans'', ``Dollar value after
disaster'', and ``Dollar value before disaster'' in alphabetical order;
0
e. Revise the definition of ``Eligible crop'';
0
f. Add the definitions of ``Eligible acreage percentage'', ``Expected
price'', ``Federal Crop Insurance Act'', ``Final planting date'',
``Forage crop'', ``Grading factor'', ``Harvested'', ``Insurable crop'',
``Multiple planting'', ``Native sod'', and ``Nutrient factor'' in
alphabetical order;
0
g. Revise the definition of ``Premium'';
0
h. Add the definitions of ``Prevented planting'', ``Prevented Planting
payment factor'', ``Price election'', ``Production'', ``Production to
count'', ``Quality loss'', ``Reliable production record'', ``Salvage
value'', ``SDRP factor'', ``Stage 1 quality loss payment'', ``Secondary
use'', and ``Share-adjusted'' in alphabetical order;
0
i. In the definition of ``Tree'', remove the word ``syrup'' and add the
word ``sap'' in its place; and
0
j. Add the definitions of ``Tropical region'', ``Unharvested payment
factor'', ``Uninsured'', ``Unit of measure'', ``USDA'', ``Value loss
crop'', ``Verifiable'', and ``Yield'' in alphabetical order.
The revisions and additions read as follows.

Sec. 760.2202 Definitions.

* * * * *
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. It does not
include administrative fees for supplemental policy endorsements based
on county- or area-level losses when purchased with a base policy.
Affected production means the producer's ownership share of
harvested production of an eligible crop, adjusted to standard moisture
as established by the U.S. Grains Standards Act, a State regulatory
agency, or industry standard, that had a quality loss due to a
qualifying disaster event.
APH and yield-based plans means the following plans of Federal crop
insurance: Yield Protection (YP), Revenue Protection (RP), Revenue
Protection with Harvest Price Exclusion (RP-HPE), Actual Production
History (APH), Production Revenue History--Yield Protection (PRH-YP),
Production Revenue History Plus (PRH-Plus),

[[Page 51978]]

Actual Production History--Price Component (APH-Price Component), and
Production Revenue History--Revenue (PRH-Revenue).
Approved yield means the amount of production per acre, computed as
specified in FCIC's Actual Production History (APH) Program in part
400, subpart G of this title that were in effect for the applicable
crop year or, for crops not included in the regulations of part 400,
subpart G of this title in effect for the applicable crop year, the
yield used to determine the guarantee. For crops covered under NAP, the
approved yield is established according to part 1437 of this title.
Area plans means the following plans of Federal crop insurance:
Actual Yield Protection (AYP), Area Revenue Protection (ARP), Area
Revenue Protection with Harvest Price Exclusion (ARPHPE), Stacked
Income Protection Plan-Revenue Protection (STXRP), Stacked Income
Protection Plan-Revenue Protection with Harvest Price Exclusion (STAX-
RP-HPE), and Rainfall Index (RI-13).
* * * * *
Average market price means the average market price per unit of
measure established by FSA according to 7 CFR 1437.12.
* * * * *
County disaster yield means the average yield per acre calculated
for a county or part of a county for the applicable crop year based on
disaster events, and is intended to reflect the amount of production
that a participant would have been expected to make based on the
eligible disaster conditions in the county or area, as determined by
FSA.
County expected yield means the yield determined according to Sec.
1437.102(b) of this title.
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. It does not include coverage under a
supplemental policy endorsement based on county- or area-level losses
when purchased with a base policy.
Crop year means:
(1) For insurable crops, trees, and vines, the crop year as defined
according to the applicable Federal crop insurance policy;
(2) For NAP-eligible crops, the crop year as defined in 7 CFR
1437.3; and
(3) For uninsurable trees, bushes, and vines, the calendar year in
which the qualifying disaster event occurred.
Damage factor means a percentage of the value lost when a tree,
bush, or vine is damaged and requires rehabilitation but is not
completely destroyed, as determined by FSA.
* * * * *
Determined acres means acreage established by a representative of
FSA by use of official acreage, digitizing areas on the photographic
image, or computations from scaled dimensions or ground measurements.
Dollar plans and other revenue plans means the following Federal
crop insurance plans: Dollar Amount of Insurance, Fixed Dollar, Yield
Based Dollar Amount Insurance, Pecan Revenue, and ARH (Actual Revenue
History).
Dollar value after disaster means the crop inventory immediately
after the qualifying disaster event multiplied by the established price
for the value loss crop.
Dollar value before disaster means the crop inventory immediately
before the qualifying disaster event multiplied by the established
price for the value loss crop.
Eligible crop means a crop:
(1) Including aquacultural species, for which a Federal crop
insurance policy or NAP coverage was available for the 2023, 2024, or
2025 crop year, excluding crops for grazing;
(2) That was produced in the United States as part of a farming
operation and was intended to be commercially marketed; and
(3) That was not livestock or timber.
Eligible acreage percentage means the percentage of acreage that is
eligible for SDRP under the respective area plan compared to the total
acreage insured.
Expected price means a verifiable published price either for sale
or loan on a specific crop and year or the price established by FSA for
a crop and year.
* * * * *
Federal Crop Insurance Act means the legal authority codified in 7
U.S.C. 1501-1524.
Final planting date means the latest date, established by RMA for
each insurable crop or FSA for NAP-covered crops, by which the crop
must initially be planted in order to be insured for the full
production guarantee or amount of insurance per acre.
Forage crop means a plant grown and used to feed livestock that is
harvested and processed into forms like hay, silage, or green chop. It
excludes crops for grazing.
Grading factor means a factor that describes the physical condition
or a feature that is evaluated to determine the quality of the
production, such as broken kernels and low-test weight.
Harvested means:
(1) For insurable crops, harvested as defined according to the
applicable Federal crop insurance policy;
(2) For NAP-eligible single harvest crops, that a crop has been
removed from the field, either by hand or mechanically;
(3) For NAP-eligible crops with potential multiple harvests in 1
year or harvested over multiple years, that the producer has, by hand
or mechanically, removed at least 1 mature crop from the field during
the crop year; and
(4) For mechanically harvested NAP-eligible crops, that the crop
has been removed from the field and placed in a truck or other
conveyance, except hay is considered harvested when in the bale,
whether removed from the field or not.
* * * * *
Insurable crop means an agricultural crop (excluding livestock and
crops intended for grazing) for which the producer on a farm is
eligible to obtain a policy or plan of insurance under the Federal Crop
Insurance Act.
* * * * *
Multiple planting means the planting for harvest of the same crop
in more than one planting period in a crop year on different acreage.
* * * * *
Native sod means land on which the natural state plant cover before
tilling was composed principally of native grasses, grass-like plants,
forbs, or shrubs suitable for grazing and browsing and is land that has
never been tilled as determined by USDA.
Nutrient factor means a factor determined by a test that measures
the nutrient value of a crop to be fed to livestock. Examples include,
but are not limited to, relative feed value and total digestible
nutrients.
* * * * *
Premium means the premium paid by the producer for crop insurance
coverage or NAP buy-up coverage levels. It does not include premiums
for supplemental policy endorsements based on county- or area-level
losses when purchased with a base policy.
Prevented planting means the inability to plant an insured crop
with proper equipment during the planting period as a result of an
insured cause of loss, as determined by FSA.
Prevented planting payment factor means a percentage established by
FSA for a crop and applied in a payment formula to reduce the payment
for reduced expenses due to prevented planting of the crop.
Price election means the percentage of the crop insurance price for
insured crops or average market price for NAP

[[Page 51979]]

covered crops the producer elects for their individual coverage.
Production means quantity of the crop produced, which is expressed
in a specific unit of measure such as bushels or pounds.
* * * * *
Production to count means the net production which includes
harvested, appraised, and assigned production after production and
quality adjustments, if applicable. For insured and NAP-covered crops,
production to count is determined by the applicable Federal crop
insurance policy or NAP provisions.
* * * * *
Quality loss means:
(1) For crops other than forage, a decrease in value based on
discounts provided at the point of sale due to the physical condition
of the crop indicated by an applicable grading factor; and
(2) For forage crops, a reduction in an applicable nutrient factor
for the crop.
Reliable production record means evidence provided by the
participant that is used to substantiate the amount of production
reported when verifiable records are not available, including copies of
receipts, ledgers of income, income statements of deposit slips,
register tapes, invoices for custom harvesting, and records to verify
production costs, contemporaneous measurements, truck scale tickets,
and contemporaneous diaries that are determined acceptable by FSA. To
determine whether the records are acceptable, FSA will consider whether
they are consistent with the records of other producers of the crop in
that area.
* * * * *
Salvage value means the dollar amount or equivalent for the
quantity of the commodity that cannot be marketed or sold in any
recognized market for the crop.
SDRP factor means:
(1) For insured and NAP-covered crops, the factor in Table 1 to
Sec. 760.2208(b), which is based on the Federal crop insurance or NAP
coverage level for a crop and unit that was elected by the SDRP
participant for the applicable crop year; and
(2) For uninsured producers, a factor of 70 percent.
Stage 1 quality loss payment means a payment calculated according
Sec. 760.2209(d) and (e).
Secondary use means the harvesting of a crop for a use other than
the intended use.
Share-adjusted means the adjustment of RMA producer certified
production provided by RMA or SDRP producer certified production from
the producer by the percent of insurable interest on the FSA-504.
* * * * *
Tropical region means Hawaii, Puerto Rico, American Samoa, Guam,
the U.S. Virgin Islands, the Commonwealth of Northern Mariana Islands,
the Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.
Unharvested payment factor means a percentage established by FSA
for a crop and applied in a payment formula to reduce the payment for
reduced expenses incurred because commercial harvest was not performed.
Uninsured means a crop that was not covered by Federal crop
insurance or NAP for the crop year for which a payment is being
requested under this subpart.
* * * * *
Unit of measure means:
(1) For insurable crops, the FCIC-established unit of measure; and
(2) For NAP-eligible crops, the established unit of measure used
for the NAP price and yield.
USDA means the U.S. Department of Agriculture.
* * * * *
Value loss crop means crops for which losses are calculated based
on the value of a producer's inventory before and after a disaster
event, rather than based on a yield expressed as a unit of production
per acre. The term ``value loss crop'' has the meaning specified in
subpart D of part 1437 of this title, and includes the following crops:
aquaculture, including ornamental fish, Christmas trees, floriculture,
ginseng root, mushrooms, nursery crops, and turfgrass sod.
Verifiable means FSA is able to verify evidence through an
independent source.
* * * * *
Yield means unit of production, measured in bushels, pounds, or
other unit of measure, per area of consideration, usually measured in
acres.

0
34. In Sec. 760.2203, revise paragraph (d) to read as follows:

Sec. 760.2203 Eligible producers.

* * * * *
(d) FSA's creation and mailing or other transmission 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 or Stage 2
payment.

0
35. In Sec. 760.2204, add paragraphs (e) and (f) to read as follows.

Sec. 760.2204 Stage 1 eligible and ineligible losses.

* * * * *
(e) To be eligible for an SDRP Stage 1 quality loss payment, a
producer must have:
(1) Received a Federal crop insurance indemnity under an APH or
yield-based plan or a NAP benefit for the crop and unit; and
(2) Submitted an application for SDRP Stage 1 benefits in
accordance with Sec. 760.2206(a).
(f) The following are ineligible for an SDRP Stage 1 quality loss
payment:
(1) Value-loss crops;
(2) Maple sap;
(3) Honey;
(4) Crops for which the producer received a Federal crop insurance
indemnity, NAP payment, or Stage 1 payment specified in Sec. 760.2208
based on the quantity of the crop's production that was considered
unmarketable;
(5) Crops for which the producer previously received a Federal crop
insurance indemnity, NAP payment, or Stage 1 payment specified in Sec.
760.2208 for which the crop production was reported as salvage value or
secondary use;
(6) Crops that were destroyed;
(7) Crops that were prevented from being planted;
(8) Losses that could have been mitigated through reasonable and
available measures;
(9) Crops that were previously adjusted for a quality loss under
NAP;
(10) The portion of quality adjustment previously included in a
crop insurance indemnity;
(11) Trees, bushes, and vines;
(12) Sugar beets for which a member of a cooperative processor
received a payment for the same loss through a block grant or
cooperative agreement; and
(13) Crops that were unharvested.

0
36. Add Sec. 760.2205 to read as follows.

Sec. 760.2205 Stage 2 eligible and ineligible losses.

(a) For SDRP Stage 2, eligible losses include production, quality,
and revenue losses of eligible crops and losses of eligible trees,
bushes, and vines for which the producer had:
(1) Non-indemnified losses under a Federal crop insurance policy
that was included in Stage 1;
(2) A loss covered by a Federal crop insurance policy in Puerto
Rico, excluding plantain plants and banana plants insured under Puerto
Rico crop insurance provisions;
(3) NAP coverage but did not receive a NAP payment, excluding crops
with an intended use of grazing;

[[Page 51980]]

(4) Production or quality losses of eligible crops that were
uninsured;
(5) An indemnified loss under a Federal crop insurance Annual
Forage policy that was ineligible for SDRP Stage 1 because the unit
included acreage that was intended for grazing, but also included
acreage intended for forage or grain; or
(6) An indemnified loss under a Rainfall Index plan for Apiculture
or Pasture, Rangeland, and Forage that was ineligible for SDRP Stage 1
because the producer entered a county located in Connecticut, Hawaii,
Maine, or Massachusetts on their application but the unit also includes
land physically located in a state other than Connecticut, Hawaii,
Maine, or Massachusetts.
(b) To be eligible for SDRP Stage 2, 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 transmission
of a pre-filled application for producers with data on file with FSA or
RMA does not indicate that a crop, tree, bush, or vine loss included on
that application is eligible for an SDRP Stage 2 payment.
(c) If a producer has both a NAP policy and a Federal crop
insurance policy that address the same potential crop loss, the
producer cannot receive a Stage 2 payment based on both the crop
insurance policy and NAP policy. The producer must elect whether to
receive the Stage 2 payment based on the data associated with their
Federal crop insurance policy or their NAP policy.
(d) The following losses are not eligible for SDRP Stage 2:
(1) Losses covered under Stage 1, including losses:
(i) For all crops covered under a Whole Farm Revenue Protection
policy for which the producer received an indemnity; and
(ii) Quality losses for all crops covered under Stage 1 Quality
Loss provisions;
(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) Prevented planting losses for crops covered by Federal crop
insurance or NAP, regardless of whether the acres were determined
ineligible under the terms of the Federal crop insurance plan or NAP
provisions, as applicable;
(4) Losses of sugar beets for which a member of a cooperative
processor received a payment through a block grant or cooperative
agreement;
(5) Losses of crops that occur after harvest;
(6) Losses for which FSA or RMA have previously disapproved a
notice of loss for the crop and disaster event, unless that notice of
loss was disapproved solely because it was filed after the applicable
deadline;
(7) Losses due to any of the following causes:
(i) Poor management decisions, poor farming practices, or drifting
herbicides;
(ii) Failure of the participant to re-seed or replant to the same
crop in a county where it is customary to re-seed or replant after a
loss before the final planting date;
(iii) Water contained or released by any governmental, public, or
private dam or reservoir project if an easement exists on the acreage
affected by the containment or release of the water; or
(iv) Failure of a power supply or brownout;
(8) Losses of the following, regardless of whether they were the
result of an eligible disaster event:
(i) Production that could not be marketed merely because of a loss
of market demand that was not associated with the quality of the crop;
(ii) Aquacultural species that were compensated under ELAP;
(iii) Volunteer crops;
(iv) Crops not intended for harvest;
(v) By-products resulting from processing or harvesting a crop,
such as, but not limited to, cotton seed, peanut shells, wheat or oat
straw, or corn stalks or stovers;
(vi) Crops, trees, bushes, and vines in home gardens;
(vii) First year seeding for forage production, or immature fruit
crops;
(viii) Tobacco in areas where Federal crop insurance is not
available;
(ix) Crops, trees, bushes, and vines that were physically located
in Connecticut, Hawaii, Maine, or Massachusetts; or
(x) Trees, bushes, and vines that were abandoned or were not in use
or intended for commercial operation at the time of loss; and
(9) Losses for honey, when the honey production by colonies or bees
was diminished, if caused by:
(i) Unavailability of equipment or the collapse or failure of
equipment or apparatus used in the honey operation;
(ii) Improper storage of honey;
(iii) Bee feeding;
(iv) Application of chemicals;
(v) Theft;
(vi) Movement of bees by or for the producer; or
(vii) Disease or pest infestation of the colonies, unless approved
by FSA.
(e) Quality losses for the following are ineligible for SDRP Stage
2:
(1) Crops insured under area plans;
(2) Quality losses compensated under Stage 1;
(3) Value loss crops;
(4) Maple sap;
(5) Honey;
(6) Trees, bushes, and vines;
(7) Crops that were destroyed;
(8) Crops that were prevented from being planted;
(9) Losses that could have been mitigated through reasonable and
available measures;
(10) Production that cannot be marketed merely because of a loss of
market demand that is not associated with the quality of the crop; and
(11) Crops for which the production was already reduced for quality
losses under NAP.

0
37. Amend Sec. 760.2206 as follows:
0
a. In paragraph (a), remove the words ``the deadline announced by FSA''
and add ``April 30, 2026'' in their place;
0
b. Redesignate paragraph (e) as paragraph (g);
0
c. Add paragraphs (c) through (f);
0
d. In newly redesignated paragraph (g), remove the words ``the deadline
announced by FSA'' and add ``April 30, 2027'' in their place; and
0
e. Add paragraph (h).
The additions read as follows.

Sec. 760.2206 Time and method of application.

* * * * *
(c) For SDRP Stage 1 quality loss payments, FSA will generate a
pre-filled FSA-526Q, Supplemental Disaster Relief Program (SDRP) Stage
1 Quality Loss Application, which includes the producer's information
that is already on file with USDA. Producers must contact their FSA
county office to obtain their pre-filled FSA-526Q. Producers applying
for a SDRP Stage 1 quality loss payment may not alter pre-filled data
in FSA-526Q. In addition to FSA-526Q, producers must also submit
documentation required by Sec. 760.2207 for all producer-certified
quality loss percentages, and failure to submit that documentation will
result in disapproval of the producer's FSA-526Q. Producers must submit
FSA-526Q and the required documentation to any FSA county office by
April 30, 2026.
(d) For SDRP Stage 2, producers must submit the following to any
FSA county office by April 30, 2026:
(1) A completed FSA-504, Supplemental Disaster Relief Program
(SDRP) Stage 2 Application;
(2) FSA-578, Report of Acreage, for all acreage of any crop for the
applicable crop year for which payments under this subpart are
requested, with the

[[Page 51981]]

exception of crops insured under APH or yield-based plans and insured
crops in Puerto Rico; and
(3) Required documentation specified in Sec. 760.2207 for the
information entered on FSA-504. Producers are not required to provide
additional documentation to support pre-filled values on FSA-504.
(e) FSA will pre-fill data for items on FSA-504 for crops insured
under certain Federal crop insurance policies or covered by NAP when
that data is already on file with RMA or FSA. Producers of those crops
must contact their FSA county office to obtain their pre-filled FSA-
504. Producers must review any pre-filled data and, if inaccurate,
enter the correct data on FSA-504 in the items provided for producer-
certified data.
(f) A producer must apply for a crop and unit on the part of FSA-
504 that corresponds to the type of insurance or NAP coverage obtained
for the crop and unit, if applicable. A producer cannot apply for a
crop and unit as an uninsured loss if the crop and unit were covered by
Federal crop insurance or NAP, including acreage that was deemed
ineligible. Applications for crops and units entered in the wrong part
on FSA-504 will be disapproved.
* * * * *
(h) The date to apply for payments under this program may, at the
sole discretion of FSA, be extended. If FSA makes that decision, the
extended date will be set forth 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>. Producers may also
obtain that information from any FSA county office.

0
38. Amend Sec. 760.2207 as follows:
0
a. In paragraph (b), remove the words ``the deadline announced by FSA''
and add ``April 30, 2026'' in their place; and
0
b. Add paragraphs (c) through (n).
The additions read as follows.

Sec. 760.2207 Required documentation and verification.

* * * * *
(c) Producers who apply for a Stage 1 quality loss payment must
submit documentation specified in paragraph (e) of this section to
substantiate the certified SDRP quality loss percentage. Documentation
of pre-filled information on FSA-526Q is not required unless requested
by FSA.
(d) Producers who apply for Stage 2 must submit documentation as
specified in this section to support any of the following entered by
the producer on FSA-504: Quality loss percentage; production; dollar
value before disaster event; dollar value after disaster event; the
number of trees, bushes, and vines destroyed; and the number of trees,
bushes, and vines damaged. Documentation of pre-filled information on
FSA-504 is not required unless requested by FSA.
(e) Producers must submit documentation to support the producer-
certified quality loss percentage entered on FSA-526Q or FSA-504.
(1) The following documentation is required:
(i) For eligible crops other than forage crops, verifiable
documentation of the total dollar value loss and corresponding grading
factors due to quality and acceptable production records to determine
the amount of eligible production; and
(ii) For forage crops, verifiable documentation of the nutrient
factors for the affected production, and acceptable production records
to determine the amount of eligible production. The nutrient factors
that must be documented for a crop will be determined by FSA based on
the standard practice for the crop in that county.
(2) The documentation must be dated and contain all information
required to substantiate the applicant's certification to the
satisfaction of FSA. Verifiable documentation is required to
substantiate the total dollar value loss, affected production, grading
factors, and nutritional factors. FSA may verify the records with
records on file at the warehouse, gin, or other entity that received or
may have received the reported production.
(3) To be considered acceptable, verifiable documentation for grain
crops that were sold may come from any time between harvest and sale of
the affected production, unless FSA determines the record is not
representative of the condition within 30 days of harvest. For all
other crops other than forage, the verifiable documentation must come
from tests or analysis completed within 30 days of harvest, unless FSA
determines that the record is representative of the condition of the
affected production at time of harvest. Examples of acceptable records
include, but are not limited to:
(i) Warehouse grading sheets;
(ii) Settlement sheets;
(iii) Sales receipts showing grade and price or disposition to
secondary market due to quality; and
(iv) Laboratory test results.
(f) To support any production entered on FSA-504, the producer must
submit acceptable documentation that substantiates the certification to
the satisfaction of FSA. If the eligible crop was sold or otherwise
disposed of through commercial channels, an acceptable production
record of that disposition must be provided to FSA with the
certification. Producers must account for the total amount of unit
production for the crop, whether or not records reflect this
production, and provide all records for any production of a crop that
is grown with an arrangement, agreement, or contract for guaranteed
payment. If a producer does not have acceptable production records, the
county disaster yield will apply as provided in Sec. 760.2211(g),
except in cases where the applicant has indicated a quality loss
percentage. Acceptable production records include the following:
(1) RMA or NAP records, if accurate and complete;
(2) Commercial receipts;
(3) Settlement sheets;
(4) Warehouse ledger sheets or load summaries;
(5) Appraisal information from a loss adjuster acceptable to FSA;
and
(6) For eligible crops that were farm-stored, sold, fed to
livestock, or disposed of by means other than verifiable commercial
channels:
(i) Truck scale tickets;
(ii) Appraisal information from a loss adjuster acceptable to FSA;
(iii) Contemporaneous reliable diaries; and
(iv) Other documentary evidence, such as contemporaneous reliable
measurements, determined acceptable by FSA.
(g) Under Stage 2, participants requesting payments for losses to
adulterated wine grapes must submit verifiable sales tickets that
document that the reduced price received was due to adulteration due to
a qualifying disaster event. For adulterated wine grapes that have not
been sold, participants must submit verifiable records obtained by
testing or analysis to establish that the wine grapes were adulterated
due to a qualifying disaster event and the price they would receive due
to adulteration.
(h) For value loss crops, producers must provide acceptable records
to substantiate the dollar value before and after the qualifying
disaster event. The producer will determine the dollar value before
disaster and dollar value after disaster. Acceptable inventory records
should include relevant dates (such as planting, seeding, or harvest),
quantity, sizes, and location for the inventory.
(1) Acceptable inventory records include but are not limited to the
following:
(i) FCIC records for insured crops, such as RMA appraisal
worksheets or Inventory Valuation Reports;

[[Page 51982]]

(ii) An appraisal by a NAP loss adjuster;
(iii) Planting records that include date of purchase and date of
planting, such as seed receipts or original inventory purchase
receipts;
(iv) Sales records that include dates and the quantity of inventory
sold, including receipts;
(v) Monthly records of inventory maintained by producers; and
(vi) The producer's beginning inventory extrapolated from FSA-
established mortality rates based on size, age, and days of growth, if
applicable.
(2) [Reserved]
(i) The dollar value before disaster and dollar value after
disaster are determined by multiplying the inventory for each size or
age category of the crop by the average market price, and adding the
values for all categories. For example, the FSA-established average
market prices for bald cypress are $4.68 for a 1-gallon size, and
$17.88 for a 3-gallon size. The producer's inventory records indicate
20 of each crop prior to the event. The inventory value is: $93.60
(calculated as 20 x $4.68) + $357.60 (calculated as $17.88 x 20) =
$451.20.
(j) For tree, bush, and vine losses, if physical evidence of the
lost or damaged trees, bushes, or vines no longer exists, the producer
must provide acceptable evidence to substantiate that the eligible
trees, bushes, or vines existed and support the number of trees,
bushes, or vines lost for each stand due to a qualifying disaster
event. Acceptable evidence includes but is not limited to the
following:
(1) Receipts for the original purchase of the eligible trees,
bushes, or vines;
(2) Documentation of labor and equipment used to plant or remove
the eligible trees, bushes, or vines that were lost or damaged;
(3) Chemical, fertilizer, or other related receipts to substantiate
the existence of the eligible trees, bushes, or vines;
(4) FCIC records, such as an RMA pre-acceptance inspection report
or an appraisal worksheet;
(5) Maps with aerial photography that clearly identify damaged or
destroyed trees, bushes, or vines;
(6) Photographic evidence of the loss with the date the image was
taken;
(7) Evidence provided with a Tree Assistance Program or Emergency
Conservation Program application for the same acreage; and
(8) Certifications of tree, bush, or vine losses by third parties,
such as consultants, Cooperative Extension Service, universities, or
government personnel, but only if there is no other documentation
available.
(k) Producers are responsible for retaining, providing, and
summarizing, at time of application and whenever required by FSA, the
best available verifiable records for the crop. Producers must provide
the information in a manner that can be easily understood by FSA.
(l) Participants must provide all records for any production of a
crop that is grown with an arrangement, agreement, or contract for
guaranteed payment.
(m) Determinations of acceptability with respect to this paragraph
(m) will take into account, as appropriate, the ability for FSA to
review and verify or compare the evidence against the similarity of the
evidence or reports or data received by FSA for the crop or similar
crops. Other factors deemed relevant by FSA may also be taken into
account. FSA may verify the production evidence submitted with records
on file at the warehouse, gin, or other entity that received or may
have received the reported production.
(n) FSA may also require the producer to submit any additional
information necessary to support the certifications on the FSA-504 or
determine a producer's eligibility, including but not limited to
documentation of the qualifying disaster event and the producer's
ownership share and risk in the crop. If FSA requests additional
information, the producer must submit the requested information within
60 days or the producer's application will be disapproved and the
producer must refund the payment, if previously issued.

0
39. Add Sec. 760.2209 to read as follows.

Sec. 760.2209 Quality loss percentage calculation.

(a) Stage 1 quality loss payments and some Stage 2 payment
calculations are calculated using a quality loss percentage. The
quality loss percentage is the percentage of loss calculated for a
reduction in the total dollar value of the crop due to reduction in the
physical condition of the crop indicated by an applicable grading
factor or applicable nutrient factor for the crop. The quality loss
percentage is based on the weighted quality reduction of impacted
production compared to the total overall production and calculated
separately for crops based on the crop type, intended use, certified
organic or conventional status, county, and crop year.
(b) For forage crops, a quality loss percentage will be established
using the following steps:
(1) FSA will determine:
(i) Acceptable high and low nutritional values; and
(ii) The range determined by subtracting the low nutritional value
from the high nutritional value;
(2) The producer will submit a verifiable test to FSA that
indicates the nutritional value for the impacted production;
(3) To calculate the quality loss, the producer will:
(i) Calculate the quality loss by subtracting the nutritional value
from the verifiable test from the high nutritional value determined by
FSA;
(ii) Calculate the percentage difference by dividing the quality
loss by the range specified in paragraph (b)(1)(ii) of this section;
and
(iii) Calculate the quality loss percentage by taking 100 percent
minus the percentage difference in paragraph (b)(3)(ii) of this
section.
(4) The quality loss percentage will be specific and weighted to
the impacted production. If there is production that was not impacted
by quality or impacted at a different level, the quality loss
percentage must be weighted against the respective impacted production.
The producer must calculate their weighted quality loss percentage as
follows:
(i) Calculate the percent production impacted by quality loss by
dividing the impacted production by the total production; and
(ii) Calculate the weighted quality loss percentage by multiplying
the percent production impacted by quality loss by the quality loss
percentage.
(iii) If more than one quality loss percentage applies, calculate
the total weighted quality loss percentage by adding the separate
calculated weighted quality

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