Rule2026-04531
Supplemental Disaster Relief Program and Dairy Margin Coverage Program; Correction
Primary source
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Published
March 9, 2026
Effective
March 9, 2026
Issuing agencies
Agriculture DepartmentFarm Service AgencyCommodity Credit Corporation
Abstract
The Commodity Credit Corporation and Farm Service Agency (FSA) are making technical corrections to the regulations for the Supplemental Disaster Relief Program (SDRP) and the Dairy Margin Coverage (DMC) Program. The changes for SDRP correct the Stage 2 eligibility provisions for producers of sugar beets and some producers who had Federal crop insurance coverage under a Pasture, Rangeland, and Forage policy; the provisions related to calculation of the quality loss percentage for Stage 1 and Stage 2; and paragraph references and the order of steps for some Stage 2 payment calculations. The correction for DMC addresses eligibility of dairy operations that have stopped producing and marketing milk before or during the annual coverage election period.
Full Text
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<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
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[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Rules and Regulations]
[Pages 11129-11131]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04531]
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Rules and Regulations
Federal Register
________________________________________________________________________
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having general applicability and legal effect, most of which are keyed
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Federal Register / Vol. 91, No. 45 / Monday, March 9, 2026 / Rules
and Regulations
[[Page 11129]]
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 760
Commodity Credit Corporation
7 CFR Part 1430
[Docket ID FSA-2025-0007]
RIN 0560-AI81
Supplemental Disaster Relief Program and Dairy Margin Coverage
Program; Correction
AGENCY: Commodity Credit Corporation and Farm Service Agency, U.S.
Department of Agriculture (USDA).
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: The Commodity Credit Corporation and Farm Service Agency (FSA)
are making technical corrections to the regulations for the
Supplemental Disaster Relief Program (SDRP) and the Dairy Margin
Coverage (DMC) Program. The changes for SDRP correct the Stage 2
eligibility provisions for producers of sugar beets and some producers
who had Federal crop insurance coverage under a Pasture, Rangeland, and
Forage policy; the provisions related to calculation of the quality
loss percentage for Stage 1 and Stage 2; and paragraph references and
the order of steps for some Stage 2 payment calculations. The
correction for DMC addresses eligibility of dairy operations that have
stopped producing and marketing milk before or during the annual
coverage election period.
DATES: Effective on March 9, 2026.
FOR FURTHER INFORMATION CONTACT: For SDRP, Chris Vazquez; telephone:
(202) 923-1585; or email: <a href="/cdn-cgi/l/email-protection#f7b49f859e848398879f9285d9a1968d8682928db782849396d9909881"><span class="__cf_email__" data-cfemail="713219031802051e011914035f27100b0004140b31040215105f161e07">[email protected]</span></a>. For DMC,
Douglas E. Kilgore; telephone: (717) 887-0963; or email:
<a href="/cdn-cgi/l/email-protection#07436872606b66742942294c6e6b60687562477274636629606871"><span class="__cf_email__" data-cfemail="90d4ffe5f7fcf1e3bed5bedbf9fcf7ffe2f5d0e5e3f4f1bef7ffe6">[email protected]</span></a>. Individuals with disabilities who require
alternative means for communication should contact the USDA Target
Center at (202) 720-2600 (voice and text telephone (TTY mode)) or dial
711 for Telecommunications Relay Service (both voice and text telephone
users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
On November 18, 2025, FSA published a final rule implementing SDRP
Stage 1 assistance for quality losses and SDRP Stage 2 (90 FR 51956).
On January 12, 2026, the Commodity Credit Corporation (CCC) published a
final rule amending the DMC regulations to implement changes made by
the One Big Beautiful Bill Act (OBBBA) (91 FR 1043; Pub. L. 119-21).
This document corrects technical errors in the regulations for SDRP and
DMC as described below.
SDRP
The final rule published on November 18, 2025, specified that a
producer would not be eligible for an SDRP Stage 2 payment for sugar
beets for which a member of a cooperative processor received a payment
through a block grant or cooperative agreement. This rule amends that
provision in 7 CFR 760.2205(d)(4) to indicate that such a loss is
ineligible only if the payment through a block grant or cooperative
agreement was for the same loss covered by SDRP Stage 2.
The SDRP Stage 2 Final Rule includes losses for units that were
indemnified under a Federal crop insurance Annual Forage policy and
were ineligible for Stage 1 because the unit included ineligible
acreage that was intended for grazing, in addition to eligible acreage
intended for forage or grain. Some producers who had Federal crop
insurance Pasture, Rangeland, and Forage (PRF) policies were similarly
ineligible under Stage 1 because some of their acreage was intended for
grazing. However, some of these producers experienced losses of
eligible crops for which the producer had a PRF policy. FSA
inadvertently omitted provisions for these losses of eligible crops
from the Stage 2 regulations. Therefore, FSA is amending the
regulations in Sec. 760.2205(a)(5) to indicate that producers with PRF
policies that were ineligible for SDRP Stage 1 because a unit included
acreage that was intended for grazing, but also included acreage
intended for forage or grain, will be eligible for SDRP Stage 2. As
provided in the previous rule, in cases where crops were insured under
an area plan, producers must provide the eligible acreage percentage to
FSA for payment. FSA is amending Sec. 760.2212(f) to specify that this
percentage excludes acres of grazed crops covered by a PRF policy.
FSA is also correcting the calculation for quality loss percentages
for forage crops in Sec. 760.2209(b)(3), which included an erroneous
step and inadvertently omitted the maximum percentage quality loss that
could be claimed by a producer and the related example that was
included in the preamble of the previous final rule, as described below
(90 FR 51957). As provided by this rule, a producer will calculate
their forage crop quality loss by subtracting the nutritional value
from their verifiable test from the high nutritional value determined
by FSA, and will then compute the quality loss percentage by dividing
the calculated quality loss by the range determined by FSA. The quality
loss percentage cannot exceed 100 percent. For example, if FSA
determines that the high relative feed value (RFV) is 185 and the low
RFV is 130; the resulting range is then 55. If the producer's
verifiable test indicates an RFV of 150, the producer would then
subtract 150 from 185 (the high value determined by FSA), which equals
35, and then divides 35 by 55 (the range determined by FSA), which
equals a 64 percent quality loss. FSA is also correcting a paragraph
reference in the calculation for Stage 1 quality loss payments for NAP-
covered yield-based crops in Sec. 760.2209(e)(2) due to a
typographical error.
This rule corrects several errors in the Stage 2 payment
calculations. Specifically, it corrects paragraph references and the
order of steps in the payment calculations for insured crops with
dollar plans and other revenue plans (Sec. 760.2220), NAP-covered
yield-based crops with an approved NAP application for payment (Sec.
760.2223), NAP-covered yield-based crops without an approved NAP
application for payment (Sec. 760.2224), and uninsured yield-based
crops (Sec. 760.2227). This rule also adds a missing step in the
payment calculation for insured value loss crops (Sec. 760.2221).
[[Page 11130]]
FSA is also correcting the example of a Stage 2 payment calculation
for a loss of an insured crop under an Actual Production History (APH)
plan that was included in the preamble of the previous final rule (90
FR 51961). The steps of the calculation are described correctly in the
preamble and in Sec. 760.2218; however, the example of the calculation
contained minor typographical errors in the dollar amounts for each
step. For clarity, the entire example is provided below with
corrections:
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) = $23,460.10
b. ($48,269.30/0.875) x 0.65-(2,550 bushels x $10.03 x 1.00) =
$10,280.69
c. ($23,460.10-$10,280.69 + $1,500 + $100) x 0.35 = $5,172.79
DMC
As amended by the final rule published on January 12, 2026, the DMC
regulation in Sec. 1430.403(a)(1) currently requires a dairy operation
be commercially marketing milk at the time of each annual election.
Prior to the amendments to implement the changes in the OBBBA, Sec.
1430.403(a)(1) also provided that dairy operations that stopped
producing and marketing milk before or during the annual coverage
election period for 2019 or 2024 were eligible for DMC for the period
in which they were commercially marketing milk during the coverage
year. This provision was necessary because the election periods for
2019 and 2024 began after the beginning of the coverage year.
As in 2019 and 2024, the 2026 DMC election period began after the
beginning of the 2026 coverage year. When amending Sec. 1430.403(a)(1)
in the previous final rule, CCC inadvertently omitted the provision
regarding eligibility of dairy operations that had stopped producing or
marketing milk before or during the election period. This correction
restores and updates that provision to allow dairy operations that
dissolved prior to or during the 2026 election period to enroll in DMC
for the days that they commercially marketed milk in 2026. This
provision also applies for any future years in which the election
period begins after the start of the coverage year.
List of Subjects
7 CFR Part 760
Acreage allotments, Dairy products, Indemnity payments, Pesticides
and pest, Reporting and recordkeeping requirements.
7 CFR Part 1430
Dairy products, Fraud, Penalties, Price support programs, Reporting
and recordkeeping requirements.
For the reasons discussed above, FSA and CCC correct 7 CFR parts
760 and 1430 by making the following correcting amendments:
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 V--Supplemental Disaster Relief Program
Sec. 760.2205 [Amended]
0
2. Amend Sec. 760.2205 as follows:
0
a. In paragraph (a)(5), add the words ``or Pasture, Rangeland, and
Forage policy'' after ``Annual Forage policy''; and
b. In paragraph (d)(4), add the words ``for the same loss'' after
``payment''.
0
3. Amend Sec. 760.2209 as follows:
0
a. Revise paragraphs (b)(3)(ii) and (iii); and
0
b. In paragraph (e)(2), remove the cross-reference ``paragraph (d)(1)''
and add in its place the cross-reference ``paragraph (e)(1)''.
The revisions read as follows.
Sec. 760.2209 Quality loss percentage calculation.
* * * * *
(b) * * *
(3) * * *
(ii) Divide the quality loss by the range specified in paragraph
(b)(1)(ii) of this section; and
(iii) Determine the quality loss percentage to be the lesser of the
result of paragraph (b)(3)(ii) of this section or 100 percent.
* * * * *
Sec. 760.2212 [Amended]
0
4. In Sec. 760.2212(f), add the words ``or a Pasture, Rangeland, and
Forage policy'' after ``Annual Forage policy''.
0
5. Amend Sec. 760.2220 by revising paragraphs (c)(1)(iii) through (v)
and (c)(2)(iii) through (v) to read as follows.
Sec. 760.2220 Stage 2 payment calculation for insured crops with
dollar plans and other revenue plans.
* * * * *
(c) * * *
(1) * * *
(iii) Subtracting the result of paragraph (c)(1)(ii) of this
section from the SDRP liability;
(iv) Multiplying the result of paragraph (c)(1)(iii) of this
section by the unharvested payment factor; and
(v) Multiplying the result of paragraph (c)(1)(iv) of this section
by the producer's share;
(2) * * *
(iii) Subtracting the result of this paragraph by (c)(2)(ii) of
this section from the insured liability, which is specified in
paragraph (c)(2)(i) of this section;
(iv) Multiplying the result from paragraph (c)(2)(iii) of this
section by the producer's price election under the dollar based or
other revenue insurance plan; and
(v) Multiplying the result from paragraph (c)(2)(iv) of this
section by the producer's share;
* * * * *
0
6. Amend Sec. 760.2221 as follows:
0
a. Revise paragraph (b)(2)(iii); and
0
b. Add new paragraph (b)(2)(iv).
The revision and addition read as follows.
Sec. 760.2221 Stage 2 payment calculation for insured value loss
crops.
* * * * *
(b) * * *
(2) * * *
(iii) Multiplying the result of paragraph (b)(2)(ii) of this
section by the price election; and
(iv) Multiplying the result of paragraph (b)(2)(iii) of this
section by the producer's share;
* * * * *
0
7. Revise Sec. 760.2223(c)(1)(iii) through (c)(1)(vi) to read as
follows.
[[Page 11131]]
Sec. 760.2223 Stage 2 payment calculation for NAP-covered yield-
based crops with an approved NAP application for payment.
* * * * *
(c) * * *
(1) * * *
(iii) Subtracting the result of paragraph (c)(1)(ii) of this
section from the SDRP liability specified in paragraph (b)(1) of this
section;
(iv) Multiplying the result of paragraph (c)(1)(iii) of this
section by the unharvested payment factor, if applicable;
(v) Subtracting the salvage value from the result of paragraph
(c)(1)(iv) of this section; and
(vi) Multiplying the result of paragraph (c)(1)(v) of this section
by the producer's share;
* * * * *
0
8. Amend Sec. 760.2224 as follows:
0
a. Revise paragraphs (c)(1)(iii) through (v) and (c)(2)(iii) and (iv);
and
0
b. Add new paragraph (c)(2)(v).
The revisions and additions read as follows.
Sec. 760.2224 Stage 2 payment calculation for NAP-covered yield-
based crops without an approved NAP application for payment.
* * * * *
(c) * * *
(1) * * *
(iii) Subtracting the result of paragraph (c)(1)(ii) of this
section from the SDRP liability;
(iv) Multiplying the result of paragraph (c)(1)(iii) of this
section by the unharvested payment factor, if applicable, and then
subtracting the salvage value from the result; and
(v) Multiplying the result of paragraph (c)(1)(iv) of this section
by the producer's share;
(2) * * *
(iii) Subtracting the salvage value from the result of paragraph
(c)(2)(ii) of this section and multiplying the result by the producer's
share;
(iv) Multiplying the result of paragraph (c)(2)(iii) of this
section by the price election under NAP, and then by the unharvested
payment factor; and
(v) Multiplying the result of paragraph (c)(2)(iv) of this section
by the producer's share;
* * * * *
0
9. Amend Sec. 760.2227 as follows:
0
a. Revise paragraphs (e)(1)(iii) and (iv); and
0
b. Add new paragraph (e)(1)(v).
The revisions and addition read as follows.
Sec. 760.2227 Stage 2 payment calculation for uninsured yield-based
crops.
* * * * *
(e) * * *
(1) * * *
(iii) Subtracting the result of paragraph (e)(1)(ii) of this
section from the SDRP liability, and
(iv) Multiplying the result of paragraph (e)(1)(iii) of this
section by the stage factor, if applicable, and subtracting the salvage
value from the result; and
(v) Multiplying by the result of paragraph (e)(1)(iv) of this
section by the producer's share;
* * * * *
PART 1430--DAIRY PRODUCTS
0
10. The authority citation for part 1430 continues to read as follows:
Authority: 7 U.S.C. 9051-9060 and 9071 and 15 U.S.C. 714b and
714c.
0
11. Revise Sec. 1430.403(a)(1) to read as follows.
Subpart D--Dairy Margin Coverage Program
Sec. 1430.403 Eligible Dairy Operations.
(a) * * *
(1) Produce milk from cows in the United States that is marketed
commercially at the time of each annual election for an applicable
coverage year in DMC, except that dairy operations that have stopped
producing and marketing milk before or during the annual coverage
election period for 2026 and future years are eligible for only those
days that the dairy operation commercially marketed milk during the
applicable coverage year;
* * * * *
Kimberly Graham,
Acting Associate Administrator, Farm Service Agency, and Acting
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2026-04531 Filed 3-6-26; 8:45 am]
BILLING CODE 3411-E2-P
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