2023 and 2024 Disaster Program Sign-Up And Details Announced

USDA has initiated sign-up for the Supplemental Disaster Relief Program (SDRP) at local Farm Service Agency (FSA) offices. A total of just over 16 billion dollars will be available for this program, with funding derived from the total of $21 billion in farm disaster assistance funds that were allocated by Congress in December of 2024. SDRP will cover losses from eligible crops for both the 2023 and 2024 crop years. The crop losses will be calculated separately for each year, so eligible producers could receive a payment for each year. SDRP builds off previous federal disaster programs, including the Wildfire and Hurricane Indemnity Program (WHIP+) from 2018-2020, and the Emergency Relief Program (ERP) from 2020-2022. The SDRP sign-up process for “Stage 1” of the program began on July 10 and should be quite simple for most eligible farmers.
 
Standard FSA payment limits will apply to all SDRP payments. The payment limit is $125,000 per eligible individual or entity, which increases to $250,000 if at least 75 percent of the reported gross income on the tax returns are derived from eligible farm-related operations. There are potential higher payment limits for certain specialty crops. There will be a separate payment limit for both 2023 and 2024. Farmers that receive SDRP payments will be required to maintain at least 60 percent federal crop insurance coverage for at least the next two years. Failure to comply with this requirement will require full repayment of the SDRP payment plus interest.
 
“Stage 1” of SDRP will focus on farmers with crops in 2023 and 2024 that had a federal crop insurance policy in place, or had crops that were enrolled in the Noninsured Disaster Assistance Program (NAP) in 2023 and 2024. To qualify for “Stage 1”, farmers must have received a crop insurance indemnity payment or a NAP payment tied to a qualifying disaster in 2023 or 2024. Qualifying disasters include floods, wildfires, hurricanes, freezes, excessive moisture, heat, and qualifying drought.  Eligibility for drought losses is restricted to counties that experienced a drought level of “D3” or higher at in 2023 or 2024, or in counties that were at a “D2” drought level for eight or more consecutive weeks, based on the weekly U.S. Drought Monitor. A county must be listed as eligible for the SDRP due to drought, in order for individual farmers to qualify for SDRP payments due to drought.
 
Producers must exhibit a qualifying yield loss relative to their APH or NAP yield guarantee, based on the type of disaster listed, to qualify for SDRP payments for 2023 or 2024. Due to a substantial decline in the final harvest price for some crops compared to the Spring base prices in 2023 and 2024, it may have been possible for farmers with revenue insurance policies to receive crop insurance indemnity payments without a decline in yield below APH levels. For further clarification on this requirement, producers should consult their crop insurance agent.
 
Stage 2” for the SDRP will be announced later this summer, probably in early-mid September. “Stage 2” will include assistance for losses from uncovered losses, shallow, quality losses, and losses that did not meet the threshold requirements for Stage 1 SDRP payments. The application process for “Stage 2” may be a bit more complicated than the relatively easy sign-up process for “Stage 1” SDRP payments. This is due to “Stage 2” including non-traditional crops and commodities that are normally not covered by crop insurance, as well as the utilization of alternate criteria other than RMA and NAP yield data.
 
Sign-up for “Stage 1” of the SDRP is now underway at local FSA offices. Eligible farmers for Stage 1 of SDRP should receive pre-filled “Stage 1” SDRP application form (Form FSA-526) from their FSA office with the 2023 or 2024 crop insurance (RMA) or NAP yield data already entered. They will then just need to designate the type of disaster that caused the crop loss, verify the data, and sign the form to initiate SDRP payments. SDRP applications must be signed by all parties that share in the crop value. Farmers will need to report any discrepancies in the data to both the FSA office and their crop insurance agent. Farmers will also need to have all other required FSA forms on file at their local FSA office, which are typically already on file if the farmer regularly receives government farm program payments.
The calculation for SDRP payments is quite basic, and is based off of crop insurance RMA APH or NAP yields and actual crop yields for 2023 and 2024. Here is a brief summary for the calculation of SDRP payments:

• Calculate the original crop insurance revenue guarantee (APH yield times the Spring price for the crop).

2024 Spring prices were $4.66/bu. for corn; $11.55/bu. for soybeans; $6.84/bu. for Spring wheat.
2023 Spring prices were $5.91/bu. for corn; $13.76/bu. for soybeans; $8.87/bu. for Spring wheat.
 

• To determine the “Stage 1” SDRP guarantee, multiply the crop insurance revenue guarantee times the following factor, depending on the level of crop insurance coverage:

80-85% coverage = .95
75-79% coverage = .925
70-74% coverage = .90
65-69% coverage = .875
60-64% coverage = .80
CAT coverage = .75
 

• To determine the eligible gross SDRP revenue, subtract the actual crop value (final 2024 or 2023 crop insurance yield times the RMA harvest price) and the “net” crop insurance indemnity payment received (gross payment minus the premiums and administrative fees) from the SDRP guarantee.

2024 harvest prices were $4.16/bu. for corn; $10.03/bu. for soybeans; $5.79/bu. for Spring wheat.
2023 harvest prices were $4.88/bu. for corn; $12.84/bu. for soybeans; $7.97/bu. for Spring wheat.
 

• Then multiply the gross SDRP revenue eligibility times a factor of 35 percent (.35) to arrive at the net SDRP payment amount.

 
Following is a SDRP payment example for 100 acres of corn in 2024, with a 200 bu./A APH yield and an actual 2024 corn yield of 150 bu./A, with an 85% revenue insurance policy, with a premium of $30/A. a $4.66/bu. Spring price and a $4.16/bu. harvest price, with a 35% payment factor:

• Original 2024 crop insurance guarantee = $79,220  (200 bu./A x $4.66/bu. x .85 x 100 A.)

 

• Harvest value of the 2024 crop = $62,400  (150 bu./A x $4.16/bu. x 100 A)

 

• 2024 Crop insurance indemnity payment = $16,820  ($79,220 - $62,400)

 

• Net 2024 indemnity payment = $13,820  ($16,820 - $3.000 crop ins. premiums)

 

• 2024 gross SDRP eligibility = $88,540  (200 bu./A x $4.66/bu. x .95 x 100 A.)

 

• Net 2024 SDRP eligibility = $12,320  ($88,540 - $62,400 - $13,820)

 

• Net 2024 SDRP payment = $4,312  ($12,320 x .35) or ($43.12/A)

 
The SDRP payment will certainly be helpful to farmers that had some financial hardship following significant crop loss in 2023 and 2024 due to drought and other natural disasters. It should be pointed out that the 35 percent payment factor only accounts for a small portion of the losses that were incurred by the farmers that were affected. It is possible that there could be a second smaller SDRP payment later this year, if disaster funds remain after all “Stage 1” and “Stage 2” applications have been finalized. Any farmers with questions or needing clarifications on the SDRC payments should contact their local FSA office.   
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group
Phone --- (507) 381-7960; E-mail --- [email protected]