USDA initiated sign-up for Stage 2 the Supplemental Disaster Relief Program (SDRP) at local Farm Service Agency (FSA) offices on November 24. The sign-up period will continue until April 30, 2026. Stage 1 of the SDRP program began on July 10, 2025, and many farmers that were eligible for Stage 1 have already signed up and have received their SDRP payment. A total of just over 16 billion dollars was allocated by Congress for the SDRP program. As of November 21, a total of just over $5.7 billion has been paid out under Stage 1 of the program, with over 381,000 farmers in the U.S. receiving benefits. Thus far, farmers in Minnesota have received the highest amount of Stage 1 payments, with a total of just $667 million going to over 36,000 farmers. Iowa farmers have received just under $539 million in SDRP payments going to nearly 38,000 farmers.
“Stage 1” of SDRP focused 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 had to receive 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 was 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 needed to be listed as eligible for the SDRP due to drought, in order for individual farmers to qualify for SDRP payments due to drought.
“Stage 2” of the SDRP program includes assistance for losses from uncovered crop losses, shallow crop losses, and crop quality losses. Here are more specific details on the types of losses that are covered by “Stage 2” SDRP:
• Shallow crop losses - This would be for 2023 and 2024 crop losses that did not meet the threshold requirements for Stage 1 SDRP payments. The type of eligible losses and the payment formulas and calculations will be very similar to Stage 1 of SDRP. The calculations will be based off 2023 and 2024 Risk Management Agency (RMA) crop insurance data or NAP data. This is the category that most Midwest corn, soybean, and wheat producers will fall under.
• Uncovered crop losses - This category will provide Stage 2 SDRP assistance for eligible crops that are not covered by federal crop insurance or the NAP program. Crop losses in this category will be factored to 70 percent of the intended revenue for a crop, compared to 75-90 percent for insured crops. This could include certain fruit and vegetable crops, tree farms, etc.
• Quality Losses - This would cover losses that resulted in quality discounts in a crop that were not covered by crop insurance, such as may have occurred from flooding. Forage crops that had reduced nutritional value may also be eligible under Stage 2 of SDRP. Farmers should check with their local FSA office for potential eligibility of quality losses.
The application process for “Stage 2” SDRP losses will require farmers to apply at their local FSA office. The application process for those with “shallow losses” will be very similar to the relatively easy sign-up process for “Stage 1” payments, using a pre-filled “Stage 2” SDRP application at 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 sign-up process for “uncovered crop losses” and “quality losses” under “Stage 2” of SDRP may be a bit more complicated, as it will require the utilization of alternate criteria other than RMA and NAP yield data.
Eligible “shallow loss” Stage 2 SDRP payments occur in situations where there was a documented loss of at least 5 percent below the federal crop insurance crop revenue (APH yield x the 2023 or 2024 Spring price), and the final revenue (final 2023 or 2024 crop yield x the harvest price) was above the threshold (60-85 percent of the crop insurance revenue) to receive a crop insurance indemnity payment for 2023 or 2024. For example, a 2023 or 2024 75% revenue protection (RP) crop insurance policy on corn that had a final revenue between 75-95 percent would result in eligibility for a Stage 2 SDRP payment. If that producer had carried 85% RP insurance coverage, then the Stage 2 payment eligibility would occur at 85-95 percent of the original crop insurance revenue for the year.
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. Producers are not eligible to receive a Stage 1 SDRP payment and a Stage 2 payment on the same crop on the same farm unit in a given year. However, following are situations where farmers that were not eligible for a Stage 1 SDRP payment might be eligible for a Stage 2 payment:
• A farmer received a Stage 1 payment for corn in 2024; however, had a shallow loss on corn in 2023. That farmer is now eligible for a Stage 2 SDRP payment for corn in 2023.
• A farmer received a 2024 Stage 1 payment for corn; however, he had a shallow loss on soybeans in 2024. That farmer is now eligible for a Stage 2 SDRP payment for soybeans.
• A farmer has three different farm units and received Stage 1 SDRP payments on two farm units’ however, had a shallow loss on the third farm. That farmer is now eligible for a Stage 2 payment on the third farm.
Similar to Stage 1, the initial Stage 2 payments will be paid at a rate of 35 percent of the total calculated SDRP payment amount. Once all the payments for Stage 1 and Stage 2 in the U.S. have been calculated, after April 30, 2026. The additional round of SDRP payments would occur if the total Stage 1 and Stage 2 SDRP payment amount in the U.S. is lower than $6 billion. Most analysts feel that it is highly likely that we could see an additional “top-up” SDRP payment after April 30, 2026; however, that payment will likely be at a lower percentage than the initial Stage 1 and Stage 2 SDRP payment percentage (35%).
Standard FSA payment limits will apply to all SDRP payments. The payment limit for SDRP payments is $125,000 per eligible individual or entity; however, the payment limit 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 is potential for even 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 would require full repayment of the SDRP payment plus interest.
Any farmers with questions or needing clarifications on Stage 2 SDRP payments should contact their local FSA office for more information. The SDRP payments are certainly helpful to farmers that have faced 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. These SDRP payments also do not account for the continued low commodity prices and poor profit margins that farmers are incurring with the 2025 crop and will likely face in the 2026 crop year.
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected] 

The highly anticipated November USDA World Supply and Demand Estimates (WASDE) Report was released on November 14. This was the first WASDE report to be released since September 12, as there was no monthly WASFE report in October due to the shutdown of the federal government for 43 days that started on October 1. The USDA National Agriculture Statistics Service (NASS) also released the November Crop Production Report on November 14, which included updated 2025 crop yield projections for corn, soybeans, and other crops. This was the first update in U.S. crop yield estimates since the September report. USDA did modestly adjust the expected 2025 corn and soybean yields downward, but not nearly to the reduction levels that many farmers and grain marketing analysts were anticipating. The immediate grain market reaction following the release of the USDA reports was negative on the Chicago Board of Trade (CBOT); however, corn and soybean prices have shown an overall positive trend in recent weeks.
 
 
USDA Slightly Decreases 2025 Corn And Soybean Yield Projections
Based on the USDA Crop Production Report released on November 14, the projected U.S. average corn yield for 2025 will be a record at 186 bushels per acre, surpassing the previous record average yield of 179.3 bushels per acre in 2023. The 2024 estimated average yield also compares to other recent U.S. corn yields of 177.3 in 2023, 173.4 bushels per acre in 2022, 177 bushels per acre in 2021, and 172 bushels per acre in 2020. The estimated U.S. average yield was slightly lowered from the September estimate of 186.7 bushels per acre. This is higher than the average grain trade estimate of 183.5 bushels per acre. A year ago, USDA projected the 2024 U.S. corn yield at 183.1 bushels per acre in the November report; however, it was lowered to final yield of 179.3 bushels per acre in later USDA reports. Some experts feel this scenario may occur again in future months before we arrive at a final 2025 average corn yield.
Minnesota is projected to have a 2025 yield of 193 bushels per acre, compared to 174 bushels per acre in 2024 and just below the record yield of 195 bushels per acre in 2022. Iowa is projected to have a record corn yield of 216 bushels per acre in 2025, compared to 211 bushels per acre in 2024. Other projected state average corn yields for 2025 compared to 2024 yields are Illinois at 221 bushels per acre (record), compared to 217 bushels per acre; Indiana at 206 bushels per acre (record), compared to 198 bushels per acre; Ohio at 194 bushels per acre, compared to 177 bushels per acre; Nebraska at 191 bushels per acre, compared to 188 bushels per acre; Wisconsin at 183 bushels per acre (record), compared to 174 bushels per acre; South Dakota at 173 bushels per acre (record), compared to 164 bushels per acre; and North Dakota at 146 bushels per acre, compared to 149 bushels per acre.
USDA is projecting a record U.S. soybean yield of 53 bushels per acre in 2025, which is a decrease of 0.5 bushels from the September estimate. The projected 2025 average soybean yield compares to recent average yields of 50.7 bushels per acre in 2024, 50.6 bushels per acre in 2023, 49.6 bushels per acre in 2022, 51.4 bushels per acre in 2021,50.2 bushels per acre in 2020, the previous record U.S. soybean yield was 52.0 bushels per acre in 2016.
USDA is estimating the 2025 Minnesota soybean yield at 51 bushels per acre, which is up from 45 bushels per acre in 2024, 48 bushels per acre in 2023 and 50 bushels per acre in 2022, but slightly below than the record yield of 52 bushels per acre in 2016. Iowa is projected to have a 2025 soybean yield of 65 bushels per acre (record), compared to 60 bushels per acre in 2024 and the previous record yield of 63 bushels per acre in 2021. Estimated 2025 soybean yields in other States compared to 2024 yields include Illinois at 65 bushels per acre (record), compared to 64 bushels per acre; Indiana at 59 bushels per acre, same as 2024; Ohio at 53 bushels per acre, compared to 50 bushels per acre; Nebraska at 64 bushels per acre, compared to 57.5 bushels per acre; Wisconsin at 55 bushels per acre, compared to 48 bushels per acre; South Dakota at 48 bushels per acre, compared to 43 bushels per acre; and North Dakota at 34 bushels per acre, compared to 37.5 bushels per acre.
 
 
Highlights From The November WASDE Report
The November WASDE report slightly lowered 2025 corn and soybean production estimates, based on reductions in the expected final U.S. crop yields for 2025, as well as adjusting the 2025-26 beginning grain socks to match the September 30 USDA grain stocks data. There were some adjustments to corn and soybean usage levels from previous reports. Overall, there was minor changes in the projected 2025-26 corn and soybean carryover amount by the end of the current marketing year on August 31, 2026. Futures prices on the CBOT decreased following the WASDE report; however, by Nov. 17 the CBOT futures prices had rebounded quickly.
The November WASDE report included the updated 2025 national average corn yield of 186 bushels per acre and the 2025 U.S. harvested corn acreage of 90 million acres, resulting in an estimated record total U.S. corn production of 16.75 billion bushels for 2025. This compares to 14.89 billion bushels in 2024, the previous record of 15.34 billion bushels in 2023, and just under 13.7 billion bushels in 2022. Total corn usage for the 2025-26 marketing year is now estimated at just over 16.15 billion bushels, which is up 6.7 percent from 15.14 billion bushels in 2024-25. USDA is projecting slight increases in the amount of corn used for feed and ethanol in the current marketing year, along with an increase of 245 million bushels in corn exports compared to a year earlier.
USDA is now estimating 2025-2026 U.S. corn ending stocks at just over 2.15 billion bushels, which was up by 44 million bushels from the September estimate. This compares to previous carryout levels of an estimated 1.53 billion bushels in 2024-25, 1.76 billion bushels in 2023-24, 1.36 billion bushels in 2022-23, and nearly 1.34 billion bushels in 2021-22. Based on current estimates, the U.S. corn stocks-to-use ratio would be at 13.3 percent for 2025-26, which compares to previous levels of 10.1 percent for 2024-25, 11.8 percent for 2023-24, 9.9 percent for 2022-23, and 9.2 percent for 2021-22. The increased level of corn supply could keep local basis levels fairly wide for future corn marketing opportunities in many portions of the Upper Midwest.
Based on the November WASDE report, USDA is currently estimating the U.S average on-farm cash corn price for the 2025-2026 marketing year at $4.00 per bushel, which was up $.10 from the September report. The USDA marketing year average price estimates are the expected average farm-level prices for the 2025 crop year from September 1, 2025, to August 31, 2026; however, this does not represent estimated prices for either the 2025 or 2026 calendar year. The projected 2025-26 national average corn price of $4.00 per bushel would be the lowest since the 2019-20 price of $3.56 per bushel, and compares to final average corn prices of $4.24 per bushel in 2024-25, $4.55 per bushel in 2023-24, and $6.54 per bushel in 2022-23.
Total U.S. soybean production for 2025 is now estimated at just over 4.25 billion bushels, which was reduced slightly from the September estimate. The anticipated production is based on harvested soybean acreage of 80.3 million acres and a final yield of 53 bushels per acre. Total soybean demand for 2025-26 is projected at 4.3 billion bushels, which represents a decrease from the usage level of just under 4.43 billion bushels in 2024-25. The most notable change was a projected reduction of 240 million bushels in soybean export levels compared to a year ago; however, it is not known if the recent China trade deal was factored into these export estimates.
The U.S. soybean ending stocks for 2025-26 are estimated at 290 million bushels, which was a decrease of 10 million bushels from the September WASDE report and compares to recent soybean carryout levels of 316 million bushels in 2024-25, 342 million bushels in 2023-24, and 264 million bushels in 2022-23. The projected 2025-26 carryout level is still below the very high ending stocks of 523 million bushels in 2019-20 and 913 million bushels in 2018-19. The soybean stocks-to-use ratio for 2025-26 is estimated at 6.7 percent, which is down from 7.1 percent in 2024-25 and 7.3 percent in 2023-24, and is far lower than the ratio of 23 percent in 2018-19. USDA raised the projected U.S. average farm-level soybean price for the 2025-26 marketing year to $10.50 per bushel, which was up $.50 per bushel from the September estimate. The projected 2025-26 average price compares to recent price levels of $10.00 per bushel on 2024-25, $12.40 per bushel in 2023-24, $14.20 per bushel in 2022-23, and $13.30 per bushel in 2021-22.
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone - (507) 381-7960; E-mail - [email protected]

Many farm operators provide some type of custom work or use of farm machinery to other farmers during the growing season, and payment is usually made following the completion of the harvest season. Sometimes, it can be difficult to determine a fair custom rate for certain farming practices, or for the use of various pieces of machinery. This could be the case in a year such as 2025, when the cost of machinery operation for diesel fuel, repairs, and labor may have changed from the beginning of the year until year-end. 
Due to the high cost of investment in farm machinery, an ever-increasing number of farm operators are hiring other farm operators to provide some or all of the needed machinery resources for their farm operation. This is especially true with new and younger farm operators, as well as with children that decide to start farming with their parents. In addition, some land investors are choosing to operate a farm themselves rather than cash renting the land to another farm operator, and thus they are hiring a farm operator under a custom farming agreement. 
One of the best resources for average custom rates is the annual “Iowa Farm Custom Rate Survey” that is coordinated and analyzed by Iowa State University. Each year in January, custom operators and farm managers are sampled regarding the expected farm custom rates for various farm operations. The custom rate summary, which is usually released in late February, lists the average custom rate, as well as a range in custom rates, for various tillage, planting, fertilizer and chemical application, grain harvesting, and forage harvesting functions on the farm. The Iowa Custom Rate Survey, which also includes many miscellaneous farming practices and a formula for calculating rental rates. is probably the most widely used custom rate information that is available in the Upper Midwest. The complete 2025 “Iowa Farm Custom Rate Survey” for all farming practices is available on-line at the following Iowa State University web site: https://www.extension.iastate.edu/agdm/crops/html/a3-10.html 
The custom rate sheet lists an “average” and a “median” custom rate. The “average” is the average of all reported custom rates for a specific faming practice, while the “median” rate means that half of the reported custom rates were higher and half were lower. The average or median custom rates for farm operations in most areas of the Upper Midwest tend to be very close to the average Iowa custom rates. All listed custom rates in the Iowa survey results include fuel and labor, unless listed as rental rates or otherwise specified. These average or median rates are only meant to be a guide for custom rates, as actual custom rates charged may vary depending on increases in fuel costs, availability of custom operators, timeliness, field size, etc. 
Based on the Iowa State data, average custom rates for tillage, planting, and harvest operations in 2025 are about 15-25 percent higher than rates for similar operations 3 or 4 years earlier. The cost for new and used machinery has increased significantly in the past few years, which together with higher expenses for fuel, repairs, labor charges and interest rates, accounts for the increases in the custom rates. Some of these factors may vary during the year, which may result in final custom rates needing to be adjusted at year-end, compared to the negotiated rates prior to the growing season. Good communications between the custom operators and farmers are very important in finalizing fair custom rates. 
All listed custom rates in the Iowa Survey results include fuel, labor, repairs, depreciation, insurance, and interest, unless listed as rental rates or otherwise specified. The average price for diesel fuel in the survey was assumed to be $3.66 per gallon; however current prices for diesel fuel may vary from that price. A fuel price increase of $.50 per gallon would cause most custom rates to increase by approximately five percent. These average rates are only meant to be a guide for custom rates, as actual custom rates charged may vary depending on continued increase in fuel costs, availability of custom operators, timeliness, field size, etc. and could be adjusted later in the year due to changes in economic factors. 
CUSTOM FARMING AGREEMENTS 
Some farm operators hire custom work for specific farm operations with another farm operator, such as planting or combining, while other operators hire the typical crop field work through a custom farming agreement. The Iowa State Custom Rate Survey includes the average custom farming rates for corn, soybeans, and small grain. Custom farming agreements usually include tillage, planting, basic weed control, harvesting, and delivering grain to a specified location. Usually, any other additional or necessary farm practices that are performed during the year are paid outside of the custom farming agreement. Many farm operators negotiate these types of custom farming arrangements in the Spring of the year, while others wait until harvest is completed. The average custom farming rates for corn and soybean production in 2025 increased by about 9 percent compared to a year earlier. 
Following are the listed 2025 custom farming rates in the Iowa Custom Rate Survey: 
· Corn production rate -------- Ave. rate = $167.75 per acre; Median rate = $150.00 per acre 
· Soybean production rate --- Ave. rate = $154.50 per acre; Median rate = $140.00 per acre 
Although the concept of a custom farming agreement seems simple, close communication between the custom operator and the landowner is essential to a solid plan. A good custom farming agreement includes a written contract that specifies the typical cropping practices to be performed and the amount of payment per acre to be paid to the custom operator by the landowner, and all other pertinent details for the custom farming arrangement. For more details on custom farming agreements, please refer to the Iowa State University “Ag Decision Maker” web site at: https://www.extension.iastate.edu/agdm/crops/html/a3-15.html 
CALCULATING FARM MACHINERY COSTS 
The University of Minnesota periodically releases a publication titled: “Machinery Cost Estimates”, which was last updated in April of 2024. This summary looks at the use-related (operating) cost of farm machinery, as well as the overhead (ownership) costs of the machinery. The use-related expenses include fuel, repairs and maintenance, labor, and depreciation. Overhead costs include interest, insurance, and housing, which are calculated based on pre-set formulas. This publication can help serve as a good guide to estimate the “true cost” of farm machinery ownership. The U of M publication and other resources on farm machinery ownership costs are available at:.https://wlazarus.cfans.umn.edu/william-f-lazarus-farm-machinery-management. Another good resource for estimating the costs of farm machinery ownership is a publication from Iowa State University titled: “Estimating Farm Machinery Costs”, which includes a worksheet to calculate farm machinery costs. This publication is available at: https://www.extension.iastate.edu/agdm/crops/html/a3-29.html 
CHECK GRAIN BINS
    Most crop producers across the Midwest completed the 2025 harvest season somewhat early and may need to pay close attention to grain that is stored in on-farm grain bins for potential storage problems. Due to deferred grain sales and the potential for higher corn and soybean prices in the coming months, a large amount of corn and soybeans are likely being stored on the farm following harvest in 2025. Most of the crop was placed into grain bins at a variety of outside temperatures, some at fairly warm temperatures and other grain at much cooler temperatures. The grain temperature difference, along with fluctuations in recent outside temperatures, can result in wide temperature variations in the final grain temperature within grain bins. This can lead to moisture migration in the bin, which could potentially result in significant grain spoilage if the situation is not properly addressed. 
Farm operators should run aeration fans periodically to equalize the grain bin temperatures, which will help prevent this situation from occurring. It is also very important to check grain bins on a regular basis for any potential storage issues, and to address those issues promptly. Otherwise, there can be considerable damage to grain that is in storage, which can result in a significant financial loss. North Dakota State University has some very good resources costs available on stored grain management at: https://www.ag.ndsu.edu/graindrying 
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected]