By Jamie Martin
The USDA has officially launched Stage 1 of the Supplemental Disaster Relief Program (SDRP) to assist farmers impacted by natural disasters in 2023 and 2024.
Backed by $16.09 billion, this new aid plan helps producers recover from crop, tree, and vine losses caused by severe weather.
Stage 1 uses crop insurance and Noninsured Crop Disaster Assistance Program (NAP) data to issue payments covering 35% of calculated eligible losses.
Unlike previous aid programs, SDRP removes progressive factoring, offering a more predictable, equitable payout system.
Eligible disasters include drought, flood, freeze, wildfires, hurricanes, and extreme heat or moisture. For drought-related losses, counties must have experienced eight consecutive weeks of D2 (severe) drought or any instance of D3 (extreme) drought.
To qualify, farmers must meet USDA’s conservation compliance and income limits. Applicants cannot receive SDRP if they already got 2022 ERP payments for the same loss.Connecticut, Hawaii, Maine, and Massachusetts will handle disaster funds separately through state block grants.
Pre-filled applications (Form FSA-526) are being mailed to eligible producers. Farmers can also get these forms from their local FSA office. To apply, farmers must complete key sections, certify future crop coverage, and choose between NAP or crop insurance data if both apply.
Additional forms like CCC-902, CCC-901, AD-1026, and SF-3881 must be on file. Payments are based on a formula that considers adjusted coverage factors, production value, and net insurance payouts, then multiplies the difference by 35%.
For example, if a farmer has a net eligible loss of $116,000, they would receive a Stage 1 payment of $40,600, reducing their uncovered losses significantly.
Payment limits apply: $125,000 standard, with increased caps of $250,000 for traditional crops and $900,000 for specialty crops if income is 75% farm-based.
“By leaning on existing crop insurance and NAP data, USDA aims to expedite payments and reduce paperwork burdens,” the USDA said.
Farmers must maintain coverage for the next two crop years or repay the funds. Stage 2 will launch later to assist farmers with uncovered or shallow losses.
Photo Credit: usda
Categories: National