SDRP Stage 2 Explained: What Producers Need to Know About Coverage, Quality Losses, and Deadlines
USDA clarifies eligibility, documentation, and application steps as Stage 2 expands disaster assistance for shallow and uninsured losses
USDA’s Supplemental Disaster Relief Program (SDRP) Stage 2 is designed to close key gaps left after traditional crop insurance and NAP coverage, offering relief for producers who suffered qualifying disaster losses in 2023 or 2024 that did not trigger an indemnity — or who lacked coverage altogether. Below is a comprehensive, producer-focused guide to how Stage 2 works, who is eligible, and what to prepare before applying.
What Stage 2 Covers
SDRP Stage 2 provides payments for eligible crops, trees, bushes, and vines that experienced:
•“Shallow” losses — losses covered by federal crop insurance or NAP that were not severe enough to trigger a payment, and
• Uninsured losses — losses on eligible commodities not covered by crop insurance or NAP.
This structure broadens relief beyond Stage 1, targeting producers who fell between the cracks of existing programs.
Qualifying Disaster Events
Stage 2 uses the same qualifying disasters as Stage 1, including events that occurred in calendar years 2023 or 2024:
• Wildfires, hurricanes, floods, derechos
• Excessive heat, tornadoes, winter storms, freezes (including polar vortex events)
• Smoke exposure, excessive moisture
•Qualifying drought, defined as:
- D2 (severe drought) for at least eight consecutive weeks, or
- D3 (extreme drought) or worse for any length of time, as measured by the U.S. Drought Monitor.
Applying for Stage 1 and Stage 2
Producers may apply for Stage 2 even if they received Stage 1 payments, as long as the losses claimed under Stage 2 were not eligible for Stage 1. Applications are filed by crop year, meaning producers with losses in multiple years must submit separate applications for each year.
Linkage Requirement Still Applies
As with Stage 1, linkage is required. To be eligible, producers must have obtained:
• Federal crop insurance, or
• NAP coverage at a minimum of 60% coverage, as applicable.
Application Deadline and How to Apply
• Signup deadline: April 30, 2026, for both Stage 1 and Stage 2
• Applications will not be mailed. Producers must contact their local FSA service center to complete the application.
Quality Losses: Now Included in Stage 2
Stage 2 allows producers to apply for quality losses, provided they have verifiable documentation. Quality losses are handled differently depending on the crop type:
Forage Crops
• Calculated based on reduced nutritional value
• Documentation must include Total Digestible Nutrients (TDN) or another accepted measure of forage feed quality
All Other Crops
• Calculated based on price discounts at the point of sale caused by physical condition
• Documentation must show grading factors and corresponding price discounts
Importantly, producers who had quality losses not included in Stage 1 may still apply. USDA plans a separate quality-loss enrollment process for Stage 1 quality losses, expected in early 2026.
Insured or NAP-Covered — but No Prior Claim?
Producers who had crop insurance or NAP coverage but did not file a claim may still apply for Stage 2. However, USDA will subtract the potential indemnity or NAP payment from the Stage 2 calculation.
Documentation Requirements
Documentation varies by coverage and loss type, but generally includes:
• Production summaries or acceptable production/inventory records
• Records supporting dead or damaged trees, bushes, or vines
• Verifiable documentation for certified quality loss percentages
USDA encourages producers to contact their FSA county office to confirm exactly what documentation is required for their situation.
Correcting Application Errors
If prepopulated information is incorrect:
• Insured crops: Work with your Approved Insurance Provider (AIP) through your insurance agent
• NAP crops: Work directly with the FSA service center that maintains your NAP records
Acreage Reporting Still Required
Most producers will need to have an FSA-578 (Report of Acreage) on file. Check with local FSA staff to confirm whether one is required or already submitted.
Bottom Line
SDRP Stage 2 significantly broadens disaster assistance by addressing shallow, uninsured, and quality-related losses that traditional programs often miss. With a firm April 30, 2026 deadline, producers are encouraged to engage early with their local FSA offices, confirm linkage and acreage reporting, and gather documentation — especially for quality losses — to ensure they can fully access available relief.
Comments: USDA has received many complaints about how it is operating this program. This negative feedback has reached USDA Secretary Brooke Rollins. Some changes could still be announced, but this is not guaranteed. Make sure your voice is being heard regarding the problems you are having with this program as currently designed and interpreted by USDA.
