2025-20132RuleSignificant

Uninsured Farmers Get New Disaster Indemnity Lifeline

Published Date: 11/18/2025

Rule

Summary

Farmers and dairy producers affected by disasters in 2023 and 2024 can now get extra help through new programs funded by the American Relief Act, 2025. These programs cover crop, stored commodity, and milk losses that weren’t fully paid for by insurance. The rule sets clear rules and payment details, so eligible folks can get their disaster relief faster and fairer.

Analyzed Economic Effects

10 provisions identified: 6 benefits, 2 costs, 2 mixed.

Large Relief Fund for 2023–2024 Farm Losses

The American Relief Act, 2025 provides $30,780,000,000 for disaster assistance and FSA is using about $16.09 billion of that for the Supplemental Disaster Relief Program (SDRP) to help producers with crop, tree, bush, vine, milk, and on-farm stored commodity losses from qualifying disasters in calendar years 2023 and 2024.

All SDRP Payments Scaled to 35%

All calculated Stage 1 and Stage 2 payment amounts will be multiplied by a 35 percent final payment factor before issuance, to ensure total payments do not exceed available funding.

Stage 1 Quality Loss Payments — Who Qualifies

You can get a Stage 1 quality loss payment only if you received a Federal crop insurance indemnity under an APH or other yield-based plan or a NAP payment for the loss and you submit a completed FSA-526Q application. The rule lists excluded items such as value-loss crops, maple sap, honey, destroyed or prevented-from-planting crops, crops previously adjusted for quality under NAP, trees/bushes/vines, and others.

Stage 2 Covers Shallow & Uninsured Losses

SDRP Stage 2 provides payments for 'shallow' (non-indemnified) losses under Federal crop insurance and for losses of eligible crops, trees, bushes, and vines that were uninsured or not covered by NAP for crop years linked to 2023 and 2024 qualifying disaster events.

SDRP Payment Factors and Rates

Stage 2 payment calculations use SDRP factors by coverage level. Uninsured crops use a 70.0% SDRP factor. Catastrophic coverage uses 75.0%. Examples of other factors: 82.5% for 55–59% coverage, 85.0% for 60–64% coverage, up to 95.0% for at least 80% coverage. NAP factors range from 75.0% (catastrophic) to 95.0% (65% coverage).

On-Farm Stored Commodity Loss Payments (OFSCLP)

The On-Farm Stored Commodity Loss Program (OFSCLP) provides payments to eligible producers for uncompensated losses of harvested commodities stored in on-farm structures caused by listed qualifying events (wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze including polar vortex, smoke exposure, qualifying drought, and related conditions) that occurred in calendar years 2023 or 2024.

Milk Loss Program for Dumped or Uncompensated Milk

The Milk Loss Program (MLP) provides payments to eligible dairy operations for milk that was dumped or removed without compensation from the commercial milk market because of qualifying events (the same list used elsewhere) that occurred in calendar years 2023 or 2024.

State Exclusions: CT, HI, ME, MA Covered by Block Grants

Crop, tree, bush, and vine losses physically located in Connecticut, Hawaii, Maine, or Massachusetts are excluded from SDRP because those States indicated they will compensate such losses through block grants under the Act.

SDRP Payment Limits and Insurance Requirement

All SDRP payments will be combined for the purpose of applying payment limitations under Sec. 760.2215, and receiving any SDRP payment requires purchasing crop insurance or NAP coverage for the next two available crop years as provided in Sec. 760.2216.

Application Deadlines and Forms

Producers must apply to an FSA county office by close of business on April 30, 2026, submitting FSA-526Q for Stage 1 quality-loss payments or FSA-504 for Stage 2 payments; FSA will pre-fill some fields and will open sign-up in stages, with the first group's application period beginning on November 24, 2025.

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Key Dates

Published Date
Rule Effective
11/18/2025
11/18/2025

Department and Agencies

Department
Independent Agency
Agency
Agriculture Department
Farm Service Agency
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