FSA Farm Disaster Indemnity and Relief Programs

When a hurricane forces dairy farmers to dump their milk supply or a wildfire destroys a herd's forage, federal indemnity and relief programs administered by USDA's Farm Service Agency step in to cover losses that crop insurance can't reach. 7 CFR Part 760 is the regulatory home for the FSA's family of disaster payment programs — from the long-standing Dairy Indemnity Payment Program (operating since the 1970s) to newer emergency livestock and crop relief programs Congress has funded after major weather disasters in recent years.

Current Rule (2026)

What This Rule Does

When farm disasters strike — a hurricane contaminates the milk supply, a wildfire forces dairy farmers to dump production, or back-to-back disasters devastate crop revenues — federal indemnity and relief payments through the Farm Service Agency fill the gap between what insurance covers and what farmers actually lost. 7 CFR Part 760 is the regulatory home for a family of FSA disaster payment programs, each responding to different types of farm losses.

The programs in Part 760 range from the long-standing Dairy Indemnity Payment Program (DIPP) — which has been operating since the 1970s and pays dairy farmers when public health authorities order milk off the market due to pesticide residues — to newer programs Congress created after major disaster years. Recent additions include the Milk Loss Program (MLP) for disaster-related milk dumping, the Emergency Relief Program (ERP) for crop losses, the Quality Loss Adjustment Program (QLAP) for harvest-ready crops damaged in quality but not destroyed, the On-Farm Stored Commodity Loss Program, and the Emergency Livestock Relief Program (ELRP) for livestock feed and forage losses. FSA updates the Part frequently as Congress authorizes new disaster assistance following each major weather event cycle.

The programs share a common administrative structure: FSA's Deputy Administrator for Farm Programs sets national policy, state and county FSA committees implement at the local level, and eligible producers apply at their county FSA office within program-specific deadlines. Payments are generally funded through supplemental appropriations or the Commodity Credit Corporation (CCC), not through annual appropriations — meaning they are available when disasters occur rather than being limited to a fixed annual budget.

Key Programs and Provisions

Dairy Indemnity Payment Program (Subpart A)

• § 760.10 — Pays dairy farmers for cows that a public agency determines will be unsellable for 3 or more months due to pesticide residues or chemical contamination; eligibility determined by FSA's Deputy Administrator based on milk test results and cow condition
• § 760.11 — Extends coverage to bred and open heifers when the farm's dairy cows are already eligible under § 760.10
• § 760.12 — Application requires full inventory of all dairy cows (lactating, dry, and heifers), all feed on hand, and records of the contamination event
• § 760.20 — Also pays dairy product manufacturers (cheese plants, butter facilities, etc.) for affected dairy products removed from commercial markets; payment equals fair market value minus any salvage recovered
• § 760.21 — Manufacturers apply through their local county FSA office to the Deputy Administrator in Washington

Milk Loss Program (Subpart Q)

• § 760.1700 — Pays dairy farmers for milk that was dumped or sold at a loss because of qualifying disasters: drought, wildfire, hurricane, flood, derecho, tornado, excessive heat, excessive cold, excessive moisture, and other qualifying events
• § 760.1703 — Eligible farmers must be U.S. citizens, resident aliens, or eligible partnerships; same citizenship/legal presence requirements that apply across FSA programs
• § 760.1704 — Payment equals 75% of the fair market value of the farmer's normal milk sales for the application period; "normal marketings" is calculated by the county committee based on prior production history

Emergency Relief Program (ERP — Subpart S)

• § 760.1900 — Phase 2 ERP covers producers with crop losses from qualifying disasters in calendar years 2020 and 2021; Phase 1 payments (based on insurance proceeds) were a separate earlier round
• § 760.1902 — Eligibility requires a documented drop in disaster-year allowable gross revenue below the producer's benchmark allowable gross revenue, caused by necessary expenses from the qualifying disaster
• § 760.1905 — FSA calculates payments separately for specialty/high-value crops and other crops; payment is based on the revenue gap, not direct crop loss measurement
• § 760.1904 — Applications filed on FSA-521 at the county FSA office by announced deadline

Other Programs

• Subpart P (On-Farm Stored Commodity Loss) — covers stored grain and commodity losses from disaster events on-farm
• Subpart R (Quality Loss Adjustment Program) — covers harvest-ready crops that were damaged in quality (grade, weight, condition) but not completely destroyed; pays for the value of quality reduction
• Subpart V (Supplemental Disaster Relief Program — 28 sections, largest subpart) — most recent broad disaster relief authorization
• Subpart T/U (Emergency Livestock Relief Program 2023–2024) — covers livestock feed and forage costs imposed by 2023 and 2024 qualifying disaster events; 90 FR 51984 (2025) updated these rules

How It Affects You

If you operate a dairy farm: The Dairy Indemnity Payment Program is a permanent, standing program — you don't need Congress to pass emergency legislation to access it if your milk is ordered off the market due to pesticide or chemical contamination. Contact your county FSA office immediately when a public agency orders your milk removed from commerce. You'll need a full inventory of affected cows and documentation of the contamination order. The Milk Loss Program covers the separate scenario of disaster-caused dumping (a flood cuts off your pickup route, extreme heat reduces production) — this typically requires a program signup period.

If you grow crops: Emergency relief programs like ERP are retrospective — they are funded and opened for sign-up after major disaster events occur. You cannot apply for ERP now unless an active program sign-up period is open for a year in which you had losses. FSA announces program periods after Congress appropriates funds. Keep good production records and disaster documentation — FSA will ask for them. The Quality Loss Adjustment Program is particularly relevant if you had a crop that survived but arrived at the elevator at a lower grade than expected.

If you raise livestock: The Emergency Livestock Relief Programs (ELRP) for 2023–2024 cover feed costs that spiked due to qualifying disasters. FSA uses existing records (Livestock Forage Disaster Program data, crop insurance) to calculate payments automatically for many participants — check with your county office whether you need to take action or whether payment is automatic. The 2025 regulatory update (90 FR 51984) adjusted payment calculations for the most recent program years.

If you are a dairy product manufacturer: DIPP coverage for manufacturers requires applying through your county FSA office to the Washington headquarters; payment covers the fair market value of contaminated product removed from commerce minus any salvage proceeds. Keep documentation of market value at the time of removal and any amounts recovered through salvage or insurance.

Statutory Authority

This rule implements:

• 7 U.S.C. § 4501 (Agricultural Programs Adjustment Act) — Core authority for the Dairy Indemnity Payment Program
• 19 U.S.C. § 2497 — Trade Act authority applicable to certain international trade-related agricultural assistance
• 16 U.S.C. § 3801 — Food Security Act provisions referenced for certain commodity program eligibility standards

Recent Rulemakings

• 90 FR 51984 (2025) — Most recent amendment, updating 16 sections in the Emergency Livestock Relief Program subparts (Subparts T and U); reflects 2023–2024 disaster-year adjustments to payment calculations and eligibility
• 88 FR 62290 (2023) — 13 sections updated; established or modified provisions across multiple subparts as Congress funded new rounds of disaster relief
• 84 FR 48534 (2019) — 11 sections; added or updated programs following major 2018–2019 disaster events
• 83 FR 33801 (2018) — 16 sections; established the Wildfires and Hurricanes Indemnity Program (WHIP) provisions following the 2017 hurricane season

Recent Developments

• Ongoing disaster supplemental appropriations: Congress has continued funding emergency disaster assistance through ad hoc supplemental appropriations that add subparts to 7 CFR Part 1416 or create new FSA disaster programs outside Part 1416. The pattern — major disaster events followed by Congressional supplemental funding with FSA rulemaking to implement — has repeated annually through 2025–2026. FSA's rulemaking capacity has been strained by the frequency and volume of disaster program amendments.
• 2023–2024 drought and wildfire claims: Significant drought conditions in the Western U.S. and major wildfire seasons in 2023 and 2024 generated large ELAP and LFP claim volumes. Livestock producers in drought-affected areas applied for LFP benefits for grazing losses and ELAP benefits for additional feed costs. FSA county offices processed increased workloads; processing timelines and accuracy of payment calculations were subject to OIG review.
• Farm Bill 2025 and disaster program reauthorization: Disaster indemnity programs under Part 1416 are authorized through the Farm Bill, and reauthorization determines program parameters and funding levels for the next five-year cycle. Farm Bill 2025 discussions included proposals to modify payment rate formulas, adjust the cost-share structures, and streamline documentation requirements that producers have criticized as burdensome in the aftermath of disasters.
• DOGE and FSA staffing (2025): USDA Farm Service Agency experienced workforce reductions under the Trump administration's DOGE initiative in 2025. FSA county offices, which process ELAP, LFP, SURE, and other Part 1416 claims, were affected by staff buyouts and hiring freezes. County office staffing reductions coincided with ongoing disaster claims processing, creating capacity concerns among agricultural producer groups in disaster-affected regions.

Pending Action

Farm Bill 2025 reauthorization is the central pending action for FSA disaster programs. The House and Senate Agriculture Committees have been working toward a five-year Farm Bill that includes reauthorization of disaster assistance programs under 7 CFR Parts 760 and 1416 — with proposals to increase payment rate formulas, expand covered disaster types, and streamline FSA county office documentation requirements. FSA's DOGE-era staffing reductions create implementation risk: new programs Congress funds require adequate county office capacity to process claims accurately and timely. Producers who experienced losses from qualifying 2025 disaster events should monitor FSA announcements for program signup periods, which typically open 6–18 months after qualifying events following Congressional appropriation and FSA rulemaking.