USDA initiated sign-up for Stage 2 of the Supplemental Disaster Relief Program at local Farm Service Agency offices on Nov. 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 who were eligible for Stage 1 have already signed up and have received their SDRP payment. A total of just over $16 billion was allocated by Congress for the SDRP program. As of Nov. 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.

USDA initiated sign-up for Stage 2 of the Supplemental Disaster Relief Program at local Farm Service Agency offices on Nov. 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 who were eligible for Stage 1 have already signed up and have received their SDRP payment. A total of just over $16 billion was allocated by Congress for the SDRP program. As of Nov. 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.

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 $16 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% 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% 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% 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.