USDA Unveils New Disaster Relief Program

SDRP Stage 1 to Help Farmers Hit By 2023 and 2024 Weather Losses

The U.S. Department of Agriculture (USDA) has launched Stage 1 of its Supplemental Disaster Relief Program (SDRP) to help farmers recover from weather-related disasters in 2023 and 2024. The program offers timely support following losses due to drought, floods, hurricanes, freezes, and wildfires.

Funded by the 2025 Disaster Relief Supplemental Appropriations Act, SDRP is designed to be faster and simpler than past programs. Under Stage 1, eligible producers receive 35% of their calculated crop loss, using existing crop insurance or NAP data. 

The USDA emphasized, “By leaning on existing crop insurance and NAP data, USDA aims to expedite payments and reduce paperwork burdens.”

Farmers must meet standard USDA requirements and may not have received 2022 ERP payments for the same crops. Aquaculture is eligible under crop insurance or NAP, but not if already aided through other USDA programs.

Four states—Connecticut, Maine, Hawaii, and Massachusetts—will manage disaster relief separately with state-administered block grants.

Eligible farmers will receive pre-filled FSA-526 forms in the mail or can get them from FSA offices. The application must be signed and submitted along with standard USDA forms. If a producer received both a crop insurance indemnity and a NAP payment, they must choose which to use for SDRP payment.

Payment calculations consider adjusted coverage levels, actual production, and net insurance indemnities.

The difference is multiplied by the 35% payment factor. For example, a producer with an eligible loss of $116,000 will receive $40,600 in disaster aid.

SDRP also includes payment limits: $125,000 for standard crops, $250,000 for high-volume crops, and $900,000 for specialty crops, with higher limits for those whose income is mostly farm-based.

Recipients must maintain crop insurance or NAP coverage at a minimum of 60% for the next two crop years to avoid repayment.

Stage 2 will roll out later in 2025, targeting shallow or uninsured losses and specialty crop operations not fully supported in Stage 1.