USDA is launching the next phase of its Supplemental Disaster Relief Program (SDRP), aimed at farmers who suffered losses from natural disasters in 2023 and 2024. This new round — Stage 2 — was unveiled on Monday and is expected to be significantly more complex than earlier programs and will likely include a surge in enrollment from specialty crop growers.
Under Secretary for Farm Production and Conservation Richard Fordyce says this latest stage fills major gaps for producers who either lacked crop insurance altogether or whose losses didn’t quite trigger an indemnity payment. He also says this round of disaster aid is complex, and there are a few things producers can do in advance to make the sign-up process a little easier.
Stage 2 Designed for “Shallow Losses” and Quality Loss
Fordyce explains the scope of eligible disasters is much wider than many producers realize.
He says the qualifying events including everything from drought and wildfires to a derecho. He adds that the program is specifically geared toward losses that fell through the cracks of traditional programs.
“This supplemental disaster relief program is going to assist producers that either did not have crop insurance or their crop insurance didn’t trigger an indemnity, but it was close,” he says. “We call those shallow losses. And there’s also a quality loss component we haven’t really been able to address in previous programs.”
Fordyce says with this stage being more complex, there are two things he wants producers to know:
“I think I think number one, if you are in an area that had a weather disaster in 2023 and 2024, if you’re a producer, you think back, did I have a severe weather event, right? Hurricane, wildfire, derecho, freeze, drought, whatever, and it impacted my crop, then you’re probably eligible,” says Fordyce. “So just think back to 23 and 24. And then, contact that local FSA county office, go to the website. There’s resources on that website as well, and then just be thinking about documentation that could prove that loss. And I mean, I think depending on the crop, depending on the geography, you know, that documentation’s gonna be different.”
Specialty Crops Expected to Be a Major Share of Applicants
What crops will be covered? Fordyce emphasizes many specialty crop operations will find Stage 2 particularly valuable.
“What we think will be crops that will probably have a higher subscription rate through this program are gonna be specialty crops. So it’ll be again what you think of as conventional specialty crops, you know, grapes, so it’s trees, vines, bushes would be you know, probably more more of those crops that would be included,” he says.
He notes that Stage 1 was largely focused on crops with well-established crop insurance data streams, such as major row crops.
“This one’s going to be harder, more complicated, because the data isn’t as uniform and the crop mix is so diverse,” he says.
Producers MUST Enroll in Person, Fordyce Urges Them to Prepare Now
One of the biggest changes in Stage 2 is how growers must apply. Unlike Stage 1, USDA is not mailing pre-filled applications. Producers must go to their FSA county office and work through the application with staff.
Fordyce says with this round being more complicated, preparation is key, but USDA has created a clear and concise checklist to help.
“We’re asking folks to call the local county office to set up an appointment,” he says. “We want to use the producer’s time in the best way we can. This is not something where you just walk in and hope to get it done quickly. There are documents we need, and the more a producer gets ahead of that, the smoother the process will be.”
USDA has published a detailed checklist at FSA.usda.gov/SDRP, and Fordyce encourages producers not to wait.
“It’s a list of documents you really should start getting your hands on, and if you don’t have documentation for something, the checklist also lays out acceptable ways you can substantiate the loss,” he says. “Depending on the crop and the geography, what counts as documentation is going to be different. That’s why we want folks to look at it now, not when they’re sitting in the county office.”
He stresses early preparation will matter because demand will be high.
“This one’s more complicated than Stage 1, no question, and it’s going to take more work from producers and from our county offices,” he says.
Billions Already Distributed And Billions More to Come
SDRP Stage 2 is part of the $30 billion disaster and economic assistance package Congress authorized.
Fordyce explains: “SDRP Stage 2 is part of the $30 billion Congress appropriated back in December. The first $10 billion was the economic aid program, then $6 billion for SDRP Stage 1. When we wrap up SDRP Stage 2, we will have administered all $30 billion in disaster and economic relief.”
What Farmers Need to Know
1. You must enroll in person at your FSA county office.
No prefilled applications will be mailed.
- Call ahead to schedule an appointment.
- Expect longer processing due to program complexity.
2. Stage 2 covers 2023 through 2024 weather-related losses.
- Includes “too hot, too cold, too wet, too dry, too windy” and other major events.
- Eligibility includes shallow losses and quality losses.
3. Specialty crops likely benefit most.
- Trees, vines, bushes, grapes and other specialty crops are expected to represent the majority of applicants.
4. Prepare documents in advance.
- Use the SDRP checklist at FSA.usda.gov/SDRP.
- Documentation varies by crop and region.
Market Loss Payments Still Being Debated, Prices at Harvest Are a Concern
Producers are still asking about potential market loss payments tied to tariff impacts and trade disruptions. While some hope an announcement will come before year-end, Fordyce cautions nothing is final.
“We’re having conversations almost daily with the Secretary’s office, the chief economist’s office, the White House,” he says. “When and if we do something, we want it to be well informed through the data we have. We want it to reflect where we are today, but also, it has to reflect where we were because many producers sold crops at harvest when prices were low. We know that.”
He stresses any decision must accurately reflect the full picture.
“There’s nothing decided yet, no imminent announcement I’m aware of, but the points producers are raising are the same ones we’re discussing internally,” Fordyce says.
Cotton Farmers and Other Struggling Commodities Are Part of the Conversation
Fordyce says USDA is closely tracking severe distress in cotton country.
“There are multiple commodities that are part of the conversation,” he says. “China is the big name because of soybean and sorghum exports, but there are other factors affecting other commodities too. When we make a decision, it’s going to be informed, it’s going to be representative of where we are, and it’s going to rely on the data we have access to.”
Borrower Limits Remain a Roadblock
As lenders warn of widespread stress, many producers want USDA to raise loan limits for beginning farmers and other borrowers. Fordyce says USDA cannot make that change without congressional action.
“Loan limits are statutory,” he explains. “We had a significant increase in 2018, but prices, land values and equipment costs have all shifted since then. We have champions in Congress who understand the inadequacies of our loan limits, and they want to increase them. We’ll see where that goes.”
USDA Leadership Knows the Stakes
Fordyce says USDA leaders understand, personally, the financial strain farmers face.
“My first operating loan was in 1983 at about 18% interest,” he says. “And I still wanted to farm. There are people up and down the hallways of USDA leadership who have farmed, who are farming or who have direct ties to a farm. There’s absolutely a 100% understanding of what’s happening both broadly and commodity by commodity, region by region.”
AgriTalk’s Chip Flory also talked to Farm CPA Paul Nieffer about the latest round of disaster aid. You can listen to that conversation as he outlines what farmers need to know.