Can You Defer SDRP Payments to 2026

Disaster payments sometimes can be deferred but you must meet certain rules

Photo by NOAA on Unsplash

Congress authorized about $18 billion of Supplemental Disaster Relief Program (SDRP) payments. To date, about $5.7 billion of payments have been issued according to the USDA dashboard and Stage 2 payments will commence once the government reopens.

But a question we get fairly often is can you defer recognizing this income from 2025 (if received this year) to 2026. Crop insurance proceeds related to damage can be delayed for one year after damage.