Likely Need to Have at Least a 5% Yield Loss to Collect SDRP Stage 2

It is our understanding that Stage 2 is based on using Projected price not Harvest Price

Photo by Nathan Kelly on Unsplash

Based on discussions with crop insurance agents who were on a call with RMA on Thursday, it appears that the calculation of price that should be used in the calculator is based on the Projected, not Harvest price.

If so, this now means that at a minimum you would need to have at least a 5% reduction in yield to start collecting any payment under SDRP Stage 2. That would be at the 80% and 85% level. At the 75% level, you would need to have a yield loss of at least 7.5% to start collecting.

As an example, assume you elected 85% coverage with a corn APH of 200 and the 2024 projected price was $4.66. Your SDRP Stage 2 percentage is 95%. Your SDRP liability in Box 22 is $4.66 X 200 X 95% times your acres. Let’s just use 100 acres. This results in a $88,540 SDRP liability.