SDRP Stage 2 Announced - Signup Begins Next Monday
USDA announced on Monday the details for SDRP Stage 2 and updates to Stage 1
“Stage 1 quality loss” payments will be for quality losses that may not have originally be covered by crop insurance. For example, assume that a wheat farmer had a discount for excess protein on soft white plus a discount for excessive broken kernels. The FSA will provide a formula based on these discounts to arrive at an additional payment that was not originally provided in a crop insurance subsidy.
This appears to be only for APH or yield policies and actual prices and discounts obtained or paid by the farmer will be required to certify this quality loss. This will require farmers to provide more documentation to FSA since none of these details would be in the RMA database. And as with regular Stage 1 payments, any resulting quality payment will receive a payment based on 35%.
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