What Stage 2 Might Look Like

We provide a chart of estimated Stage 2 payments assuming USDA uses the same calculations as for Stage 1

Photo by Raphael Rychetsky on Unsplash

Earlier this morning we posted two charts showing estimated payments under SDRP Stage 1. These payments are only issued if you originally had a crop insurance indemnity claim.

Once you have a claim, then the producer must verify to USDA what type of disaster caused the claim to qualify for a SDRP payment. If there was no disaster, there is no payment. Therefore, if your final harvest yield was greater than your APH, you likely will not get any SDRP payment from USDA even though you received an indemnity payment due to the drop in price.

We are not sure if USDA will automatically remove those claims from the pre-filled-in application but understand you will not qualify for a SDRP payment under those conditions.

But what about farmers who barely missed out on a crop insurance payment but would definitely qualify for a payment under the revised SDRP % payment rate. That is what Stage 2 is for and that should go live in September. We believe that USDA may simply recalculate your claim using the SDRP payment rates and then pay based on that.

If so, here is a chart using the same example farmer in Dekalb County, Illinois showing how this might work where the farmer originally did not qualify for a claim, but will get a payment under Stage 2: