---
kind: "section"
citation: "7 C.F.R. § 760.2218"
title: "7"
number: "760.2218"
heading: "Stage 2 payment calculation for insured crops with APH and yield-based plans."
url: "https://uscodex.org/cfr/7/760.2218"
---

# §760.2218. Stage 2 payment calculation for insured crops with APH and yield-based plans.

- (a) Stage 2 payments for eligible crops and units that were insured under APH or yield-based plans but not indemnified for a loss will be calculated according to this section.
- (b) **For the purpose of calculating payments under this section—**
  - (1) The quality loss percentage is the percentage determined according to § [760.2209(b)](/cfr/7/760.2209.md?p=b) and [(c)](/cfr/7/760.2209.md?p=c), subject to any adjustment by FSA based on the documentation submitted by the producer;
  - (2) The production is the share-adjusted producer-certified production entered on the FSA-504, subject to any adjustment by FSA based on the documentation submitted by the producer, unless share-adjusted production is pre-filled on FSA-504 and the producer does not enter producer-certified production;
  - (3) The price is the price used by RMA to calculate the liability; and
  - (4) The SDRP liability is the share-adjusted amount provided by RMA based on data already on file for Federal crop insurance purposes, which is equal to the expected crop value multiplied by the SDRP factor.
- (c) **To calculate the Stage 2 payment, FSA will—**
  - (1) **Determine the calculated loss by—**
    - (i) Converting the quality loss percentage to a decimal and subtracting that amount from 1;
    - (ii) Multiplying the production by the result of [paragraph (c)(1)(i)](#c-1-i) of this section, and then by the price; and
    - (iii) Subtracting the result of [paragraph (c)(1)(ii)](#c-1-ii) of this section from the SDRP liability specified in [paragraph (b)(4)](#b-4) of this section;
  - (2) **Determine the potential insured indemnity by—**
    - (i) Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under the APH or yield-based plan;
    - (ii) Multiplying the production by the price, multiplied by the producer's price election under the APH or yield-based plan; and
    - (iii) Subtracting the result of [paragraph (c)(2)(ii)](#c-2-ii) of this section from the insured liability, which is specified in [paragraph (c)(1)(i)](#c-1-i) of this section;
  - (3) If the amount of the calculated loss minus the potential insured indemnity is greater than zero, calculate the Stage 2 payment by:
    - (i) Subtracting the potential insured indemnity from the calculated loss, and adding the premium and administrative fees for the crop and unit; and
    - (ii) Multiplying the result of [paragraph (c)(3)(i)](#c-3-i) of this section by 35 percent to stay within available funding; and
  - (4) If the amount of the calculated loss minus the potential insured indemnity is equal to or less than zero, determine that the Stage 2 payment amount is zero.
- (d) If an applicant designates shares for SBIs on FSA-504, the payment amounts for the primary policy holder and SBIs will be multiplied by the applicable share.

## Notes

### Amendments

[90 FR 51984, Nov. 18, 2025]

### Source

Source: 90 FR 30569, July 10, 2025, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 4501 and 1531; 16 U.S.C. 3801, note; 19 U.S.C. 2497; Title III, Pub. L. 109-234, 120 Stat. 474; Title IX, Pub. L. 110-28, 121 Stat. 211; Sec. 748, Pub. L. 111-80, 123 Stat. 2131; Title I, Pub. L. 115-123, 132 Stat. 65; Title I, Pub. L. 116-20, 133 Stat. 871; Division B, Title VII, Pub. L. 116-94, 133 Stat. 2658; Title I, Pub. L. 117-43, 135 Stat. 356; and Division N, Title I, Pub. L. 117-328, 136 Stat. 4459; Division B, Title I, Pub. L. 118-158, 138 Stat. 1722.

### Amendments

[90 FR 51984, Nov. 18, 2025]