§760.2220. Stage 2 payment calculation for insured crops with dollar plans and other revenue plans.
7 C.F.R. § 760.2220
Stage 2 payments for eligible crops and units that were insured under a dollar plan or other revenue plans but were not indemnified for a loss will be calculated according to this section.
For the purpose of calculating payments under this section—
FSA will adjust the production if necessary to reflect the amount substantiated by the producer's documentation;
The SDRP liability is equal to the eligible acres, multiplied by the county expected yield, multiplied by the average market price, and multiplied by the applicable SDRP factor; and
The quality loss percentage is the percentage determined according to § 760.2209(b) and (c), subject to any adjustment by FSA based on documentation submitted by the producer.
To calculate a Stage 2 payment for an eligible crop and unit that was insured under a dollar plan or other revenue plan, FSA will:
Determine the calculated loss by—
Converting the quality loss percentage to a decimal and subtracting from 1;
Multiplying the production by the result of the paragraph (c)(1)(i) of this section and then by the average market price;
Subtracting the result of paragraph (c)(1)(ii) of this section from the SDRP liability;
Multiplying the result of paragraph (c)(1)(iii) of this section by the unharvested payment factor; and
Multiplying the result of paragraph (c)(1)(iv) of this section by the producer's share;
Determine the potential insured indemnity by—
Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under the dollar based or other revenue insurance plan;
Multiplying the production by the average market price;
Subtracting the result of this paragraph by (c)(2)(ii) of this section from the insured liability, which is specified in paragraph (c)(2)(i) of this section;
Multiplying the result from paragraph (c)(2)(iii) of this section by the producer's price election under the dollar based or other revenue insurance plan; and
Multiplying the result from paragraph (c)(2)(iv) of this section by the producer's share;
If the amount of the calculated loss minus the potential insured indemnity is greater than zero, determine the factored gross Stage 2 payment by:
Subtracting the potential insured indemnity from the calculated loss, and adding the premiums and administrative fees for the crop and unit; and
Multiplying the result of paragraph (c)(3)(i) of this section by 35 percent to stay within available funding; and
If the calculated loss minus the potential insured indemnity is equal to or less than zero, determine that the Stage 2 payment amount is zero.
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, and revision history
Amendments
[90 FR 51984, Nov. 18, 2025, as amended at 91 FR 11130, Mar. 9, 2026]
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, as amended at 91 FR 11130, Mar. 9, 2026]