§760.2223. Stage 2 payment calculation for NAP-covered yield-based crops with an approved NAP application for payment.
7 C.F.R. § 760.2223
Stage 2 payments for eligible NAP-covered crops and units with an approved NAP application for payment with a calculated NAP payment amount of zero will be calculated according to this section.
For the purpose of calculating payments under this section—
The SDRP liability equals the expected crop value multiplied by the SDRP factor and uses FSA data already on file for NAP purposes;
Because NAP service fees and premiums are not calculated individually by crop and unit, the service fee and premium amount used to calculate a payment under this section will be zero if the producer has already received a payment for a NAP-covered crop under Stage 1.
To calculate a Stage 2 payment, FSA will—
Determine the calculated loss by—
Converting the quality loss percentage to a decimal and subtracting the amount from 1;
Multiplying the production by the result of paragraph (c)(1)(i) of this section, and then multiplying by the average market price; and
Subtracting the result of paragraph (c)(1)(ii) of this section from the SDRP liability specified in paragraph (b)(1) of this section;
Multiplying the result of paragraph (c)(1)(iii) of this section by the unharvested payment factor, if applicable;
Subtracting the salvage value from the result of paragraph (c)(1)(iv) of this section; and
Multiplying the result of paragraph (c)(1)(v) of this section by the producer's share;
If the calculated loss is greater than zero, determine the factored gross Stage 2 payment by adding the premium and service fees to the result of paragraph (c)(1) of this section, and multiply the result by 35 percent to stay within available funding; and
If the calculated loss is equal to or less than zero, determine that the payment amount is zero.
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]