---
kind: "section"
citation: "7 C.F.R. § 760.2223"
title: "7"
number: "760.2223"
heading: "Stage 2 payment calculation for NAP-covered yield-based crops with an approved NAP application for payment."
url: "https://uscodex.org/cfr/7/760.2223"
---

# §760.2223. Stage 2 payment calculation for NAP-covered yield-based crops with an approved NAP application for payment.

- (a) 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.
- (b) **For the purpose of calculating payments under this section—**
  - (1) The SDRP liability equals the expected crop value multiplied by the SDRP factor and uses FSA data already on file for NAP purposes;
  - (2) 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.
- (c) **To calculate a Stage 2 payment, FSA will—**
  - (1) **Determine the calculated loss by—**
    - (i) Converting the quality loss percentage to a decimal and subtracting the amount from 1;
    - (ii) Multiplying the production by the result of [paragraph (c)(1)(i)](#c-1-i) of this section, and then multiplying by the average market 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)(1)](#b-1) of this section;
    - (iv) Multiplying the result of [paragraph (c)(1)(iii)](#c-1-iii) of this section by the unharvested payment factor, if applicable;
    - (v) Subtracting the salvage value from the result of [paragraph (c)(1)(iv)](#c-1-iv) of this section; and
    - (vi) Multiplying the result of [paragraph (c)(1)(v)](#c-1-v) of this section by the producer's share;
  - (2) 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)](#c-1) of this section, and multiply the result by 35 percent to stay within available funding; and
  - (3) If the calculated loss is equal to or less than zero, determine that the payment amount is zero.

## Notes

### 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]