§760.2224. Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment.
7 C.F.R. § 760.2224
Stage 2 payments for eligible NAP-covered yield-based crops and units without an approved NAP application for payment will be calculated according to this section.
For the purpose of calculating payments under this section—
FSA will adjust the amount of production if necessary to reflect the amount substantiated by the producer's documentation; and
The SDRP liability is equal to the eligible acres, multiplied by the producer's approved yield, multiplied by the average market price, multiplied by the SDRP factor; and
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 the 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 result of paragraph (c)(1)(i) of this section by the production, 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, if applicable, and then subtracting the salvage value from the result; and
Multiplying the result of paragraph (c)(1)(iv) of this section by the producer's share;
Determine the potential NAP payment by—
Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under NAP;
Multiplying the production by the average market price, and then subtracting that amount from the result of paragraph (c)(2)(i) of this section;
Subtracting the salvage value from the result of paragraph (c)(2)(ii) of this section and multiplying the result by the producer's share;
Multiplying the result of paragraph (c)(2)(iii) of this section by the price election under NAP, and then by the unharvested payment factor; and
Multiplying the result of paragraph (c)(2)(iv) of this section by the producer's share;
If the calculated loss minus the potential NAP payment is greater than zero, determine the factored gross Stage 2 payment by:
Subtracting the potential NAP payment from the calculated loss, and adding the NAP administrative fees and premiums; and
Multiplying the result of paragraph (c)(3)(i) of this section by 35 percent to stay within available funding; and
If the amount of the calculated loss minus the potential NAP payment 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 11131, 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 11131, Mar. 9, 2026]