---
kind: "section"
citation: "7 C.F.R. § 760.2224"
title: "7"
number: "760.2224"
heading: "Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment."
url: "https://uscodex.org/cfr/7/760.2224"
---

# §760.2224. Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment.

- (a) 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.
- (b) **For the purpose of calculating payments under this section—**
  - (1) FSA will adjust the amount of production if necessary to reflect the amount substantiated by the producer's documentation; and
  - (2) 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
  - (3) 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 the 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 result of [paragraph (c)(1)(i)](#c-1-i) of this section by the production, and then by the average market price;
    - (iii) Subtracting the result of [paragraph (c)(1)(ii)](#c-1-ii) of this section from the SDRP liability;
    - (iv) Multiplying the result of [paragraph (c)(1)(iii)](#c-1-iii) of this section by the unharvested payment factor, if applicable, and then subtracting the salvage value from the result; and
    - (v) Multiplying the result of [paragraph (c)(1)(iv)](#c-1-iv) of this section by the producer's share;
  - (2) **Determine the potential NAP payment by—**
    - (i) Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under NAP;
    - (ii) Multiplying the production by the average market price, and then subtracting that amount from the result of [paragraph (c)(2)(i)](#c-2-i) of this section;
    - (iii) Subtracting the salvage value from the result of [paragraph (c)(2)(ii)](#c-2-ii) of this section and multiplying the result by the producer's share;
    - (iv) Multiplying the result of [paragraph (c)(2)(iii)](#c-2-iii) of this section by the price election under NAP, and then by the unharvested payment factor; and
    - (v) Multiplying the result of [paragraph (c)(2)(iv)](#c-2-iv) of this section by the producer's share;
  - (3) If the calculated loss minus the potential NAP payment is greater than zero, determine the factored gross Stage 2 payment by:
    - (i) Subtracting the potential NAP payment from the calculated loss, and adding the NAP administrative fees and premiums; 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 NAP payment 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 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]