---
kind: "section"
citation: "7 C.F.R. § 760.2231"
title: "7"
number: "760.2231"
heading: "Stage 2 payment calculation for non-indemnified insured crops in Puerto Rico."
url: "https://uscodex.org/cfr/7/760.2231"
---

# §760.2231. Stage 2 payment calculation for non-indemnified insured crops in Puerto Rico.

- (a) Payments for eligible insured crops in Puerto Rico that were not indemnified for a loss under the Federal crop insurance plan will be calculated according to this section.
- (b) **For the purpose of calculating a payment under this section—**
  - (1) The quality loss percentage is the percentage determined according to § [760.2209(b)](/cfr/7/760.2209.md?p=b) and [(c)](/cfr/7/760.2209.md?p=c) and is subject to any adjustment by FSA based on the documentation submitted by the producer;
  - (2) The production is the share-adjusted producer-certified production entered on FSA-504, subject to any adjustment by FSA based on the documentation submitted by the producer;
  - (3) The price is the price provided by RMA used to calculate the liability; and
  - (4) The SDRP liability is the share-adjusted amount provided by RMA based on data already on file for Federal crop insurance purposes, which is equal to expected crop value multiplied by the SDRP factor.
- (c) To calculate a Stage 2 payment for an eligible insured crop in Puerto Rico that was not indemnified for a loss under the Federal crop insurance plan, FSA will:
  - (1) **Determine the calculated loss by—**
    - (i) Converting the quality loss percentage to a decimal and subtracting from 1;
    - (ii) Multiplying the production by the result of [paragraph (c)(1)(i)](#c-1-i) of this section, and then by the price; and
    - (iii) Subtracting the result of [paragraph (c)(1)(ii)](#c-1-ii) of this section from the SDRP liability;
  - (2) **Determine the potential insured indemnity by—**
    - (i) Dividing the SDRP liability by the SDRP factor, and multiplying the result by the crop's insurance coverage level;
    - (ii) Multiplying the production by the price, multiplied by the producer's price election under the insurance plan; and
    - (iii) Subtracting the result of [paragraph (c)(2)(ii)](#c-2-ii) of this section from the insured liability, which is specified in [paragraph (c)(2)(i)](#c-2-i) of this section;
  - (3) If the calculated loss minus the potential insured indemnity is greater than zero, determine the factored gross Stage 2 payment by:
    - (i) Subtracting the potential insured indemnity from the calculated loss, and adding the premium and administrative fees;
    - (ii) Multiplying the result of [paragraph (c)(3)(i)](#c-3-i) of this section by the producer's share, and by 35 percent to stay within available funding; and
  - (4) If the calculated loss in [paragraph (c)(1)](#c-1) of this section minus the potential insured indemnity in [paragraph (c)(2)](#c-2) of this section is equal to or less than zero, determine that the payment amount is zero.

## Notes

### Amendments

[90 FR 51984, Nov. 18, 2025]

### 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]