What producers should do now to secure payments for 2023 and 2024 disaster impacts

Many farmers are sorting through losses from 2023 and 2024 and trying to understand what USDA will cover under SDRP Stage 2. This program is designed to help producers who took a hit from severe weather and never received the level of support they expected. SDRP Stage 2 offers relief for both production losses and quality losses, but the rules can be confusing if you are not familiar with FSA paperwork.

Below is a breakdown of what SDRP Stage 2 covers, how quality loss fits into the program and what you can expect when you apply.

What SDRP Stage 2 Is Designed to Cover

SDRP Stage 2 supports producers who experienced losses from qualifying natural disasters in 2023 or 2024 and did not receive full payment through insurance, NAP or other relief programs. This includes shallow losses that never triggered an indemnity payment, uninsured losses and certain forage losses that fell outside Stage 1 rules.

If you had lower yields, reduced quality, stressed forage or damage linked to weather conditions, there is a strong chance your operation is eligible.

Applications open Nov. 24 and close Apr. 30.
Form FSA 504 will be required.

Quality Loss: What It Means & When It Matters

One of the most common questions farmers ask is whether they need to have a quality loss to qualify for SDRP Stage 2. The short answer is no. SDRP Stage 2 does not require a quality loss to receive a payment.

Quality loss simply refers to a decrease in the value or nutritional quality of a crop because of a qualifying disaster event. This could involve lower test weight, reduced grade, smoke exposure, nutrient decline in forage or other measurable quality issues.

If you did not have a quality loss, you do not need to complete Box 25 on the FSA 504. Your application can still be approved if you had a verified shallow loss that did not trigger an indemnity.

What you Need to Provide if you Did Experience Quality Loss

If you are claiming a quality loss you must provide dated documentation that shows what happened and how the crop was affected. Examples include:

  • Laboratory test results
  • Warehouse grading sheets
  • Settlement sheets or sales receipts that show the grade and price
  • For forage crops, verifiable test results such as RFV or total digestible nutrients and production records for the impacted fields

Good records make approval faster and reduce the amount of follow up FSA will require.

SDRP Stage 2 For Hay & Alfalfa

Many producers are asking if they can qualify for SDRP Stage 2 even if they did not report their hay or alfalfa acres to FSA. In many cases the answer is yes.

If your hay or alfalfa suffered a verifiable production loss due to a qualifying disaster in 2023 or 2024 you can still apply. You will need to gather production records from the disaster year and comparable years that were not affected. You will also need to schedule an appointment with your FSA office to report your loss.

Your claim will then go to the FSA County Committee for review. If your loss aligns with what is reasonable for your area they will approve it. If they do not feel it is consistent with typical conditions, they may deny the claim, but you can still provide additional evidence to support your case.

For farmers who had hay shortages, drought stress or storm-damaged forage this program can provide meaningful support.

Tax Timing & Payment Questions

Another common concern is how SDRP Stage 2 payments will show up on your taxes. If your application is approved and paid before Jan. 1, 2026, the payment will be reported on your 2025 Form 1099.

If receiving the payment this tax year would create challenges for your tax plan it is important to talk with your Adams Brown agriculture advisor before submitting your application. Once a payment is issued it cannot be shifted to a different tax year.

What you Should Do Before you Apply

A smooth application starts with good information. Before submitting your FSA 504 take a few steps to get ahead of potential delays.

  • Check your records with FSA
    Make sure leases, entity information and ownership records are current.
  • Gather production and quality documentation
    Accurate records are the fastest way to get approved.
  • Schedule time with your accountant
    Confirm your AGI and discuss the tax impact of receiving a payment before year end.
  • Reach out to your local FSA office
    If you need to report hay or forage losses set an appointment early.
  • Talk with a trusted agriculture advisor
    SDRP rules can be confusing and missing details can delay payments. Adams Brown’s farm program advisory team can help you understand your eligibility and prepare your application.

Questions?

SDRP Stage 2 is one of the most important relief programs available to farmers dealing with lingering losses from 2023 and 2024. Whether your loss involved quality issues, shallow yields or damaged forage, this program may help stabilize next year’s cash flow.

If you have questions about your eligibility or want support preparing your documentation, reach out to an Adams Brown advisor. The right guidance can help you avoid missteps and move through the process with confidence.