This is our current understanding of how Stage 2 works. We will send out updates as we learn more.
Will I receive a Stage 2 application for crop year 2023 or 2024?
- If a crop with enterprise units was paid in Stage 1 – No
- If a crop with optional units was paid in Stage 1 – Yes, for non-loss units only
- If you hit the $125,000 payment limit in Stage 1 for a crop year – No
- If you had a Stage 1 loss due to prevent plant, that crop is currently not showing up on the Stage 2 application. The ND State FSA office has asked the national office how this will be handled.
FSA is generating applications for everyone with crops/units that were not paid in Stage 1 and did not hit the $125,000 payment limit. Just because you receive an application does not mean you qualify for a Stage 2 payment as FSA does not know which crops/units had quality losses.
Stage 2 Example – EU Soybeans
Box 22 is SDRP liability in dollars. Box 23 is production in bushels, pounds, etc.
For crop year 2024, the soybean projected price was $11.55.
35,000 bushels x $11.55 = $404,250. Since this is less than the SDRP liability of $450,000, this would qualify for a Stage 2 payment.
Stage 2 Example – EU Corn
The 2024 corn projected price was $4.66.
115,000 bushels x $4.66 = $535,900. Since this is over the SDRP liability of $500,000, there is no Stage 2 loss.
Like Stage 1, you will need to complete the share percentage (box 15) and disaster event (box 17) boxes. The disaster qualifying events are the same as Stage 1. In our area, drought or excess moisture are the qualifying events. You can only use drought if your county is listed here: https://www.fsa.usda.gov/tools/informational/fact-sheets/supplemental-disaster-relief-program-drought-eligible-counties-2023.
In addition, you will want to verify that the RMA certified production in box 23 is correct. If it is not, corrected production can be entered in box 24.
What price do I use?
- Crop insurance projected prices (spring prices) are used for all crops and plans of insurance. Stage 2 does not cover revenue losses.
What if I have quality losses?
- This is where things get complicated. You will have to provide all of your assembly sheets for the crop for the crop year.
- That info needs to be entered into FSA’s online calculator that can be found here: https://public.tableau.com/app/profile/farmers.gov/viz/FSA-DAFP-Quality/Quality-AllCropsOtherThanForage
What about Pasture, Rangeland, Forage (PRF)?
- Shallow losses on haying acres can qualify for a Stage 2 payment.
- There is no payment for grazing acres.
- We are still researching how this will work.
What do I need to do?
- Ask FSA if you have a pre-printed Stage 2 application. You must apply by April 30, 2026.
- If you are a crop insurance customer and you send us your Stage 2 application, we can verify production and help to determine if you have a loss.
- If you think you have a quality loss, we can help you enter the quality calculator info.
- If you had a PP payment on a crop and believe you had a shallow loss that’s not printing on the application, we can help you determine if you qualify for a Stage 2 payment.
What if I have questions?
- Contact your agent or call the Fargo office at 701-205-4200. You can also send text messages to this number.
- Email randy@martinsonag.com or amy@martinsonag.com