Understanding the Supplemental Disaster Relief Program (SDRP)

Jul 16

Farmers across the country are buzzing with questions about the Supplemental Disaster Relief Program (SDRP) — the USDA’s newest initiative to support agricultural producers impacted by natural disasters in 2023 and 2024. Officially rolled out on July 10th, 2025, this program is moving quickly, with many producers receiving pre-filled applications in the mail just days after the announcement.

If you’ve recently found one or two envelopes from the USDA in your mailbox — it likely means you qualified for assistance for one or both years.

Let’s break down what SDRP is, how it works, and what you need to know to act.

Stage 1: Indemnified Losses

If you received a pre-filled SDRP form, it’s because you experienced crop losses covered by one of these programs:

Federal Crop Insurance Program

Noninsured Crop Disaster Assistance Program (NAP)

These applications are based on reported loss data and may arrive in two separate envelopes — one for each year you qualified.

⚠️ Estimated Payments: Look Closer

The forms may show large, estimated payment amounts, but only 35% of that number will be issued. These are supplemental figures — not full reimbursements.

Understanding Your Application Form

Your form includes several key fields:

Crop

Unit Number – Use your crop insurance agent to identify which land this refers to.

Estimated Payment – Multiply by 0.35 to estimate your actual SDRP payment.

Share – You must fill this out before submitting.

Cause of Loss – Must match a qualifying disaster event.

Qualifying Causes of Loss (2023–2024)

To be eligible for SDRP Stage 1, losses must result from one or more of the following events:

Wildfires

Hurricanes

Floods

Derechos

Excessive heat

Tornadoes

Winter storms

Freeze (including polar vortex)

Smoke exposure

Excessive moisture

Drought (see below)

💧 Special Note on Drought Losses

Not all drought-related losses qualify. Visit the USDA’s Drought Eligibility Factsheet to verify your county.

Insurance Requirement Reminder

To receive a payment, you must commit to at least 60% crop insurance coverage (or equivalent NAP coverage) for the next two crop years. If you fail to follow through, you’ll owe the money back — with interest.

Now is the time to confirm your insurance plans with your agent.

What’s Next: Stage 2 of SDRP

Didn’t get a pre-filled form? If your losses weren’t insured or were too small to trigger payouts, you may still qualify under Stage 2:

USDA aims to submit Stage 2 plans to OMB by August 19, 2025

Approval may come by September 9, 2025

Stage 2 sign-ups could begin as early as September 15, 2025

Stay connected with your local FSA office for updates

Final Thoughts

Received a pre-filled form? Act now and verify with your insurance agent.

Didn’t receive anything? Prepare for Stage 2.

Drought-impacted? Check the eligibility list.

Insured? Make sure to meet coverage requirements to avoid repayment.

The SDRP is a meaningful step forward in closing coverage gaps from disaster losses. But speed, accuracy, and planning are essential to maximize your benefits. Keep in touch with your local FSA office to finalize SDRP applications, and make sure real losses don’t go unsupported.

Source: Supplemental Disaster Relief Program (SDRP) | Farm Service Agency

Kyle Adams

Crop Insurance Expert | Marketing Advisor, Eastern Corn Belt

With more than a decade of experience as a crop insurance agent, Kyle integrates our marketing strategies with crop insurance products to maximize both sets of tools, creating a well-rounded risk management program for our clients.

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Garret Brown