The U.S. Department of Agriculture has significantly expanded its Supplemental Disaster Relief Program, doubling the payment factor to 70% and extending the application window for both stages of the program through August 12. This move, announced on April 24, 2026, comes as farmers across the country face the dual pressures of spring planting and tightening credit conditions.
Initially set at a 35% payment factor, the SDRP now provides 70% of eligible losses for producers affected by natural disasters in 2023 and 2024. The USDA noted that $6.7 billion has already been distributed through the program, with the new factor triggering a second round of payments for previously approved applicants. The previous deadline of April 30 has been replaced by the August 12 cutoff, giving producers additional time to file their claims.
Agriculture Secretary Brooke Rollins, speaking at an event in Higginsville, Missouri, described the increase as a 'significant boost' for farmers and ranchers. The program covers losses from a wide range of disasters, including wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze events, smoke exposure, excess moisture, and qualifying drought conditions. For drought, producers must demonstrate losses in a county that experienced at least eight consecutive weeks of severe drought (D2) or worse.
The SDRP is divided into two stages. Stage 1 targets producers whose losses were covered by crop insurance or the Noninsured Crop Disaster Assistance Program, while Stage 2 addresses uninsured, non-indemnified, and quality losses, including shallow losses that did not trigger an insurance claim. Eligible producers must file Form FSA-526 for Stage 1 and Form FSA-504 for Stage 2, with submissions accepted at local FSA offices or electronically via Box and OneSpan.
Richard Fordyce, USDA undersecretary for farm production and conservation, highlighted the importance of the top-up for producers seeking operating credit for the current crop year. Some lenders had delayed financing until the increased payments were confirmed, making the extension and payment factor adjustment critical for many growers. The USDA is also undertaking a 're-education of staff' to clarify policy updates on quality-loss claims, as some farmers and local FSA offices remain uncertain about acceptable documentation.
Beyond the SDRP, the administration has distributed over $17.9 billion in total supplemental disaster relief, including $9.3 billion through the Emergency Commodity Assistance Program and nearly $1.9 billion from the Emergency Livestock Relief Program. Rollins also hinted at potential federal moves to address rising fertilizer prices, with anhydrous ammonia recently surpassing $1,100 per ton—a roughly 30% increase since late February.
Producers who accept SDRP funds must maintain federal crop insurance or NAP coverage at no less than 60% for the following two eligible crop years, or risk having to repay the funds with interest. The program excludes direct payments in Connecticut, Hawaii, Maine, and Massachusetts, which instead receive block grants. With the extended deadline and increased payment factor, the USDA aims to provide much-needed liquidity to the agricultural sector during a challenging planting season.
