{"data":{"id":"us/7-cfr-760.2220","jurisdiction":"us","citation":"7 CFR 760.2220","heading":"Stage 2 payment calculation for insured crops with dollar plans and other revenue plans.","body":"(a) Stage 2 payments for eligible crops and units that were insured under a dollar plan or other revenue plans but were not indemnified for a loss will be calculated according to this section.\n(b) For the purpose of calculating payments under this section:\n(1) FSA will adjust the production if necessary to reflect the amount substantiated by the producer's documentation;\n(2) The SDRP liability is equal to the eligible acres, multiplied by the county expected yield, multiplied by the average market price, and multiplied by the applicable SDRP factor; and\n(3) The quality loss percentage is the percentage determined according to § 760.2209(b) and (c), subject to any adjustment by FSA based on documentation submitted by the producer.\n(c) To calculate a Stage 2 payment for an eligible crop and unit that was insured under a dollar plan or other revenue plan, FSA will:\n(1) Determine the calculated loss by:\n(i) Converting the quality loss percentage to a decimal and subtracting from 1;\n(ii) Multiplying the production by the result of the paragraph (c)(1)(i) of this section and then by the average market price;\n(iii) Subtracting the result of paragraph (c)(1)(ii) of this section from the SDRP liability;\n(iv) Multiplying the result of paragraph (c)(1)(iii) of this section by the unharvested payment factor; and\n(v) Multiplying the result of paragraph (c)(1)(iv) of this section by the producer's share;\n(2) Determine the potential insured indemnity by:\n(i) Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under the dollar based or other revenue insurance plan;\n(ii) Multiplying the production by the average market price;\n(iii) Subtracting the result of this paragraph by (c)(2)(ii) of this section from the insured liability, which is specified in paragraph (c)(2)(i) of this section;\n(iv) Multiplying the result from paragraph (c)(2)(iii) of this section by the producer's price election under the dollar based or other revenue insurance plan; and\n(v) Multiplying the result from paragraph (c)(2)(iv) of this section by the producer's share;\n(3) If the amount of the calculated loss minus the potential insured indemnity is greater than zero, determine the factored gross Stage 2 payment by:\n(i) Subtracting the potential insured indemnity from the calculated loss, and adding the premiums and administrative fees for the crop and unit; and\n(ii) Multiplying the result of paragraph (c)(3)(i) of this section by 35 percent to stay within available funding; and\n(4) If the calculated loss minus the potential insured indemnity is equal to or less than zero, determine that the Stage 2 payment amount is zero.\n(d) If an applicant designates shares for SBIs on FSA-504, the payment amounts for the primary policy holder and SBIs will be multiplied by the applicable share.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER VII—FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE","SUBCHAPTER D—SPECIAL PROGRAMS","PART 760—INDEMNITY PAYMENT PROGRAMS","Subpart V—Supplemental Disaster Relief Program"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"619365b2b23ab337d6bfd3f78172ed3d142ccab8ee1345b495e943cfb242cb97","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-760.2219","next":"us/7-cfr-760.2221"},"notice":"GroundRules: Original legal text. Not legal advice."}