{"data":{"id":"us/7-cfr-760.2224","jurisdiction":"us","citation":"7 CFR 760.2224","heading":"Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment.","body":"(a) Stage 2 payments for eligible NAP-covered yield-based crops and units without an approved NAP application for payment will be calculated according to this section.\n(b) For the purpose of calculating payments under this section:\n(1) FSA will adjust the amount of production if necessary to reflect the amount substantiated by the producer's documentation; and\n(2) The SDRP liability is equal to the eligible acres, multiplied by the producer's approved yield, multiplied by the average market price, multiplied by the SDRP factor; and\n(3) Because NAP service fees and premiums are not calculated individually by crop and unit, the service fee and premium amount used to calculate a payment under this section will be zero if the producer has already received a payment for a NAP-covered crop under Stage 1.\n(c) To calculate the Stage 2 payment, FSA will:\n(1) Determine the calculated loss by:\n(i) Converting the quality loss percentage to a decimal and subtracting the amount from 1;\n(ii) Multiplying the result of paragraph (c)(1)(i) of this section by the production, 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, if applicable, and then subtracting the salvage value from the result; and\n(v) Multiplying the result of paragraph (c)(1)(iv) of this section by the producer's share;\n(2) Determine the potential NAP payment by:\n(i) Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under NAP;\n(ii) Multiplying the production by the average market price, and then subtracting that amount from the result of paragraph (c)(2)(i) of this section;\n(iii) Subtracting the salvage value from the result of paragraph (c)(2)(ii) of this section and multiplying the result by the producer's share;\n(iv) Multiplying the result of paragraph (c)(2)(iii) of this section by the price election under NAP, and then by the unharvested payment factor; and\n(v) Multiplying the result of paragraph (c)(2)(iv) of this section by the producer's share;\n(3) If the calculated loss minus the potential NAP payment is greater than zero, determine the factored gross Stage 2 payment by:\n(i) Subtracting the potential NAP payment from the calculated loss, and adding the NAP administrative fees and premiums; 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 amount of the calculated loss minus the potential NAP payment is equal to or less than zero, determine that the payment amount is zero.","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":"1f298d5a98172374d438c4444399f5b05b83ccc56b4664ee013886c6e8cb55d6","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-760.2223","next":"us/7-cfr-760.2225"},"notice":"GroundRules: Original legal text. Not legal advice."}