Supplemental Disaster Relief Program (SDRP) Second Payment: What It Is and What It Means for Your Farm

At Crop Growers, we focus on bringing clarity to complex programs so you can make the best decision for your business. USDA’s recent SDRP update has created confusion around “second payments.” Let’s dig into what this means.

What USDA Changed

On April 24, 2026, USDA announced it is issuing a second payment under the Supplemental Disaster Relief Program (SDRP) to producers with approved applications for 2023–2024 losses. 

• Original payment: 35% of eligible losses
• Updated payment level: 70% total
• Second payment: additional 35% 

The bottom line, if you received the first payment, the second payment is designed to bring you to ~70% recovery of eligible losses.

Why You’re Hearing “Double Payment”

Many in the industry are calling this a “double‑up” because the second payment is typically about the same size as the first. That doesn’t mean extra or bonus funding. It means:

• USDA increased the payment factor from 35% of their calculated SDRP payment to 70% of the calculated payment.
• Payments are being trued up to a higher level however it is still below 100% of the full calculation.

How Payments Are Being Delivered

SDRP is being processed in two stages:

• Stage 1: Losses already covered by crop insurance or NAP
• Stage 2: Additional losses (quality, shallow, uninsured) 

If you signed up for the first payment, you do not need to reapply to receive the second payment. If you hadn’t already signed up for the first payment, the deadline to apply to receive payment is August 12, 2026. 

Will There Be More Payments?

Possibly, but additional payments would be limited. Future payments may add ~5–10% more, depending on funding.

Why Your Payment May Differ

Two farms with similar losses may receive different total payments. Final payments vary based on:

• Payment limits (generally $125K per category, higher if qualified) 
• Income structure (AGI rules)
• Type of loss (Stage 1 vs. Stage 2) 

What This Means for Your Operation

• You are now moving toward ~70% recovery, not full coverage
• Payments will continue through 2026 as USDA processes claims
• Remaining losses still matter and must be managed

Crop Growers Perspective

Disaster programs help, but they don’t replace a disciplined risk management strategy.

Our skilled Crop Growers agents aim to:

• Translate USDA and crop insurance programs into clarity for our customers
• Set realistic expectations
• Identify coverage gaps
• Position your operation for what comes next

The farms that stay ahead are the ones that understand the numbers, and plan beyond them. 

Contact Crop Growers

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