Stage 2 payment calculation for NAP-covered yield-based crops with an approved NAP application for payment.

(a) Stage 2 payments for eligible NAP-covered crops and units with an approved NAP application for payment with a calculated NAP payment amount of zero will be calculated according to this section. (b) For the purpose of calculating payments under this section: (1) The SDRP liability equals the expected crop value multiplied by the SDRP factor and uses FSA data already on file for NAP purposes; (2) 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. (c) To calculate a Stage 2 payment, FSA will: (1) Determine the calculated loss by: (i) Converting the quality loss percentage to a decimal and subtracting the amount from 1; (ii) Multiplying the production by the result of paragraph (c)(1)(i) of this section, and then multiplying by the average market price; and (iii) Subtracting the result of paragraph (c)(1)(ii) of this section from the SDRP liability specified in paragraph (b)(1) of this section; (iv) Multiplying the result of paragraph (c)(1)(iii) of this section by the unharvested payment factor, if applicable; (v) Subtracting the salvage value from the result of paragraph (c)(1)(iv) of this section; and (vi) Multiplying the result of paragraph (c)(1)(v) of this section by the producer's share; (2) If the calculated loss is greater than zero, determine the factored gross Stage 2 payment by adding the premium and service fees to the result of paragraph (c)(1) of this section, and multiply the result by 35 percent to stay within available funding; and (3) If the calculated loss is equal to or less than zero, determine that the payment amount is zero. [90 FR 51984, Nov. 18, 2025, as amended at 91 FR 11130, Mar. 9, 2026]