What Farmers Need to Know About the $16B USDA Disaster Assistance Rollout

ARU specializes in delivering insurance solutions to farmers and ranchers across the United States. While we don’t offer crop insurance, we stay informed on federal programs that can support the farmers and partners we serve. This month, the USDA unveiled a significant update that may directly impact many of our policyholders and brokers.

On July 9, 2025, U.S. Secretary of Agriculture Brooke L. Rollins announced the launch of the Supplemental Disaster Relief Program (SDRP), a $16 billion federal assistance effort to help agricultural producers recover from eligible crop losses sustained in 2023 and 2024 due to natural disasters.

Secretary Rollins said, “American farmers are no stranger to natural disasters that cause losses that leave no region or crop unscathed…We are taking swift action to ensure farmers will have the resources they need to continue to produce the safest, most reliable, and most abundant food supply in the world.”

Here’s what you need to know:

What Is the SDRP?

The SDRP is a congressionally mandated disaster assistance program designed to deliver faster, more targeted relief. USDA’s Farm Service Agency (FSA) will implement the program in two stages:

• Stage One begins July 10, 2025, and covers producers who have already received insurance or NAP payments for their crop losses.

• Stage Two, launching in early fall, will address uncovered or shallow losses, including quality loss issues.

  
  

Farm affected by wildfire

Crops affected by flooding

Farm affected by a tornado

Who’s Eligible?

Farmers who experienced crop, tree, or vine losses due to natural disasters, including wildfires, drought, tornadoes, hurricanes, floods, winter storms, and more, in 2023 or 2024 may be eligible. Losses tied to drought must meet U.S. Drought Monitor thresholds.

If you’re in Connecticut, Hawaii, Maine, or Massachusetts, note that your states have opted for separate block grants instead of participating in the SDRP.

How to Apply

Eligible producers will receive pre-filled application forms (FSA-526) in the mail beginning July 9, 2025. These forms are based on existing NAP and federal crop insurance data. Applications must be submitted in person at FSA county offices.

Stage One payments will be calculated based on prior insurance coverage, with up to 90% of losses covered (minus fees and premiums) and a 35% payment factor applied. Additional payments may be possible if funds remain.

Important Requirement for Recipients

Anyone who receives SDRP payments must purchase crop insurance or NAP coverage at a minimum 60% level for the next two crop years. Failure to do so may require repayment of the SDRP assistance, with interest.

Why It Matters to ARU and Our Producers

This new relief package is an important resource for farm and ranch operators dealing with loss recovery. For farmers who’ve faced non-renewals, high-risk ratings, or uninsured gaps, this program may offer vital breathing room. And for brokers, it's a good moment to revisit coverage discussions and ensure clients meet future eligibility requirements.

At ARU, we remain committed to delivering clarity and solutions in the face of uncertainty. We're here to support producers, protect farms, and strengthen rural resilience.

For more details on how to apply and stay updated, visit farmers.gov.

This post is for informational purposes only and does not constitute legal or financial advice. Please contact your local USDA Service Center for eligibility questions.

To learn more about ARU's insurance solutions for Farm, Ranch, and Rural Estates, visit our product webpage.

Source:

U.S. Department of Agriculture. (2025, July 9). Trump Administration Announces Expedited Congressionally Mandated Disaster Assistance for Farmers. https://www.usda.gov/about-usda/news/press-releases/2025/07/09/trump-administration-announces-expedited-congressionally-mandated-disaster-assistance-farmers