The U.S. Department of Agriculture has increased Supplemental Disaster Relief Program (SDRP) payments from 35 per cent to 70 per cent, triggering a second round of payments. The adjustment applies to US$16.09 billion in authorised aid for crop, tree, and vine losses linked to weather events in 2023 and 2024.
U.S. agriculture experienced multiple disasters during this period, including flooding, drought, wildfires, and hurricanes, resulting in an estimated US$41 billion in crop losses. SDRP provides support by comparing the expected crop value with post-disaster production and issuing partial payments on remaining losses.
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The program is delivered in two stages. Stage 1 uses crop insurance and Noninsured Crop Disaster Assistance Program data to calculate losses and apply a payment factor. Stage 2 covers additional losses not captured by these programs, including uninsured crops and quality-related losses, requiring further calculations.
To date, USDA has distributed about US$6.7 billion, with approximately US$9.4 billion still available. Payments have largely been directed to field crop states, with Minnesota, Kansas, Texas, and Iowa receiving the highest allocations. Corn accounted for US$2.49 billion, followed by soybeans at US$1.6 billion, wheat at US$798 million, and cotton at US$548 million.
Specialty crop producers, including fruit, vegetable, and nut growers, have received about US$651 million, or around 10 per cent of total payments, compared with an estimated 20 per cent share of losses. This reflects lower insurance coverage and more variable production systems.
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Under the revised structure, farmers who received initial payments will receive a second disbursement to bring total compensation to 70 per cent of eligible losses. Those not yet processed will receive the full amount in one payment. The adjustment does not change underlying loss calculations.
Disaster impacts continue across 2025 and 2026. Early 2025 conditions included drought, wildfire, and flooding, resulting in about US$5.7 billion in uncovered crop losses. Losses were concentrated in Texas at US$648 million and in California and Florida, where specialty crops were affected.
Fruits and nuts accounted for US$1.5 billion, or 27 per cent of losses. Hurricanes, flooding, and precipitation contributed US$2.5 billion, while drought, wildfire, and heat accounted for US$1.9 billion.
In 2026, a freeze in Florida affected more than 25,500 hectares of horticultural crops, with estimated losses exceeding US$3.1 billion. Impacts included US$1.15 billion in sugarcane, more than US$670 million in citrus, and nearly US$720 million in vegetables and melons. Additional risks include wildfire impacts in central regions and reduced snowpack affecting irrigation supply in western areas.
USDA stated that SDRP payments continue to be distributed as new disaster impacts emerge across multiple regions and commodities.
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