7 CFR § 760.2224 - Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment.

---
identifier: "/us/cfr/t7/s760.2224"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 760.2224 - Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment."
title_number: 7
title_name: "Agriculture"
section_number: "760.2224"
section_name: "Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "760"
part_name: "INDEMNITY PAYMENT PROGRAMS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 4501 and 1531; 16 U.S.C. 3801, note; 19 U.S.C. 2497; Title III, Pub. L. 109-234, 120 Stat. 474; Title IX, Pub. L. 110-28, 121 Stat. 211; Sec. 748, Pub. L. 111-80, 123 Stat. 2131; Title I, Pub. L. 115-123, 132 Stat. 65; Title I, Pub. L. 116-20, 133 Stat. 871; Division B, Title VII, Pub. L. 116-94, 133 Stat. 2658; Title I, Pub. L. 117-43, 135 Stat. 356; and Division N, Title I, Pub. L. 117-328, 136 Stat. 4459; Division B, Title I, Pub. L. 118-158, 138 Stat. 1722."
cfr_part: "760"
---


# 760.2224 Stage 2 payment calculation for NAP-covered yield-based crops without an approved NAP application for payment.

(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.

(b) For the purpose of calculating payments under this section:

(1) FSA will adjust the amount of production if necessary to reflect the amount substantiated by the producer's documentation; and

(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

(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.

(c) To calculate the 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 result of paragraph (c)(1)(i) of this section by the production, and then by the average market price;

(iii) Subtracting the result of paragraph (c)(1)(ii) of this section from the SDRP liability;

(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

(v) Multiplying the result of paragraph (c)(1)(iv) of this section by the producer's share;

(2) Determine the potential NAP payment by:

(i) Dividing the SDRP liability by the SDRP factor, and multiplying the result by the producer's coverage level under NAP;

(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;

(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;

(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

(v) Multiplying the result of paragraph (c)(2)(iv) of this section by the producer's share;

(3) If the calculated loss minus the potential NAP payment is greater than zero, determine the factored gross Stage 2 payment by:

(i) Subtracting the potential NAP payment from the calculated loss, and adding the NAP administrative fees and premiums; and

(ii) Multiplying the result of paragraph (c)(3)(i) of this section by 35 percent to stay within available funding; and

(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.

[90 FR 51984, Nov. 18, 2025, as amended at 91 FR 11131, Mar. 9, 2026]