USDA launches new round of disaster relief aimed at uncovered farmers and ‘shallow losses’

The U.S. Department of Agriculture will open applications for its second round of disaster funding for farmers on Nov. 24, 2025. The federal aid is available for eligible producers who experienced losses from disasters in 2023 and 2024. (Photo: John Partipilo/Tennessee Lookout ©2025)

The U.S. Department of Agriculture is launching the second round of relief funding for farmers who suffered losses from natural disasters in 2023 and 2024, USDA officials announced Monday.

Tennessee farmers faced multiple disasters in this time frame, including Hurricane Helene in September 2024 and multiple instances of severe storms and tornadoes from March 2023 through May 2024. Additionally, out of Tennessee’s 95 counties, 78 are eligible for relief for drought conditions in 2023 and 2024, according to the USDA. 

While stage one funding covered mostly major commodity crop producers, stage two funding of the Supplemental Disaster Relief Program covers losses for eligible crop, tree, bush and vine producers whose losses were not covered by insurance, or who lost money due to diminished crop quality. For the first time in USDA disaster assistance history, according to Under Secretary for Farm Production and Conservation Richard Fordyce, the funding will also cover “shallow losses.”

“If a producer suffered a loss that did not exceed their crop insurance deductible, they will now be indemnified for their loss and receive the same crop insurance premium and fee refund as producers did (in the first round),” Fordyce said during a Monday news briefing. “This addresses a clear gap in previous disaster assistance programs.”

Congress set aside roughly $16 billion for both rounds of the aid program. The USDA has paid more than $5.7 billion to about 381,000 producers nationwide to date. The department has paid 3,398 Tennessee producers a combined total of $64.4 million in first-round funds.

The application period for stage two funding begins on Nov. 24. Applications for both stages of funding will remain open through April 30, 2026.

To participate, producers must obtain either federal crop insurance or Noninsured Crop Disaster Assistance Program coverage of at least 60% for two years.

Payments to eligible applicants will be limited to $125,000 per calendar year, or $250,000 per calendar year if at least 75% of the applicant’s adjusted gross income is derived from farming, ranching or forestry activities. Producers that grow high value or specialty crops — including trees, bushes, vines, aquaculture, hemp, grass for seed, tobacco and vegetable seed — can receive up to $900,000 per calendar year if crop production accounts for at least 75% of their adjusted gross income.

Producers may be eligible for payments from both stages, depending on their losses.

U.S. Deputy Secretary of Agriculture Stephen A. Vaden said Monday there will not be additional funding stages for the Supplemental Disaster Relief Program. If funds remain after applications close and money is distributed, the department will adjust its payment factor for those who submitted claims until the funding is exhausted.

“There will be no progressive factoring,” Fordyce said. “Hurricanes, derechos, and wildfires do not bias producers based on their race or ethnicity, so the assistance provided by USDA should not either.”

The department also announced enrollment for a Milk Loss Program that will provide up to $1.65 million to dairy operations that were forced to dump milk due to power losses or logistics delays caused by disasters. Additionally, the On-Farm Stored Commodity Loss Program will provide up to $5 million for producers who lost harvested commodity crops that were stored on farm property due to disasters. Applications for these programs also open on Nov. 24, and will close Jan. 23, 2026.