USDA Allocates $16 Billion for Dairy and Agricultural Disaster Relief

The U.S. Department of Agriculture (USDA) has announced the release of over $16 billion in disaster relief funds as part of the second stage of the Supplemental Disaster Relief Program (SDRP). This financial aid is directed towards farmers and ranchers affected by severe natural disasters in 2023 and 2024.

The relief effort is managed by the USDA's Farm Service Agency (FSA) and aims to provide essential cash flow to producers who suffered losses due to adverse weather conditions, wildfires, and other climate-related events. A significant component of this initiative is the Milk Loss Program (MLP), which offers up to $1.65 million in payments to dairy operations for milk removed from the commercial market as a result of these disasters.

Additionally, the USDA has rolled out the On-Farm Stored Commodity Loss Program (OFSCLP), which allocates up to $5 million for losses of stored harvested commodities. Producers in Connecticut, Hawaii, Maine, and Massachusetts will receive separate block grants for crop losses, thus excluding them from direct SDRP payments.

Applications for the second stage of the SDRP, along with the Milk Loss and On-Farm Stored Commodity Loss programs, will open on November 24, 2025. This funding is critical for those who did not receive coverage under initial program phases or lacked qualifying Federal Crop Insurance or Noninsured Crop Disaster Assistance Program coverage.