(a) Stage 2 payments for eligible crops and units that were insured under area-based plans that were not indemnified for a loss or were disapproved under Stage 1 will be calculated according to this section.

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

(1) The estimated SDRP payment is calculated by RMA in accordance with 760.2208 and provided to FSA; and

(2) The percent of eligible acres is the percentage of the total acres of the crop in the unit that are eligible for SDRP Stage 2.

(c) To calculate the Stage 2 payment, FSA will:

(1) Multiply the estimated SDRP payment by the eligible acreage percentage; and

(2) Multiply the result of paragraph (c)(1) of this section by 35 percent to remain within available funding.

(d) If an applicant designates shares for SBIs on FSA-504, the payment amounts for the primary policy holder and SBIs will be multiplied by the applicable share.