(a) Payments for tree, bush, and vine losses will be calculated separately based on the growth stage of the trees, bushes, or vines, as determined by FSA.

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

(1) The price is determined by FSA based on the species of tree, bush, or vine and its growth stage;

(2) The expected value of the tree, bush, or vine is determined by multiplying the total number of trees, bushes, or vines that were damaged or destroyed by a qualifying disaster event by the price;

(3) The actual value is determined by:

(i) Multiplying the number of trees, bushes, or vines damaged by a qualifying disaster event by the damage factor;

(ii) Adding the result of paragraph (b)(3)(i) of this section and the number of trees, bushes, or vines destroyed by a qualifying disaster event;

(iii) Multiplying the result of paragraph (b)(3)(ii) of this section by the price; and

(iv) Subtracting the result of paragraph (b)(3)(iii) of this section from the expected value specified in paragraph (b)(2) of this section;

(4) The SDRP liability is determined by multiplying the expected value of the tree, bush, or vine by the SDRP factor.

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

(1) Subtract the actual value of the tree, bush, or vine from the SDRP liability;

(2) Subtract the salvage value from the result of paragraph (c)(1) of this section;

(3) Multiply the result of paragraph (c)(2) of this section by the producer's share;

(4) Add premiums and fees for insured trees or vines if the calculated loss is greater than zero; and

(5) Multiply the result of paragraph (c)(4) of this section by 35 percent to remain within available funding.

(d) FSA will adjust the number of damaged and destroyed trees, bushes, and vines used to calculate a Stage 2 payment if it determines that the number of damaged or destroyed trees, bushes, or vines certified by the participant is inaccurate.

(e) 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.