(a) Stage 2 payments for eligible crops that were uninsured for value loss crops will be calculated according to this section.

(b) To calculate a Stage 2 payment for an uninsured eligible value loss crop and unit, FSA will:

(1) Determine the calculated loss by:

(i) Multiplying the dollar value before disaster by the SDRP factor; and

(ii) Subtracting the dollar value after disaster from the result of paragraph (b)(1)(i) of this section; and

(iii) Multiplying the result of paragraph (b)(1)(ii) of this section by the unharvested payment factor, if applicable, and subtracting the salvage value from the result, and then multiplying the result by the producer's share; and

(2) If the calculated loss in paragraph (b)(1) of this section is greater than zero, determine the factored gross Stage 2 payment by:

(i) Multiplying the result in paragraph (b)(1) of this section by 35 percent to stay within available funding; and

(ii) [Reserved]

(3) If the calculated loss in paragraph (b)(1) of this section is equal to or less than zero, determine that the payment amount is zero.