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Conservation Compliance
Jun 20, 2018

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  • Q How do I check on my status?

    A

    A producer can find out their status today through one of two ways

    • First, you can ask your crop insurance agent to verify your compliance status. The Risk Management Agency (RMA) has worked with all of the Approved Insurance Providers (AIPs) to ensure that agents can promptly find whether their producer has filed an AD-1026 before a policy is purchased.
    • Second, you can visit or call your local Farm Service Agency (FSA office). FSA can verify the status of each producer today.

  • Q Why is it important that I check my status before I purchase a policy?

    A

    It is important to check your status because you may not be eligible for premium subsidy if you did not have an AD-1026 on file with FSA. If you are not eligible for premium subsidy and purchase a policy, you will be responsible for all of the premium costs if you wish to still purchase a crop insurance policy. On average, USDA pays 62 percent of premium costs. Without premium subsidy, you would pay 100 percent of the premium costs.

    You should follow up with your crop insurance agent or your local FSA office to confirm your AD-1026 status before the sales closing date of the policy you wish to purchase. Your local FSA office can tell you today whether you have an AD-1026 on file. It is ultimately the producer’s responsibility to find out their status.

  • Q I am new to farming and was unable to fill out an AD-1026 form by the premium billing date deadline. Do I have to wait an entire year to get premium subsidy?

    A
    In general, if you just started farming, you will eligible to receive premium subsidy as long as you fill out a certification form asserting that you (including any person that has at least a 10 percent interest in your farming operation) meet the conditions of the new to farming exemption. This certification form must be filed with your crop insurance agent prior to the premium billing date of the crop you want to insure in order to be eligible for the federal crop insurance premium subsidy. Persons that meet this one time exception will still need to file a form AD-1026 prior to the next premium billing date, to remain eligible for the federal crop insurance premium subsidy for subsequent crop years. Please ask your crop insurance agent for this form.

  • Q I do not plan on farming this year. Do I need to take action?

    A
    No. If you do not plan on farming this year, then you do not need to take action. Filing an AD-1026 is required to remain eligible for premium subsidy for federal crop insurance. If you do not plan on farming or purchasing a crop insurance policy this year, you do not need to take action. If you purchase a crop insurance policy in the future you will need to ensure you have a properly completed AD1026 on file with FSA prior to the premium billing date for your policy.

  • Q I plan on farming and purchasing crop insurance this year, but I do not want to receive premium subsidy from USDA. Can I not file an AD-1026 and still purchase crop insurance?

    A
    Yes. You can still purchase federal crop insurance without an AD-1026 on file. However, you will pay 100 percent of the premium cost. On average, USDA pays 62 percent of the premium cost. Therefore, you will pay more for your crop insurance coverage.

  • Q My farming operation bought insurance as an LLC last year. This year we incorporated and my operation bought insurance under the corporation’s name, not the LLC. I filed an AD-1026 for the corporation. Do I need to take action?

    A
    If you plan on purchasing federal crop insurance under the corporation’s name, then you do not need to take action. In order to be eligible for premium subsidy, the entity that purchases the crop insurance must have an AD-1026 on file. If crop insurance will not be purchased under the LLC’s name, then the LLC does not need an AD-1026.

  • Q I turned in my AD-1026 and I was informed that the form would be referred to NRCS to determine if my farm has highly erodible land or wetlands. Will I immediately lose premium subsidy?

    A
    No, eligibility for premium subsidy is not lost if the AD-1026 is referred to NRCS for a determination. You will remain eligible for premium subsidy until the reinsurance year (July 1-June30) after a highly erodible land or wetlands final determination is made, if a violation is discovered. A final determination means that all appeal rights have been exhausted. For questions about the appeal process, please visit your local USDA Service Center.

  • Q I am still confused about the process. Is there anyone I can talk to about the process?

    A
    Yes, you can reach out to your crop insurance agent, your local FSA Office, or your regional RMA office.