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Double Crop Written Agreements

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  • Q Are Blanket Written Agreement’s issued for the county and do they require all planted FAC acres to be insured?

    A

    Blanket Written Agreements are issued for the county and producers are required to insure all insurable acres where applicable. Please review the Blanket Written Agreement for the county / crop in question for specific terms and conditions.

  • Q Can a producer request a Blanket Written Agreement but then choose not to use it or deny it at a later date. Looking at the bulletin it states that the offer would be a pre-approved and accepted written agreement. If they request a blanket agreement, can they later choose not to insure their FAC or deny the agreement?

    A
    The insured has until the SCD to request, change, or cancel coverage. If they choose to use the Blanket Written Agreement on or before the SCD, they cannot "deny" it after the SCD and the FAC acres will be insured using the Blanket Written Agreement. However, they may choose to change their decision on or before the SCD.

  • Q Is a producer required to have records to qualify for a blanket written agreement? If not required to have records, can a producer use their production history to establish their APH?

    A
    A producer is not required to have records to qualify for a blanket written agreement, where available, please see Following Another Crop Written Agreement Details for 2023 | RMA (usda.gov). A producer is allowed to use prior production history to establish their APH database. If they have less than four years of production history to establish the APH database, the applicable T-yield will be used to complete the APH database.

    If a producer is using prior production history, they must maintain continuity of records as required in Section 1306 of the CIH. This initiative did not waive any of those requirements and they cannot pick and choose records. Keep in mind this can also impact 1st crop / 2nd crop rules and PP eligibility which were not waived with the initiative - see FAQs -Double Cropping Initiative | RMA (usda.gov)

  • Q If a producer wants to insure non-irrigated FAC in an area that doesn’t require records and not in a blanket WA area, how is their APH for the WA established?

    A

    The producer would have two options: 

    1. Establish APH using applicable variable T-yield which is based on years of records for producing the crop in the county, or

       

    2. they can report prior non-irrigated FAC production history if they have the records to establish their APH and they have less than four years of records would use applicable T-yield to complete APH. 

    Keep in mind that if a producer elects not to use history it can impact 1st crop / 2nd crop rules and coverage as this was not waived with the initiative see FAQs - Double Cropping Initiative | RMA (usda.gov). If a producer does choose to use history standard APH procedures apply – reminder that they must keep continuity in accordance with para 1306 of the 2023 CIH.

  • Q Does a producer have the option to not accept the Blanket WA, and subsequently submit a “regular” T/P WA request to insure farms/fields as indicated on the form (not insuring all planted acres in the county)? How is production history handled for these WA’s?

    A

    Areas with a blanket written agreement do not require history to qualify for a written agreement if they miss the deadline or do not apply for / accept the blanket written agreement – please see IS-22-003 Following Another Crop Written Agreement Details for 2023 | RMA (usda.gov) which outlines the requirements if they do not apply for the blanket written agreement on time.

    If they chose to not apply for/accept the blanket written agreement by sales closing date they can submit a T/P written agreement, however the terms and conditions offered will largely be similar. Depending on timing, a crop inspection may also be required to establish insurability as outlined in the 2023 WAH para 84.

  • Q Can producers use enterprise units with a blanket WA?

    A
    A producer can have enterprise units as provided in the CCIP-BP which allows for EUs on a crop/county basis or by irrigated and/or non-irrigated practices. A written agreement cannot provide coverage for separate Enterprise Units (EU) by cropping practice, Trend Adjusted APH (TA), Supplemental Coverage Option (SCO), or Enhanced Coverage Option (ECO).

  • Q If a producer in a county that has no prior history required submits their request for actuarial change after the applicable Production Reporting Date and an approved WA is issued by RMA, the producer is limited to the appropriate variable T-yields with no option to certify production, correct?

    A

    The requirements for Type/Practice Written agreement requests as it relates to production reporting requirements are in the 2023 WAH Paragraph 84 B (1) (a) which indicates it is the choice of the insured whether they want to use the uninsurable history in their APH. However, the written agreement request must contain the production history in the completed APH if it is going to be used with the Type/Practice application. A new Type/Practice request must be submitted by no later than the applicable acreage reporting date. If a producer does choose to use history, standard APH procedures apply – reminder that they must keep continuity in accordance with para 1306 of the 2023 CIH.

    WAH 84B(1)(a)
    A completed APH containing the requested P/T, if the requested P/T has been previously grown and that history will be used in the APH database [if the requested P/T has not been previously grown, or the uninsurable history will not be used in the APH, provide an APH in accordance with Subpara. 22A(2)];

    While a producer has the option to choose if they want to use or not use prior production history, as part of the request producers are required to report a completed APH database. For areas where no history is required to qualify for a written agreement, regardless of the insured’s choice (to use their uninsured history or not), if the TP written agreement request is approved, RMA will issue a T-Yield on the WA offer to complete the APH database, where applicable.

  • Q 8. Irrigated Blanket written agreement for the Western Kansas/Oklahoma/Texas areas. In the past these acres were insured as Irrigated and included in the Irrigated database (including their NFAC). If they have production records of course they could recertify and break out the history. The question is if they don’t then what rules should be followed?

    A

    If the insured has prior FAC production history that was insured under the irrigated practice (002), they will be required to separate that prior production history if the insured is wanting a Written Agreement to insure irrigated FAC.  The agent would follow the procedures in the 2023 CIH Para. 1523 which provides instructions on dividing Actual Production History (APH) databases when actuarial documents specify new practices/types. 

    The T-Yields offered for 2023 BL or TP written agreements will be the same for the both the FAC and NFAC irrigated practices and if insured is using apportionment method to separate prior production history, they will be able to prorate the production to planted acres of the applicable P/T according to Para. 1523(2)(a)(ii) and 1543C. 

    Note:  If using attribution method under 1523(2)(a)(iii) to separate prior production history, RMA is designating Irrigated NFAC as the higher yielding practice compared to Irrigated FAC in the blanket written agreement area.

  • Q If a producer decides to wait and not request the blanket written agreement by the sales closing date, and then later decide to request a Type/Practice written agreement will the producer have the option to accept or deny the request once the written agreement offer is issued as allowed in the past?

    A
    Yes, Type/Practice written agreements will follow the Written Agreement Handbook procedures which allow the insured to accept or reject the terms by the agreement's expiration date.

  • Q Will the rates and yields in counties that do not require prior production history be available before the deadline so agents can quote before the insured submits the request?

    A

    For the areas where no history is required to qualify for a written agreement the rates and yields are not published and requests for coverage are submitted as a normal Type/Practice written agreement request - they just do not have a requirement to have history to be eligible to apply for a WA.

    In these areas, if they are a new request for FAC coverage using a Type/Practice written agreement, they have until acreage reporting date to apply. If they are a renewal, the producer would have to apply by the sales closing date.

  • Q According to the DC Soybean Map out on the RMA site, all counties in PA have coverage available for double cropping purposes for 2023. However, when you pull up the actuarial documents for any county in PA, there is no FAC/NFAC designation. What are we missing here?

    A

    In Pennsylvania FAC (Double Crop) Soybeans are insurable, but they do not have a separate practice or type broken out. This was not changed because producers in the area did not want to keep separate records for a separate practice and type.