Spring SCD Reminders

Tips and Tricks for Spring SCD Season

As your agency approaches the Sales Closing Date (SCD), AgriSompo would like to offer a few reminders to help ensure a smooth and efficient sales closing season.

Please note that these are guidelines and helpful tips and do not supersede or replace the official handbooks or provisions.

Always check your RMA actuarial documents by navigating to https://www.rma.usda.gov/. 

Deadlines

  • Non-keying agents are required to submit applications within 5 to 10 days following the SCD deadline.
  • Keying agents have a window of 20 days post-SCD deadline to key, scan, and submit applications.

Applications and Policy Changes 

  • All applications and policy changes must be keyed, and the necessary paperwork should be uploaded through Document Management.
  • For policies transferring to us, either you as the agent or our underwriter, can enter the policy history into AGX.
  • Ensure that the information keyed into AGX matches what the insured has certified on their application. Please double-check before submission. You can amend the policy until the keying deadline. If you encounter any difficulties in making changes, please contact your underwriter.
  • Verify all Tax ID numbers to ensure accuracy.
  • Articles of Incorporation and Articles of Organization forms are not required if their location is indicated on the application.

When to Use the Application vs. the Policy Change Form 

  • Application:Required for all new crop coverage or when changing plans from APH-based to Area Plans and vice versa.
  • Policy Change Form (or Application):May be used to request changes within the same plan type (e.g., APH to APH or Area to Area), adjust the percentage of projected price/price election, or alter the coverage level, provided these changes are made on or before the SCD.

Power of Attorney (POA) Requirements:

  • Documentation:POA documentation must accompany any application signed by a POA. Applications and policy change forms will not be accepted without the appropriate POA documentation, if applicable.
  • Notarization:Required if mandated by state law.
  • Authority Specification:The POA must specify authority for crop insurance purposes.
  • Recommended Form:The FSA 211 Power of Attorney is recommended.
  • Acceptable Forms:Both the FSA 211 POA and a POA executed according to state laws are acceptable.
  • Notarization Exception:Notarization is not required on an FSA 211 POA if it is signed in an FSA office and witnessed by an FSA representative.

Signature Requirements (Authorized Representatives):

  • Legally Sufficient Signature:A signature statement on the application or policy change form is legally sufficient and does not require notarization.
  • Duration of Authorization:Authorization remains in effect until the policy is canceled, the option is removed, or a new application is provided.
  • Signing for the Insured:For a spouse or other individual to sign on behalf of the insured, a signed POA or Signature Statement is required.
  • Scope of Signature Statement:The Signature Statement allows the individual to sign all policy documentation except the Application or Policy Change Form.

Admin Fees

  • The CAT (Catastrophic Risk Protection) administration fee is $655.

Written Agreements (WA)

  • Submission Deadlines: Most new and renewal WA submissions are due by the SCD; however, deadlines can vary based on the type of written agreement. Please refer to Exhibit 4 in the Written Agreement Handbook to confirm specific deadlines.
  • Request Submission: It's important to request written agreements as early as possible to meet RMA deadlines.
  • Documentation: Consult the Written Agreement Handbook for all required documents necessary for your request. We cannot submit incomplete requests to the RMA, so please coordinate with your underwriter to ensure all supporting documents are included.
  • Renewals: Written agreements considered as renewals do not transfer from one AIP to another.
  • WA Checklists: Available on the SABA/Training site under Manuals & Job Aids via Cornerstone SBX (sabacloud.com). These checklists provide due dates, required documentation, and other pertinent information.
  • Blanket WA: This is a standardized offer prebuilt by the RMA into the Regional Office Exceptions system (ROE), allowing producers to insure their FAC soybean or FAC grain sorghum crops where available:
    • Producers can submit a request with an actuarial change request through their agent and AgriSompo without extensive underwriting.
    • The deadline for submission is the SCD for the applicable crop in the county.
    • Experience in producing FAC soybeans or FAC grain sorghum is not required for coverage, though existing production experience may be utilized.
    • If the SCD deadline is missed, producers can apply under the traditional WA process by requesting a Type/Practice (TP) WA. This request must be made by the applicable Acreage Reporting deadline and does not require prior history for qualification.
    • Evidence of adaptability from an agricultural expert and market is not required, but a crop inspection may be necessary if applying after the SCD.
    • Rates, yields, and dates offered under the TP WA request will match those offered under a Blanket WA.

New Producer Verification

  • Qualification Criteria:To qualify as a new producer, the insured must not have produced the insured crop in the county for more than two APH crop years.
  • Verification:It is crucial to verify New Producer status with your insureds due to ongoing reports of potential misreporting.
  • Certification Requirement:Ensure that the New Producer Certification box is checked on either the Application or the Production Reporting Form.
  • Intended Acres:Must be listed on the application.
  • Important Note:If a producer has previously produced the crop, they are required to certify those years of acreage and production by PRD. A producer can recertify their new producer status in the following crop year if they still meet the qualifications.

Insuring the Landlord’s Share

  • SBI Information:The landlord's substantial beneficial interest (SBI) information must be included on the application and entered into AgriNet using the entity type "Landlord/Tenant" when keying the SBI. Additionally, this information should be added to the APH line by using the "+Add Shareholder" feature as a "Farmer/Landlord Shareholder."
  • Companion Share Authorization:The Authorization to Ensure the Companions Share form must be completed by the SCD and scanned through Document Management within 20 days of the sales closing date.

Beginning Farmer & Rancher (BFR) Application Requirements:

  • Application Completion:The insured must complete both the MPCI Application and the Beginning Farmer & Rancher Application (BFR) by the earliest SCD.
  • SBI Requirements:Each Substantial Beneficial Interest (SBI) holder of the policy must complete a separate BFR Application and qualify as a BFR for the policy to receive BFR benefits.
  • Agent Access:Please be aware that agents do not have access to key the BFR. For assistance, please contact your underwriter.

Veteran Farmer and Rancher (VFR) Eligibility and Benefits:

  • Eligibility Criteria:
    • A person qualifies as a VFR if they have served in active duty in the United States Armed Forces (including the Air Force, Army, Coast Guard, Marine Corps, Navy, Space Force, and their reserve components) and were discharged or released under conditions other than dishonorable. Additionally, they must:
      • Have not operated a farm or ranch
      • Have operated a farm or ranch for not more than 5 years

 or

      • Be a veteran who first obtained status as a veteran during the most recent five-year period, even if they have previously operated a farm or ranch for more than five years.
  • Program Selection:
    • If a producer qualifies for both VFR and BFR status, they must choose which program to receive benefits from as they cannot receive benefits from both simultaneously.
  • Benefits:
    • Administrative fee waiver: all CAT and additional coverage administrative fees are waived.
    • Additional premium subsidy: 10 percentage points.
    • APH yield adjustment: receives 80% of the applicable T-Yield instead of 60%.
  • Multiple VFR Applications:
    • If multiple applications are required and all individuals qualify as VFRs, benefits are provided based on the individual with the fewest remaining VFR benefit crop years.
  • Application Requirements:
    • All parties listed on the application and within the SBIs (except the spouse) must complete a separate VFR application and qualify as a VFR. A spouse’s veteran status does not impact VFR consideration for individuals or entities.
  • Landlord/Tenant Policies:
    • Both parties must qualify as VFRs for the policy to be eligible for VFR benefits if one insures the other's share.
  • Submission Deadline:
    • The application and supporting documentation must be submitted by the applicable SCD.
  • VFR Status Duration:
    • VFR status is continuous until the application is canceled or any veteran or SBI member no longer qualifies.
  • Keying Restrictions:
    • You do not have access to key the VFR status; please contact your underwriter for assistance.

Conservation Compliance Requirements:

  • AD-1026 Form Deadline:Insureds now have until the premium billing date to ensure a signed AD-1026 form is on file with the FSA.
  • Conservation Compliance Exemption:The exemption form must be signed by the later of the premium billing date or 60 days after a transfer is approved. Note that an exemption is only permitted during the first year the insured farmed.
  • Compliance Verification:Please verify the compliance status with insureds, as those who are non-compliant will not be eligible for premium subsidies.

Winter Crop Inspections Due by Spring SCD:

  • Coverage Request:If the special provisions only list a spring final planting date, fall-planted crops (e.g., wheat, canola, barley) are not insured unless coverage is specifically requested.
  • Inspection Request Deadline:A request for a winter crop inspection must be completed and scanned by the spring SCD.
  • Inspection Process:AgriSompo will conduct an inspection in the spring to determine if there is an adequate stand, allowing the fall-planted acreage to be insured as the spring type.

Quality Loss Option (QL):

  • Exclusion of Quality Loss: The Quality Loss Option allows the exclusion of quality loss from an APH database when a quality loss occurs, enabling producers to replace post-quality production amounts with pre-quality production amounts in their APH databases. This can potentially increase actual yields for individual crop years.
  • Election of Option: The option must be elected by the applicable SCD on the application by listing 'QL' in the Option Box for the applicable crop/county.
  • Selection by APH Database: The insured may choose, by APH database and eligible crop year, to replace actual yields based on post-quality adjusted production (net production) with yields based on pre-quality total production (gross production).
  • Yield Calculation and Premium Rate: If the approved APH yield calculation replaces at least one actual yield due to QL, the average yield is used as the rate yield, and the effective coverage level (based on the adjusted yield) is used for determining the premium rate. In North Dakota, the actual yield is used in calculating the Personal Transitional Yield rather than the QL replacement yield.
  • Trend Adjustment (TA): When actual yields are replaced with QL replacement yields and TA is elected, TA will be applied after the replacement and to the QL replacement yield.
  • Impact on Category C Crops:
    • QL on Minimum Production: For determining if production minimum requirements are met, QL replacement yields cannot be used. Actual yields (prior to QL replacement) within an APH database must be used to assess if minimum production requirements have been met.
    • QL on Organic Procedures: QL does not apply to an "OF" yield in the APH database.
    • QL on High Variability Tests: When conducting high variability tests, QL replacement actual yields cannot be used.
    • QL on Regional Office Determined Yields (DYs) and Underwriting Guides (UGs): Specific DY types and the applicability of QL can be found in the Crop Insurance Handbook under Exhibit 22.

 Sugar Beet Early Harvest Adjustment (EHA) Option:

  • Background:
    • Prior to the 2024 crop year, the Early Harvest Adjustment was mandatory if the percentage of insured acreage in the unit harvested before full maturity exceeded the threshold specified in the Actuarial Documents.
  • EHA Option:
    • Allows insureds to adjust early harvest actual yields by increasing harvested production by 1% per day harvested before the date of full maturity, as per Crop Provisions.
    • This adjustment only applies to early harvested acreage when insured as such.
  • Effective Change:
    • The change in Crop Provisions is effective for the 2024 crop year in counties with a Contract Change Date of 11/30/2023, and for the 2025 crop year in Imperial County, CA.
  • Election and Coverage:
    • Insureds must have an additional coverage policy and elect EHA:
      • On the application by the applicable SCD.
      • On a crop/county basis.
      • On APH database and crop year by PRD.
      • EHA option must be available in the AD.
      • EHA election is continuous unless canceled in writing by the applicable cancellation date.
  • Adjustments:
    • Production is no longer adjusted for early harvest.
    • Other adjustments may apply, such as yield substitution and cups when elected, and yield floors if applicable.
  • EHA with Master Yields (MY):
    • If MYs are applicable, apply EHA adjustment to eligible actual yields on the non-summary APH database. YE, YA, average yields, approved yields, and rate yields are determined on the MY summary.
    • If EHA is elected and the operator’s MYs are used by all SBIs, then all SBIs must have EHA elected to use the operator’s MYs.
  • EHA and Transfers:
    • Transferring a policy with EHA to a different AIP cancels the EHA option. To retain EHA, the insured must elect the option on the transfer application by SCD.
  • Eligibility with Written Agreements:
    • Generally eligible for EHA if allowed in the crop/county actuarial documents.
    • Exceptions include:
      • EHA is not available for an irrigation practice made insurable by WA (e.g., TC and TP) not in crop/county AD.
      • XC WA (sugar beets not insurable in the county) cannot add EHA by WA if not in AD.
  • Recertification for 2024 Crop Year:
    • Insureds must recertify all Sugar Beet APH databases (with previously adjusted EH production) by the Production Reporting Deadline (PRD) in the AD for all years within the record retention period.
    • Recertification can include years beyond the retention period if supporting production records are available.
    • If not recertified by PRD, assigned yield procedures will apply.

Forage Seeding and Forage Production Changes:

  • Dual Season Crop Deadline: The deadline to add this crop to a policy was July 31st.
  • Alfalfa Insurable Types:
    • Existing insurable types have been updated as follows:
      • Alfalfa 90-100 replaces previous Alfalfa insurable types.
      • Alfalfa 60-89 replaces previous Alfalfa insurable types.
  • Alfalfa Grass Mixture Insurable Types:
    • Replaced with a new insurable type:
      • Alfalfa 25-59 replaces existing Alfalfa Grass Mixture insurable types.
  • Grass Alfalfa Mixture Insurable Types:
    • Replaced with a new insurable type:
      • Alfalfa 1-24 replaces existing Grass Alfalfa Mixture insurable types.

Dual Season Crops:

  • Application or Policy Change Requirements:
    • An application or policy change form is required if there is a desire to change the plan of insurance, coverage level, options, or endorsements.
  • Fall Planting Restrictions:
    • If fall acreage is planted, no changes can be made to the policy in the spring. All options selected by the fall SCD will apply to spring units as well.
  • Spring Change Flexibility:
    • If no fall acreage is planted, changes to the policy can be made in the spring.
  • Enterprise Units Election:
    • Must be elected by the insured on or before the earliest SCD for the insured crops in the county. The unit election can be changed before the spring SCD if there is no insured fall planted acreage.

New Breaking SPOI:

  • Approval Process:
    • Up to and including 320 acres of New Breaking acreage per county can be approved in the office, provided that the four requirements stated in the Special Provisions are met and documented by Acreage Reporting.
  • Requirements Not Met:
    • If the requirements are not met, a Written Agreement must be submitted to the RMA for approval by the Sales Closing Date.
  • Timely Submission:
    • It is important to submit these requests early to ensure there is sufficient time to process and send them to the RMA if they do not initially meet the requirements.

Native Sod (NS):

  • Definition:
    • Native Sod refers to acreage that has never been tilled or where the insured cannot prove it was tilled for the production of an annual crop on or before February 7, 2014.
    • Acreage tilled prior to February 7, 2014, is exempt from benefit reductions, regardless of when it is planted.
  • Acreage Consideration:
    • Acreage is classified as Native Sod when more than 5 acres are cumulatively tilled in the county across crop years.
    • De Minimis (DM): Cumulative Native Sod acreage under 5 acres in the county is considered de minimis and does not incur any reduction in benefits.
    • Benefit Reduction: Cumulative acreage exceeding 5 acres will be subject to a reduction in benefits.
  • Clarifications:
    • The RMA has updated headings in the Crop Insurance Handbook (CIH) and General Standards Handbook (GSH) to specify which Farm Bill (2014 or 2018) applies.

Enterprise Units (EU):

  • Acreage Requirement:
    • An EU must have planted acreage that constitutes at least the lesser of 20 acres or 20 percent (20 acres/20 percent) of the insured crop acreage in the EU.
  • Location Requirements:
    • EUs must be located in:
      • Two or more sections, if Optional Units (OUs) are available by sections.
      • Two or more section equivalents, if OUs are available by section equivalents.
      • Two or more Farm Service Agency (FSA) Farm Numbers (FNs), if OUs are available by FSA FNs.
      • Any combination of two or more sections, section equivalents, or FSA FNs, if more than one of these is the basis for OUs.
      • Two or more units as established by Unit Division Guidelines (UDGO), Unit Division Options (UDO), or Written Unit Agreements (WUA).
      • Two or more non-contiguous parcels of land, if OUs by non-contiguous parcels are permitted by the Crop Provisions (CP) or Special Provisions (SP).
      • One section, section equivalent, or FSA FN that contains at least 660 planted acres, based on the type of parcel used to establish OUs.

Multi-County Enterprise Unit (MCEU):

  • Overview:
    • Allows a producer to combine acreage of an insured crop (by irrigation practice) in two contiguous counties within the same state into one enterprise unit.
  • Qualification Criteria:
    • One county must independently qualify for an enterprise unit while the other does not.
    • Both county crop policies must be with the same Approved Insurance Provider (AIP).
    • Must be elected on the application for both counties, with identical elections for insurance plan, coverage level, and enterprise unit or enterprise unit by irrigation practice.
    • Not allowed for Enterprise Unit by Type (ET).
  • Calculation and Reporting:
    • Combines all insured acreage of the crop (or by irrigation practice) in both counties into a single unit.
    • Premium, guarantee, and liability are calculated separately for each county based on the acres physically located there, using each county's actuarial documents.
    • The enterprise unit premium discount is determined using the total acres in the MCEU.
    • Primary and secondary counties must be indicated on the Acreage Report.

Enterprise Unit by Irrigation Practice (EI):

  • Overview:
    • Provides separate enterprise units for irrigated and non-irrigated practices, if specified in the actuarial documents.
  • Election Process:
    • Must be elected by the Sales Closing Date (SCD) by designating EI in the option box.
    • Qualification is determined at Acreage Reporting time.
    • Insured can elect EU for one practice and Optional Units (OU) or Basic Units (BU) for the other practice.

Enterprise Unit by Type (ET):

  • Overview:
    • Provides separate enterprise units by type, applicable to crops such as wheat, dry peas, dry beans, grass seed, and sunflowers, if specified in the actuarial documents.
  • Election Process:
    • Must be elected by SCD by designating ET in the option box.
    • Qualification is determined at Acreage Reporting time.
    • For wheat, insureds can choose EU by Spring and EU by Winter.
    • For crops with multiple types, specific types for ET must be designated; otherwise, ET applies to all types.

Enterprise Unit by Cropping Practice (EC):

  • Overview:
    • FAC and/or NFAC cropping practices.
  • Election Process:
    • Identified with the EC option code.
    • If not separately designated, EC applies to both cropping practices.
    • Allowed when specified in the actuarial documents and available for each irrigation practice used.
    • MCEU is not available for EUs by FAC and/or NFAC.
    • If electing EUs by FAC and/or NFAC, EUs or OUs by irrigation practices cannot be elected.

Enterprise Irrigated/Non-Irrigated, Organic/Non-Organic (EO):

  • Overview:
    • Separate enterprise units for irrigated/non-irrigated and organic/non-organic practices.
  • Election Process:
    • Identified with the EO option code.
    • Must separately meet EU requirements for each practice.
    • Failure to qualify for either practice results in an assigned unit structure.
    • If electing EU for non-organic practices and insuring organic practices as BU or OU, non-organic practices must meet EU requirements, or unit structure for both practices will be assigned.

 Separate Coverage Levels by Irrigated and Non-Irrigated Practices (LP):

  • Eligibility:
    • Spring crops can have separate coverage levels for irrigated and non-irrigated practices if this option is specified in the actuarial documents.
  • Election Process:
    • Indicate LP in the options box on the application.
    • Must be elected by the Sales Closing Date (SCD).

 

Yield Cups (YC):

  • Purpose:
    • The yield cup prevents an approved yield from dropping more than 10% in one year.
  • Availability:
    • Yield Cups are available only for additional coverage policies and are not applicable to CAT coverage.
  • Applicability:
    • Yield cups are applicable only to databases with at least one actual or assigned yield.
  • Usage:
    • Yield cups can be applied independently or in conjunction with other yield adjustment measures.
    • Trend Adjustment and Yield Exclusion do not apply to databases using YC.
  • Opt-Out Option:
    • Producers can opt-out of applying a yield cup to individual APH databases by writing "Opt-Out" on that specific database in a timely signed production report. This must be completed no later than the Production Reporting Date.
  • Premium Calculations:
    • Premium calculations for YC will follow the same methodology currently used for Yield Exclusion (YE).

Contracts:

  • Contract Price Usage:
    • If an insured wishes to use a contract price instead of the projected price, ensure that Crop Provisions Contract Pricing and/or Malting Endorsement are selected as options by the Sales Closing Date (SCD).
  • Contract Price Addendum:
    • Must be elected on or before the SCD and is continuous.
  • Eligibility:
    • Refer to the actuarial documents to determine which practices and types allow for Contract Pricing (CP).
  • Contract Submission:
    • The insured has until the Acreage Reporting date to provide a copy of the contract.

High Risk and Unrated Acres:

  • Identification of High Risk or Unrated Land:
    • Does your insured have high-risk or unrated land? There are three options to determine this:
  • Options for High-Risk Land:
    • Written Agreement: To potentially adjust risk classification.
    • High-Risk Land Exclusion Option: To exclude high-risk areas from coverage.
    • High-Risk Alternative Coverage Endorsement (HR ACE) Policy: Provides alternative coverage for high-risk land.
  • Options for Unrated Land:
    • A Written Agreement is required for unrated land to be insurable.
    • If no Written Agreement is executed, the acreage remains uninsurable.
  • Important Consideration:
    • The RMA may request unpaid high-risk premium if land is reported with an incorrect risk rating. It is crucial to ensure accurate reporting of risk ratings.

 

Post-Application Coverage Endorsement (PACE):

  • Availability:
    • PACE is available for non-irrigated corn in select counties in Illinois, Indiana, Iowa, Kansas, Minnesota, Michigan, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
  • Eligibility Requirements:
    • Producers must purchase an underlying Multi-Peril Crop Insurance (MPCI) policy with one of the following coverages:
      • Yield Protection
      • Revenue Protection
      • Revenue Protection with Harvest Price Exclusion
  • Exclusions:
    • PACE does not cover:
      • Prevented planting acreage
      • Acreage with CAT coverage
      • Acreage designated as high-risk land
  • Coverage Declaration:
    • The policyholder must declare which units will receive PACE coverage before the Sales Closing Date (SCD).
  • Application Requirements:
    • At the time of application, the policyholder must provide:
      • The percentage of nitrogen intended for pre-application and post-application.
      • The intended nitrogen application rate per acre

2014 Farm Bill Procedures for Native Sod:

  • Timeframe:
    • Applies to Native Sod acreage tilled from February 8, 2014, to December 20, 2018.
  • Definition:
    • Acreage is considered native sod until it has four crop years of planting.

2018 Farm Bill Procedures for Native Sod:

  • Timeframe:
    • Applies to Native Sod tilled beginning December 21, 2018, for the production, of an insured crop.
  • Definition:
    • Acreage is considered native sod until it has four crop years (insurance years for WFRP) of an insured crop within the first 10 crop years after initial tillage.
  • Applicability:
    • Procedures apply to all insurable crops and all insurance plans.
  • Qualifying Crop Years:
    • Any crop year in which a crop is insured on the native sod acreage under an additional coverage policy counts towards the four crop years.
    • CAT coverage does not count as a crop year of insurance toward the four crop years.
    • A mix of annual and perennial/biennial crops may be used to fulfill the requirement.
    • Prevented planting acres count towards the four crop years.
  • Designation and Cumulative Tillage:
    • The native sod designation applies when more than five acres are tilled cumulatively across crop years (insurance years for WFRP) for the production of an insured crop beginning December 21, 2018, in all native sod states.
    • If a producer tilled five native sod acres or less under the 2014 Farm Bill and added more under the 2018 Farm Bill, causing cumulative native sod acreage to exceed five acres, the 2018 Farm Bill procedures apply.

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