Spring SCD Reminders

Tips and Tricks for Spring SCD Season

Please familiarize yourself with the information and tools provided on this page in order to make sure your SCD experience is as smooth as possible. 

If you have questions or encounter any problems, please fill out the form at the bottom of this page or contact your marketing representative, and we will be happy to assist you.

This information is meant to serve as a guideline and does not replace any handbook or provision.

Deadline Information

For the 2/15 SCD:

• Keying agents must submit applications by 3/6.
• Non-keying agents must submit applications by 2/20.

For the 2/28 SCD:

• Keying agents must submit applications by 3/19.
• Non-keying agents must submit applications by 3/5.

For the 3/15 SCD:

• Keying agents must submit applications by 4/4.
• Non-keying agents must submit applications by 3/20.

Applications and Policy Changes

• Must be keyed; the required paperwork must be uploaded through Document Management.
• If you have a policy transferring into AgriSompo, either the agent or the underwriter can key the policy history into AgriNet.
• Agents should not cancel policies in AgriNet.
  • When canceling a policy, upload your cancellation through Document Management, and your assigned underwriter will cancel the policy(s) in AgriNet.
• What you key in AgriNet should match what the insured certified on his/her application. Please double check what is keyed in AgriNet prior to submitting. You will be able to make changes to the policy until the keying deadline. If you are unable to make a change, please contact your underwriter.
• Please double check all Tax ID numbers to make sure what we have is correct. We need the unmasked Tax ID to verify that it is accurate.
• Articles of Incorporation and Articles of Organization forms are not required if the location of these documents is indicated on the application.

When to Use the Application vs. the Policy Change Form

• The application is required for new crop coverage or to change plans from APH-based to area-based plans and vice versa.
• The policy change form (or application) may be used to request a change in plan of insurance within plan type (APH to APH or Area to Area), percentage of projected price/price election, or coverage level, on or before the SCD.

Power of Attorney (POA)

• POA documentation must accompany the application when a POA has signed.
  • Applications and policy change forms will not be accepted without this documentation.
• Needs to be notarized if required by state law.
• Must specify authority to sign for crop insurance purposes.
• FSA POAs or POAs executed according to state laws are acceptable.
• For FSA POAs: Notarization is not required if signed in an FSA office and witnessed by the FSA.

Signature Requirements (Authorized Representatives)

• A Non-Substantive Signatory Statement on the application or policy change form serves as a legally sufficient document.
• Doesn’t need to be notarized.
• Authorization is in place until the policy is canceled, the option is removed, or a new application is required.
• The Policy Change Form modifies an existing Application; the non-substantive signatory statement remains in effect on the existing Application, unless cancelled or revoked by the Policy Change.
• For a spouse or other to sign for an insured, they must have a signed POA or Signature Statement.
• A change of insurance plans requires a new application. The required person (applicant or insured) must sign the initial application.
• An Authorized Representative cannot add a crop, cancel coverage, or take out a new application.
• An Authorized Representative can change levels of coverage and options.

Admin Fees

• Please note that the CAT administration fee is now $655.
  • This was changed as part of the 2018 Farm Bill.

Insuring the Landlord's Share

• The landlord’s SBI information MUST BE reported on the application and keyed in AgriNet using the entity type of Landlord/Tenant when keying the SBI, as well as added to the APH line as a Farmer/Landlord Shareholder.
• The Authorization to Ensure the Companion's Share form needs to be completed by the sales closing date and scanned via FTP within 20 days of sales closing.

Quality Loss Option (QL)

• Allows exclusion of quality loss from an APH database in circumstances where a quality loss occurs.
• Producers can replace post-quality production amounts in APH databases with pre-quality production amounts. This can increase actual yields for individual crop years.
• Must be elected by the applicable SCD on the application form in the Option Box listing QL on a crop/county basis.
• May choose by APH database and by eligible crop year whether to replace actual yields based on post-quality adjusted production (net production) with actual yields based on the pre-quality total production (gross production).
• If the approved APH yield calculation chosen by the producer 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 premium rate.
• For North Dakota, the actual yield is used in the calculation of the Personal Transitional Yield rather than the QL replacement yield.
• Impact of QL on Trend Adjustment (TA): if the actual yield is replaced with a QL replacement yield, and TA has been elected, then TA will be applied after the replacement and applied to the QL replacement yield.
• Impact of QL Specific to Category C crops:
  • QL on Minimum Production
    • When determining if production minimum requirements have been met, QL replacement yields cannot be used in the determination. The actual yields (prior to QL replacement) within an APH database must be used to determine if minimum production requirement have been met.
  • QL on Organic procedures
    • QL will not apply to an “OF” yield in the APH database.
  • QL on APH database tests for High Variability of Actual (and Assigned) Yields
    • QL replacement actual yields cannot be used to conduct the high variability tests.
  • QL on RMA Regional Office Determined Yields (DYs) and Regional Office Underwriting Guides
    • Specific DY types and the applicability of QL can be found in the Crop Insurance Handbook under Exhibit 22.

New for 2024: Sugar Beet Early Harvest Adjustment Option (EHA)

• Prior to the 2024 crop year, EHA was mandatory if the percentage of insured acreage in the unit harvested prior to full maturity (early harvest) exceeded the early harvest acreage threshold specified in the AD.
• The EHA Option allows insureds to adjust EH actual yields.
  • Increases harvested production by 1% per day.
  • Applies for each day harvested before the date of full maturity per the Crop Provisions.
• Only applies:
  • When the insured early harvests acreage.
  • To that early harvested acreage.
• This change in the Crop Provisions is effective for the 2024 crop year in counties with a contract change date of 11/30/2023 and the 2025 crop year for Imperial County, CA.
• The insured must have an additional coverage policy and elect EHA:
  • On an application by the applicable sales closing date.
  • On a crop/county basis.
  • On the APH database and crop year by the production reporting date.
• The EHA Option must be available in the AD.
• The EHA election is continuous unless canceled.
  • Cancel in writing by the applicable cancellation date, after which:
    • Production is no longer adjusted for EH.
    • Other adjustments may apply to:
      • Yield substitution and cups, when elected.
      • Yield floors, if appliable.
• EHA when the Master Yields (MY) election is made:
  • If MYs are applicable, apply the EHA to the 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 MY(s) are being used by ALL SBIs, then ALL SBIs must have the EHA Option elected.
• EHA and Transfers:
  • Transferring a policy with EHA to a different AIP cancels the EHA Option.
  • To keep EHA, the insured must elect the option on the transfer application by the SCD.
• EHA and Written Agreements (WA): WAs are generally eligible for EHA if EHA is allowed in the crop/county AD.
  • Exceptions:
    • EHA not available for an irrigation practice made insurable by WA (ex. TC and TP) but not in the crop/county AD.
    • Cannot add EHA by XC WA (sugar beets not insurable in the county) if EHA is not in the AD.
• Recertification of previously EHA sugar beets production history:
  • The insured MUST RECERTIFY ALL sugar beet APH databases (with previously adjusted EH production) for 2024 CY:
    • By the production reporting deadline in the AD.
    • For ALL years within the record retention period.
      • The insured can recertify years beyond the retention period if supporting production records are available.
  • If not the databases are not recertified by the production reporting date, assigned yield procedures will apply.

Dual Season Crops

• An application or policy change form is required to change plan of insurance, coverage level, options, or endorsements.
• If the policyholder planted fall acreage, they will not be able to make any changes to the policy in the spring. All options selected at fall SCD will also apply to the spring units.
• If they do NOT plant fall acreage, they can make changes to the policy in the spring. 
• Enterprise units must be elected by the insured on or before the earliest SCD for the insured(s) crops in the county. The unit election may be changed before the spring SCD if there is not any insured fall planted acreage.

Multi-County Enterprise Unit (MCEU)

• MCEU allows a producer to combine acreage of an insured crop, by irrigation practice, if applicable, in two contiguous counties in the same state into one enterprise unit.
• To qualify for an MCEU, one county must qualify independently for an enterprise unit and the other county must not qualify for an enterprise unit.
• Both county crop policies in the MCEU must be with the same AIP.
• MCEU must be elected on the application for both counties. Both counties must also have the same elections for insurance plan, coverage level, and enterprise unit or enterprise unit by irrigation practice (not allowed for ET).
• The election combines all insured acreage of the crop (or all insured acreage of the irrigation practice if enterprise unit by irrigation practice is elected) in both counties into a single enterprise unit.
• Premium, guarantee, and liability will be calculated separately for each county based on the acres physically located in that county and using the actuarial documents for that county.
• The enterprise unit premium discount will be determined by using the total acres contained in the MCEU.
• Primary and secondary counties will need to be indicated on the acreage report.

Enterprise Unit by Irrigation Practice (EI)

• Separate enterprise units for irrigated and non-irrigated practices are available if specified in the actuarial documents (EI).
• Additionally, an insured can elect EU for one practice and OU or BU for the other practice.
• Must be elected by the SCD by designating EI in the option box; qualification will be determined at acreage reporting time.

Enterprise Unit by Type (ET)

• Separate enterprise units by type are available if specified in the actuarial documents (ET) – eligible crops are wheat, dry peas, dry beans, and sunflowers.
• If the insured has wheat on their policy, they can now choose to elect EU by Spring and EU by Winter.
• Dry beans and dry peas with multiple types on their policy must specify what types they want ET to apply to. If they do NOT then they will apply ET to every crop.
• Must be elected by the SCD by designating ET in the option box; qualification will be determined at acreage reporting time.

Enterprise Unit by Cropping Practice (EC)

• The insured must choose the FAC and/or NFAC practice.
• The election is identified with the "EC" option code.
• If the insured does not separately designate on the application or policy change form which cropping practice they want EC to apply to, it will apply to both.
• EUs by FAC and/or NFAC are only allowed when provided in the actuarial documents and available for each irrigation practice the insured uses.
• MCEU is NOT available for EUs by FAC and/or NFAC cropping practices.
• If the insured elects EUs by FAC and/or NFAC, they may NOT elect EUs or OUs by irrigation practices.
• The terms “one practice” and/or "the other practice” mean either irrigation practices or FAC/NFAC cropping practices.

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

• Spring crops may have separate coverage levels for irrigated and non-irrigated practices if specified in the actuarial documents.
• Indicate with "LP" in the options box.
• Must be elected by the SCD.

Yield Cups (YC)

• The yield cup prevents an approved yield from dropping more than 10% in one year.
• YC is only available for additional coverage policies. It is not available for CAT coverage.
• Yield cups are only applicable to databases with at least one actual or assigned yield.
• Yield cups can be applied independently or with other yield adjustment measures.
• Trend Adjustment and Yield Exclusion will not apply to a database using YC.
• Producers may opt out of a cup applying to individual APH databases by writing “Opt Out” on that particular database on a timely signed production report. This must be done no later than the production reporting date.
• Premium calculations for YC will be the same as those currently used for YE.

Contracts

• If an insured wishes to use a contract price in place of the projected price, be sure to select CP (Contract Pricing) and/or ME (Malting Endorsement) as options at SCD.
• Contract Price Addendum (CPA) must be elected on or before the SCD and is continuous.
• Refer to the actuarial documents to find which practices and types allow CP.
• The insured has until acreage reporting to provide a copy of the contract.

Beginning Farmer & Rancher (BFR)

• The insured will need to complete and MPCI Application and Beginning Farmer & Rancher Application by the earliest SCD.
• Each SBI holder of the policy must complete a separate BFR Application and must qualify as a BFR in order for the policy to receive BFR benefits.
• Please reach out to your underwriter if you have any questions.

Veteran Farmer & Rancher (VFR)

• Applies to a veteran who served in active duty in the United States Armed Forces, including the Air Force, Army, Coast Guard, Marines Corps, Navy, or Space Force, and their reserves components; who was discharged or release under conditions other than dishonorable; and who meets one of the following criteria:
  
  • Has not operated a farm or ranch.
  • Has operated a farm or ranch for not more than five years.
  • Is 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.

• If a producer qualifies for both VFR status and BFR status, the producer must choose from which program he/she wishes to receive benefits. A producer cannot receive benefits under VFR and BFR at the same time.
• Benefits are the same as BFR:
  • Administrative fee waiver – all CAT and additional coverage administrative fees waived.
  • Additional premium subsidy of 10 percentage points.
  • APH Yield Adjustment (YA) – the producer receives 80% of the applicable T-Yield instead of 60%.
• When multiple VFR Applications are required and if all individuals qualify as VFRs, producers will receive VFR benefits equal to the individual with the fewest number of remaining VFR benefit crop years.
• With the exception of the spouse, all parties listed on the application and within the SBIs must complete a separate VFR Application and qualify as a VFR. VFR now allows the spouse’s veteran status NOT to impact whether an individual or entity is considered a VFR.
• If a producer has a landlord/tenant policy, both must qualify as a VFR for the policy to be eligible for VFR benefits if the tenant/landlord will be insuring the other’s share.
• An application, along with all supporting documentation, must be submitted by the applicable sales closing date.
• VFR status is continuous until the VFR Application is cancelled by the SCD or until the veteran or any SBI member no longer qualifies as a VFR.
• Please reach out to your underwriter if you have any questions.

Conservation Compliance

• Insureds now have until the premium billing date to have a signed AD-1026 form on file with the FSA.
• The Conservation Compliance Exemption form must be signed by the later of premium billing or 60 days after a transfer is approved – only allowed the first year of farming.
• Please verify compliance status with insureds, as non-compliant insureds will not be eligible for premium subsidies.

Winter Crop Inspections

• If the special provisions only list a spring final planting date, any fall planted crops are not insured unless you request coverage (ex: wheat, canola, barley).
• Request for a winter crop inspection needs to be completed and scanned by the SCD.
• We will determine if there is an adequate stand in the spring in order to insure the fall planted acreage as the spring type.

New Producer Verification

• To qualify for new producer status, the insured must not have produced the insured crop in the county for more than two APH crop years.
• We are continuing to get lists of potential New Producer misreporting, so it is very important to verify New Producer status with your insureds.
• We require the New Producer Certification box checked on either the application or production reporting form.
• Intended acres must be listed on the application.

IMPORTANT: When the producer has produced the crop, they are required to certify those years of acreage and production by PRD.

*A producer can recertify their NP status in the following crop year if they still qualify*

Written Agreements (WA)

• Most new/renewal Written Agreement deadlines are the sales closing date.
• Please request Written Agreements as soon as possible so we can meet the RMA deadlines.
• Check the WA Handbook for all required documents needed for the request: Underwriting (24000) | RMA (usda.gov)
• We cannot send incomplete requests to the RMA. Please work with your underwriter to ensure all supporting documents are received.
• Written Agreements do not transfer from one AIP to another. These WAs would be considered renewals.
• WA checklists are available for all types on the SABA/Training site (click here to access). They list due dates, supporting documentation needed, and any other pertinent information. 
• A Blanket WA is a standardized WA offer prebuilt by the RMA into the Regional Office Exceptions system (ROE) which allows for a producer to choose to insure their FAC soybean or FAC grain sorghum crop where it is available.
  • A producer does not have to go through an extensive underwriting process and can simply choose to insure their FAC crop by submitting the request with an actuarial change request (ACR) through their agent and AgriSompo.
  • The deadline is the sales closing date for the applicable crop in their county.
  • Producers do not have to have experience in producing FAC soybeans or FAC grain sorghum to obtain coverage. However, their existing applicable FAC production experience may be used if available.
  • If the deadline is missed, the producer can still apply for a WA under the traditional WA process.
    • To apply, the producer will apply for Type/Practice (TP) WA with no prior history requirements to qualify. This will be a new request, the producer has up until the applicable acreage reporting date to request a TP WA.
      • Evidence of adaptability from an agricultural expert and market are NOT required; however, a crop inspection may be required if the producer applies after the SCD.
    • The rates, yields, and dates offered under the TP WA request will be the same as are offered under a blanket WA.

New Breaking SPOI

• Up to and including 320 acres of New Breaking acreage per county can be approved in the office if the four requirements stated in the Special Provisions are met and provided by the acreage reporting date. If they do not meet those requirements, we will need to send a Written Agreement to the RMA for approval by the sales closing date. Get these in early so if they do not meet the requirements there is still time to send them to the RMA.

Native Sod

• Native Sod is acreage that has never been tilled or insured can’t prove previously tilled for production of annual crop on or before February 7, 2014.
• Any native sod acreage tilled prior to February 7, 2014, will not be subject to the reduction in benefits, regardless of when the native sod acreage is planted.
• Acreage is considered native sod when more than five acres are tilled in the county cumulatively across crop years.
• Cumulative Native Sod acreage of less than five acres in the county is considered de minimis (DM) and will NOT receive any reduction in benefits.
• Cumulative Native Sod acreage greater than five acres will receive a reduction in benefits.
• The RMA has added new headings to the information within the CIH and GSH to clarify which Farm Bill applies (2014 or 2018).

2014 Farm Bill Procedures for Native Sod

• Native Sod acreage tilled from February 8, 2014 – December 20, 2018 will continue to follow the provisions of the 2014 Farm Bill.
• Acreage is considered Native Sod until it has four crop years of planting.

2018 Farm Bill Procedures for Native Sod

These procedures apply to Native Sod tilled beginning December 21, 2018, for the production of an insured crop

• Acreage is considered Native Sod until the acreage has four crop years (insurance years for WFRP) of an insured crop within the first 10 crop years after initial tillage.
• Native Sod procedures now apply to all insurable crops and all insurance plans.
• Any crop year in which a crop is insured on the Native Sod acreage under an additional coverage policy will count toward fulfilling the four crop years of an insured crop.
• CAT coverage does not count toward the four crop years of an insured crop.
• A combination of annual and perennial/biennial crops may be utilized to fulfill the first four crop years of an insured crop.
• Prevented planting acres will count toward fulfilling the four crop years of an insured crop.
• 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 counties in the Native Sod states.
• If a producer tilled five Native Sod acres or less under the 2014 Farm Bill and tilled additional Native Sod acres under the 2018 Farm Bill, so that the cumulative native sod acres exceeded five acres, the 2018 Farm Bill procedures apply.

High Risk and Unrated Acres

• Check whether your insured has High Risk or Unrated Land.
• Three options to determine if ground is High Risk or Unrated:
  • RMA Mapping through the Actuarial Information Browser.
  • AgriNet Mapping.
  • CIMS.
• Options for High Risk Land include:
  • Written Agreement
  • HR Land Exclusion Option
  • HR ACE policy

• For Unrated Land:
  • A Written Agreement is needed for land to be insurable.
  • If no Written Agreement is done, acreage is uninsurable.
• The RMA has been known to request unpaid High Risk premium when land was reported at the incorrect risk rating.

PACE

• Available for non-irrigated corn in select counties in Illinois, Indiana, Iowa, Kansas, Minnesota, Michigan, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
• To be eligible, producers must purchase an underlying MPCI policy with Yield Protection, Revenue Protection, or Revenue Protection with Harvest Price Exclusion coverage.
• Prevented planting acreage, acreage with CAT coverage, and acreage designated as High Risk land may not be insured under PACE.
• The policyholder must declare which units will receive PACE coverage before the sales closing date.
• At application, the policyholder must provide the percentage of nitrogen which they intend to apply pre-application and the percentage which will be applied post-application. They must also provide the intended nitrogen application rate per acre.

AgriSompo North America is one of the nation’s largest underwriters of federally-sponsored crop insurance. We’re dedicated to protecting the livelihoods of farmers and ranchers by offering direct and customized agribusiness risk management products through a nation-wide network of exceptional independent crop insurance agents.

For general questions, information regarding agency appointments, or to find an AgriSompo North America agent in your area, contact us today.