Get Ready for the Fall SCD with These Tips

Get Ready for the Fall SCD with These Tips

The fall sales closing date (SCD) is September 30, 2022. 

Below, we have provided some reminders and tips to keep in mind as the SCD approaches. These are guidelines and do not replace the handbooks or provisions.

Always check your RMA actuarial documents: navigate to this page, select your dates, then click Information Tools > AIB > Crop > Commodity Report.

 

Deadlines

Non-keying agents must submit applications within 5 to 10 days maximum after the deadline (9/30/2022).

Keying agents have 20 days to key, scan, and submit applications.

 

Forage Production Underwriting/Acreage Report (FUR/AR)

Non-processing agents must have Forage Production Underwriting/Acreage Reports submitted to their underwriter within 5 to 10 days maximum after the deadline.

Keying agents have 30 days to key, scan, and submit Forage Production Underwriting/Acreage Reports.

 

Applications and Policy Changes 

  • These forms must be keyed into AgriNet, and the required paperwork must be uploaded into FileZilla. 
  • The information the agent keys in AgriNet should match the information insured certified on his/her application. Please double check the information keyed in AgriNet prior to saving.    
  • For policies with no changes, no action is needed. 
  • Please double check that all Tax ID numbers are correct.
  • Make sure supporting documents are in your files for applicable entity types.  
    • For example, partnerships (Partnership Statement) and trusts (Trust Form).
  • Articles of Incorporation and Articles of Organization forms are not required if the location of these documents is indicated on the application. 
  • For partnerships, the application must be signed by a member of the partnership. 

 

Application vs. Policy Change Form 

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

  

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. To do so, list QL in the Options box on a crop/county basis.  
    • 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.  

  

Forage Seeding and Forage Production Changes  

  • This is a dual season crop, so the deadline to add it to a policy is 7/31.
  • Existing Alfalfa insurable types were replaced with new insurable types: Alfalfa 90-100 and Alfalfa 60-89.
  • Existing Alfalfa Grass Mixture insurable types were replaced with a new insurable type: Alfalfa 25-59.
  • Existing Grass Alfalfa Mixture insurable types were replaced with a new insurable type: Alfalfa 1-24.

 

Dual Season Crops (Wheat and Forage Seeding) 

  • An application or policy change form is needed to change plan of insurance, coverage level, options, or endorsements. 
  • If the producer plants 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 the producer does 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 crops in the county.  The unit election may be changed before the spring SCD if there is not any insured fall planted acreage. 
  • Only one coverage type needs to be keyed into AgriNet with no type selected. Once units are set up, the type can be selected there.

  

Admin Fees  

  • The CAT administration fee is now $655.  

 

Insuring the Landlord's Share 

  • A landlord's SBI information MUST BE reported on the application and keyed in AgriNet using the entity type of "L".
  • The Authorization to Insure the Landlord's Share form needs to be completed by the sales closing date, and uploaded through FileZilla within 20 days of sales closing. 

  

Power of Attorney (POA)

  • A Power of Attorney form must accompany the application or policy change form where a POA has signed.
  • Applications and policy change forms will not be accepted without a POA form, if one is required.
  • The POA form must be notarized if required by state law.
  • The POA form must specify the authority to sign for crop insurance purposes.
  • For the "Individual-Married (Spousal)" person type, a POA form or legally sufficient document is required for the authorized spouse to sign on behalf of the named insured spouse.
  • Either a FSA POA form or a POA form executed according to state laws is acceptable.
  • In the case of a FSA POA form, notarization is not required if signed in an FSA office and witnessed by FSA staff.

  

Signature Requirements (Authorized Representatives) 

  • A signature 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 cancelled, the option is removed, or a new application is required.
  • For a spouse or other person to sign for an insured, they must have a POA form or Signature Statement signed.
  • If the authorized rep or POA is signing documentation, it must be signed with the main policyholder's name by the person signing.
    • For example: a Joe Farmer Farms policy must be signed ‘Joe Farmer Farms by Joe Farmer’.
    • Another example: if Jane Farmer is the authorized rep or POA on Joe Farmer's policy, in order to sign she must do so as ‘Joe Farmer by Jane Farmer’.
    • If these documents are not signed correctly they will be sent back, and a correctly signed form will be required.

 

New Producer Verification 

  • 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. 
  • We are continuing to see cases of insureds misreported as New Producers, so it is very important to verify New Producer status with your insureds. 
  • We require either a signed New Producer certification form (found on the Forms screen in AgriNet), or the New Producer box checked on the PYR, PR, or App to verify New Producer status. 
  • Underwriters will start the verification process once an insured is identified as a New Producer.
  • Intended acres must be listed on the application.

  

Multi-County Enterprise Unit  

  • 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 practice. 
  • The election combines all insured acreage of the crop (or all insured acreage of the irrigation practice, if enterprise unit by 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 using the total acres contained in the MCEU. 
  • Primary and secondary counties must be indicated on the Acreage Report. 

  

Enterprise Units by Irrigation Practice   

  • Separate enterprise units for irrigated and non-irrigated (EI) are available if specified in the actuarial documents.
  • 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 "EP" in the Options box. Qualification will be determined at acreage reporting time.

 

Enterprise Unit by Type

  • Separate enterprise units by type (ET) are available if specified in the actuarial documents.
  • If an 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 which types they want ET to apply to; if they do not specify, ET will apply to every crop.
  • Must be elected by the SCD by designating "ET" in the Options box. Qualification will be determined at Acreage Reporting time.

 

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

  • Crops may have separate coverage levels for irrigated and non-irrigated practices if specified in the actuarial documents.
  • To elect, indicate "LP" in the Options box by the SCD.
  • Separate administrative fees normally do not apply; if the policy allows different insurance choices by crop or other criteria, separate administrative fees may be required.