Enterprise Units

Enterprise Unit (EU)
An EU is an insurance unit structure that consists of all insurable acreage of the same insured crop in the county in which you have a share on the date coverage begins for the crop year. EUs are available for crops and counties where the actuarial documents specify availability.
Election
EU must be elected, on or before the earliest sales closing date (SCD), on an Application or Policy Change Form and remains in effect from year-to-year.
Enterprise Unit by Practice

When the actuarial documents specify, you may elect separate EUs by:

  • Irrigation practice: irrigated and non-irrigated practices; or
  • Cropping practice: Following Another Crop (FAC) and Not Following Another Crop (NFAC) practices.

You may elect EUs by irrigation or cropping practice, but not both.

Qualifications

In order to qualify for EU, you:

  • Must have at least two sections, section equivalents, FSA farm numbers, or units established by written unit agreement or unit division option, whichever are the basis for optional units;
  • May combine two or more of the parcels above, (for example, a portion of the acreage is located in an area where sections are the basis for optional units and another portion of the acreage is located in an area where FSA farm numbers are the basis for optional units);
  • Each parcel must have planted acreage that constitutes at least the lesser of 20 acres or 20 percent of the insured crop acreage in the enterprise unit. Parcels can be aggregated to form at least two parcels to meet this requirement.
  • May also have one section, section equivalent, or FSA farm number qualify for an EU, based on whichever type of parcel is the basis for optional units, where there are at least 660 planted acres of the insured crop in the parcel.

These requirements for EU must be met for each EU you elect. For example, if you elect separate EUs for irrigated and non-irrigated practices you must separately meet these requirements for each irrigation practice to qualify.

Premium Discounts
Premium discounts are offered for EUs to recognize the lower risk associated given the geographic diversification. The larger the enterprise unit, the lesser the risk, and the greater the enterprise unit discount.
Where to Buy Crop Insurance

All multi-peril crop insurance, including CAT policies, are available from private crop insurance agents. A list of crop insurance agents is available on the RMA website at www.rma.usda.gov/Information-Tools/Agent-Locator-Page.

Irrigation

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This fact sheet gives only a general overview of the crop insurance program and is not a complete policy. For further information and an evaluation of your risk management needs, contact a crop insurance agent.
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