Agriculture Risk Coverage/Price Loss Coverage Supplemental Coverage Option
March 2019
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MGR-19-003 mentions an acreage intention report. Is that the acreage report I file at FSA or with my crop insurance agent?
The acreage intention report refers to the acreage report filed with your crop insurance agent. -
How will the 2019 Supplemental Coverage Option (SCO) policies work in light of Area Risk Coverage (ARC) and Price Loss Coverage (PLC) election occurring later this year?
RMA has issued MGR-19-003 at www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/Managers-Bulletins, which represents the official policy for these producers.
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What are the general 2019 SCO eligibility rules?
RMA has provided flexibility to producers, while maintaining program integrity.
First, all producers will have a chance to cancel their SCO policies by March 15, 2019. This allows producers, particularly those who intend to elect ARC for all their acres, to no longer incur crop insurance costs for coverage in which they will not be eligible.
Second, producers will now have the option to file an ARC/PLC acreage intention report on their acreage reporting date or if their acreage reporting date has already passed by March 15, 2019. The number of eligible acres on Farms with an intention of PLC will be the number of acres insured for SCO regardless of any actual elections made with FSA. If the producer does not file an ARC/PLC acreage intention report, then SCO will cover all acres as though the producer elected PLC.
Last, the existing penalties for misreporting eligible acreage on the SCO endorsement, specifically Section 4(b), will not apply in 2019. -
I bought an SCO policy for winter wheat last fall. Can I keep my policy as it is; Can I adjust my policy; and are there any new requirements?
You have the option to cancel your SCO policy by March 15, 2019. If you keep your policy, you may file an ARC/PLC acreage intention report by March 15th to adjust your insured SCO acres to your current election intentions.
You may keep your policy as it stands. You have the option to cancel your SCO policy by March 15, 2019. If you want to adjust your insured SCO acres to your current election intentions, you must file an ARC/PLC acreage intention report by March 15, 2019.
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I bought an SCO policy for a spring crop already. What are my options and what are my new requirements?
You have the option to cancel your SCO policy by March 15. If you keep your policy, you may file an ARC/PLC acreage intention report by your normal acreage reporting date to adjust your insured SCO acres to your current election intentions. -
I have yet to buy a SCO policy for this spring’s coming crop. What are my options and what are my new requirements?
If you choose to buy a SCO policy, you must do so prior to your sales closing date like always. You may file an ARC/PLC acreage intention report by your normal acreage reporting date to adjust your insured SCO acres to your current election intentions. -
If I intend to elect ARC for one crop, but PLC for another, can I still get SCO? Are there any special considerations for splitting the election for 2019?
Yes, you can still get SCO coverage for the acreage that intends to be in PLC. ARC/PLC elections and SCO coverage are all done on a crop-by-crop basis. Each crop will have its own policy and own ARC/PLC acreage intention report as needed. -
If I elect ARC does it cancel my SCO policy and allow me to request a refund of my SCO premium?
No, your SCO acreage established with your ARC/PLC acreage intention report is binding.