Following Another Crop / Double Crop
Q Are the terms “Double Crop” and “FAC” interchangeable?A
According to a Final Agency Determination (FAD) issued June 3, 2014, (FAD-209) the terms “double crop” and “FAC” do not necessarily mean the same thing and are not interchangeable.
FAD-209 states in part, “FAC” and “NFAC” are considered cropping practices listed in the actuarial documents used to determine the insurability of a crop following another crop that meets certain conditions specified in the Special Provisions. A crop may be designated as Following Another Crop (FAC) if it is planted following a cover crop that meets the conditions in the Special Provisions, but is not considered double cropping. Soybeans following wheat can be either FAC or Not Following Another Crop (NFAC) depending upon the stage of growth the wheat reached. For example, wheat is planted and insured in the fall of 2012 for harvest during the 2013 crop year. During the year, the wheat was damaged by freeze prior to heading and an appraisal was made to the damaged wheat with the acreage released to go to another crop. Soybeans were planted as the second insured crop on the acreage; however, soybeans would qualify as NFAC in accordance with the Special Provisions because the wheat had not reached the heading stage. Conversely, in a subsequent crop year, the appraised acreage of wheat where production was lost due to insured causes of loss used for the claim settlement would be an acceptable record for determining double cropped acreage (even though the acreage was designated as NFAC). Therefore, FAC and NFAC designations alone cannot be used to determine double cropped acreage.”
Definitions of “FAC” and “NFAC” in the Special Provisions may vary by region. For example, a Special Provisions statement including, “a crop that follows a cover crop that meets the criteria outlined in the Insurance Availability section of this Special Provisions of Insurance, is considered NFAC,” explains that a crop following a cover crop is considered NFAC. This also would not be considered double cropping.
NFAC/FAC can qualify for double cropping provided the producer has a history in accordance with section 15(h) of the Basic Provisions.
Q What is the definition of double crop?A
Producing two or more crops for harvest on the same acreage in the same crop year.
Q If an insured plants both NFAC and FAC soybeans in a FAC approved county does the producer have the option to NOT insure the FAC practice and insure the NFAC practice?A
Generally no, all acreage of the crop in the county must be insured. If there are soybeans that meet the definition of the FAC practice as stated in the Special Provisions and all other policy requirements are met, the FAC soybeans must be insured under the soybean policy for the county. The only time an insured has a choice to not insure a crop or practice that meets the insurability requirements of the policy is when there is a first insured crop that suffered an insurable loss and the insured elects to receive 100 percent of the indemnity on the first insured crop then to not insure a second insurable crop on the same acreage in accordance with in 15(e) of the Basic Provisions
Q In a FAC approved county, if a producer planted FAC soybeans in previous years but had no records, are the soybeans insurable?A
A history of planting FAC is not required to make the crop insurable. If the producer meets the definition of FAC as stated in the Special Provisions, the producer may insure the soybeans under the FAC practice.
Q In a FAC approved county, if a producer takes a wheat crop to harvest and no loss occurs on the crop and then plants soybeans are the soybeans insurable?A
In a FAC approved county it is irrelevant if there is a loss on the first crop. If the soybeans meet the requirements of the Special Provisions and the insured chooses to insure the soybeans, then they are insurable. If the producer has double cropping history, since the first crop did not have an insurable loss, the second crop acreage must be insured.
Q If a producer insures a second crop without double cropping history and there was a loss on the first insured crop, can they receive 100 percent indemnity?A
Yes if a producer suffers a payable loss on a first insured crop and the producer does not have double cropping history, the producer is subject to the first/second crop rules in section 15(e) of the Basic Provisions which provides the insured the option to retain 100 percent of the first insured crop indemnity and plant and not insure a second crop on the same acreage. If they do have qualifying double cropping history, they may be eligible to insure both crops and receive indemnity payments on the first and second crops that were double cropped in accordance with section 15(h) of the Basic Provisions. FAC is irrelevant in this situation.
Q Many insureds have enterprise unit policies that allow you to separate units by irrigated and non-irrigated practice. In a FAC approved county can the insured separate enterprise units by NFAC and FAC?A
No. Section 34(a)(4)(viii) allows the insured to elect one enterprise unit for all irrigated practices and one enterprise unit for all non-irrigated practices. All NFAC and FAC IRR practices would be in one enterprise unit and all NFAC and FAC NIRR practices would be in one enterprise unit.
Q If a producer has been planting FAC soybeans in a county that was not previously a FAC approved county and has reported the FAC soybeans at FSA, and the county is now a FAC approved county will the producer qualify for 100 percent of the T-Yield even though the producer did not keep records of their history?A
Normal APH rules apply.
The following matrix assumes soybean insurance available in a county where both FAC and NFAC practices are in effect and a continuous soybean policy is in effect for the insured.ScenarioInsurable PracticeSoybean Insurance AvailableSoybean Insurance Mandatory - If a policy is in effect
Soybeans planted behind cover crop. NFAC Yes Yes Soybeans planted behind small grain crop harvested for hay before heading. NFAC Yes Yes Soybeans planted behind small grain crop harvested for hay after heading. FAC Yes Yes Soybeans planted behind insured wheat crop planted for grain and harvested. No double crop history. No loss. FAC Yes Yes Soybeans planted behind insured wheat crop planted for grain and failed before heading stage. No double crop history. Insured elects to protect 100 percent indemnity on first crop. NFAC Yes No Soybeans planted behind insured wheat crop planted for grain. Loss occurred after heading stage. No double crop history. Insured elects to protect 100 percent indemnity on first crop. FAC Yes No Soybeans planted behind insured wheat crop planted for grain. Wheat failed and terminated before heading stage. Qualifying double crop history. One hundred percent coverage available for both wheat and soybeans. NFAC Yes Yes Soybeans planted behind insured wheat crop planted for grain. Loss occurred after heading stage. Qualifying double crop history. One hundred percent coverage available for both wheat and soybeans. FAC Yes Yes
For more information, contact the Oklahoma City Regional Office.