MANAGERS BULLETIN: MGR18-015




1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

November 27, 2018

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Martin R. Barbre, Administrator /s/ Keith Gray    11/27/2018

Subject:

High-Risk Alternative Coverage Endorsement Modifications – 2019 and Succeeding Crop Years
Background

The High-Risk Alternative Coverage Endorsement (HR-ACE) allows policyholders to insure high-risk acres at a coverage level that is lower than the coverage level on their non-high-risk acres (as an optional endorsement to a Federally reinsured corn, soybean, wheat, or grain sorghum crop provisions). The HR-ACE is available in counties with a high-risk classification in Arkansas, Illinois, Indiana, Iowa (excluding the 35 counties that fall into the Prairie Pothole National Priority Area), Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska (limited to counties east of Holt County), Ohio, and Tennessee.

There are two modifications to HR-ACE.

  1. Enterprise units by practice are allowed. The previous issuance of HR-ACE did not allow for enterprise units by practice; and
  2. Policyholders may elect and qualify for a unit structure on HR-ACE that is independent of their unit structure election on the base policy. The previous issuance of HR-ACE limited the election and qualification of enterprise units on HR-ACE to only those insureds who elected and qualified for enterprise units on the base policy.

These modifications will be effective for crops with a contract change date on or after November 30, 2018 for the 2019 crop year.

Action

RMA will place, by close of business today, the HR-ACE for the 2019 crop year on the RMA website.

Interested producers should contact a crop insurance agent for further information. A list of agents can be found on the Risk Management Agency (RMA) website.

Disposal Date

December 31, 2019

USDA is an Equal Opportunity Employer and Provider