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Separate Coverage Level Elections for Irrigated and Non-Irrigated Acreage

Section 11015 of the Agricultural Act of 2014 authorized an insured that produces an agricultural commodity on both irrigated and non-irrigated land to elect a different coverage level for each production practice. The ability to make this election will first begin with the 2015 crop year for crops with a contract change date of November 30, 2014, and later. The election will be available for additional coverage policies only and only when the actuarial documents provide separate coverage by irrigated and non-irrigated practices. Not all crops have sufficient information available for RMA to have insurance offers for both irrigated and non-irrigated practices. Even if you have an additional coverage level policy, purchasing the Catastrophic Risk Protection Endorsement (Cat Endorsement) is not allowed as one of the separate coverage levels.

Coverage Level by Practice Benefits:

  • Producer may chose a coverage level that best fits the risk management needs for their irrigated and non-irrigated acreage.
  • Only one additional coverage administrative fee is charged if the producer elects different levels of coverage for irrigated and non-irrigated acreage.

Qualification for Coverage Level by Practice:

  • The insured must have an additional coverage policy for the crop in the county and the actuarial documents must provide for separate coverage by irrigated and non-irrigated practice for the crop. The insured may select one coverage level for all irrigated acreage and one coverage level for all non-irrigated acreage.
  • Example: By crop, the insured may choose a 65 percent coverage level for all irrigated acreage (e.g. corn irrigated practice) and an 80 percent coverage level for all non-irrigated acreage (e.g. corn non-irrigated practice)
  • The election is not available for high-risk land insured under the CAT Endorsement.

Application for Coverage Level by Practice:

  • Producers are required to make the coverage level election for each practice by the sales closing date. Each practice must be listed on the application or a policy change form with the selected coverage level.

Contact Information

For more information, contact RMA Public Affairs.