Policyholder Notice 2018-01-22

In accordance with Section 4.(c) of your Common Crop Insurance Policy, Basic Provisions (17-BR), we are notifying you of changes to your insurance policy.

On November 28, 2017, the U.S. Department of Agriculture (USDA) Risk Management Agency (RMA) revised the Common Crop Insurance Policy Basic Provisions (18-BR), Catastrophic Risk Protection Endorsement (18-CAT), and Area Risk Protection Insurance Basic Provisions (18-ARPI) to incorporate changes due to changes made in a final rule published in the Federal Register on November 24, 2017. The primary changes of note are:

• The June 1 certification deadline date has been removed from the conservation compliance provisions. Instead, the deadline for filing form AD-1026 with FSA will be the earliest applicable premium billing date.
• Policyholders may now select different unit structures by practice for either irrigated or non-irrigated practices.
• Policyholders may now choose an enterprise unit for one practice and the most appropriate unit structure on the other practice, be it a separate enterprise unit or optional or basic units.

Additionally, on November 30, 2017, the RMA released Product Management Bulletin (PM-17-066) announcing that the 10 percent yield limitation (cups) will become an option. This option prevents your APH yield from declining more than 10 percent from the prior year. We will automatically apply the Yield Cup option to your APH yields if applicable by adding the option to your policy. If you do not want the Yield Cup option to apply, it must be declined on your policy renewal forms by the sales closing (cancellation) date.

Finally, on December 4, 2017, the RMA released Product Management Bulletin (PM-17-068) announcing the removal of the Prevented Planting +10 Percent Option (PT) for the 2018 and succeeding crop years. Previously, there has been an option for policyholders of some crops to increase prevented planting coverage by five or ten percent (+5 percent option and +10 percent option, respectively). Because RMA has removed the +10 percent option, we will automatically convert policies that had PT coverages to the +5 percent option (PF) for the appropriate crop year. If you do not want PF in place of the PT, please contact your crop insurance agent to remove the option by the sales closing (cancellation) date.

These changes will be effective for the 2018 and succeeding reinsurance years for all crops with a 2018 contract change date (CCD) on or after November 30, 2017 (February and March SCDs; e.g. Cotton, ELS, Rice, etc.), and for the 2019 and succeeding reinsurance years for all crops with a 2018 contract change date prior to November 30, 2017 (all earlier SCDs; e.g. Almonds, Cherries, Citrus, Grapes, Tomatoes, etc.).  Please refer to the date table for the complete list of contract change dates.

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