Farmers now can choose to combine acreage of an insured crop across county lines into a Multi-county Enterprise Unit Endorsement (MCEU). This allows farmers to qualify for the better EU premium rate on land that wasn’t eligible for an EU in the past.
The basics:
- One county must qualify independently for EU; the other county must not qualify.
- The land in the combined EU must all have the same elections (insurance plan, coverage level and practice, such as irrigated or nonirrigated).
- The MCEU doesn’t combine the county crop policies – only all insured acreage of the crop/practice. Separate applications and policies are required for each county.
- APH yields for each county are not impacted.
- Premium, guarantee and liability will be calculated separately for each county based on the acres and actuarial documents for that county. But the EU premium discount will be determined by using the total acres in the MCEU.
Don’t wait until the last minute to look into this new option.
Your Farm Credit Services of America crop insurance team has been trained to understand the rules involved. We are ready to help you assess whether the new MCEU would be advantageous to your operation.
Call your local FCSAmerica office or 800-884-FARM for help with this decision today.
