Frequently Asked Questions

Separate Coverage Level Elections for Irrigated and Non-Irrigated Acreage

Oct 9, 2014

Q. What are the requirements for electing separate coverage levels for irrigated and non-irrigated practices?
A: Your actuarial documents must provide for separate coverage for an irrigated and non-irrigated practice. If so, you may select one coverage level for all irrigated acreage and one coverage level for all non-irrigated acreage. For example, you may choose a 65 percent coverage level for all irrigated acreage (corn irrigated practice) and an 80 percent coverage level for all non-irrigated acreage (corn non-irrigated practice).

If your Crop Provisions allow the option to separately insure individual crop types or varieties, and your actuarial documents provide for separate coverage by irrigated and non-irrigated practice, you may select coverage levels by irrigated and non-irrigated practice for each separate crop type or variety.

Q. Will I pay more than one administrative fee for insurance?
A: This election does not change the administrative fee owed under the policy. If you owed one administrative fee for the crop, you will still owe one administrative fee if you elect separate coverage levels by practice.

Q. Can I still elect separate coverage levels by practice on my additional coverage policy if I excluded my high-risk land from my additional coverage policy, and insured the high risk land under CAT Endorsement?
A: Yes, you may still elect separate coverage levels on your additional coverage policy only. This option is not available for the high risk land insured under the CAT Endorsement.

Q. Can I elect separate coverage levels by practice on my high-risk land if I elect to insure my high-risk land under the High-Risk Alternative Coverage Endorsement?
A: Yes, under the High-Risk Alternate Coverage Endorsement you may insure your high-risk land at different coverage levels for irrigated and non-irrigated acreage not to exceed the coverage level on your additional coverage policy for your non-high risk land, if you elected coverage levels by practice on your additional coverage policy.

Q. Can I elect more than one coverage level if I have more than one type of irrigated practice on my actuarial documents?
A: No, all irrigated practices must be insured at the same coverage level and all non-irrigated practices must be insured at the same coverage level. For example, if you have summerfallow wheat and continuous cropping wheat, which are considered non-irrigated practices (unless otherwise specified in the actuarial documents), the two practices must be insured at the same coverage level. However, if you also have irrigated wheat the irrigated wheat may be insured at a different coverage level.

Q. What if my Crop Provisions allow for separate coverage levels by type or variety?
A: Separate coverage levels by irrigated and non-irrigated practice will be available for each type or variety if separate coverage levels are allowed by type or variety. For example, you may choose 65 percent coverage level for processing type apples with an irrigated practice and a 70 percent coverage level for processing type apples with a non-irrigated practice. You may also choose a 70 percent coverage level for fresh type apples with an irrigated practice and a 75 percent coverage level for fresh type apples with a non-irrigated practice.

If your crop type or practice is not listed on your application, the coverage level will default to the lowest coverage level on the application for the crop.

Q. If I do not plant irrigated acreage or do not qualify for an irrigated practice but I elected separate coverage levels, what coverage level will I have for insurance?
A: If you do not plant irrigated acreage or do not qualify for an irrigated practice, you will still have the coverage level you elected for the non-irrigated practice.

For example: By the sales closing date, you 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). If you do not meet the policy requirements for insuring corn under an irrigated practice by the acreage reporting date, or you do not plant any corn irrigated acreage, the 80 percent coverage level percent you elected for the non-irrigated practice will be used to insure all acres qualifying for a non-irrigated practice.

Q. What if I elected enterprise units by irrigated and non-irrigated practices for my crop and I no longer qualify for the separate enterprise units?
A:Qualification for enterprise units does not impact coverage level elections. The separate coverage levels you elected will apply to the unit structure for which you are eligible.

Contact Information

For more information, contact RMA Public Affairs.