Blanket Written Agreements are issued for the county and producers are required to insure all insurable acres where applicable. Please review the Blanket Written Agreement for the county / crop in question for specific terms and conditions.
The insured has until the SCD to request, change, or cancel coverage. If they choose to use the Blanket Written Agreement on or before the SCD, they cannot "deny" it after the SCD and the FAC acres will be insured using the Blanket Written Agreement. However, they may choose to change their decision on or before the SCD.
The producer would have two options:
- Establish APH using applicable variable T-yield which is based on years of records for producing the crop in the county, or
- they can report prior non-irrigated FAC production history if they have the records to establish their APH and they have less than four years of records would use applicable T-yield to complete APH.
Keep in mind that if a producer elects not to use history it can impact 1st crop / 2nd crop rules and coverage as this was not waived with the initiative see FAQs - Double Cropping Initiative | RMA (usda.gov). If a producer does choose to use history standard APH procedures apply – reminder that they must keep continuity in accordance with para 1306 of the 2023 CIH.
A producer is not required to have records to qualify for a blanket written agreement, where available, please see Following Another Crop Written Agreement Details for 2023 | RMA (usda.gov). A producer is allowed to use prior production history to establish their APH database. If they have less than four years of production history to establish the APH database, the applicable T-yield will be used to complete the APH database.
If a producer is using prior production history, they must maintain continuity of records as required in Section 1306 of the CIH. This initiative did not waive any of those requirements and they cannot pick and choose records. Keep in mind this can also impact 1st crop / 2nd crop rules and PP eligibility which were not waived with the initiative - see FAQs -Double Cropping Initiative | RMA (usda.gov)
Areas with a blanket written agreement do not require history to qualify for a written agreement if they miss the deadline or do not apply for / accept the blanket written agreement – please see IS-22-003 Following Another Crop Written Agreement Details for 2023 | RMA (usda.gov) which outlines the requirements if they do not apply for the blanket written agreement on time.
If they chose to not apply for/accept the blanket written agreement by sales closing date they can submit a T/P written agreement, however the terms and conditions offered will largely be similar. Depending on timing, a crop inspection may also be required to establish insurability as outlined in the 2023 WAH para 84.
A producer can have enterprise units as provided in the CCIP-BP which allows for EUs on a crop/county basis or by irrigated and/or non-irrigated practices. A written agreement cannot provide coverage for separate Enterprise Units (EU) by cropping practice, Trend Adjusted APH (TA), Supplemental Coverage Option (SCO), or Enhanced Coverage Option (ECO).
The requirements for Type/Practice Written agreement requests as it relates to production reporting requirements are in the 2023 WAH Paragraph 84 B (1) (a) which indicates it is the choice of the insured whether they want to use the uninsurable history in their APH. However, the written agreement request must contain the production history in the completed APH if it is going to be used with the Type/Practice application. A new Type/Practice request must be submitted by no later than the applicable acreage reporting date. If a producer does choose to use history, standard APH procedures apply – reminder that they must keep continuity in accordance with para 1306 of the 2023 CIH.
WAH 84B(1)(a)
A completed APH containing the requested P/T, if the requested P/T has been previously grown and that history will be used in the APH database [if the requested P/T has not been previously grown, or the uninsurable history will not be used in the APH, provide an APH in accordance with Subpara. 22A(2)];
While a producer has the option to choose if they want to use or not use prior production history, as part of the request producers are required to report a completed APH database. For areas where no history is required to qualify for a written agreement, regardless of the insured’s choice (to use their uninsured history or not), if the TP written agreement request is approved, RMA will issue a T-Yield on the WA offer to complete the APH database, where applicable.
If the insured has prior FAC production history that was insured under the irrigated practice (002), they will be required to separate that prior production history if the insured is wanting a Written Agreement to insure irrigated FAC. The agent would follow the procedures in the 2023 CIH Para. 1523 which provides instructions on dividing Actual Production History (APH) databases when actuarial documents specify new practices/types.
The T-Yields offered for 2023 BL or TP written agreements will be the same for the both the FAC and NFAC irrigated practices and if insured is using apportionment method to separate prior production history, they will be able to prorate the production to planted acres of the applicable P/T according to Para. 1523(2)(a)(ii) and 1543C.
Note: If using attribution method under 1523(2)(a)(iii) to separate prior production history, RMA is designating Irrigated NFAC as the higher yielding practice compared to Irrigated FAC in the blanket written agreement area.
Yes, Type/Practice written agreements will follow the Written Agreement Handbook procedures which allow the insured to accept or reject the terms by the agreement's expiration date.
For the areas where no history is required to qualify for a written agreement the rates and yields are not published and requests for coverage are submitted as a normal Type/Practice written agreement request - they just do not have a requirement to have history to be eligible to apply for a WA.
In these areas, if they are a new request for FAC coverage using a Type/Practice written agreement, they have until acreage reporting date to apply. If they are a renewal, the producer would have to apply by the sales closing date.
In Pennsylvania FAC (Double Crop) Soybeans are insurable, but they do not have a separate practice or type broken out. This was not changed because producers in the area did not want to keep separate records for a separate practice and type.