PRODUCT MANAGEMENT BULLETIN: PM22-023




1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

April 07, 2022

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    4/7/2022

Subject:

New Unit Division by Grid Option (UDGO) Effective for the 2023 and Succeeding Crop Years
Background

In Georgia, Maine, and Texas, land is not surveyed under the U.S. Public Land Survey System, which is the basis for optional units (OUs) by sections in many parts of the United States. The Risk Management Agency (RMA) worked with stakeholders to develop the Unit Division by Grid Option (UDGO) for Category B crops with additional coverage in these states. UDGO uses a grid system developed by RMA, based on the United States National Grid (USNG), by dividing each approximately 6.2-mile by 6.2-mile USNG polygon into 36 roughly equal sized polygons approximately 686 acres in size. These approximately 686-acre polygons are each identified with a unique Section Equivalent ID and will be considered section equivalent parcels of land legally identified by other methods of measure, in accordance with Federal Crop Insurance Corporation procedures for establishing OUs.

When UDGO is elected by an insured, it applies to all Category B crops with additional coverage in the county and OUs cannot be established by any other means. OUs established by UDGO can be further divided by irrigated and non-irrigated acreage and acreage insured under an organic farming practice as provided in the Common Crop Insurance Policy Basic Provisions, and as allowed in the applicable Crop Provisions (CP). The insured is not required to have an OU structure when UDGO is elected and can still choose unit structure on a crop/county basis for the applicable crop year.

Action

Beginning with the 2023 crop year, insureds in Georgia, Maine, and Texas may request the UDGO to establish OUs by RMA Grid where the option is available and in accordance with CP that allow for separate OUs. UDGO procedures are attached and will be incorporated into the applicable handbooks upon their next issuance(s).

 

DISPOSAL DATE:
Effective until incorporated into procedure.

 

Attachment

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