*These FAQs are for informational purposes only. Please refer to the Basic Provisions, and applicable Crop Provisions and actuarial documents for complete information.
A secondary county is a county you designate to combine acreage with the primary county to stablish a MCEU. This acreage to be combined with the primary county must not qualify for the EU election you chose for the primary county.
The contiguous counties that form a MCEU must be in the same state. To qualify for a MCEU, the acreage on one county policy (the primary county) must individually qualify for the type of Enterprise Unit (EU) election you selected to apply to the MCEU.
For example, one EU (the primary county) for the crop and county or one EU for all irrigated practices for the crop and county, and/or one EU for all non-irrigated practices for the crop and county must separately qualify for an EU to qualify for a MCEU.
Yes.
1. The insurance plan and coverage level must be identical for the irrigation practice in each county in the MCEU.
2. A county may be part of one MCEU for all irrigated practices and a different MCEU for all non-irrigated practices. For example, irrigated corn in County B may be in a MCEU with County A and non-irrigated corn in County B may be in a MCEU with County C.
3. A county with EU elected for one irrigation practice and a different unit structure elected for the other irrigation practice may only qualify for a MCEU on the one practice EU was elected.
MCEU requirements include:
1. Both counties must be contiguous. RMA will determine which counties are contiguous, this information is available in the actuarial documents.
2. There must be planted insurable acreage of the insured crop in each county or by irrigation practice if applicable.
3. The policies for the insured crop in each county must have identical elections for:
a. MCEU;
b. Insurance plan;
c. Coverage level, by irrigation practice if applicable; and
d. EU or EU by cropping practice if applicable.
4. Both county crop policies within the MCEU must be written with the same AIP.
You must designate the primary and secondary county for each MCEU on or before the earliest acreage reporting date (ARD) for the crop year. If the primary and secondary counties are not designated by the earliest ARD for a crop year, then the MCEU will not apply for that crop year.
There are two determinations based on the timing of the discovery if you do not quality:
1. If the discovery is made on or before the ARD:
a. If the crop and county qualify for EU, then an EU on a crop and county basis will apply;
b. If the crop and county does not qualify for EU, then BUs or OUs, whichever you reported on your acreage report and qualify for, will apply.
2. If the discovery is made after the ARD:
a. If the crop and county qualify for EU, then an EU on a crop and county basis will apply;
b. If the crop and county does not qualify for EU, then a BU will apply.
There are two determinations based on the timing of the discovery if you do not qualify:
1. If the discovery is made on or before the ARD:
a. If both irrigation practices separately meet EU qualifications, then EU applies for both irrigation practices;
b. If both irrigation practices do not separately meet EU qualifications, you may elect:
(i) One EU for one irrigation practice (all irrigated or all non-irrigated practices), provided it meets the qualifications for an EU, and BUs or OUs for the other irrigation practice, whichever you reported on your acreage report and qualify for. MCEU will apply if all requirements are met; or
(ii) One EU for both irrigation practices on a crop and county basis, provided it meets the qualifications for a single EU. MCEU will apply if all requirements are met; or
2. BUs or OUs for both irrigation practices, whichever you reported on your acreage report and qualify for.
3. If the discovery is made after the ARD:
(a) If both irrigation practices separately meet EU qualifications, then EU applies for both irrigation practices;
(b) If both irrigation practices do not separately meet EU qualifications, then:
(i) One EU will apply for both irrigation practices on a crop and county basis, provided EU requirements are met; or
(ii) If the EU requirements are not met, a BU applies to both irrigation practices.
There are two determinations based on the timing of the discovery if you do not qualify:
1. If the discovery is made on or before the ARD:
- a. If the irrigation practice that EU was elected for meets EU qualifications, then EU will apply to that irrigation practice, and the other irrigation practice with BUs or OUs will have the unit structure chosen by you and you qualify for;
- b. If you do not qualify for an EU on one irrigation practice (irrigated or non-irrigated) when you elect to insure one of the irrigation practices as an EU and BUs or OUs on the other irrigation practice; the unit structure for both irrigation practices will be based upon BUs or OUs, whichever you reported on your acreage report and qualify for.
2. If the discovery is made after the ARD:
- a. If the irrigation practice that EU was elected for meets EU qualifications, then EU will apply to that practice and the other irrigation practice with the different unit structure will have the unit structure chosen by you and you qualify for;
- b. If you do not qualify for an EU on one irrigation practice when you elect to insure one of the irrigation practices as EU and a different unit structure on the other irrigation practice, then a BU applies to both irrigation practices.
EU (including EU by irrigation practice) subsidy rates are shown in the table below will apply for each county in the MCEU:
| Coverage Level | 50% | 55% | 60% | 65% | 70% | 75% | 80% | 85% |
| Subsidy | 80% | 80% | 80% | 80% | 80% | 77% | 68% | 53% |