PRODUCT MANAGEMENT BULLETIN: PM21-037




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

Date

June 30, 2021

To:

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

From:

Richard H. Flournoy Deputy Administrator /s/ John W. Underwood, for    6/30/2021

Subject:

Area Risk Protection Insurance Basic Provisions and Common Crop Insurance Policy Basic Provisions Changes Effective for the 2022 and Succeeding Crop Years
Background

The Federal Crop Insurance Corporation (FCIC) amended the Area Risk Protection Insurance Basic Provisions (ARPI) and Common Crop Insurance Policy Basic Provisions (CCIP) for the 2022 and succeeding crop years for crops with a contract change date on or after June 30, 2021, and for all other crops, the changes are applicable for the 2023 and succeeding crop years, with the following changes:

CCIP and ARPI Basic Provisions

  • Revise the definition of “veteran farmer or rancher” to allow a legal entity, comprised only of the veteran and their spouse, to qualify as a veteran farmer or rancher when a qualifying veteran has a non-veteran spouse.

CCIP Basic Provisions

  • Clarify that the notice of loss provisions apply for Quality Loss Option eligibility.
  • Allow Crop Provisions to have enterprise units (EU) if allowed by the Crop Provisions. This change will allow separate EUs by type for wheat, dry beans, and dry peas through the Crop Provisions.
  • Allow a producer to report acreage as certified organic, or as acreage in transition to organic, when the producer certifies that they have requested, in writing, a written certification or other written documentation from a certifying agent on or before the acreage reporting date.

A Final Rule with these changes published in the Federal Register on June 30, 2021. FCIC invites you to submit comments on this rule through the close of business on August 30, 2021, at regulations.gov.

Action

The following documents will be available by close of business today on the RMA website at www.rma.usda.gov:

  • Area Risk Protection Insurance Regulations (22-ARPI)
  • Common Crop Insurance Policy Basic Provisions (22-BR)
  • Enterprise Units Fact Sheet
  • Enterprise Units Frequently Asked Questions
  • Organic Farming Practices Fact Sheet
  • Organic and Transitional Farming Practices Frequently Asked Questions
  • Veteran Farmer and Rancher Benefits for Federal Crop Insurance Fact Sheet
  • Beginning Farmer and Rancher (BFR) and Veteran Farmer and Rancher (VFR) Frequently Asked Questions

Approved insurance providers must notify policyholders of these changes at least 30 days prior to the cancellation date, as required by the policy.

Interested producers should contact a crop insurance agent for further information.

A list of agents can be found on the RMA website at www.rma.usda.gov/Information-Tools/Agent-Locator-Page.

DISPOSAL DATE:
December 31, 2021

USDA is an Equal Opportunity Employer and Provider