On May 1, 2020, the Risk Management Agency (RMA) published on its website a number of documents relating to its Final Rule with request for comments for the Forage Seeding and Forage Production Crop Insurance Provisions for the 2021 crop year. The documents include a National Press Release, Product Management Bulletin: PM-20-029, and the Forage Production Crop Provisions. https://www.rma.usda.gov/en/News-Room/Press/Press-Releases/2020-News/USDA-Announces-Improvements-to-Forage-Seeding-and-Forage-Production-Crop-Insurance; https://www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2020/PM-20-029; https://www.rma.usda.gov/-/media/RMAweb/Policies/Forage-Production/2021/Forage-Production-Crop-Provisions-21-033.ashx. The Final Rule with request for comments was published in the Federal Register on April 30, 2020. https://www.regulations.gov/document?D=FCIC-20-0003-0001. In these documents, RMA states that it is making the following changes:
Forage Seeding
- Revised the loss adjustment method to be based on alfalfa stems (Adequate Stand). Therefore, the current insurable types will be converted to new types based on percentage of alfalfa groundcover. The Adequate Stand method more accurately predicts yields in subsequent years by using the number of live stems rather than live plants (Normal Planting Density) for alfalfa mixes with more than 60% alfalfa. The Final Rule states RMA is adding the definition of ‘‘adequate stand.’’ The new definition will allow RMA to revise loss adjustment procedures to rely upon the number of live alfalfa stems rather than the number of live plants (normal stand) for making loss determinations for forage containing more than 60 percent alfalfa. Plants can have more than one stem. Extension research across major forage growing areas has demonstrated that the number of live alfalfa stems is more closely correlated with future yield than the number of live plants when alfalfa is the dominant component of the forage mixture. Loss determinations for forage types that contain less than 60 percent alfalfa or no alfalfa at all, such as red clover, will have no change to existing loss adjustment procedures and, as stated below, will be based upon the normal planting density because there is no demonstrable correlation between future yield and the number of live alfalfa stems when the forage type does not contain at least 60 percent alfalfa.
- Maintained current loss determination method (normal planting density) for forage types that contain less than 60 percent alfalfa or no alfalfa at all, such as red clover. Normal planting density will also be used for replant determinations. The Final Rule states RMA is removing the definition of ‘‘normal stand’’ and replacing it with the definition of ‘‘normal planting density.’’ The new definition of ‘‘normal planting density’’ simplifies the previous definition of ‘‘normal stand’’ by replacing the phrase ‘‘a population of live plants per square foot that meets the minimum required number of plants’’ with the more concise phrase ‘‘the minimum number of live plants per square foot.’’ The normal planting density will be used to determine if the stand qualifies for replanting payments. The normal planting density will result in more accurate replanting payments than basing replant determinations on an adequate stand because not all stems may have emerged when replanting determinations are made.
- Revised insurable alfalfa types to be based on alfalfa groundcover percentage as the adequate stand method is utilized for alfalfa mixes with 60 percent or more alfalfa groundcover.
- Revised provisions and program dates to allow for expansion of the fall planted practice and expansion into additional counties. The Final Rule states that it is revising section 5 to replace the cancellation and termination date table with a new date table. The new dates allow for expansion of the fall planted practice and align forage seeding cancellation and termination dates with the dates for other fall planted crops in each state. Maine’s cancellation and termination dates will remain unchanged at March 15 to allow time after premium billing for a termination decision to be made. In all other states, the cancellation date will be July 31 and termination date will be September 30 to allow time after premium billing for a termination decision to be made.
- Removed state and county-specific references to allow for more-timely responsiveness to new or evolving regional conditions as needed in the future. The Final Rule states that section 9 is being revised to remove all state and county specific end of insurance dates in 9(g) and instead referring to the end of insurance period date shown in the actuarial documents. This change will simplify the provision and allow FCIC to provide area specific dates, allow for future program expansion, and allow FCIC to continue to be responsive to new or evolving regional conditions as needed in the future.
Forage Production
- Revised the definition of “adequate stand” to correspond with the definition in the Forage Seeding Crop Provisions.
- Added the definition of “normal planting density” to correspond with the definition in the Forage Seeding Crop Provisions and address the loss determination methods for types with less than 60 percent alfalfa or no alfalfa at all. The Final Rule states the new definition will utilize the former definition of adequate stand to be ‘‘the minimum number of live plants per square foot as shown in the Special Provisions.’’ The normal planting density is more appropriate for measuring successful establishment of forage with less than 60 percent alfalfa ground cover.
- Revised insurable alfalfa types to be based on alfalfa groundcover percentage.
- Revised the cancellation and termination dates for Arizona from September 30 to October 31 and revised the cancellation and termination dates for Nevada and Utah from October 31 to September 30. The Final Rule states RMA is revising the cancellation and termination dates for Arizona from September 30 to October 31, to align the dates with those for California because Arizona is agronomically similar to California. FCIC is also revising the cancellation and termination dates for Nevada and Utah from October 31 to September 30 because insurance attaches October 16 and having a September sales closing date accommodates the insurance attachment date.
- Removed state and county-specific references to allow for more-timely responsiveness to new or evolving regional conditions as needed in the future. The Final Rule states that section 7 is being revised to remove all state and county references in Section 7(a) and 7(b)(6), Insurance Period, and instead refer to the attachment date and end of insurance period date shown in the actuarial documents to simplify the provision and allow FCIC to provide area specific dates, allow for future program expansion, and allow FCIC to continue to be responsive to new or evolving regional conditions as needed in the future.
The National Press Release also states that coverage of forage seeding is expanded into 186 more counties. RMA also states that it is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through approved insurance providers (AIPs) to deliver services, including processing policies, claims and agreements. These flexibilities include enabling producers to send notifications and reports electronically, extending the date for production reports and providing additional time and deferring interest on premium and other payments. RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email).
ANALYSIS – In addition to the changes listed above, RMA made a significant number of other changes to the policy. Those changes and the basis for the changes can be found at https://www.regulations.gov/document?D=FCIC-20-0003-0001.
All statements made are opinions of the author and are not intended to provide legal opinions or legal advice.