Multi-County Enterprise Units Available in Crop Insurance Policies
January 30, 2019
Corn and soybeans are now eligible for Multi-County Enterprise Units for two contiguous counties within a state. This endorsement allows a producer to combine crop acreage by practice into one Enterprise Unit, referred to as a Multi-County Enterprise Unit (MCEU). This endorsement can be purchased with Yield Protection or Revenue Protection policies.
What You Need to Know
- The MCEU must be selected on the application by the March 15, 2019, sales closing date.
- A primary and secondary county must be selected by the July 15, 2019, acreage reporting date. These counties will make up the MCEU. There can be more than one group, but each group can only consist of two contiguous counties in the same state.
- The primary county must qualify for Enterprise Units (EU). The secondary county will combine acreage with the primary county to establish the MCEU. The secondary county will not qualify for EU by itself.
- Premium, guarantee, and liability will be calculated separately for each county in the MCEU. However, total insured acres will be used to determine the appropriate EU premium discount factor.
- Replant, prevented planting, and claims for indemnity will be determined at the MCEU level.
To gain a better understanding of how MCEUs can fit into your risk management plan, contact your local crop insurance agent.