Effective in 2017: The following change from USDA Risk Management Agency has been made regarding the double-crop indemnity provisions in crop insurance.
For more information and the full website with FAQs visit the link here: http://www.rma.usda.gov/help/faq/doublecropping.html
Frequently Asked Questions
Double Cropping Revision and Practical to Replant
Jun 22, 2016
Q: What is double cropping?
A: Planting and harvesting two or more crops in the same field in the same crop year.
Q: Does the Federal Crop Insurance Act allow double cropping?
A: Yes, the Act specifies that a producer may receive full insurance payments through wholesale insurance company on two or more crops planted for harvest in the same field and crop year if certain conditions are met.
Q: What is the current double cropping rule?
A: For now, an insured producer can only double crop the greatest number of acres double cropped in two of the past four crop years in which the first insured crop was planted. For example, if a farmer that has historically double cropped 300 acres but added an additional 100 acres, the farmer was only eligible for 300 acres of double cropping.
Q: Why the change?
A: Producers and crop insurance companies asked the Risk Management Agency to review the current rules to see whether greater flexibility could be added to the current provisions. RMA worked with producers to make it more reflective of current farming practices. This change will address both land added to an operation, and account for multiple crop rotations.
Q: What are the new eligibility requirements?
A: To provide flexibility for expanding operations, the rule is now changed to allow eligible double cropping acres to be based on either the greatest number of acres double cropped in two of the past four crop years, or the percentage of acres historically double cropped in two of the past four crop years in which the first insured crop was planted. In the example above, the policyholder has historically double cropped 100 percent of the first crop acres and now will qualify to insure 400 acres as eligible double cropping acreage. These changes will be in effect for the 2017 crop year for most crops, starting with winter wheat.
Q: Some producers have found challenges keeping separate records of acreage and production that was and was not double cropped because the acreage is in the same field and they often harvest both first and second crop production at the same time. Does RMA allow comingled production from acreage double cropped and not double cropped?
A: Yes, RMA is revising the provisions to allow the allocation of comingled first and second crop production to the associated crop acreage in proportion to the liability for the acreage that was and was not double cropped. For example, say a producer has two fields next to each other in the same unit. On one field they plant wheat, harvest the wheat, then plant soybeans, while the other field is a single crop of soybeans only. They may harvest both soybean fields at the same time, making it difficult to keep the production separate.
Q: Why is RMA revising the practical to replant provisions?
A: Concerns were raised regarding the definition of “practical to replant” and the difficulty and inconsistency that can occur in administering the practical to replant provisions of the crop insurance policy. The definition has been revised to provide a clear, known deadline for when replanting of the crop is considered to be practical and if not replanted, coverage will not be provided.