The RMA has made updates to Enterprise Units for the 2022+ RYs, which require changes to the System. As such, System updates are underway and are being rolled over the next several releases to be ready for the first relevant Sales Closing Date. Documentation will be updated when the final of these changes has been implemented.

Enterprise Units by Cropping Practice (EC)

oVERVIEW

Beginning in the 2020 Reinsurance Year (RY), in counties where both a FAC (Following Another Crop) and NFAC (Not Following Another Crop) practices are available, Enterprise Units by Cropping Practice, or “EC”, unit structure is available.

Electing EC on a Coverage

Enterprise Units by Cropping Practice allows a grower to elect one Enterprise Unit for acreage farmed under the Following Another Crop (FAC) Cropping Practice and a separate Enterprise Unit for acreage farmed under the Not Following Another Crop (NFAC) Cropping Practice. In addition, growers can elect an Enterprise Unit for one cropping practice while electing another unit structure (BU/OU) on the other cropping practice.

EXAMPLE 

A grower has both FAC and NFAC acreage. The grower elects an enterprise unit for a FAC cropping practice and BU/OU for an NFAC cropping practice.

Per the RMA White Paper, a grower may elect one of the following enterprise unit structures by for all FAC cropping practice for a commodity:

• A single enterprise unit for all FAC and NFAC (an EU);
• A separate enterprise unit by FAC and a separate enterprise unit by NFAC (one EC, one EC)
• An enterprise unit by FAC and basic or optional units for NFAC (one EC, an OU/BU); or
• An enterprise unit by NFAC and basic or optional units for FAC (one EC, an OU/BU).

To account for Enterprise Units by Cropping Practice, RMA has issued a new unit structure code of "EC". When EC is elected on both cropping practices, each practice must separately meet the rules to qualify for an Enterprise Unit. If one or both practices do not separately meet the qualifications for an Enterprise Unit, then the grower has the option of either a single Enterprise Unit for the crop/county (EU unit structure) or the underlying BU/OU unit structure.

NOTE: When EC is elected on a coverage, but it does not qualify, the System will display a message.

Consult the actuarial documents for EC availability and Sales Closing Dates by state/county/crop.

To qualify for Enterprise Units by Cropping Practice (EC unit structure) on both cropping practices, acreage from each cropping practice must separately meet the rules for qualifying for an Enterprise Units. See "Enterprise Unit (EU) Unit Structure" to learn more.

The Enterprise Units by Cropping Practice procedures are similar to those for Enterprise Units by Irrigation Practice (EP unit structure):

• If one or both practices do not separately meet the qualification rules for EU, then EC unit structure is not applicable.
• However, EC procedures state that the grower is still eligible for a single Enterprise Unit (EU unit structure) if acreage from both cropping practices together meet the qualification rules for an Enterprise Unit. If Enterprise Unit qualification rules are still not met, then the underlying BU/OU unit structure will apply to both practices.
• When EC is elected on a single cropping practice and BU/OU on the other cropping practice, then the cropping practice EC is elected on must meet the qualification rules for an Enterprise Unit on its own. If the practice EC was elected on does not meet the qualification rules for an Enterprise Unit, then BU/OU unit structure will apply.
• If, at the SCD, the Unit Structure elected was EC on both cropping practices, but at the ARD, the coverage does not qualify for EC on both cropping practices, then the insured has the following Unit Structure options to choose from:

• EC on the FAC Practice Only

• EC on the NFAC Practice Only

• EU on a Crop/County Basis

• BU/OU

• EC cannot be combined with MCEU or EP.
• Not allowed on HR-ACE.
• Growers can elect enterprise units by either cropping practice or irrigation practice but not both.

To accommodate this change, the coverage pages have been updated to display this new unit option code for selection when available for the State/County/Crop. Validations, suspension logic, rating, and overrides for Enterprise Units were also updated for this change.

With 2020+ RYs, when available in the actuarials for the State/County/Crop, users can elect "Enterprise Units by Cropping Practice (EC)" from the Unit Structure when adding a new policy or quote and when adding or maintaining a coverage (a). After electing EC, then users designate which practice (FAC, NFAC, or both) the EC is applicable to (b). "Both" is selected by default.

The above example represents the EC fields on the Add New Coverage page.

The "EC" Unit Structure Code is displayed next to the unit number everywhere the unit number is displayed (i.e., the Detail Lines tab, the Fast Edit AR, Copy Detail Line functionality) and in the Coverage Details displayed on multiple pages in the site.

The above example shows the "EC" Unit Structure Code in the Coverage Details dropdown when adding a new detail line to an EC coverage.

The above examples show the "EC" Unit Structure Code in the Coverage Details on the Detail Lines tab of a policy.

Separate rows are displayed for FAC and NFAC practices when EC is elected on the coverage.

EC will be the System Determined Unit Structure if:

• When EC is elected on both practices, if the System determines EC applies, EC will display for both practices.
• When EC is elected on FAC practices only, if the System determines EC applies to FAC detail lines, EC will display for the FAC line only and BU/OU will display for the NFAC line; or
• When EC is elected on NFAC practices only, if the System determines EC applies to NFAC detail lines, EC will display for the NFAC line only and BU/OU will display for the FAC line.

For those with the proper permissions, the “EC” override will display if EC is elected on the coverage and the System determines EC does not apply:

• If EC on Both Cropping Practices was the original elected unit structure, then the EC on Both Cropping Practices, EC on FAC Only, EC on FAC Only, and BU/OU will be available for overriding.
• If EC on FAC Cropping Practice Only was the original elected unit structure, then the EC on FAC Only and BU/OU will be available for overriding.
• If EC on NFAC Cropping Practice Only was the original elected unit structure, then the EC on NFAC Only and BU/OU will be available for overriding.