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 Irrigation Practice (EI)

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The Farm Bill authorized Insureds to elect separate Enterprise Units for a Crop/County by Irrigated and Non-Irrigated Practices for the 2015 and succeeding Reinsurance Years. This procedure allows Insureds to have two Enterprise Units when just one may have been allowed previously. RMA has added a new unit structure code of “EI” to account for Enterprise Units by Irrigated and Non-Irrigated practices.

• For crops with a filing date prior to 11/30/2017, to qualify for EU by Practice, both irrigated and non-irrigated units had to qualify for EU on their own (i.e., two unique land IDs that are each comprised of the lesser of 20 acres or 20% of the total acreage or a single unit that contains greater than 660 acres) so that if one practice did not qualify, the other was not eligible for EU.
• For 2018, for those crops with an 11/30 or later filing date and for all 2019 crops, RMA is allowing insured to elect Enterprise Units by Irrigated Practice only, where an insured can now elect an Enterprise Unit on their irrigated land but choose a Basic Unit or Optional Unit for non-irrigated land.

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.

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

To qualify for Enterprise Units by Irrigation Practice (EI unit structure) on both irrigation practices, acreage from each irrigation 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 Irrigation Practice procedures are similar to those for Enterprise Units by Cropping Practice (EC unit structure):

• If one or both practices do not separately meet the qualification rules for EU, then EI unit structure is not applicable.
• However, EI procedures state that the grower is still eligible for a single Enterprise Unit (EU unit structure) if acreage from both irrigation 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 EI is elected on a single irrigation practice and BU/OU on the other cropping practice, then the cropping practice EI is elected on must meet the qualification rules for an Enterprise Unit on its own. If the practice EI was elected on does not meet the qualification rules for an Enterprise Unit, then BU/OU unit structure will apply.
• EI cannot be combined with MCEU or EC.
• Not allowed on HR-ACE.
• Growers can elect enterprise units by either cropping practice or irrigation practice but not both.

To allow a user to elect an Enterprise Unit by Practice, a new option, “Enterprise Unit Separated by Irrigation Practice”, is available from the Unit Option Code dropdown when available for the State/County/Crop per the ADM.

When this option is selected on a coverage, “EI” is applied as the Unit Option Code to all detail lines attached to the coverage.

Additionally, if a user has access to EU Override functionality , the Override dropdown was updated to include “Apply EI” and “Remove EI Override” options. Also, the Remove EU option has been updated to "Remove EU/EI". If the user wants to remove EI but apply EU, the "Apply EU" option should be selected.

When EI is elected on the coverage, the “EI” displays on pages throughout the policy:

a. The Unit Number is appended with “EI”.
b. The Coverage dropdown visible on pages throughout the System (e.g., View MPCI Detail Lines, Manage Lands IDs popup) displays “EI” after the Plan Code.

If the “Enterprise Unit Separated by Irrigation Practice” option was selected for the Unit Option Code on the Add New/Maintain Coverage page, then “EI” is shown on the View Coverage page in the Unit Option Code field (a).

NOTE: If, on Mark Complete, the System determines that the coverage does not qualify for EI, the Unit Option Code will display “EI (Note: Does not qualify for EI for the current year)” instead. If the “Remove EI/EU” option is selected from the Override dropdown and the coverage does not qualify for EI, the Unit Option Code will display “EI (Note: Override applied – Remove EI/EU)”.

At Mark Complete, if an AR Sign Date exists, the System will use standard EU logic to determine if each practice (Irrigated and Non-Irrigated) qualifies for EU. Each Practice (Irrigated and Non-Irrigated) must qualify for EU on its own in order for EI to apply. If the System determines EI does not apply, it will then run through the EU logic considering all detail lines for the coverage, regardless of practice. If EU also does not apply, the underlying unit structure will be applied.

With Mark Complete, two new suspensions have been added:

• One suspension for when EI is on the coverage and the System determines EI does not apply but EU does, and
• Another suspension for when neither EI nor EU apply to the detail line.

All estimator tools have been updated to include the EI unit structure as an option when applicable to the selected coverage.