Enterprise Units by Type (ET)

overview

The RMA has introduced Enterprise Units by Type for the 2022+ RYs. The ET, or Enterprise Units by Type option, is similar to enterprise units but allows insureds to elect separate enterprise units for each type of a crop elected in a single a county, permitting them to have one enterprise unit for one type and another enterprise unit for another type.

This unit structure is applicable for all types allowed in the actuarials when elected on or before the SCD.

With this unit structure, when adding a coverage, the Enterprise Unit Separated by Type option is available from the Unit Option Code when available for the State/County/Crop. Then, when selected, the Select Types for ET field displays so the user can indicate whether the insured is electing ET on one or multiple types. In the Crop Options dropdown, Enterprise Units by Type is automatically selected so it’s shown selected and grayed out in the dropdown.

The Enterprise Units by Type unit structure code, ET, will also be visible throughout the System in all places where other unit structure codes appear.

 

Electing on a Single Type

When ET is selected for a single type, the elected type must qualify for EU using the 20/20 rule.

EXAMPLE 

A Dry Beans coverage has 5 units: 2 units with the Garbanzo type, 2 units with the Pinto type, and 1 unit with the Blackeye type with the following acreage reported:

 

Unit 0001-0001 – Garbanzo (306) – 150 Acres

Unit 0001-0002 – Garbanzo (306) – 100 Acres

Unit 0002-0001 – Pinto (311) – 150 Acres

Unit 0002-0002 – Pinto (311) – 250 Acres

Unit 0003-0001 – Blackeye (315) – 10 Acres

 

In this example, both the Garbanzo and Pinto types qualify for EU based on the 20/20 rule. Blackeye, however, does not meet the 20/20 rule so is ineligible for EU or ET.

 

By the Sales Closing Date for the coverage, the insured only elected ET on the Pinto type, so therefore, even though Garbanzo qualifies for EU, the Pinto units are the only ones that qualify for ET.

Electing on Multiple Types

When ET is elected for multiple types, each type must individually qualify for EU using the 20/20 rule to be eligible for ET.

EXAMPLE 

A Wheat (0011) Coverage has 5 units: 2 units with the Spring type, 2 units with the Winter type, and 1 unit with the Durum type with the following acreage reported:

 

Unit 0001-0001 – Spring (012) – 175 Acres

Unit 0001-0002 – Spring (012) – 250 Acres

Unit 0002-0001 – Winter (011) – 120 Acres

Unit 0002-0002 – Winter (011) – 100 Acres

Unit 0003-0001 – Durum (015) – 18 Acres

 

In this example, both the Spring and Winter types qualify for EU based on the 20/20 rule. Durum, however, does not meet the 20/20 rule so is ineligible for EU or ET.

 

Because the insured elected ET on multiple types by the Sales Closing Date for the coverage, both the Spring and Winter units qualify for ET.