Enterprise Unit (EU) Unit Structure

overview

An Enterprise Unit, or EU, is an insurance unit structure that contains all insurable acreage of a single crop in a county for which the insured has a share on the date coverage begins for the crop year. There is a significant premium discount for enterprise units, but claiming a loss can be more difficult compared to a smaller unit election (basic vs optional unit).

EUs are available for crops and counties where the actuarial documents specify availability.

Enterprise Units are elected on the coverage by the Sales Closing Date and when acreage is reported and marked complete, the System validates the coverage to make sure it qualifies for EU.

EU Qualifications

Acreage must be insurable planted acres (not PP, SE, MB, DC, SCO, or HIP).

To qualify for EU at the county level, EI on either or both irrigation practices, EC on either or both cropping practices, or ET on either or both, the county or practice(s) must meet one of the following requirements (20/20 Rule):

Two unique Land IDs that are each comprised of planted acres that are equal to at least the lesser of 20 acres or 20% of the total planted acres on the coverage;

A combination of unique Land IDs that are less than 20 acres that can be aggregated so that two parcels have the lesser of 20 acres or 20% of the insurable acres across the unit;

There is one unique Land ID that contains 660 or more acres.

Enterprise Units as Crop Options

For 2022+ RYs, now all enterprise unit designations are considered crop options under the master Enterprise Unit unit structure. This includes the new Enterprise Units by Type option, which we will discuss later in this video.

When actuarial documents specify, you can elect separate EUs by irrigation, cropping practice, or type:

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Enterprise Units by Irrigation Practice: Allows an 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. See "Enterprise Units by Irrigation Practice (EI)".

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Enterprise Units by Cropping Practice: Allows an insured 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. See "Enterprise Units by Cropping Practice (EC)".

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Enterprise Units by Type: Allows insureds to elect separate enterprise units for each type of a crop elected in a single a county, allowing them to have one enterprise unit for one type and another enterprise unit for another type.

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Multi-County Enterprise Units: Allows an insured who farms across county lines to combine their acreage of a single crop in one county with their acreage of the same single crop in a contiguous county in the same state to create one larger enterprise unit. This endorsement also allows for combining separate enterprise units by practice across contiguous county lines. See "Multi-County Enterprise Unit (MCEU) ".

Learn more about Enterprise Units and their requirements on the RMA's website.