Multi County Enterprise Unit (MCEU) – 2019 and Succeeding Crop Years
As announced in RMA Bulletin No.: MGR-18-017, the Risk Management Agency (RMA) has developed the Multi-County Enterprise Unit (MCEU) Endorsement in response to requests to incorporate small amounts of acreage from one county into an enterprise unit for a contiguous county.
The MCEU Endorsement allows an insured to combine insured crop acreage of an insured crop, by irrigation practice (if applicable), in two contiguous counties into one Enterprise Unit (EU). The contiguous counties that form a MCEU must be in the same state. To qualify for a MCEU, one county (the primary county) must individually qualify for the type of EU election the insured has selected to apply to the MCEU. The secondary county to be combined with the primary county must not qualify for the EU election the insured elected for the primary county. Insureds may have multiple MCEUs for a crop and/or irrigation practice.
Electing the MCEU does not combine crop/county policies. Premium, along with the guarantee and liability, will be calculated separately for each county in the MCEU based on the acres physically located in each county using the actuarial documents for that county. However, the total insured planted acres of the MCEU will be used to determine the appropriate EU discount factor contained in the actuarial documents that will apply to each county in the MCEU. The EU discount factor applies to planted and PP acres when determining premium. Replanting, PP and claims for indemnities will be determined and paid, if applicable, at the MCEU level.
The insured must, on or before the earliest sales closing date of the counties in a MCEU, on an Application or Change form, elect:
- The MCEU option (MC); and
- The EU unit structure that will apply for the MCEU (i.e., EU or EP).
For counties/crops with a fall or winter sales closing date and a spring sales closing date specified in the actuarial documents, the MCEU election may be changed on or before the spring sales closing date if there is not insured fall planted acreage of the insured crop.
The insured may have more than one MCEU. To be part of the MCEU, both counties must be contiguous and there must be planted insurable acreage of the insured crop in each county. Both county crop policies within the MCEU must be written with the same AIP.
The policies for the insured crop in each county must have identical elections for:
- Multi-county enterprise units;
- Insurance plan;
- Coverage level; and
- EU or EU by practice.
The insured must designate the primary and secondary county for each MCEU on or before the earliest acreage reporting date. RMA will determine which counties are contiguous and make the information available on their website.
The MCEU Endorsement is available when provided in the actuarial documents. MCEUs are only available on additional coverage policies insured under the CCIP-BP and the applicable Crop Provisions for crops for which revenue protection is available, regardless of whether yield protection or revenue protection is elected. If revenue protection is not available, MECUs are available if authorized by the Special Provisions.