Added Land, Taking Ground Out of CRP, and New Breaking Land
RMA & USDA are going through major website changes & migrations. Some links may be broken, we are replacing old ones as USDA posts new links to webpages & handbooks.
USDA & RMA Information Links
2018 Crop Insurance Handbook Direct Links:
There are four types of added land and they are defined as follows:
1. New farm ground, but previously farmed by someone else. If the ground is:
- Within a section/unit already on the policy:
- The acres and production will be combined within the current unit/farm.
- Within a county currently farmed:
- The new unit’s guarantee & yield will be a simple average of all of your other units within the county or the county T-Yield, whichever is higher.
- Within a new county or state:
- If the producer has not farmed within the county where land is being added, the producer qualifies for New Producer Benefits.
- New Producer Qualification: The producer cannot have had a share in the production of the insured crop in the county for more than two APH crop years.
- Producing a shared crop means actively engaged in farming for a share of the insured crop’s production or being an SBI holder to a person who has been actively engaged in farming for a share of the insured crop’s production in the county.
- If the producer has ever produced a crop in the relative county, no matter how long ago, that history must be used. If the history is not provided, the producer will have to take 65% of the county T-Yield.
|If the acreage being added as a new BU or separate OU(s) is…||The APH database will be established using…
|Less than 2,000 acres||The higher of the following:
(1) County T-yield; or
(2) SA T-Yield
|Greater than or equal to 2,000 acres ||County T-Yield
Note: Added land and now crop/practice/type requests are no longer required to be submitted to RMA for approval.
2. Land coming out of CRP
- Acres & production will be reported to a separate database guaranteed at 100% of the county T-Yield for the first year of it’s out of CRP.
- After the first year, if there is other cropland within the section, the units will be combined.
New Breaking & Native Sod
Less than 320 Acres | Can request insurance from the AIP at acreage reporting time by completing a New Breaking Insurability Request.
More than 320 Acres| Must request a written agreement from the RMA by the sales closing date of the crop the producer plans to plant.
3. New Breaking is defined by RMA as:
- Acreage that has not been planted & harvested or insured in at least one of the previous crop years.
- Including insured acreage that was prevented from being planted.
- Acreage, where the only crop planted & harvested in one of three previous crop year, was a cover crop, hay, or forage.
- Initial guarantee 80% of County T-Yield
- Acres & production will be reported to a separate unit/line for the first year it’s broken out.
4. Native Sod is defined by RMA as:
Acreage that has no record of being tilled (determined in accordance with information collected and maintained by an agency of the USDA or other verifiable records provided by the insured and that are acceptable to the AIP) for the production of an annual crop on or before February 7, 2014, and on which the plant cover is composed principally of native grasses, grass-like plants, forbs, or shrubs suitable for grazing and browsing.
- Initial guarantee 65% of County T-Yield
- Acres & production will be reported to a separate unit/line for the first four years it’s broke out
- 50% reduction in subsidy on effected acres
How RMA determines if the effected ground is New Breaking or Native Sod
New Breaking | All (1-4) requirements met.
Native Sod | Requirements 1, 2, & 4 met.
1. The policyholder must provide documentation that 75 percent or more of the new breaking acreage by field (or within an existing field if only a portion of the field is new breaking acreage) is composed of soil types defined as Capability Class I, II, III, or IV as determined by the Natural Resources Conservation service (NRCS) Web Soil Survey (http://websoilsurvey.nrcs.usda.gov/app/HomePage.htm);
2. The policyholder must certify the new breaking acreage was broken out or chemically destroyed prior to planting;
3. The policyholder must provide documentation the new breaking acreage has been previously broken and planted to a crop. This documentation must show the new breaking acreage was tilled on or prior to February 7, 2014. Examples of documentation include, but are not limited to: a FSA-578 document dated on or prior to February 7, 2014, showing the prior crop the new breaking acreage was planted to; a FSA-578 document dated on or prior to February 7, 2014, showing the new breaking acreage is classified as cropland; etc.; and
4. If NRCS requires a Conservation Plan on the new breaking acreage, the policyholder must provide documentation that one is, or will be, in place. If NRCS does not require a Conservation Plan on the new breaking acreage, the producer must certify one is not required.
Contact us for further information or clarification.
Again, it’s important to notify your agent if you have added land or new breaking ground this year.