High-Risk Ground Alternate Coverage
• Allows producers to separate their high-risk acres from non-high-risk acres on separate coverage levels.
- Previously if we excluded high-risk ground you were only eligible for CAT coverage on the excluded ground
• High-risk ground unit options: optional, basic, or enterprise units
• The coverage of high-risk acres must be insured at a lower level than the regular-risk acres.
• Election must be made by the sales closing date of March 15th.
From the FAQ Above:
Q: What is the HR-ACE? Is it different from the current High-Risk Land Exclusion?
A: The HR-ACE is an endorsement to the Common Crop Insurance Policy (Basic Provisions) that provides more options to producers who farm both high-risk and non-high-risk land. In addition to those options currently available, a producer can select the HR-ACE, separate the high-risk land from the non-high-risk land, and insure them on separate additional coverage policies. The coverage on the high-risk policy must be of a lower coverage than the base policy but higher than the Catastrophic Risk Protection (CAT) level. For example, if a producer purchases 75/100 coverage on the base policy, the endorsement would allow the producer to purchase 65/100 on the high-risk policy. Prior to this endorsement, under the High-Risk Land Exclusion, a producer’s high-risk land could not be insured at a different additional coverage level, but could only be excluded from the policy and insured at CAT or not insured at all.