Conservation Compliance and Crop Insurance

Pursuant to the 2014 Farm Bill, crop insurance premium subsidies are now linked to conservation compliance.  The Risk Management Agency has put together a good FAQ about conservation compliance but here are some highlights:

What type of compliance is required?

For production on highly erodible land, a producer of annually tilled crops or sugarcane is required to use a Natural Resources Conservation Service approved conservation plan.  If production occurs on a converted wetland, certain USDA benefits are not available.

Are there any deadlines?  If so, what is required to be done before the deadline?

Yes.  To be eligible for a crop insurance subsidy, a completed and signed form AD-1026 must be on file at the Farm Service Agency by June 1, 2015 for the 2016 reinsurance year (July 1, 2015 to June 30, 2016) and you, and any affiliated person, must be in compliance.

What is a form AD-1026?

Form AD-1026 is also called a “certificate of compliance” and is the form used to certify compliance with highly erodible land and wetlands conversion provisions.

Who determines if my farm has highly erodible land or wetland conservation?

The National Resource Conservation Service makes the determination.

How do I know if I am already in compliance?

If you are currently eligible for commodity, conservation, or disaster programs administered by FSA and the USDA, you are in compliance for crop insurance subsidy purposes.  If you are unsure if you are eligible for commodity, conservation, or disaster programs, you may contact your local USDA service center.

Can I obtain crop insurance if I do not file the proper documentation and/or am not in compliance?

Yes, although you will pay the full crop insurance premium.

I do not grow annual crops; I insure only livestock and pasture.  Must I still file a certificate of compliance?

Yes.  To be eligible for any crop insurance premium subsidy, you must have a completed and signed form AD-1026 on file with the Farm Service Agency by June 1, 2015.

There are more technical questions and answers posted on the RMA FAQ.  Feel free to take a look at the FAQs and if you have further questions, you are welcome to contact us!

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