USDA reminds farmers of 2014 Farm Bill Conservation Compliance Changes
Non-compliance could result in FCIC premium costs doubling
 

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[May 20, 2015]  The 2014 Farm Bill implements a change that requires farmers to have a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026) on file.

For farmers to be eligible for premium support on their federal crop insurance, a completed and signed AD-1026 certification form must be on file with the FSA. The Risk Management Agency (RMA), through the Federal Crop Insurance Corporation (FCIC), manages the federal crop insurance program that provides the modern farm safety net for American farmers and ranchers.

Since enactment of the 1985 Farm Bill, eligibility for most commodity, disaster, and conservation programs has been linked to compliance with the highly erodible land conservation and wetland conservation provisions. The 2014 Farm Bill continues the requirement that producers adhere to conservation compliance guidelines to be eligible for most programs administered by FSA and NRCS. This includes most financial assistance such as the new price and revenue protection programs, the Conservation Reserve Program, the Livestock Disaster Assistance programs and Marketing Assistance Loans and most programs implemented by FSA. It also includes the Environmental Quality Incentives Program, the Conservation Stewardship Program, and other conservation programs implemented by NRCS.

Many FSA and Natural Resource Conservation (NRCS) programs already have implemented this requirement and therefore most producers should already have an AD-1026 form on file for their associated lands. If an AD-1026 form has not been filed or is incomplete, then farmers are reminded of the deadline of June 1, 2015.

When a farmer completes and submits the AD-1026 certification form, FSA and NRCS staff will review the associated farm records and outline any additional actions that may be required to meet the required compliance with the conservation compliance provisions.

In 2014, the average premium cost of a crop insurance policy was $8,332, of which FCIC paid approximately 62 percent on the producer’s behalf. If a farmer is not in compliance with WC and HELC provisions, the premium cost could double, which is why it is vital for farmers to have form AD-1026 on file with the Farm Service Agency (FSA).

 

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To continue to be eligible for premium subsidy on any Federal crop insurance policy, including specialty crops, livestock, and pasture, a producer must file form AD-1026 with their local FSA office by June 1, 2015. If a producer does not have form AD-1026 on file with FSA by June 1, 2015, or are not in compliance with the requirements as outlined on the form, they will not be eligible for premium subsidy on any Federal crop insurance policy that has a sales closing date on or after July 1, 2015. This means farmers may still be eligible for insurance but will have to pay the full premium.

Additionally, it is possible a producer filed form AD-1026, but under an individual or business entity (e.g. a spouse or business partner) different than the one which purchased the crop insurance. Farmers must ensure the person or entity, and the associated Taxpayer Identification Number (TIN), which buys crop insurance has the form on file because USDA will use the TIN to match records across agencies.

If a producer does not have form AD-1026 on file or does not know whether they have an AD-1026 on file, they should visit their local FSA office in advance of June 1, 2015. The FSA staff will be available to provide assistance. Simply stated, by June 1, 2015, farmers must have an AD-1026 on file with FSA in the same name and TIN used to purchase the crop insurance policy.

FSA recently released a revised form AD-1026, which is available at USDA Service Centers and online at: www.fsa.usda.gov. USDA will publish a rule later this year that will provide details outlining the connection of conservation compliance with crop insurance premium support. Producers can also contact their local USDA Service Center for information. A listing of service center locations is available at offices.usda.gov. 

[USDA Farm Service Agency]

 

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