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 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] |
