Multi-County Enterprise Unit

The MCEU Endorsement allows a producer to combine insured crop acreage of an insured crop, by irrigation practice (if applicable), in two contiguous counties into one Enterprise Unit (EU). The contiguous counties that form a MCEU must be in the same state. To qualify for a MCEU, one county (the primary county) must individually qualify for the type of EU election the producer has selected to apply to the MCEU. The secondary county to be combined with the primary county must not qualify for the EU election the producer elected for the primary county. Producers may have multiple MCEUs for a crop and/or irrigation practice.

Electing the MCEU does not combine crop/county policies. Premium, along with the guarantee and liability, will be calculated separately for each county in the MCEU based on the acres physically located in each county using the actuarial documents for that county. However, the total insured planted acres of the MCEU will be used to determine the appropriate EU discount factor contained in the actuarial documents that will apply to each county in the MCEU. The EU discount factor applies to planted and PP acres when determining premium. Replanting, PP and claims for indemnities will be determined and paid, if applicable, at the MCEU level.

Producer must, on or before sales closing date if they wish to elect MCEU.  They must also elect EU (Enterprise Unit) structure:
For counties/crops with a fall or winter sales closing date and a spring sales closing date specified in the actuarial documents, the MCEU election may be changed on or before the spring sales closing date if there is not insured fall planted acreage of the insured crop.
The producer may have more than one MCEU. To be part of the MCEU, both counties must be contiguous and there must be planted insurable acreage of the insured crop in each county. Both county crop policies within the MCEU must be written with the same AIP.

The policies for the insured crop in each county must have identical elections for:
1.    Multi-county enterprise units;
2.    Insurance plan;
3.    Coverage level; and
4.    EU or EU by practice.

The producer must designate the primary and secondary county for each MCEU on or before the earliest acreage reporting date. RMA will determine which counties are contiguous.

MCEU is available for Spring 2019 crops and for Fall Crops it will be available with the Fall Sales Close (September 30, 2019).