2019 STAX and Agriculture Risk Coverage and Price Loss Coverage
Source: United States Department of Agriculture: Risk Management Agency
Direct link to web page: https://www.rma.usda.gov/en/News-Room/Frequently-Asked-Questions/2019-STAX-and-Agriculture-Risk-Coverage-and-Price-Loss-Coverage
All information provided in the FAQ is deemed reliable, but not guaranteed. Please refer to RMA website at the link above as information may be amended.
The amount of payment will be an additional 10 or 15 percent of your prevented planting payment issued under your multi-peril policy, depending on the plan of insurance of your multi-peril policy. Producers with Yield Protection/Actual Production History and Revenue Protection with Harvest Price Exclusion will receive 10 percent. Producers with Revenue Protection will receive 15 percent.
If you received a prevented planting payment from an Approved Insurance Provider and you meet the eligibility requirements, you are automatically signed up to receive a prevented planting disaster payment.
Producers participating in Federal crop insurance for the 2019 crop year and experienced a payable prevented planting payment related to an eligible cause of loss in the 2019 calendar year. The eligible causes of loss are excess moisture/precipitation, flood, cold wet weather, storm surge, tornado, volcanic eruption, hurricane/tropical depression, and cyclone.
Prevented planting disaster payments are authorized by the Additional Supplemental Appropriations for Disaster Relief Act of 2019. The prevented planting disaster payments provide supplemental payments to producers that have been prevented from planting an eligible crop and had coverage under Federal crop insurance.
Electing ARC or PLC does not cause a farm to be ineligible for STAX coverage. However, STAX coverage is affected by ARC/PLC enrollment decisions. Enrolling seed cotton base on a farm in ARC/PLC makes that farm ineligible for STAX.
No. Enrolling a farm in seed cotton ARC/PLC makes the farm’s seed cotton or upland cotton ineligible for STAX coverage.
Can a producer get STAX coverage on a farm with seed cotton base acres? What if the producer has no seed cotton base acres?
Yes. A farm’s upland cotton is eligible for STAX if seed cotton base acres are not enrolled in ARC/PLC for that year.STAX eligibility is not affected by ARC/PLC enrollment on a farm that has no seed cotton base acres or no seed cotton base acres enrolled.
If a producer purchased STAX and decides not to enroll a farm in ARC/PLC for seed cotton for a particular year, can they enroll in ARC/PLC for other commodities on the farm?
Yes. Enrolling commodities other than seed cotton in ARC/PLC will not make the farm’s upland cotton ineligible for STAX coverage.
If a producer has more than one farm and chooses not to enroll one of them in ARC/PLC is that farm eligible for STAX?
Yes, if the producer has purchased STAX, STAX coverage will apply to all acreage on farms in the county that do not have base acres enrolled in seed cotton ARC/PLC (unless those acres are uninsurable for a different reason).
ARC/PLC enrollment or intended enrollment is reported on the crop insurance acreage report. Any corrections should be made no later than the premium billing date. This applies to the 2019 STAX policy only.
If a grower enrolled in ARC/PLC but does not qualify for ARC/PLC payments due to AGI limits, would he be eligible for STAX coverage on farms enrolled in ARC/PLC?
No. Enrolling a farm’s seed cotton base acres in ARC/PLC makes the farm’s upland cotton ineligible for STAX even if the producer is later found to be ineligible for ARC/PLC payments.
If I want to remain eligible for STAX, will I have the flexibility to enroll my other crop base acres (e.g. corn, soybeans, wheat, sorghum, etc.) in ARC/PLC but choose NOT to enroll my seed cotton base acres in ARC/PLC?
Yes. Your eligibility for STAX on a farm is NOT impacted by ARC/PLC enrollment for any covered commodity other than seed cotton. As long as the farm does not have seed cotton base acres enrolled in an annual ARC/PLC contract, the farm’s upland cotton remains eligible for STAX.
If a producer plants 500 acres of upland cotton on a farm with 200 seed cotton base acres (and those 200 acres are enrolled in an annual ARC/PLC contract) can he have STAX coverage on the remaining 300 acres?
No. Enrolling a farm in seed cotton ARC/PLC makes all upland cotton acreage on that farm ineligible for STAX coverage
If I have corn base acres enrolled in ARC but I plant upland cotton, am I eligible to purchase a STAX policy?
Yes. As long as the farm does not have seed cotton base acres enrolled in an annual ARC/PLC contract, the farm remains eligible for STAX.
If I don’t have seed cotton base acres (or only have unassigned base acres), am I eligible for STAX?
Yes. As long as the farm does not have seed cotton base acres enrolled in an annual ARC/PLC contract, the farm’s upland cotton remains eligible for STAX.
Can a producer with a partial share choose not to enroll their share in ARC/PLC while other share owners do enroll in ARC/PLC?
No. All producers with a share in a covered commodity must jointly enroll or not enroll in ARC/PLC for each covered commodity. Only enrolled covered commodities on the farm may qualify for ARC/PLC payments.