Updated: Jun 29, 2020
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As many of you who have purchased crop insurance since the passage of the 2014 Farm Bill already know, conservation compliance has been relinked with the crop insurance subsidy. This relinking means that many producers who traditionally have not participated in farm bill programs (such as Price Loss Coverage or Agriculture Risk Coverage) were not required to certify conservation compliance.
Under the 2014 Farm Bill, producers who skip the other farm safety net programs offered by USDA’s Farm Service Agency (FSA) but still take out crop insurance will still need to complete and file FSA’s current Highly Erodible Land Conservation and Wetland Conservation Certification (Form AD-1026). Farmers without an AD-1026 on file will be ineligible for many USDA programs, including the premium support paid by the Federal Crop Insurance Corporation. The AD-1026 will need to be on file with FSA for a reinsurance year on or before the premium bill date for the producer’s crop insurance policy in order to comply with the crop insurance program.
What is Conservation Compliance?
Conservation compliance is concerned with producing an annual crop on highly erodible land and conversion and production on wetlands. These two aspects of conservation compliance have been required since the 1985 farm bill. In previous farm bills, conservation compliance was traditionally linked to participating in commodity programs, such as the former Direct and Counter-Cyclical programs. Conservation compliance had previously been a part of the crop insurance program but was removed in the 1996 farm bill to encourage more producers to purchase crop insurance. The 2014 farm bill relinked the two after fears that a push towa