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FCIC BOARD REQUESTS COMMENTS REGARDING REASONABLENESS PROCEDURES FOR R&D AND MAINTENANCE COSTS REIMBURSEMENT UNDER SECTION 508(h)

Contact:
John Shea, 202-690-0437
William (Bill) Bing, 816-926-6470

WASHINGTON, Mar 2, 2010 - At the Nov 19, 2009, Federal Crop Insurance Corporation (FCIC) Board of Directors (Board) meeting, FCIC Chairman Joseph Glauber issued a statement regarding the need for a closer review of the costs claimed in the requests for reimbursement of research and development costs, related to the submission of products under section 508(h) of the Federal Crop Insurance Act.

In his statement, Chairman Glauber indicated, “To assist the Board in making a meaningful review of the reasonableness of the costs claimed, the Board is directing RMA to develop procedures for the Board's approval that would require submitters to maintain sufficient records to allow the Board to conduct a meaningful review of the costs claimed.”

Section 508(h) of the Federal Crop Insurance Act and 7 C.F.R. part 400, subpart V, provides guidance to applicants on the types of costs, necessary documentation, and the time frame to submit expenses to be considered for Board reimbursement. The Board has determined, however, that these regulations need to be clarified to allow a meaningful review of the reasonableness of any request for reimbursement or advance payment. These procedures have been developed, and the Board is now requesting comments regarding the determination of reasonableness for requests of reimbursement on privately submitted section 508(h) products.

For review and comment:

Comments from any interested party regarding these draft procedures may be sent to the Deputy Administrator, Product Management, Risk Management Agency, Stop 0801, P.O. Box 419205, Kansas City, MO 64141-6205 or e-mail to: DeputyAdministrator@RMA.USDA.GOV. Comments are due by close of business on Mar 26, 2010.

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