Final Agency Determination: FAD-133
Subject: Request dated November 29, 2010, requesting a Final Agency Determination for the 2008 crop year regarding the interpretation of section 6(d)(5) of the Common Crop Insurance Policy Basic Provisions (Basic Provisions), published at 7 C.F.R. part 457.8. This request is pursuant to 7 C.F.R. part 400, subpart X.
Section 6(d)(5) of the Basic Provisions states, as here pertinent:
6. Report of Acreage.
(d) Regarding the ability to revise an acreage report you have submitted to us:
(5) If there is an irreconcilable difference between:
(i) The acreage measured by FSA or a measuring service and our on-farm measurement, our on-farm measurement will be used; or
(ii) The acreage measured by a measuring service, other than our on-farm measurement, and FSA, the FSA measurement will be used; and
The requestor interprets section 6(d)(5) of the Basic Provisions to state if there is an irreconcilable difference between acreage measured by the Farm Service Agency (FSA) and the acreage measured by the Approved Insurance Provider (AIP), the AIP's measurement must be used.
The requestor stated that identical or nearly identical language is set forth in the Crop Revenue Coverage (CRC) and the Revenue Assurance (RA) insurance policies. Accordingly, they request this Final Agency Determination explicitly be made applicable to the CRC and RA policies as well.
Final Agency Determination
The Federal Crop Insurance Corporation (FCIC) agrees with the requestor's interpretation. If an irreconcilable difference exists between acreage measured by the FSA and acreage measured on-farm by the AIP, the AIP's on-farm measurement will be used.
Even though 7 C.F.R. part 400, subpart X is only applicable to provisions of the Federal Crop Insurance Act and the regulations promulgated hereunder, and the CRC and RA policies are not codified in the Code of Federal Regulations, to the extent those provisions are identical or nearly identical, this Final Agency Determination applies accordingly to assure consistent, uniform, and equitable treatment to all producers insured under the same policy provisions.
In accordance with 7 C.F.R. part 400.765(c), this Final Agency Determination is binding on all participants in the Federal crop insurance program for the 2008 and succeeding crop years. Any appeal of this decision must be in accordance with 7 C.F.R. part 400.768(g).
Date of Issue: February 15, 2011