Final Agency Determination: FAD-001
FAD-001
Subject: Section 9(a)(1) of
the Basic Provisions, 7 C.F.R. § 457.8, paragraph 9(a)(1)
Background
On February 10, 2000, the Risk Management Agency was asked
for a final agency determination on an interpretation of a term
of the policy for the 2000 crop year: Section 9(a)(1) of the Basic
Provisions, 7 C.F.R. § 457.8, paragraph 9(a)(1), which states:
- (a) Acreage planted to the insured crop in which you have
a share is insurable except acreage:
- (1) That has not been planted and harvested within one of
the 3 previous crop years, unless:
- (i) Such acreage was not planted:
- (A) To comply with any other USDA program;
Interpretation Submitted
It is our interpretation that land set aside under the Conservation
Reserve Program, 7 C.F.R. Part 1410, until the end of 1997 and
not planted in crop years 1998 and 1999 may be planted in crop
year 2000. In addition, it is our interpretation that any crop
that is insurable may be planted and insured now, even if the
crop was never planted before, provided that the terms and conditions
of the applicable insurance regulations, including all yield guarantee
limitations, are observed.
Agency Response
Under the submitted interpretation, if the producer was excused
from planting for one year because the acreage was enrolled in
a USDA program, there is no need for an excuse for not planting
the other two years. While this may not have been the intent of
the provision, it is a reasonable interpretation of the provision
as drafted.
With respect to the crop that can be planted when the acreage
becomes eligible for insurance, the submitted interpretation is
correct that the insured crop need not have been the one that
was planted in one of the three previous crop years. As long as
any crop was planted or the acreage was enrolled in a USDA program
for at least one crop year, the acreage is eligible for insurance
if a crop is planted that is insurable in the county, and all
other conditions of eligibility are met, even if the crop has
never been planted before on the acreage.
In accordance with 7 C.F.R. §400.765(c), this constitutes
the final agency determination and is binding on all participants
in the Federal crop insurance program.
Date of Issue: May 6, 2000
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