Final Agency Determination: FAD-020

FAD-020

Subject: Interpretation of section 9(a)(6) the Sugar Beet Crop Insurance Provisions, published in the Code of Federal Regulations (C.F.R.) at 7 C.F.R. 457.109, and specifically requesting interpretation of Section 9(a)(6).

Background

On May 9, 2003, the Risk Management Agency was asked for a Final Agency Determination for the 2000 crop year, regarding the interpretation of section 9(a)(6) of the Sugar Beet Crop Insurance Provisions. This request is pursuant to 7 C.F.R., part 400, subpart X. Section 9(a)(6) states:

(a) In accordance with the provisions of section 11 (Insurance Period) of the Basic Provisions
( 457.8) the calendar date for the end of the insurance period is:
. . . .

(6) November 15 in all other States and counties.

Section 9(a)(6) is interpreted to mean that since Minnesota is not specifically listed with a calendar date, the insurance period ends in Minnesota for sugar beets no later than November 15 of a crop year.

The Federal Crop Insurance Corporation (FCIC) agrees that the latest calendar date for the end of the insurance period for all Minnesota counties is November 15. However, coverage on any acreage ends upon the occurrence of any of the events listed in section 11(b) of the Common Crop Insurance Policy Basic Provisions (Basic Provisions) (7 C.F.R. 457.8), unless this section is amended by other policy documents that state they override the Basic Provisions. If the calendar date for the end of the insurance period is the earliest of the listed events to occur, then the insurance period would end on the calendar date, November 15, for the insured crop on the unit. Only insurable causes of loss that occur after insurance attaches and on or before the end of the insurance period are covered under the policy. Any causes of loss occurring after the end of the insurance period are not covered under the policy.

In accordance with 7 C.F.R. 400.765(c), this Final Agency Determination is binding on all participants in the Federal crop insurance program for crop year 2000.

Date of Issue: August 5, 2003