Final Agency Determination: FAD-025

FAD-025

Background

Section 17(f)(4)(ii) of the Basic Provisions states:

17. Prevented Planting.

(f) Regardless of the number of eligible acres determined in section 17(e), prevented planting coverage will not be provided for any acreage:

(4) On which the insured crop is prevented from being planted, if you or any other person receives a prevented planting payment for any crop for the same acreage in the same crop year, excluding share arrangements, unless:

(ii) You provide records acceptable to us of acreage and production that show you have double cropped acreage in at least two of the last four crop years in which the first insured crop was planted, or that show the applicable acreage was double cropped in at least two of the last four crop years in which the first insured crop was grown on it; and

The requestor interpreted section 17(f)(4)(ii) to mean that past double-cropping must be proven either by acceptable records demonstrating that the insured person double cropped any acreage in 2 of the last 4 years or, that the insured person double cropped the specific subject acreage in 2 of the last 4 years. The requestor provided an example in which a producer has acceptable records of double-cropping in county X, and stated that the producer could use those county X records to qualify acreage in county Y, even though the land in county Y had not been double cropped in the past.

The Federal Crop Insurance Corporation (FCIC) does not agree with the interpretation provided. Section 17(f)(4)(ii) requires the insured person to provide acceptable records demonstrating that (1) the specific insured person has double cropped acreage on which insurance is to attach in at least 2 of the last 4 years in which the first insured crop was planted; or (2) the insured person or any other person has double cropped the same physical acreage that is in question in at least 2 of the last 4 years in which the first insured crop was planted. However, crop insurance policies are established, rated, and administered on an individual county basis. Therefore, a producer cannot use records of double cropping in one county to qualify in another. The provision permits use of another person's records to allow acreage to qualify as having a double-cropped history so that situations in which the insured person has not farmed the specific acreage in question for the last 4 crop years can be considered. The fact that it may be appropriate to double crop in one county does necessarily indicate that it is appropriate to double crop in another. The purpose behind this provision is to permit double prevented planting payments in that situation where the producer was genuinely preventive planting the crops. This can only be determined on a one county or area basis.

In accordance with 7 C.F.R. 400.765(c), this constitutes the Final Agency Determination and is binding for the 2004 crop year on all participants in the Federal crop insurance program.

Date of Issue: December 31, 2003