Final Agency Determination: FAD-046

Subject: Request dated February 3, 2005, requesting a Final Agency Determination for the 2005 crop year (for crops with a contract change date of August 31, 2004, or later) and subsequent crop years, regarding the interpretation of section 6(d)(1) of the Common Crop Insurance Policy Basic Provisions (Basic Provisions), published at 7 C.F.R. 457.8. This request is pursuant to 7 C.F.R. part 400, subpart X.

Section 6(d) of the Basic Provisions states, as here pertinent:

6. Report of Acreage.

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(d) Regarding the ability to revise an acreage report you have submitted to us:

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(1) For planted acreage, you cannot revise any information pertaining to the planted acreage after the acreage reporting date without our consent (Consent may only be provided when . . . you provide adequate evidence that we or someone from USDA have committed an error regarding the information on your acreage report . . . );

The requestor interprets the term “someone from USDA” to encompass employees and representatives of the Farm Service Agency (“FSA”), including employees and representatives of county and state FSA offices.

The requestor also interprets the phrase “someone from USDA have committed an error” to include mistakes, miscalculations or other inaccuracies made by an employee of FSA in the preparation of an FSA-578, FSA-20-20 or other form that an insured or agent may rely on in the preparation of an acreage report. Additionally, the requestor interprets the term “adequate evidence” to include an FSA-578 form dated after the acreage reporting date that includes different acreage or otherwise differs from a prior FSA-578 form that was dated before the acreage reporting date.

The requestor believes that accordingly, under the terms of section 6(d)(1), an approved insurance provider may consent to the revision of an acreage report if the insured provides adequate evidence that an employee or representative of FSA erred in the preparation of, for example, the FSA-578 form that an insured relies on in preparing an acreage report.

The Federal Crop Insurance Corporation (FCIC) agrees in part with the interpretation. FCIC agrees that the term “someone from USDA” would encompass employees and representatives of FSA, including employees and representatives of county and state FSA offices.

FCIC also agrees the phrase “someone from USDA have committed an error” includes mistakes, miscalculations or other inaccuracies made by an employee of FSA or their representative in the preparation of an FSA-578, FSA-20-20, or other form that an insured or agent may rely on in the preparation of the crop insurance acreage report.

FCIC does not agree the term “adequate evidence” would include a FSA-578 form dated after the acreage reporting date that includes different acreage or otherwise differs from a prior FSA-578 form that was dated before the acreage reporting date. Such evidence could only be used if it was documented that the difference was due to a correction of an FSA error, not due to a correction of a reporting error made by the insured.

FCIC agrees under the terms of section 6(d)(1), an approved insurance provider may consent to the revision of an acreage report if the insured provides adequate evidence that an employee or representative of FSA erred in the preparation of, for example, the FSA-578 form an insured relies on in preparing an acreage report. Adequate evidence would include, but not be limited to, source documents that show the information reported by the insured was correct, but was subsequently changed due to a mistake, miscalculation or other inaccuracy clearly made by an employee of FSA or their representative.

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 for the 2005 crop year (for crops with a contract change date of August 31, 2004 or later) and succeeding crop years. Any appeal of this decision must be in accordance with 7 C.F.R. 400.768(g).

Date of Issue: May 3, 2005