Final Agency Determination: FAD-65

FAD-65

Subject: By request dated October 2, 2006, the Risk Management Agency was asked for a Final Agency Determination for the 2005 and succeeding crop years, regarding the interpretation of section 10(a) of the Grape Crop Provisions concerning adverse weather, as published at 7 C.F.R. 457.138. This request is pursuant to 7 C.F.R. part 400 subpart X.

Section 10(a) of the Grape Crop Provisions states:
10. Cause of Loss

(a) (a) In accordance with the provisions of section 12 (Cause of Loss) of the Basic Provisions, insurance is provided only against the following causes of loss that occur during the insurance is provided only against the following causes of loss that occur during the insurance period:
(1) Adverse weather conditions;

We would like to determine the definition of ‘adverse weather’ as determined by rainfall and temperature. First, would rainfall outside of 50% of average rainfall for the Paso Robles area qualify as “Adverse weather” for grapes? (2005 was the eighth wettest year since 1869-1870 when official records began to be published in Paso Robles). Second, would July’s daytime temperatures, normally in the 80’s, which reached 100 degrees for a period of two weeks in 2005, constitute ‘adverse weather’? (Id.) If not, what percentage of temperature changes would constitute adverse weather?

Interpretation A

The twelve (12) days of temperature above 100 degrees Fahrenheit during July 2005 in Paso Robles constitute ‘adverse weather’ in regards to grape crops in Paso Robles.

Interpretation B

Rainfall outside of 50% of the monthly norms for a region constitutes ‘adverse weather’ in regards to grape crops in Paso Robles.

The Federal Crop Insurance Corporation does not interpret specific factual situations. However, to the extent that weather conditions deviate from normal in a manner that would be expected to, and does, cause a reduction in the amount or quality of the crop, such weather conditions would be considered “adverse weather” for the purposes of section 10 of the Grape Crop Provisions.

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 the 2005 and succeeding crop years. Any appeal of this decision must be in accordance with 7 C.F.R. 400.768(g).

Date of Issue: December 19, 2005