Final Agency Determination: FAD-91

FAD-91

Subject: Request dated August 4, 2008, requesting a Final Agency Determination for the 2007 crop year regarding the interpretation of section 11(b) of the Processing Sweet Corn Crop Insurance Provisions, published at 7 C.F.R. §457.154. This request is pursuant to 7 C.F.R. part 400, subpart X.

Section 11(b) of the Processing Sweet Corn Crop Insurance Provisions states, as here pertinent:

11. Duties in the Event of Damage or Loss

In addition to the requirements of section 14 of the Basic Provisions, you must give us notice:
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(b) Within 3 days after the date harvest should have started on any acreage that will not be harvested unless we have previously released the acreage. You must also provide acceptable documentation of the reason the acreage was bypassed. Failure to provide such documentation will result in our determination that the acreage was bypassed due to an uninsured cause of loss. * * *

The requestor’s interpretation of the above-quoted provision for acreage not previously released is that the notice is not subject to being waived regardless of the good faith or lack of culpability of the producer in failing to timely give the required notice. If the producer fails to notify the approved insurance provider (AIP) within 3 days after the date harvest should have started, regardless of the reason such notice was not given, that the acreage will be bypassed, then it will be determined the acreage was bypassed as a result of an uninsured cause of loss.

The Federal Crop Insurance Corporation (FCIC) agrees in part with the interpretation submitted.

FCIC agrees that section 11(b) of the Processing Sweet Corn Crop Insurance Provisions require that notice must be given within 3 days after the date harvest should have started on any acreage that will not be harvested, unless the AIP has previously released the acreage. If the producer fails to give notice within 3 days after the date harvest should have started on any acreage that will be bypassed, section 11(b) requires that the AIP determine the acreage was bypassed as a result of an uninsured cause of loss.

FCIC also agrees that the preamble to the Basic Provisions specifies that no provision of the policy may be waived by the AIP or any other party. This would include the notice of loss provisions.

In accordance with the 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 2007 crop year.

Date of Issue: October 14, 2008