Final Agency Determination: FAD-117

Subject: By request dated March 3, 2010, the Risk Management Agency was asked for an interpretation for the 2008 crop year regarding section 3(b)(1), for California, of the Guaranteed Production Plan Of Fresh Market Tomato Crop Provisions, published at 7 C.F.R. § 457.128. This request is pursuant to 7 C.F.R. part 400, subpart X.

Section 3(b)(1) and 3(c) of the Guaranteed Production Plan of Fresh Market Tomato Crop Provisions states:

3. Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities.

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(b) The production guarantees per acre are progressive by stages and increase at specified intervals to the final stage production guarantee. The stages and production guarantees are as follows:

(1) For California:

Stage	Percent of stage 3 (final stage) pro- duction guarantee	Length of time
1	50	From planting until first fruit set.
2	70	From first fruit set until harvested.
3	100	Harvested acreage.

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(c) Any acreage of tomatoes damaged to the extent that producers in the area generally would not further care for the tomatoes will be deemed to have been destroyed even though you continue to care for the tomatoes. The production guarantee for such acreage will be the guarantee for the stage in which such damage occurs.

The requestor interprets the above-quoted provisions to mean the “Stage 3 (Final Stage) for 100 percent of the production guarantee” under the column heading of “Length of time” shown as “Harvested acreage” to be, “the length of time or days necessary from planting for the crop to reach full maturity whereby marketable tomatoes can be harvested.”

The Federal Crop Insurance Corporation (FCIC) does not agree with the interpretation submitted.

The submitter is incorrect because the provisions applicable to California tomatoes do not refer to a specific length of time or days. Under the Guaranteed Production Plan Of Fresh Market Tomato Crop Provisions, for California tomatoes, if the tomatoes are damaged after the date the fruit is set but before harvest then the indemnity is based on the production guarantee that is 70 percent of the Stage 3 (final stage production guarantee). If the tomatoes are damaged after planting but before the first fruit is set, the indemnity is based on the production guarantee that is 50 percent of the Stage 3 (final stage production guarantee). A California fresh market tomato producer can only receive a Stage 3 (final stage production guarantee) if the insured tomatoes are harvested.

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 2008 crop year.

Date of Issue: May 13, 2010