Final Agency Determination: FAD-123

FAD-123

Subject: By request dated June 3, 2010, the Risk Management Agency was asked for an interpretation for the 2009 crop year regarding Section 9(b)(3) of the Fresh Market Tomato (Dollar Plan) Crop Provisions, published at 7 C.F.R. Section 457.139. This request is pursuant to 7 C.F.R. part 400 subpart X.

Background

Section 9(b)(3) of the Fresh Market Tomato (Dollar Plan) Crop Provisions states:

9. Insurable Acreage.

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(b) In addition to the provisions of section 9 (Insurable Acreage) of the Basic Provisions:

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(3) We will not insure any acreage on which tomatoes (except for replanted tomatoes in accordance with sections 9(b)(1) and (2)), peppers, eggplants, or tobacco have been grown and the soil was not fumigated or otherwise properly treated before planting tomatoes.

Interpretation Submitted

The requester interprets Section 9(b)(3) to permit the insurance of tomato acreage on which (non-replanted) tomatoes, peppers, eggplants, or tobacco have previously been grown, so long as the producer has done EITHER of the following before planting the tomatoes intended to be insured:

(1) The producer has fumigated the soil with a broad-spectrum fumigant chemical (such as those containing methyl bromide or chloropicrin) using proper fumigation equipment and techniques; OR
(2) The producer has not fumigated the soil, but has otherwise properly treated the soil in compliance with and pursuant to the recommendations of the local extension service and agricultural experts who are familiar with local soils and agronomic conditions.

Final Agency Interpretation

The Federal Crop Insurance Corporation (FCIC) agrees with the requester's interpretation of Section 9(b)(3) for initially planted tomatoes (non-replanted).

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 2009 crop year.

Date of Issue: Aug 16, 2010