Final Agency Determination: FAD-164

FAD-164

Final Agency Determination: FAD-164

Subject: Request dated May 31, 2012, the Risk Management Agency was asked for a Final Agency Determination for the 2009 crop year for Bradley County, Arkansas regarding section 9(a)(2)(iii) 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.

Background:

Section 9(a)(2)(iii) of the Guaranteed Production Plan (GPP) of Fresh Market Tomato Crop Provisions states:

9. Insurable Acreage.

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

* * *

(2) We do not insure any acreage of tomatoes:

* * *

(iii) On which tomatoes, peppers, eggplants, or tobacco have been grown within the previous two years unless the soil was fumigated or nematicide was applied before planting the tomatoes, except that this limitation does not apply to a first planting in Pennsylvania or if otherwise specified in the Special Provisions; or

A statement in the Special Provisions, for the 2009 crop year, for GPP Fresh Market Tomatoes in Bradley County, Arkansas, additionally states:

In regards to the policy provisions, fumigation is not required if a valid Nematode Analysis Test is on file with the Insurance Provider and confirms that the planted acreage is not infested to a concentration exceeding 75 root knot nematodes per pint of soil. Test samples must be taken while the plants are actively growing between fruit set and end of production in accordance with Cooperative Extension Service guidelines during the immediately preceding crop year and tested by the Nematode Diagnostic Clinic, University of Arkansas, SW Research and Extension Center.

Interpretation Submitted

The requester’s interpretation is: 1) the term “fumigated” as used in section 9(a)(2)(iii) of the Crop Provisions refers to a mechanical fumigation process, and that the term nematicide refers to any chemical or biological compound approved for the eradication of nematodes; and 2) based upon the terms of the policy and the previous FAD-143 interpretation, it is the requester’s position that the planting of an intervening brassicus crop does not constitute fumigation or a nematicide application so as to allow the insurability of tomatoes planted on the acreage on which tomatoes, peppers, eggplants or tobacco have been grown within the previous two years.

Final Agency Determination

The Federal Crop Insurance Corporation (FCIC) agrees with the above requester’s interpretation. The terms “fumigation” and “nematicide” are not defined in the policy or procedures so they must be given their common meaning. The dictionary defines “fumigate” as “to treat with fumes in order to kill germs, insects, rats and other pests.” The dictionary defines “nematicide” as “A substance that kills nematodes, especially one used in medicine or to kill plant pathogens. Any pesticide designed to kill nematodes (roundworms). Therefore, planting of a brassicas crop does not constitute fumigation or a nematicide.

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 any crop year this provision is in effect. Any appeal of this decision must be in accordance with 7 C.F.R. 400.768(g).

Date of Issue: Jul 16, 2012