Final Agency Determination: FAD-168

FAD-168

Final Agency Determination: FAD-168

Subject: Request dated July 11, 2012, and resubmitted to the Risk Management Agency (RMA) on August 3, 2012, requesting a Final Agency Determination for the 2011 crop year regarding the interpretation of section 17(f)(6)(i) of the Common Crop Insurance Policy Basic Provisions (Basic Provisions), published at 7 C.F.R. 457.8. This request is pursuant to 7 C.F.R. part 400, subpart X.

Background:

Section 17 of the Basic Provisions states, in relevant part:

17. Prevented Planting.

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(f) Regardless of the number of eligible acres determined in section 17(e), prevented planting coverage will not be provided for any acreage:

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(6) For which planting history or conservation plans indicate the acreage would have remained fallow for crop rotation purposes or on which any pasture or forage crop is in place on the acreage during the time planting of the insured crop generally occurs in the area. Cover plants that are seeded, transplanted, or that volunteer:

(i) More than 12 months prior to the final planting date for the insured crop that was prevented from being planted will be considered pasture or a forage crop that is in place (e.g., the cover crop is planted 15 months prior to the final planting date and remains in place during the time the insured crop would normally be planted); or

Interpretation Submitted

The requestor interprets section 17(f)(6)(i) to mean that prevented planting coverage will not be provided for any acreage for which the planting history or conservation plans indicate the acreage would have remained fallow for crop rotation purposes.

Final Agency Determination

FCIC agrees with the requestor’s interpretation. Prevented planting coverage will not be provided for any acreage for which the planting history or conservation plans indicate the acreage would have remained fallow for crop rotation purposes. In addition, a prevented planting payment will not be paid on any acreage in which a pasture or forage crop is in place at the time planting of the crop for which prevented planting is being claimed generally occurs in the area. Section 17(f)(6)(i) and (ii) further explains whether or not cover plants are considered in place.

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 crop years the policy provisions are in effect. Any appeal of this decision must be in accordance with 7 C.F.R. 400.768(g).

Date of Issue: Oct 1, 2012