Final Agency Determination: FAD-219

Subject: Request dated April 16, 2014, to the Risk Management Agency (RMA) requesting a Final Agency Determination for the 2009-2010 crop year(s) regarding the interpretation of section 400.52(m) of the 7 CFR Part 400 Subpart G. This request is pursuant to 7 C.F.R. § 400, subpart X.

Background:

The citation for the policy or procedure for which this FAD is requested is 7 C.F.R. part 400.52(m):

In addition to the definitions contained in the crop insurance contract, the following definitions apply for the purposes of the Actual Production History (APH) Program:

(m) New producer--A person who has not been actively engaged in farming for a share of the production of the insured crop for more than two crop years.

Interpretation Submitted

The requestor interprets 7 CFR part 400.52(m) to mean that if a farmer has been actively engaged in farming for a share of the production of the insured crop in the county for more than two (2) APH crop years, then the farmer does not meet the definition of a new producer. Moreover, the requestor also interprets 7 C.F.R. part 400.52(m) as meaning that any history evidencing more than two (2) APH crop years of farming for a share of the production of the insured crop in the county is a bar to qualifying as a new producer. A hiatus from farming in the county does not somehow requalify a farmer as a new producer.

Final Agency Determination

FCIC agrees with the Requestor’s interpretation. There is nothing in the definition of “new producer” that requires consecutive years. Therefore, a producer can produce the crop every 10 years but if the producer produced it 3 or more times in the county, the producer does not qualify as a new producer.

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: July 7, 2014