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Final Agency Determination: FAD-221

Subject: Request dated May 19, 2014, to the Risk Management Agency (RMA) requesting a Final Agency Determination for the 2011 crop year regarding the interpretation of section 8(b)(6)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.


Section 8(b)(6) of the Basic Provisions states, in relevant part:

8. Insured Crop.


(b) A crop which will NOT be insured will include, but will not be limited to, any crop:


(6) That is used solely for wildlife protection or management. If the lease states that specific acreage must remain unharvested, only that acreage is uninsurable. If the lease specifies that a percentage of the crop must be left unharvested, your share will be reduced by such percentage.


Interpretation Submitted

The requestor interprets that section 8(b)(6) of the Basic Provisions is not applicable to land that is not utilized solely for wildlife protection or management. Specifically, if land subject to a state Department of Natural Resources lease allows a specified number or percentage of acres to be left unharvested for only a designated amount of time, but ultimately is allowed to be harvested and the proceeds kept solely by the farm tenant, that acreage does not qualify as solely used for wildlife protection or management and therefore, is not considered uninsurable under section 8(b)(6) of the Basic Provisions.

Final Agency Determination

FCIC agrees in part with the requestor’s interpretation that section 8(b)(6) does not apply if the crop is harvested at a later date. Section 8(b)(6) makes clear that if the acreage is solely for wildlife protection or management the crop is not insurable. If only a part of the acreage is used for wildlife protection or management, then only that acreage that must remain unharvested is uninsurable. If the acreage under lease is allowed to be harvested, the acreage is insurable but any damage or loss of production caused by the wildlife would not be insurable because the insured expressly allowed the wildlife to use the acreage. This is a management decision and, therefore, not covered under the policy.

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 23, 2014