FAD-135

Subject: Request dated November 29, 2010, requesting a Final Agency Determination for the 2008 crop year regarding the interpretation of section 10(c)(1)(v) published in the 7 C.F.R. 457.153 Peach Crop Provisions, as it pertains to production to count. This request is pursuant to 7 C.F.R. part 400, subpart X.

Background

Section 10 of the Peach Crop Provisions states, as here pertinent:

10. Settlement of Claim.

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(c) The total production to count (in bushels) from all insurable acreage on the unit will include:

(1) All appraised production to count will be determined as follows:

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(v) Any appraised production on insured acreage will be considered production to count unless such production is exceeded by the actual harvested production.

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Interpretation Submitted

The requestor interprets the conditions set forth as to mean when an appraisal is called for (for example, with direct marketing), the Approved Insurance Provider (AIP) must calculate production to count based on the higher of the appraised production or the actual harvested production. For instance, if a unit appraises at 150.0 bushels per acre and the harvest records reflect a production of 145.0 bushels per acre, production to count must be established using 150.0 bushels per acre (appraised production).

Final Agency Determination

The Federal Crop Insurance Corporation (FCIC) agrees with the requestor's interpretation.

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 2008 crop year. Any appeal of this decision must be in accordance with 7 C.F.R. 400.768(g).

Date of Issue: February 22, 2011