Final Agency Determination: FAD-163
Subject: Request dated March 30, 2012, requesting a Final Agency Determination for the 2007 crop year regarding the interpretation of 7 C.F.R. part 400.52. This request is pursuant to 7 C.F.R. part 400, subpart X.
CFR part 400, subpart G (400.52) definitions of “verifiable records” and states:
(q) Verifiable records —Contemporaneous records of acreage and production provided by the insured, which may be verified by FCIC through an independent source, and which are used to substantiate the acreage and production that have been reported on the production report.
Requester’s interpretation of what constitutes verifiable records for purposes of calculating his Actual Production History (APH) is that contemporaneous records of sales to a private third party as evidenced by bank records of an endorsed and cashed draft and a bill of sale constitute verifiable records.
Final Agency Determination
The Federal Crop Insurance Corporation (FCIC) agrees that records of sales to a private third party as evidenced by bank records of an endorsed and cashed draft and a bill of sale may constitute verifiable records for production. However, such records do not constitute verifiable records for acreage. To determine the APH, verifiable records of both production and acreage need to be provided. Therefore, before the production records can be used to calculate the APH, the producer must also provide verifiable records of acreage.
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: Jul 6, 2012