Wednesday, June 29, 2016

Crop Insurance Update: FCIC Issues Final Rule Regarding Double Cropping and Replanting

Written by M. Sean High—Staff Attorney

On June 22, 2016, the United States Department of Agriculture Federal Crop Insurance Corporation (FCIC) published notice in the Federal Register of a final rule and request for comment regarding the agency’s amendment to the Common Crop Insurance Regulations, Basic Provisions (81 FR40477). 

According to FCIC, the purpose of the final rule “is to provide policy changes and to clarify existing policy provisions to better meet the needs of policyholders.” Specifically, the final rule addresses “[i]ssues [that] have arisen regarding: The qualifications for double cropping; and when it is practical to replant.”

Under the final rule, FCIC is revising 7 CFR part 457 “to allow the allocation of comingled first and second crop production to the associated crop acreage in proportion to the liability for the acreage that was and was not double cropped.”  Additionally, under the final rule, FCIC is also revising 7 CFR part 457 regarding the definition of the term “practical to replant.”

Accordingly, the final rule stated that the final rule became effective on June 22, 2016 and “[t]he changes to the policy made in this rule are applicable for the 2017 and succeeding crop years for all crops with a contract change date on or after June 22, 2016, and for the 2018 and succeeding crop years for all crops with a contract change date prior to June 22, 2016.” Finally, the final rule specified that “FCIC will accept written comments on this final rule until close of business August 22, 2016.”

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