Enclosure Page 2

FCIC Interpretation of Procedure

Federal Crop Insurance Corporation Provisions:

Subject: A joint request dated October 15, 2021, submitted to the Risk Management Agency for a

Federal Crop Insurance Corporation (FCIC) interpretation of section 22(a)(1) of the 2018 Whole-Farm 

Revenue Protection (WFRP) Pilot Policy.

The relevant policy provision is:

22. Your Duties in the Event of a Loss.

(a) You must provide us with a notice of loss within 72 hours of your initial discovery that your 

allowable revenue for the policy year could fall below the insured revenue:

(1) In the case of damage or loss of production, your notice must specify the damaged 

commodity and document the cause of loss.

Interpretation Submitted by Requestor(s)

First Requestor’s Interpretation:

The first requestor interprets section 22(a)(1) of the 2018 WFRP Pilot Policy to mean within 72 hours 

of discovery of a damaged commodity which could create a potential loss under WFRP Pilot Policy, 

the insured must notify the Approved Insurance Provider (AIP) that their allowable revenue for the 

insurance year could fall below the insured revenue. It is not sufficient notice of a potential WFRP 

claim to merely advise the AIP that there is damage to the commodity without advising of the 

potential that the insured’s revenue could fall below the insured revenue.

Second Requestor’s Interpretation:

The second requestor interprets section 22(a)(l) of the 2018 WFRP Pilot Policy to require the insured 

notify the AIP within 72 hours of the loss event (e.g., freeze or other related weather event) that causes 

damage or loss to a commodity and allow the AIP to inspect and assess the damage or loss to the 

commodity at or near the time of the loss event. The second requestor further interprets that while the 

WFRP Pilot Policy insures revenue from the entire farming operation and the extent of the revenue 

loss may not be completely known until harvest, the insured is still required to notify the AIP within 

72 hours of the loss event of a potential loss of production related to such loss event.

Federal Crop Insurance Corporation Determination

FCIC disagrees with the first requestor’s interpretation of section 22(a)(1) of the 2018 WFRP Pilot 

Policy that an insured’s report of damage to a commodity, to an AIP, without advising them of a 

potential loss of revenue below the insured revenue is not sufficient. FCIC agrees with the second 

requestor’s interpretation of section 22(a)(1) that the insured is required to report, within 72 hours of 

initial discovery, potential damage or loss of a commodity so the AIP may inspect the damaged 

commodity and verify the cause of loss. FCIC interprets section 22(a)(1) to mean that the insured is 

required to report any potential damage or loss of production to any commodity on their farm 

operation, as well as the cause of loss. FCIC interprets section 22(a) to mean the insured’s report must 

be made within 72 hours of their initial discovery, assuming the potential damage or loss could cause 

their allowable revenue for the insurance year to fall below their insured revenue.
Enclosure Page 3

FCIC Interpretation of Procedure

In accordance with section 33(a)(1) of the WFRP Pilot Policy, this FCIC interpretation is generally 

applicable and binding in any mediation or arbitration. In accordance with section 33(a)(1), any 

appeal of this interpretation must be in accordance with 7 C.F.R. part 11.