January 6, 1995

BULLETIN NO.:  MGR-95-002

TO:       All Reinsured Companies
          CFSA Headquarters, State and County Offices
          All Risk Management Field Offices

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  Standard Reinsurance Agreement Renewal


BACKGROUND:

The 1995 Standard Reinsurance Agreement (SRA) requires the Federal Crop 
Insurance Corporation (FCIC) to give at least one hundred eighty (180) days 
advance notice in writing prior to the annual renewal date if it does not 
intend to renew the SRA.  This action would have been taken prior to January 
1, 1995, had  FCIC intended to cancel the current agreement for the 1996 
reinsurance year.

ACTION:

FCIC has decided not to issue a Notice of Cancellation for the 1995 SRA.  
Given the significant and fundamental changes in the Federal crop insurance 
program in recent years, we feel this action will be beneficial to producers, 
taxpayers, and the crop insurance industry by providing program stability for 
more than one year.  This action will also provide the opportunity to assess 
the impact of Crop Insurance Reform before making additional changes to the 
SRA.