BULLETIN NO.: MGR-95-019

TO:       All Reinsured Companies
          All Risk Management Field Offices

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  Written Agreements Requiring Crop Inspections


BACKGROUND:  

There have been numerous questions regarding whether required crop inspection 
reports should be submitted with a written agreement request to the Federal 
Crop Insurance Corporation (FCIC) Regional Service Office (RSO) or whether 
the inspection report should be completed after the written agreement is 
prepared.  RSOs are reporting that requests have been coming in without any
indication of the crop being planted and/or without crop inspection forms.

The 1995 Crop Insurance Handbook (FCIC 18010) [Sec. 4 E(1)] and Exhibit 11 
state that some written agreements which are authorized after the sales 
closing date require preacceptance crop inspections (if the crop has been 
planted) to be performed prior to issuance of written agreements. The request 
and supporting documentation, including the preacceptance crop inspection, 
must be received by the RSO by the applicable deadline.

ACTION:

To ensure efficient processing of written agreement requests, please indicate 
on the Request for Actuarial Change form whether the crop has been planted.  
If the crop has been planted, a crop inspection must be performed.  An 
on-the-farm inspection is required to determine the number of acres, perform 
crop appraisals, and make observations of the current general crop, soil, and 
weather conditions to determine if the crop will produce at least 90 percent 
of a "normal crop."  A "normal crop" is defined as the yield upon which the 
guarantee is based.  When using the stand reduction appraisal, a crop which 
has a stand of less than 90 percent for the unit is not acceptable.  Attach 
the crop appraisal form(s) and loss adjuster report(s) to each request prior 
to submitting to the RSO.  If you have any questions, please contact the 
Underwriting Services Branch of your respective RSO.