BULLETIN NO.:  MGR-95-021.1

TO:       All Reinsured Companies
          CFSA Headquarters, Program Delivery and Field Operations
          All Risk Management Field Offices

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  Revision To Response to Producers Affected by Heavy Upper 
          Midwestern Rainfall 


BACKGROUND:

Many farmers are experiencing extreme difficulties in planting their crops 
this year due to persistent heavy rainfall in the Midwest.  To assist 
them, Secretary of Agriculture Dan Glickman directed the following changes 
in crop insurance for the 1995 crop year.

ACTION:

Final planting dates for corn are June 5 in the following affected States:  
Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, 
Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.  The grain 
sorghum final planting date in North Dakota, South Dakota, and Minnesota 
is June 5.  The final planting date for sunflowers in North Dakota, South
Dakota, and Minnesota is June 10.  This amends bulletin MGR-95-020.  Late 
planting rules apply per policy provisions.

Farmers who have been prevented from planting a crop will be permitted to 
collect a prevented planting payment and enroll the affected acreage under 
the 50/92 and 0/92 provisions of the 1995 wheat, feed grains, upland cotton 
and rice programs authorized by the Agricultural Act of 1949. Affected 
acres must be idled throughout the crop year or have an approved cover crop
established in accordance with 5-PA (Rev 10). 

A.   With these changes in place, producers who are in compliance with all 
     prevented planting conditions will have the following options:
     
     1.   Producers may provide written notice immediately to file for a 
          prevented planting payment.  They need not wait until after the 
          25-day late planting period for the crop to be considered 
          prevented from planting.  Affected acres must be idled throughout 
          the crop year or have an approved cover crop established in
          accordance with 5-PA (Rev 10).
          
          NOTE:     Indemnity payments will be payable following the latest 
                    applicable planting date for the insurable crops in the 
                    area or states.     
     
     2.   Producers may plant a second crop on the same acreage and forego 
          a prevented planting payment on the original crop.  If the second 
          crop is not already insured, at least the catastrophic level of 
          crop insurance must be obtained on the second crop by the acreage 
          reporting date if the second crop is of economic significance and 
          insurable unless the producer chooses to forego most USDA program
          benefits.  (See Section 4 Paragraph G(1)(c) of the CAT Handbook.)

     3.   Producers may designate the acreage as conserving use for payment 
          acreage under the 50/92 and 0/92 provisions.  The producer can 
          still collect a prevented planting payment on the crop only if a 
          second crop is not planted on the acreage for the crop year, 
          including a crop approved for planting under the 50/92 and 0/92
          provisions.

     4.   Producers may plant the original crop, if possible, during the 
          late planting period which for most crops extends for not more than 
          25 days after the final planting date.  The producer may insure 
          the crop under the original policy at a reduced yield guarantee.

     5.   Producers may plant the original crop, if possible, after the 
          25-day late planting period.  A producer will receive a crop 
          insurance guarantee equal to the prevented planting payment level.  
          If the producer plants a different crop on the same acreage after 
          the late planting period has ended for all available crops, the 
          crop will not be insurable and insurance will not be required for 
          program linkage; however, no prevented planting payment will be 
          paid. 

     6.   Producers enrolled in the 1995 commodity price support and 
          production adjustment programs may plant a crop on other available 
          acreage as allowed under those programs.  A producer may still 
          collect a prevented planting insurance payment and a 50/92 or 
          0/92 payment when:

          (a)  acreage (including normally fallowed acreage) equal to or more 
               than the acreage that was prevented from being planted is kept 
               idle during the full crop year, 

          (b)  the total of the prevented planting and the planted acreage 
               does not exceed the permitted acreage for that crop,

          (c)  the loss of production on the overall unit is sufficient to 
               trigger the insurance guarantee.

B.   Failed Acreage Options:

     1.   Under the existing crop insurance policies, producers who plant a 
          crop that has failed must replant the original crop if it is 
          practical to do so.  A replanting payment is available with many 
          limited and additional coverage policies, but not with catastrophic 
          level coverage.

     2.   If it is not practical to replant the original crop, producers may 
          collect an indemnity payment for the failed crop as well as either 
          enroll that acreage under the 0/85 program or the 50/92 or 0/92 
          program and plant a 50/92 or 0/92-approved crop, or plant a second 
          crop on the affected acreage.

Attached are Examples 1 through 5 which illustrate various payment comparisons.


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