BULLETIN NO.: MGR-95-024

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

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

Subject:  Notice PA-1625 provided option available to producers that have 
          prevented planted acreage


BACKGROUND:

Notice PA-1625 provided options available to producers that have prevented 
planted acreage. There is confusion concerning crop insurance benefits when 
producers are prevented from planting any; insured crop, receive prevented 
planting insurance payment for that crop and subsequently establish an 
approved cover that is not an insurable crop on that acreage according to 
provisions in 5-PA.

The purpose of this notice is to provide clarification of benefits and 
applicable provisions when any crop, including any nonparticipating or 
nonprogram crop is reported as prevented planted.

PREVENTED PLANTED POLICY

Producers who are prevented from planting any insured crop and receive an 
insurance payment for that crop may subsequently establish an approved cover 
on that acreage according to provisions in 5-PA, as long as the approved 
cover crop is not an insurable crop.  The following shall apply to the 
approved cover crop:

*    crop insurance indemnities will be paid for the prevented planted crop

*    haying and grazing of the approved cover crop is allowed outside the 
     5-month nonhaying and nongrazing period

*    haying and grazing of the approved cover crop is allowed during the 
     5-month nonhaying and nongrazing period if the county has been 
     authorized for emergency haying and grazing

*    approved small grain cover crops shall not be hayed or grazed at any 
     time even if emergency haying and grazing is authorized

*    for participating crops, deficiency payments are earned on up to 92 
     percent of MPA at the guaranteed rate if the acreage is reported as 
     prevented planted for payment


NOTE:  haying includes silage, forage, haylage, and green chop.