BULLETIN NO.:  MGR-95-027

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

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  USDA Press Release - Prevented Planting 


Late Friday afternoon, June 16, 1995, USDA issued the attached press release 
regarding FCIC's prevented planting coverage for crop year 1995.  We will 
issue a more detailed Bulletin describing these changes within the near 
future.
-----------------------------------------------------------------------------                                                                                                       Release No. 0504.95

                                               Jim Petterson (202) 720-4623
                                                Bruce Merkle (202) 720-8206


USDA ANNOUNCES ADDITIONAL CHANGES 
IN CROP INSURANCE PROGRAM TO AID 
PRODUCERS PREVENTED FROM PLANTING

Spokane, June 16, 1995--Agriculture Secretary Dan Glickman today announced 
further crop insurance changes to aid producers in the Midwest where 
excessive rainfall has prevented normal planting.

"These added changes, which will apply in instances of prevented planting, 
are essential to aid producers caught in a very difficult situation that has 
potential for severe economic problems,"  Glickman said.  "Farmers expect 
federal crop insurance to be there for them when disasters strike.  This year 
is the first year of a new, expanded crop insurance program under the 1994 
Federal Crop Insurance Reform Act.  We are committed to making the reforms 
work. The changes announced today, along with those announced in recent weeks, 
will ensure that crop insurance is responsive to the real-life needs of 
farmers as we perfect the program."

The new changes announced today are:

     Producers planting an alternative crop when they could not plant their 
     original crop will be allowed a prevented-planting indemnity payment 
     equal to 25 percent of the total insurance guarantee on their original 
     crop.  Up until now, producers could not plant an alternative crop and 
     still collect a prevented-planting insurance payment.

     If no alternative crop was planted, the producer's indemnity payment 
     will be 75 percent of their yield guarantee, up from 50 percent.  This 
     increased payment does not apply if a cover crop is planted for haying 
     and grazing under the 0/92 program.

The changes announced today are effective for the 1995 crop year only.  The 
USDA is now reviewing its prevented-planting policy to determine what changes 
would be appropriate for future years.

The USDA also will announce modifications of the farmer-owned reserve program 
to respond to changed market conditions caused by excessive rainfall and to 
off-set partially any additional costs associated with the crop insurance 
changes.

Producers should contact their local Consolidated Farm Service Agency office 
for further information.