July 20, 1995

BULLETIN NO.:      MGR-95-032

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

FROM:       Kenneth D. Ackerman
            Acting Deputy Administrator For Risk Management

SUBJECT:    Termination of the Kansas/Colorado/Missouri/Nebraska
            Wheat Appraisals Monitoring Review  

BACKGROUND:

The wheat monitoring review was initiated in response to allegations that 
loss adjusters were releasing freeze damaged wheat with inaccurate appraisals.  
The review objective was to find out if contracted loss adjusters and/or 
persons assigned loss adjustment responsibilities for both the Consolidated 
Farm Service Agency (CFSA) and the reinsured companies were appraising in 
accordance with approved appraisal methods.  Manager Bulletin MGR-95-018 
dated June 9, 1995, outlined procedures to be followed and logistical details.
The wheat was damaged by freeze in Western Kansas, Southeast Colorado, and 
Nebraska in early April followed by hailstorms and a cool wet growing season 
in May.  Flood and excessive precipitation were the predominate causes of loss 
in Missouri.  Many areas within the monitoring region experienced excessive 
losses with wheat yields reduced 75 to 100 percent.   To date, 10 to 15 
percent of the unharvested wheat units submitted for review were selected for
reappraisal.  The review revealed that loss adjusters were generally following approved appraisal methods with less than 2 percent of the
units selected requiring some corrective action.
  

ACTION:   

Effective today, the monitoring review of wheat appraisals has ended. 
Companies and CFSA offices are no longer required to fax the crop worksheets 
into the Kansas City Risk Compliance office (KCRCO). Issues concerning loss 
adjustment will be reviewed on a case by case basis with some selected areas 
targeted for follow-up review.  The KCRCO will notify those companies and
CFSA offices involved.  Contact the KCRCO should you have any questions at 
(816) 926-7963.