September 25, 1995

BULLETIN NO.: MGR-95-040

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

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  Clarification for Determining Effective Peanut Quotas When 
          Adjusting Claims for Indemnity

BACKGROUND:

The Federal Crop Insurance Corporation has received several inquiries 
regarding the procedures used to establish the effective peanut quota for a 
farm when determining the indemnity.  At issue is the confusion regarding 
loss adjustment procedure when a producer transfers quota from the farm prior 
to settlement of the claim.

The current Peanut Handbook (July 1995) instruction in Exhibit 4, page 15, 
paragraph e(1) states:

e    (1)  Final claims will be based on the lesser of:

          (a)  the effective poundage marketing quota reported on the acreage 
               report for the unit; or

          (b)  the CFSA (ASCS) effective poundage marketing quota for the unit
               determined at the time of final claim.

ACTION:

Effective immediately the following language will replace the current 
handbook instructions:

e    (1)  Final claims will be based on the lesser of:

          (a)  the effective poundage marketing quota reported on the acreage 
               report for the unit; or

          (b)  the CFSA (ASCS) effective poundage marketing quota for the 
               unit, prior to any fall transfers (transfers occurring after 
               July 31), as determined at the time of final claim.  Hard copy 
               documentation of fall transfers are to be obtained from the 
               CFSA county office and retained in the policyholder's claim 
               file.
 
Transfers of quota prior to August 1, may reduce the unit liability in 
accordance with existing procedure.  This bulletin will remain in effect 
until the revised language is incorporated into the Peanut Handbook.