September 28, 1995
 
BULLETIN NO.: MGR-95-042

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

FROM:         Kenneth D. Ackerman
              Acting Deputy Administrator

SUBJECT:      1995 Prevented Planting Loss Adjustment Advisory

BACKGROUND:

This year the Federal Crop Insurance Corporation (FCIC) liberalized the 
prevented planting provisions of the crop insurance policy.  These changes 
were made to provide producers with options which otherwise would not have 
been available due to participation in other farm programs.  Additionally, 
FCIC provided producers the opportunity to request increased acreage over 
prior years via their acreage report rather than by written agreement.  These
changes signified the intent of the Department of Agriculture (USDA) to 
provide as much assistance as possible to producers adversely affected by 
the wet weather.  In recent weeks, the Consolidated Farm Service Agency 
(CFSA) offices have received numerous complaints regarding possible abuses 
of the prevented planting assistance provided during 1995.  As a result of 
these complaints, Risk Management personnel will aggressively monitor 
prevented planting loss adjustment.  This bulletin is intended to remind loss 
adjusters and their supervisors of their responsibility to ensure that policy 
and procedure are administered uniformly for the 1995 crop year.

This memorandum does not change the approved loss procedures, but is intended 
to reinforce these procedures and provide a reminder of the changes made to 
prevented planting for 1995.

ACTION:

Insurance providers will ensure that loss adjusters are provided the 
information pertinent to determining the correct indemnity contained in 
Manager's bulletins; MGR-95-021.1, MGR-95-022, MGR-95-024, MGR-95-028, and 
MGR-95-039.  These bulletins set forth the insurance policy revisions to 1995 
prevented planting coverage.

Loss adjusters must ensure that producers had the means to plant acreage 
reported as prevented from planting.  As evidence of the producer's 
intentions to plant the crop, loss adjusters must consider purchase of seed, 
chemicals, availability of equipment, the date the land was purchased/rented, 
etc. in making this determination.

Loss adjusters must adhere to the policy provisions as well as the procedures 
found in the above mentioned bulletins for determining eligible prevented 
planting acreage.  Eligible acreage is restricted in many cases by the 
producer's participation in the Acreage Reduction Program.  The policyholder's 
participation may be affected if he or she certifies prevented planting for 
crop insurance purposes on certain restricted crops, (e.g. generally, acreage
designated as "conserving use for payment" or "CU for payment" under 0/50/92 
provisions would preclude the producer's ability to plant soybeans on that 
acreage).  Loss adjusters should thoroughly document any differences in crops 
and acreage reported for farm program participation and acreage reported for 
prevented planting payments under crop insurance.

Specific examples of prohibited prevented planting claims include:

     Receiving a prevented planting payment on the same acreage for fall and 
     spring seeded crops.

     Receiving a prevented planting payment on a spring seeded crop after a 
     fall seeded crop was planted and failed.

     Receiving a prevented planting payment for a program crop on acreage 
     which was voluntarily reduced under 0/50/92 provisions in order to plant 
     a minor oilseed or industrial crop.  (A prevented planting guarantee 
     would be available for insurable minor oilseeds that were intended for 
     this acreage.)

     Receiving a prevented planting payment on a crop with a final planting 
     date which falls after the final date for a subsequent crop  (e.g. 
     prevented planting corn showing a subsequent crop of spring wheat). 

     Any prevented planting payment on acreage designated as "CU for payment" 
     under 0/50/85 provisions.

Although changes to the prevented planting policy provisions were made in 1995
to assist producers who were adversely affected by the wet planting season, 
these changes were not intended to promote or permit abuse or fraudulent 
claims by producers or intended to extend benefits or indemnities for losses 
that did not occur.