BULLETIN NO.:  MGR-95-005.1

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

FROM:     Kenneth D. Ackerman
          Acting Deputy Administrator

SUBJECT:  Revision and Clarification for Collection of Administrative Fees
          for the 1995 Crop Year

BACKGROUND:

This bulletin supersedes and clarifies the information in issue number 5 and 
attachment 1 of Bulletin No. MGR-95-005 regarding collection of 
administrative fees.  Administrative fees are due for all levels of insurance
coverage unless the applicant/insured qualifies as a "limited resource 
farmer."  Administrative fees are a condition of eligibility for linkage to 
certain other Department of Agriculture (USDA) program benefits.  If the 
entire administrative fee is not collected when due, the crop insurance 
contract will not be in effect for the crop year for which the fee is due and
will terminate.  The insured will not be eligible to receive any indemnities 
or certain other USDA program benefits. 

ACTION:

To simplify the collection of administrative fees, the following schedule 
will be followed:

(A)  Administrative fees for Catastrophic Risk Protection coverage are due:
     (1)  At the time of application, if a new insured; or
     (2)  With the acreage report, if a carry-over insured and the sales 
          closing date is on or after January 1, 1995; or
     (3)  At the premium due date if a carry-over insured and the sales 
          closing date is before January 1, 1995.
(B)  Administrative fees for limited coverage are considered earned and 
     payable at the time insurance attaches.  Payment of an administrative 
     fee will not be required if the insured files a bona fide zero acreage 
     report on or prior to the acreage reporting date for any year except
     the year of application.  This fee may be collected during the normal
     premium billing cycle and must be separately stated on the premium 
     billing.
(C)  Administrative fees for additional coverage are considered earned and 
     payable at the time insurance attaches and must be collected at the 
     time the premium is paid.  The administrative fee must be separately 
     stated on the premium billing.  The catastrophic risk protection 
     endorsement and the general administrative regulations, 7 CFR Part 400, 
     Subpart T, have been published in the Federal Register as an interim 
     rule and will be amended to incorporate this revision before the 
     regulations become final rule. Effective immediately, the collection 
     of fees are to be administered in accordance with this bulletin.