BULLETIN NO.: MGR-96-006

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

FROM:     Kenneth D. Ackerman
          Deputy Administrator

SUBJECT:  Extended Liberalization of the Coarse Grains Crop Provisions for 
          the 1996 Crop Year Only Regarding Loss Adjustment Procedure for 
          Corn Insured as Grain but Harvested as Silage


BACKGROUND:

The Coarse Grains Crop Provisions and Corn Handbook provide that production 
to count for corn acreage insured as grain but harvested as silage will be 
determined on the basis of the tonnage of silage harvested. Due to numerous 
requests to reconsider this position in light of perceived inequities for 
determining production to count, the Federal Crop Insurance Corporation 
(FCIC) issued on September 1, 1995, Bulletin No. MGR-95-036, liberalizing
the Coarse Grains Crop Provisions for the 1995 crop year only.  This bulletin 
revised loss adjustment procedure for corn insured as grain but harvested as 
silage.  FCIC continues to receive similar comments concerning the 1996 crop 
year.

ACTION:

Listed below is the liberalization language contained in MGR-95-036 that will 
continue to be effective for the 1996 crop year only:

(1) Any insured who intends to harvest silage from acreage insured as corn 
    for grain must notify the insurance provider of this intention before 
    harvest.  Insureds are to be immediately advised of their responsibility 
    to notify their insurance provider if they intend to harvest silage from 
    any corn acreage insured as grain.  Upon notice, grain appraisals will
    be made to determine production to count, consistent with the way this 
    situation was handled for the 1994 crop year.  

Please refer to these specific procedures when determining production to 
count for corn acreage insured as grain but harvested as silage.