BULLETIN NO.:  MGR-96-014.1

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

FROM:     Kenneth D. Ackerman
          Deputy Administrator

SUBJECT:  Implementing Provisions of the Federal Agriculture Improvement and 
          Reform Act of  1996

BACKGROUND:

Since issuance of MGR-96-014, clarification has been requested on the 
applicability of provisions to perennial crops, whether a barley producer 
with a limited or additional coverage may increase that coverage, the 
definition of a carryover policy, and the production reporting date for new 
policies. This bulletin establishes and clarifies policy for those issues.

ACTION:

Please add the following provisions to MGR-96-014:

II.2.   The cancellation is requested prior to the earlier of May 2, 1996 or 
        the 1996 crop insurance acreage reporting date for the crop.  Some 
        crops in some counties have more than one acreage reporting date 
        (e.g. wheat with a fall acreage reporting date and a spring acreage 
        reporting date).  If the earliest acreage reporting date has passed, 
        the CAT policy cannot be canceled for the 1996 crop year.

II.3.   An insured may cancel a carryover CAT crop policy provided the 
        request is made by May 2, 1996, and the acreage reporting date for 
        the crop has not passed.

A carryover policy is any policy in effect the previous year without respect 
to the carrier, agent, or coverage level, and is determined on a crop (by 
county) basis.  

NOTE:  This is consistent with the definition of "carryover insured" in the 
       CAT Handbook, Section 5B(11).

This means that if an insured had additional coverage in 1995 and changed 
that coverage to a CAT policy within the same company, at a different 
company, or at a Farm Service Agency County Office in 1996, the CAT policy 
may be canceled if the request is received before May 2, 1996 and the acreage 
reporting date for the crop has not passed.

III.2.D  For CAT policyholders electing limited or additional coverage and 
         the new Malting Barley Price and Quality Endorsement (Option A or 
         Option B) or policyholders with limited or additional coverage 
         electing to change to or add Option A or Option B of the Malting 
         Barley Price and Quality Endorsement:  Such policyholders may 
         increase their coverage level and/or price election.

V. PERENNIAL CROPS.

The extended sales period provided by FAIR does NOT apply to perennial crops.  
However, during the extended period (ending May 2, 1996), a carryover insured 
may cancel a 1996 perennial crop CAT policy if the cancellation request is 
made the earlier of the 1996 acreage reporting date or May 2, 1996.

VII. PRODUCTION REPORTING DATE 

For all policies on spring crops sold during the extended sales period, the 
APH production reporting date is the earlier of the 1996 acreage reporting 
date or May 30, 1996.