BULLETIN NO.: MGR-96-021

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

FROM:    Kenneth D. Ackerman
         Deputy Administrator

SUBJECT: Crop Revenue Coverage (CRC) Insurance Program Questions and Answers


Questions have been raised regarding the insurability of crops under the Crop 
Revenue Coverage (CRC) program under certain circumstances. 

QUESTIONS/ANSWERS:

1.  Are air-seeded soybeans insurable under the CRC insurance program?

    Yes - Section 6.(b) of the CRC Soybean Provisions states, "That is 
    adapted to the area based on days to maturity and is compatible with 
    agronomic and weather conditions in the area, including air-seeded 
    soybeans subject to our approval."

    Air-seeded soybeans are insurable under CRC subject to company approval.  
    Insureds must complete the AIR-SEEDED SOYBEANS CERTIFICATION REPORT 
    contained in the 1996 Crop Insurance Handbook (Exhibit 33) and submit it 
    to their insurance provider.  If the insurance provider approves the 
    certification form, the air-seeded soybeans are covered.  A written 
    agreement is not required.
     
2.  Is high-oil corn insurable under the CRC program?

    No - Section 6.(e)(1) of the CRC Corn Provisions excludes coverage for 
    corn designated as high-amylose, high-oil, high-protein, flint, flour, 
    Indian, or blue corn, or a variety genetically adapted to provide forage 
    for wildlife or any other open pollinated corn.  Corn that the seller has 
    specifically identified or sold as one of the above is not insurable under
    CRC.  Corn planted using cultural practices to enhance oil content (male 
    sterile plants with male pollinators, etc.) is considered high-oil corn 
    and is not insurable under CRC.

3.  Some corn policyholders who obtained 1996 CRC were not aware until after 
    the corn sales closing date that their "high-oil" corn was not insurable 
    under this program.   Will these policyholders be allowed to change their 
    coverage to the standard multiple peril crop insurance (MPCI) policy?  

    Yes - CRC corn policyholders in this situation will be allowed to: 
    1) change to standard MPCI coverage (the MPCI coverage level must be 
    equal to or less than the CRC program unless the insured can demonstrate 
    he or she canceled a level of MPCI coverage greater than that obtained 
    under CRC, or 2) obtain a mutual consent cancellation for their CRC 
    policy.  Policyholders choosing a mutual consent cancellation may affect 
    their eligibility for certain other USDA programs if they plant any 
    acreage to corn that is insurable under an MPCI policy.  CRC corn 
    policyholders may take these actions by the sales closing date extension 
    of May 2, 1996, for obtaining crop insurance or canceling existing 
    Catastrophic Risk Protection policies authorized the Federal Agricultural 
    Improvement and Reform Act of 1996 (FAIR).  Reinsured companies are 
    authorized to accept written agreements to insure high-oil corn as 
    provided by the MPCI Coarse Grains Crop Provisions during this time.  
    Note:  Insureds who grow both high-oil corn and non high-oil corn may 
    choose to remain insured under the CRC policy and not insure their 
    high-oil corn by designating such as uninsurable on the acreage report.

4.  Is high-risk land insurable under the CRC?

    Yes - The CRC premium rate is calculated by applying factors to the MPCI 
    base rate.  For high risk land, the High Risk Map Area Adjustment Factors 
    from the FCI-35 are used in the CRC premium rate calculation.

5.  Are written agreements for the purpose of providing reduced premium rates 
    on high-risk land available to CRC policyholders?

    No - CRC policyholders can insure high-risk land under CRC or under a 
    Catastrophic Risk Protection Endorsement (CRC Basic Provisions Section 
    2.(h)).