BULLETIN NO.: MGR-96-033

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

FROM:     Kenneth D. Ackerman
          Deputy Administrator

SUBJECT:  Cotton Acreage Affected by Drought Conditions in Texas and New 
          Mexico 


BACKGROUND:    

Abnormally dry conditions have delayed the initial planting of cotton acreage 
in Texas and New Mexico to what is now near the final planting date.  
Generally, in these areas acreage planted after the final planting date has 
reduced or no chance of reaching full maturity before the normal frost/freeze 
date for the area.

The FCIC 30090, Cotton Handbook issued in July 1995,  provides for an 
appraisal deviation for releasing cotton acreage seven days after the 
applicable published final planting date under abnormally dry conditions.  
This deviation may be authorized when little or no rain occurs in a cotton 
growing area and insured producers dry-plant nonirrigated cotton acreage by 
the applicable final planting dates for the county. 

Questions have also been raised regarding whether producers in these areas 
would be eligible for prevented planting due to the abnormally dry conditions.

ACTION:

For the 1996 crop year only, an appraisal deviation is being authorized in 
counties in Texas and New Mexico with published cotton final planting dates 
of May 31 through June 20.  This authorization allows insurance providers to 
release nonirrigated cotton acreage that has been dry planted by the final 
planting date to be put to other use beginning seven days after the final 
planting date.  If moisture is received within the 7-day period after the 
published final planting date, appraisals must be deferred to determine if 
such seed will germinate.  If the seed does germinate and produces a stand, 
the appraisal must reflect the crop potential based on the stand.  Use of this 
appraisal deviation must be documented by the adjustor before a claim can be
processed on such acreage.

To qualify for prevented planting producers must meet the definition of the 
policy: "Inability to plant the insured crop with the proper equipment . . .  
You must have been unable to plant the insured crop due to an insured cause of  
loss that has prevented the majority of producers in the surrounding area from 
planting the same crop."   As many producers are planting or have planted 
cotton in these states, it is anticipated the definition of prevented planting 
may not be met in many or most parts.  Risk Management Agency, in full 
consultation with all insurance providers and local specialists, will review 
potential situations in which the definition of prevented planting may apply.  
Producers' needs to protect against soil erosion and remain in compliance 
with conservation plans will be an important factor considered in this 
process.