An incorrect version of BULLETIN NO: MGR-96-037.1 was issued June 26, 1996.
This BULLETIN NO.: MGR-96-037.2 replaces MGR-96-037.1.

BULLETIN NO.: MGR-96-037.2

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

FROM:    Kenneth D. Ackerman
         Acting Administrator
 
SUBJECT: Spring-Planted Crops on Failed Wheat Acreage in Kansas, Colorado,
         and Oklahoma for the 1996 Crop Year Only


CLARIFICATION:

This bulletin clarifies the application of MGR-96-037.1 to most spring-planted 
crops and is not limited only to grain sorghum. It replaces MGR-96-037.1 
which is now obsolete.

BACKGROUND:

Dry conditions in many of Kansas, Colorado, and Oklahoma have resulted in 
failed wheat acres. Conservation plans for highly erodible land in this area 
require producers to leave plant residue on the soil surface. Producers have 
left failed wheat standing for erosion control and have indicated they want 
to insure crops planted on failed acreage if they receive moisture.

Many spring-planted crop special provisions in Kansas, Colorado, and Oklahoma 
state that the crop will not be insurable on non-irrigated acreage, if it is 
planted following another crop which has reached the heading stage and/or that 
has been harvested in the same calendar year. The special provision creates 
the following inequity: 1) producers with wheat appraising "zero" will 
immediately be eligible for insurance on a subsequent crop; 2) producers who 
summer fallowed their acreage would be eligible for insurance on a subsequent 
crop even though the acreage may have vegetation which could have affected 
soil moisture reserve; however, 3) producers with wheat in the headed and/or 
unheaded stage appraising greater than "zero" who followed required 
conservation plans and left any wheat standing would be considered ineligible 
for insurance on a subsequent crop.

ACTION

Effective for the 1996 crop year, crops which have the above special provision 
statement for counties in Kansas, Colorado, and Oklahoma will be changed to, 
"Crops will not be insurable on non-irrigated acreage, if they are planted 
following another crop that has been harvested in the same calender year." 
In counties where both NFAC and FAC practices are provided, crops planted on 
failed wheat acres must be reported as FAC.