BULLETIN NO.: MGR-96-045

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

FROM:    Kenneth D. Ackerman
         Acting Administrator

SUBJECT: Determining Maximum Eligible Prevented Planting Acreage


BACKGROUND:

Questions have been raised regarding how the maximum eligible prevented 
planting acreage is to be determined for the 1996 crop year in accordance 
with policy provisions.

Late and prevented planting policy language was revised for the 1996 crop 
year.  The Federal Crop Insurance Corporation (FCIC) has been advised that 
the revised policy language is not being uniformly implemented.  The revised 
policy language in question specifies that,

    "The acreage to which prevented planting coverage applies will not 
     exceed the total eligible acreage on all Farm Service Agency (FSA) Farm 
     Serial Numbers in which you have a share....."

ACTION:

The following guidelines apply when determining prevented planting acres on a 
policy (contract) basis:

1)  If the insured reported prevented planting acres for the insured crop by 
    totaling all of the eligible acres from each FSN in which he/she had an 
    insurable share in the county and did not report more than the total 
    eligible prevented planting acreage on any one or a combination of those 
    FSNs in accordance with policy provisions, the insurance provider may 
    accept the acreage report and process accordingly.  The total eligible 
    prevented planting acreage may not exceed the number of cropland acres 
    available for planting.

    Example:

    FSN 100, Smith owns and operates (100 percent share).  100 corn base 
    acres, 300 cropland acres.

    FSN 200, Smith (tenant with 50 percent share) and Jones (landlord with 50 
    percent share).  100 corn base acres, 100 cropland acres.

    FSN 300, Smith (tenant with 50 percent share) and Brown (landlord with 50 
    percent share).  100 corn base acres, 100 cropland acres.

    Smith's maximum eligible corn prevented planting acreage would be limited 
    to 300 base acres.  Smith could claim all 300 corn acres as prevented 
    planting on FSN 100 and by doing so would not be entitled to any 
    prevented planting corn acres on either FSN 200 or 300.

    Landlord Jones could claim 100 corn acres prevented planting on FSN 200 
    at 50 percent share.

    Landlord Brown could claim 100 corn acres prevented planting on FSN 300 
    at 50 percent share.

    Note: Although individual acreage report line entries will not match for 
    the tenant and landlords in the above example, the intended acreage 
    information for FSN 200 and 300 should be listed on Smith's acreage 
    report in the remarks section. 

2)  If the insured reported prevented planting acres for the insured crop 
    based on individual FSN acreage determinations, the insurance provider 
    may accept the acreage report and process accordingly, provided the total 
    eligible prevented planting acreage does not exceed the cropland acres 
    for each FSN.  (For example, Smith would be eligible for 100 corn acres 
    at 100 percent share on FSN 100, 100 corn acres at 50 percent share on 
    FSN 200, and 100 corn acres at 50 percent share on FSN 300). 

3)  Insureds and/or companies do not have a choice nor the authority to 
    revise an acreage report to reflect the option which provides the 
    greatest indemnity.  The options above are to be implemented based upon 
    the insured's intent as reported by the acreage reporting date.