BULLETIN NO.: MGR-96-050

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

FROM:    Kenneth D. Ackerman
         Acting Administrator

SUBJECT: 1997 Crop Year Prevented Planting Issues


BACKGROUND:

For the 1997 crop year, issues have been raised regarding: 1) how the maximum 
eligible prevented planting acreage is to be determined; and 2) the need to 
proactively advise policyholders of the policy requirement to request an 
increase in maximum eligible prevented planting acres by the sales closing 
date, if they intend to plant more than the maximum eligible prevented 
planting acreage allowed under current policy.

The Federal Crop Insurance Corporation (FCIC) was advised that revised 1996 
crop year prevented planting policy language was not being uniformly 
implemented.  Therefore, FCIC issued Manager's Bulletin MGR-96-045 to provide 
guidelines to follow when determining prevented planting acreage.

The current policy language 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....."

The passage of the 1996 Farm Bill provided producers with greater flexibility 
in planting in that they are no longer required to plant within certain crop 
acreage bases.  The increased flexibility has caused concern since FCIC 
policy language contains provisions which generally limit maximum eligible 
prevented planting acreage to prior year bases or planting history, unless 
the policyholder requests an increase in eligible prevented planting acreage 
by the sales closing date.

ACTION:

Until the prevented planting policy provisions regarding maximum eligible 
acreage are revised, the maximum eligible prevented planting acres will be 
determined on a policy (contract) basis (that is reflecting all acreage on 
all FSN's carried under the policy rather than reflecting individual FSN's), 
subject to the acreage limitations contained in the policy provisions. While
the determination will be based upon the insured's intent as reported by the 
acreage reporting date, that reported acreage cannot exceed the maximum 
acreage eligible under the policy. 

Additionally, insurance providers and agents should advise each policyholder 
that if they wish to increase the maximum acreage eligible for prevented 
planting coverage above the limitations contained within the policy, such 
request must be made by the sales closing date for the applicable crop.