BULLETIN NO.:   MGR-96-052

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

FROM:         Kenneth D. Ackerman
              Acting Administrator

SUBJECT:      Technical Correction of 1996 Blueberry Pilot Insurance Program

BACKGROUND:

Due to severe spring frost in Mississippi, concerns have been raised regarding 
the current blueberry price and policy language requiring producers to 
harvest at least 25 percent of the unit's production guarantee or be 
subjected to a minimum appraisal of 45 percent of the unit guarantee.  The 45 
percent figure was based on estimated harvesting and crop maintenance costs
that would not be borne by producers who did not harvest a crop.  This 
provision was meant to be an incentive to harvest all marketable berries.  
However, development of the approved price involved deducting all harvesting, 
sorting, packing, and related costs from the average prices received by 
farmers.  Thus, pricing methodology and the policy provisions are in conflict.

ACTION:

A technical correction to eliminate the requirement to harvest at least 25 
percent of the unit's production guarantee or be subject to a minimum  
appraisal of 45 percent unit production guarantee has been made to the 
blueberry pilot crop provisions for the 1996 crop year.   Specifically, the 
definition of harvest has been modified in Section 1, "Definitions," of the
Blueberry Crop Provisions and references to the 45 percent unharvested 
guarantee have been removed from Section 11, "Settlement of Claim."  Also, 
the Blueberry Loss Adjustment Standards Handbook (FCIC-25550) has been 
revised to reflect the changes to the policy.  A copy of the 1996 Blueberry 
Crop Provisions and a summary of changes to the Blueberry Loss Adjustment 
Standards Handbook are attached.  Current policyholders should be notified 
of the above change. 

This change is effective for the 1996 crop year.

Attachments