BULLETIN NO.: MGR-96-063.1

TO:       All Reinsured Companies
          All Risk Management Field Offices
     
FROM:     Kenneth D. Ackerman
          Acting Administrator

SUBJECT:  Procedures Submitted In Response to Crop Revenue Coverage (CRC) and Income
          Protection (IP) Loss Adjustment When the Harvest Price is less than the Spring
          Price

BACKGROUND:

On October 4, 1996, the Risk Management Agency (RMA) issued bulletin number 
MGR-96-063, which requested all participating reinsured companies to submit 
procedural plans for implementing the "Settlement of Claim" section of the 
CRC and IP Crop Provisions.  Under the CRC and IP plans of insurance, when 
the Harvest Price is less than the Spring Price (Projected Price for IP), 
policyholders may be eligible for an indemnity even though a production
loss was not experienced.  

ACTION:

RMA has received procedural plans from all participating reinsured companies.  
All procedural plans for CRC and IP Crop Provisions were consistent with the 
examples provided in paragraph 2 of MGR-96-063; therefore, the procedural 
plans are approved.  Any other issues which may have been raised or discussed 
when the procedural plans were submitted will be addressed individually with 
each specific company.