BULLETIN NO.: MGR-96-065.1
     
TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery and Field
          Operations
     
FROM:     Kenneth D. Ackerman
          Acting Administrator
     
SUBJECT:  Changes to the Additional Guidelines Regarding
          Transfer of CAT Policies 
     
BACKGROUND
     
This bulletin amends the previous Manager's Bulletin MGR-96-065
regarding the movement of the Catastrophic Risk Protection (CAT)
policies to reinsured companies from Farm Service Agency (FSA) local
offices.  It has been determined that a properly executed waiver signed
by producers in advance of applying for certain other USDA program
benefits sufficiently complies with intent of the Federal Agriculture
Improvement and Reform Act of 1996, to the extent that a failure to pay
the administrative fee on a catastrophic protection crop insurance
policy, standing alone, will not jeopardize the policyholder's other
USDA benefits.
     
ACTION
     
For the 1997 crop year, strike the following portions of MGR-96-065:  
     
B.    4)  Producers who failure (sic) to pay the $50 administrative fee
or submit an acreage report, when due, will have breached the crop
insurance contract and will not be eligible for other USDA program
benefits including: a) benefits under the Agricultural Market
Transition Act, b) loans, including loans from Farm Credit and
c) benefits under Conservation Reserve Program without regard to whether 
an FSA-570 waiver was signed.
          
        5)  Reinsured companies and their agents (with the support of
local FSA offices) have an affirmative responsibility to advise
policyholders who do not wish to continue their coverage to sign a
cancellation form by the cancellation date or otherwise express the
desire to cancel assuring other USDA program benefits are not affected.  
     
Risk Management Agency will take the necessary actions to remove the
provision from the 1997 Catastrophic RiskProtection Endorsement (97-CAT)
as soon as possible via a technical correction to the regulations.