January 14, 1997

BULLETIN NO.: MGR-97-003

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

FROM:       Kenneth D. Ackerman
            Acting Administrator

SUBJECT:    Extension of the Acreage Reporting Date for the 1997 Crop Year 
            for Macadamia Nuts and Macadamia Trees


BACKGROUND:

The Catastrophic Risk Protection Endorsement (97-CAT) requires that the 
administrative fee for catastrophic risk protection (CAT) coverage be paid 
annually on or before the acreage reporting date for the applicable crop.  
If  the administrative fee is not paid when due, the crop insurance contract 
terminates effective at the beginning of the crop year for which the 
administrative fee was not paid.  

The macadamia nut and macadamia tree crop insurance policies, which are 
non-continuous, have an acreage reporting date of January 1 of each crop year 
which is also the date insurance attaches.  Filing of the actuarial documents 
for insurance of macadamia nuts and macadamia trees is normally initiated by 
August 31 of each calendar year; however, filing for the 1997 crop year
was delayed almost 3 1/2 months to evaluate realignment of the insurance 
period with the production year used by the macadamia nut industry.  Although 
no change will be made to the insurance period for the 1997 crop year, the 
delayed filing does not provide applicants for insurance an adequate and 
reasonable amount of time to pay the administrative fee for 1997 crop
year CAT coverage by the January 1 acreage reporting date. 

ACTION:

Effective for the 1997 crop year only, the Risk Management Agency has extended 
the acreage reporting date for macadamia nut and macadamia tree crop insurance 
policyholders to January 31, 1997.  Policyholders with CAT coverage for 
macadamia nuts or macadamia trees must pay the administrative fees for these 
crops on or before that date for coverage to have attached on January 1, 1997.