BULLETIN NO.: MGR-97-005

TO:       All Reinsured Companies
          All Risk Management Field Offices

FROM:     Kenneth D. Ackerman
          Acting Administrator

SUBJECT: 1997 Corn and Soybean Crop Revenue Coverage (CRC) Carryover
         Policyholders in Iowa and Nebraska and Income Protection (IP)
         Carryover Policyholders

BACKGROUND:

Crop Revenue Coverage (CRC) was approved as an insurance program on a
limited basis beginning with the 1996 crop year for corn and soybeans
in all Iowa and Nebraska counties.  Producers in these States
purchasing CRC for corn or soybeans received a CRC Insurance Policy
(Basic Provisions), CRC Corn Crop Provisions, or a CRC Soybean Crop
Provisions.   For the 1997 crop year, the Federal Crop Insurance
Corporation's Board of Directors (Board) approved the expansion of CRC
to additional States and counties for corn and soybeans.  The expansion
for corn and soybeans also included a request by the submitting company
to make revisions to the CRC Basic Provisions and combine the CRC Corn
and Soybean Crop Provisions into a CRC Coarse Grains Crop Provisions
(corn, grain sorghum, and soybeans) for the 1997 crop year. 
Additionally, premium rates have changed, generally increasing, for most
areas of these two States. 

Income Protection (IP) was approved as a pilot program beginning with
the 1996 crop year for corn, cotton, and spring wheat, with coverage
expanded to selected winter wheat areas for 1997.  For the 1997 crop
year the Board approved the expansion of IP to grain sorghum in
selected counties in Texas and soybeans in selected counties in
Arkansas, Illinois, Indiana, and Iowa.  Changes have also been made to
the IP crop provisions for corn, cotton, and spring wheat for the 1997
crop year to protect the interests of producers.

ACTION:

Since the contract change dates for the 1997 crop year for CRC corn, CRC
soybeans, IP cotton, IP corn, and IP spring wheat have passed,
companies with carryover CRC corn, CRC soybean, IP cotton, IP corn or
IP spring wheat policies must inform their policyholders, in advance of
the sales closing/cancellation date, in writing of the changes in the
CRC or IP policies.  The letter to the policyholders must:

1.Explain that the carryover policy will be controlled by the terms and
conditions of the 1997 CRC Basic Provisions and CRC Coarse Grains Crop
Provisions or IP Crop Provisions;

2.Inform policyholders their premium rates may change, and are likely to
increase for the 1997 crop year; and 

3.Inform policyholders they must advise their agent in writing of their
acceptance of the new rates and terms and conditions of the policy and
that failure to advise the agent in writing of their acceptance before
the cancellation date will result in their CRC or IP policy being
canceled for the 1997 crop year.

If the policyholder accepts the new policy, the company must issue the
new CRC Basic Provisions and CRC Coarse Grains Provisions or the new IP
Crop Provisions to all new and carryover CRC or IP policyholders.