BULLETIN NO.: MGR-97-010

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

FROM:    Kenneth D. Ackerman
         Acting Administrator

SUBJECT: Damage to Perennial Crops in California Outside the Insurance Period

BACKGROUND:

Questions have been raised regarding the insurability of losses to perennial 
crops which may be attributed to the heavy rains and resultant flooding in 
January, which were outside the insurance period for many affected crops.  
The crops of special concern are grapes, cling peaches and prunes, which 
have an insurance attachment date of February 1, and walnuts, with an 
insurance attachment date of March 1.  Other perennial crops either have an 
earlier date of insurance attachment or there have not been any reports of 
flood related damage.  While the heavy rains and flood occurred outside the 
insurance period for some perennial crops, actual flood damage to the 
perennial crops will not be known until the crops break dormancy in late 
February or early March. 

ACTION:

Damage that can be solely attributed to be outside the insurance period 
(such as tree/vine wash out) would not be covered for new or existing 
policyholders.   However, if additional rains and damage occur after the 
insurance attachment date and if we are unable to discern the exact amount 
of damage occurring outside the insurance period, new and carryover 
policyholders would be covered.