BULLETIN NO.: MGR-97-028 TO: All Reinsured Companies All Risk Management Field Offices FSA Headquarters, Program Delivery and Field Operations FROM: Kenneth D. Ackerman Administrator SUBJECT: 1997 Peanut Seed Allocations BACKGROUND: The Federal Agriculture Improvement and Reform Act of 1996 (1996 Act) provided that a temporary allocation of quota pounds for each marketing year in which the crop is planted will be made to producers for each of the 1996 through 2002 marketing years, equal to the pounds of seed peanuts planted on the farm. The temporary seed allocation will be in addition to the farm basic poundage quota and will be credited for the applicable marketing year only. Since allocations are based on planted acres, Farm Service Agency (FSA) county offices will not be able to credit allocations to farm quotas before producers must report their quotas and planted acreage to their insurance provider. The temporary allocation will be based on standardized seeding rates for each type of peanuts. ACTION: For the 1997 crop year, peanut producers are to report their effective marketing quota from the FSA 1001, plus the additional poundage quota allocation for seed, when they report their planted acres to the insurance provider. Insurance providers are to use the following temporary "quota (lbs.) per acre" from the table below to calculate insurable quota poundage for each insured farm. Temporary quota allocations for the unit will be based on a producer's planted acres, times the "quota (lbs.) per acre", by type, (excluding peanuts harvested as green peanuts and peanuts planted under the 1 acre provision). TYPE QUOTA (lbs.) PER ACRE Spanish and Valencia 120 Runner 145 Virginia 165 Example: CAT Coverage 1.000 share (1 unit)* FSN A-145 = Runners 80.0 Acres X 145 Quota (lbs.) Per Acre = 11,600 lbs. FSN A-263 = Spanish 65.3 Acres X 120 Quota (lbs.) Per Acre = 7,836 lbs. Temporary Seed Allocation = 19,436 lbs. FSN A-145 = Effective Marketing Quota (FSA-1001) = 185,000 + 11,600 = 196,600 lbs. FSA A-263 = Effective Marketing Quota (FSA-1001) = 120,000 + 7,836 = 127,836 lbs. Total Acreage Report Quota = 324,436 lbs. *Note: For limited or additional coverage 1.000 share (2 units). If the final acreage reporting date has passed, a revised acreage report is required to add the temporary quota allocation to the reported effective marketing quota on the acreage report for the unit. A crop inspection to increase liability is not required even if the unit is in a loss situation. However, if the reported effective marketing quota and/or the acreage for the unit was under-reported, a crop inspection is required to increase the reported effective marketing quota and/or the acres. All revised acreage reports will require the insured's signature. Early season crop losses may occur before temporary seed quota allocations are completed and recorded by the FSA county office. For such instances, producers are to be instructed by the insurance provider, to contact their respective FSA county office and request an expedited seed allocation. The FSA county office shall record the effective marketing quota, including the temporary quota allocation, on the marketing card (Smart Card). Peanut final claims will be based on the lesser of the following: 1 The effective marketing quota on the revised acreage report (as stated above) for the unit; or 2 The FSA effective marketing quota for the unit, prior to any fall transfers (transfers occurring after July 31), as determined at the time of final claim. Hard copy documentation of fall transfers are to be obtained from the FSA office for the county and retained in the policyholder's file. Transfers of quota prior to August 1, may reduce the unit liability according to existing procedure.