BULLETIN NO.:  MGR-98-021

TO:      All Reinsured Companies
         All Risk Management Offices
         All Other Interested Parties
 
FROM:    Kenneth D. Ackerman /s/ John Zirschky   8/5/98    

SUBJECT: Approval to Use State Department of Agriculture Samples and Personnel for
         Aflatoxin Testing for 1998 Crop Year Corn

BACKGROUND:

The drought across much of the South has had a severe impact on the 1998 corn crop.  Hot, dry
conditions have dramatically increased the amount of aflatoxin in corn.  Currently, the State of
Louisiana is in the process of setting up sites across the State to sample and test for aflatoxin in
corn.  The State of Mississippi has indicated that they will set up a similar program.  Producers
who use the State service sites must comply with State sampling requirements.  The Risk
Management Agency (RMA) has reviewed the State of Louisiana requirements and has
determined that they meet or exceed approved 1998 loss procedures.  In order to provide timely
service to these producers RMA is approving the following for the 1998 crop year only.

ACTION:

Companies may use State drawn and identified samples in order to document and adjust corn
infected with aflatoxin.  Attached is a copy of the State of Louisiana's July 31, memorandum
outlining the procedures that must be used in order for producers to obtain free testing services at
the sites listed.  RMA will accept comparable samples and aflatoxin tests performed by any other
State.  

All other loss adjustment requirements remain in effect.  Under no circumstances may producers
draw or submit samples for testing to establish aflatoxin levels for crop insurance purposes.

Insurance providers will instruct loss adjusters to document any acreage adjusted and released
under this deviation and reference this bulletin number in the remarks section of the loss
documentation or on any other form which will be maintained in the file as part of the loss
documentation.

DISPOSAL DATE: December 31, 1998

Attachment