BULLETIN NO: MGR-98-032

TO:       All Reinsured Companies
          All Risk Management Field Offices
          All Other Interested Parties

FROM:     Kenneth D. Ackerman /s/ Ken Ackerman    11-9-98
          Administrator

SUBJECT:  Administrative Fees for Catastrophic Risk Protection (CAT) Crop Insurance
          Policies with a Sales Closing Date After July 1, 1998

BACKGROUND:

On October 19, 1998, H.R. 4328, Making Omnibus Consolidated and Emergency Supplemental
Appropriations For Fiscal Year 1999 was passed by Congress.  This bill amended section
508(b)(5)(A) of the Federal Crop Insurance Act specifying that for the 1999 reinsurance and
subsequent reinsurance years, no producer shall pay more than $50 per crop per county as an
administrative fee for Catastrophic Risk Protection (CAT) under section 508(b)(5)(A).  Section
508(b)(5)(B) requiring an additional fee of $10 was not affected.  

ACTION:

The total amount of fees for a CAT crop insurance policy with a sales closing date after July 1,
1998, will be $60 per crop, per county.   The $60 fee per crop per county will be billed to the
policyholder on the premium billing date specified in the Special Provisions (consistent with
limited and additional coverage policies).  The Risk Management Agency is amending the
"Interim Final Rules" for the Catastrophic Risk Protection Endorsement and General
Administrative Regulations at 7 CFR Subpart T accordingly and will issue a new CAT
endorsement upon filing of the regulations with the Federal Register.

DISPOSAL: 

This bulletin is effective until applicable regulations as stated herein are published in the Federal
Register.