Risk Management Agency - Bulletin No.: MGR-99-017

May 25, 1999

BULLETIN NO.: MGR-99-017

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

FROM:        Kenneth D. Ackerman    05-25-1999 /s/ Ken Ackerman
             Administrator


SUBJECT:     Peanut Temporary Seed Quota Allocation

BACKGROUND:

The Federal Agriculture Improvement and Reform Act of 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 1999 through 2002 crop years, 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 following table 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 planted for harvest as green peanuts and peanuts planted under the one-acre provision).

TYPE QUOTA (lbs.) PER ACRE

Spanish and Valencia 120

Runner 145

Virginia 165

EXAMPLE: A catastrophic, limited, or additional basic unit containing multiple farm serial numbers (FSN) AT 1.000 share (1 unit)*

FSN 145 = Runners  80.0 Acres X 145 Quota (lbs.) Per Acre =  11,600 lbs.
FSN 263 = Spanish  65.3 Acres X 120 Quota (lbs.) Per Acre =   7,836 lbs.
                               Temporary Seed Allocation  =  19,436 lbs.

FSN 145 = Effective Marketing Quota (FSA-1001) = 185,000 + 11,600 = 196,600 lbs.
FSA 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, each FSN may qualify as a separate optional unit.

If for any reason the temporary seed allocation is not recorded on a timely filed acreage report, a revised acreage report is required to add the temporary quota allocation to the reported effective marketing quota for the unit. A crop inspection to approve the increase in liability, due to the temporary seed quota allocation, 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 for accepting additional liability as outlined in the Loss Adjustment Manual 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 effective marketing quota, including the temporary quota allocation, must be recorded on the marketing card (Smart Card) in order for the claim to be completed. Peanut final claims will be based on the current Peanut Crop Provisions and Peanut Loss Adjustment Standards Handbook for the crop year.

DISPOSAL:

This Manager's Bulletin is effective until the disposal date, December 31, 2002.