BULLETIN NO.: MGR-99-020

TO:          All Reinsured Companies
             All Risk Management Field Offices

FROM:        Kenneth D. Ackerman    06-07-1999 /s/ Ken Ackerman
             Administrator

SUBJECT:     Written Agreements to Insure Acreage on Which a Crop Was
             Not Planted and Harvested Within 1 of the 3 Previous Crop Years

BACKGROUND:

Section 9(a)(1) of the Common Crop Insurance Policy, Basic Provisions, states acreage that has not been planted and harvested within 1 of the 3 previous crop years will not be insurable unless certain exceptions apply or a written agreement allows insurance for such acreage. The Risk Management Agency (RMA) has received several questions regarding the need and reasonableness for a written agreement to insure a small amount of acreage that has not been cropped in 1 of the 3 previous crop years (e.g., fence rows removed, etc.). RMA's Regional Service Offices are reporting a significant increase in the number of requests for written agreements to insure small amounts of acreage that have not been cropped in 1 of the 3 previous crop years.

ACTION:

To simplify and reduce paperwork, RMA will liberalize section 9(a)(1) of the Common Crop Insurance Policy, Basic Provisions effective for the 1999 and subsequent crop years as follows: Acreage on which a crop has not been planted and harvested within 1 of the 3 previous crop years which is planted to an insured crop for the current crop year and which comprises 5 percent or less of the insured planted acreage in the unit (including the acreage not previously cropped) will be insurable without a written agreement.

DISPOSAL DATE: