INFORMATIONAL MEMORANDUM:  R&D-95-027

TO:          All Reinsured Companies
             All Risk Management Field Offices
             CFSA Headquarters, Program Delivery & Field Operations

FROM:        Tim B. Witt
             Acting Director
             Research and Development Division 

SUBJECT:     Replanting  Payments for 1995 Coarse Grains and
             Sunflower Seed


BACKGROUND:

Subsection 10.(c) of the 1995 Coarse Grains and Sunflower Seed Crop
Policies states:

     "When more than one person insures the same crop on a share
     basis, a replanting payment based on the total shares insured
     by us may be made to the insured person who incurs the total
     cost of replanting.  Payment will be made in this manner only
     if an agreement exists between the insured persons which:

     (1)   Requires one person to incur the entire cost of
           replanting; or
     (2)   Gives the right to all replanting payments to one
           person."

Replanting payments are not available under the Catastrophic Risk
Protection Endorsement.

ACTION:

All replanting payments must be reported through the Data Acceptance
System (DAS) by individual policyholder (shareholder).  If a tenant
has a .667 share in a crop, a .667 share of the replanting payment
should be processed through DAS.  DAS has no means to validate:  (1)
if all persons sharing in the crop are insured, (2) if any person
sharing in the crop has CAT coverage, or (3) if a replanting payment
agreement exists between the insured persons.  Therefore, DAS can
only validate, edit, and accept the actual insured share for each
unit submitted on the acreage record.

The above replanting payment provisions, if requested by the
insured, must be implemented internally by insurance providers
servicing limited or additional coverage policies. The insured
receiving the replanting payment may only collect the percentage of
the replanting payment available under the respective policies
involved.  The Coarse Grains and Sunflower Seed  Crop Policies are
being revised for the 1996 crop year with a proposal to delete the
above provisions.