United States       Consolidated       Office of      P.O. Box  419293
     Department of       Farm Service       Risk           Kansas City
     Agriculture         Agency             Management     Missouri   64141
     
     
     
     INFORMATIONAL MEMORANDUM: R&D-95-040
     
     TO:      All Reinsured Companies
              All Risk Management Field Offices
              CFSA Headquarters, Program Delivery and Field Operations
     
     FROM:    Tim B. Witt     /S/ R. E. WAGGONER 08/31/95
              Acting Director
              Research and Development Division
     
     SUBJECT: "Clarification of 1995 Prevented Planting Coverage Relating to:
              1.  Hail/Fire Exclusion on Additional Coverage Policies
              2.  Situations When the Planting Process Cannot be Completed"
     
               
     BACKGROUND:
     
     Questions have been raised regarding the use of the Hail and Fire
     Exclusion Form with "additional coverage" policies that provide a
     prevented planting production guarantee.  Also, a question has been
     raised regarding an insured's eligibility for a prevented planting
     payment when the planting process cannot be completed by the final
     planting date or within the late planting period.
     
     ISSUE 1:
     
     Can hail and fire coverage be excluded from an "additional coverage"
     Multiple Peril Crop Insurance (MPCI) policy with prevented planting
     acreage? 
     
     DISCUSSION:
     
     Hail/fire may be excluded on the planted acreage.  However, since hail/
     fire coverage cannot attach on the unplanted acreage, it may not be
     excluded on those acres. 
     
     ACTION: 
     
     Prevented planting coverage liability (as shown on the Summary of
     Coverage/Schedule of Insurance) for acres not planted, must not be
     included when determining the required amount of the private hail and
     fire liability needed to qualify for the exclusion.  The full premium
     rate will be charged on unplanted acres eligible for a prevented planting
     production guarantee.
     
     ISSUE 2:
     
     Is an insured eligible for a prevented planting production guarantee when
     the planting process is not completed by the final planting date or
     within the late planting period?  An example would be a producer who
     broadcasted wheat seed onto a prepared seed bed and due to subsequent wet
     weather was not able to mechanically incorporate the seed into the soil
     as required by policy provisions.
     
     DISCUSSION:
     
     The acreage is not planted under the terms of the policy. Accordingly, it
     may be considered to be prevented from planting.
     
     ACTION:
     
     An insured who was unable to complete planting the insured crop by the
     final planting date due to an insured cause of loss is eligible for a
     prevented planting production guarantee in accordance with MGR-95-028.