INFORMATIONAL MEMORANDUM: R&D-95-054 TO: All Reinsured Companies All Risk Management Field Offices FSA Headquarters, Program Delivery and Field Operations FROM: Tim B. Witt Director Research and Development Division SUBJECT: New Crop Policies in Effect for the 1996 Crop Year Attached are new policies that contain approved changes to prevented planting provisions for hybrid sorghum seed, rice, hybrid seed (corn), small grains, cotton, ELS cotton, sunflower seed, coarse grains, and canola. The new provisions are effective for the 1996 crop year for all county/crop programs with a contract change date of November 30, 1995, or later. Following are brief descriptions of significant changes to provisions in these policies. Please refer to the policies for more complete information. Also attached is an updated Index of Policies effective for the 1996 crop year. 1. Previous prevented planting policy provisions did not allow an insured producer to obtain a prevented planting guarantee for one crop and plant a substitute crop intended for harvest in the same crop year on the same land. New prevented planting provisions will allow insured producers with limited or additional coverage to: (a) Receive a prevented planting guarantee equal to 25 percent of the guarantee for timely planted acreage (20 percent for hybrid seed (corn) and 17.5 percent for cotton, ELS cotton, and rice) when acreage that is prevented from being planted is planted to a substitute crop after the tenth day following the final planting date for the intended crop (tenth day after the latest final planting date in the county for each specific crop insured under the Small Grains Crop Provisions) and, as applicable, a 0/92 or 50/92 program benefit; and (b) Exclude eligibility for prevented planting coverage when a substitute crop is planted in return for a reduction in the premium. 2. The new prevented planting policy provisions also: (a) Allow all insured producers to receive a 0/92 or 50/92 program benefit, as applicable, and a crop insurance prevented planting guarantee equal to 50 percent of the guarantee for timely planted acreage (40 percent for hybrid seed (corn) and 35 percent for cotton, ELS cotton, and rice) when acreage that is prevented from being planted is not planted to a substitute crop; (b) Eliminate the provisions that require acreage eligible for a prevented planting guarantee to be prorated to all units that could have been planted in the crop year; (c) Change the date that a prevented planting notice of loss is required from 3 days after the final planting date, or the date the producer discovers that planting will not be possible within the late planting period, to the acreage reporting date; (d) Limit the maximum number of hybrid seed (corn) and hybrid sorghum seed acres eligible for a prevented planting amount of insurance to the number of acres required to be grown under a contract executed with a seed company; (e) Allow prevented planted acreage planted with a conserving use cover crop to be hayed and grazed without affecting crop insurance prevented planting benefits; and (f) Allow insured producers with limited or additional coverage to receive prevented planting coverage on double cropped acreage (except for ELS cotton) if the producer can provide proof that planting of a second crop (double crop) following the harvest of an initial crop in the same crop year is a farming practice normally followed by that producer. These new crop policies will be placed on the Reporting Organization Server in WordPerfect 6.0. The Actuarial Branch will notify you through an informational memorandum when the crop policies are available on the server. Any questions or requests for a WordPerfect 6.0 formatted diskette containing the new crop provisions should be directed to the Product Development Branch at (816) 926-7730. Attachment